LOCAL GOVERNMENT COMMISSION AGENDA March 5, 2019

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1 1. PLEDGE OF ALLEGIANCE (Preliminary) RELATED INFORMATION 2. TOAST TO THE FLAG Approximate Per Capita Debt 03/01/19 3. CONFLICT OF INTEREST STATEMENT State: $ 490 Federal: $67, MINUTES FOR APPROVAL February 5, 2019 Page Last request Voted/ Unit Type Purpose Amount Comments Number to Borrow Non-Voted Pilot Mountain, Town of Revolving Loan Sewer $ 1,264,392 Unit Letter 2 FA $350K Taylorsville, Town of Revolving Loan Water $ 222,300 Unit Letter 2 RL $350K Eden, City of Financing Agreement Recreation, Streets & Sidewalk $ 945,700 3 FA $1.1M Highlands, Town of Financing Agreement Telecommunications $ 4,600,000 3 RL $2M King, City of Financing Agreement Municipal Building $ 900,000 4 FA $396K Ocean Isle Beach, Town of Financing Agreement Municipal Building $ 5,700,000 4 FA $1M Wilkes Community College Financing Agreement (GESC) Installation of lighting, upgrades, etc. $ 1,155,968 5 FA $720K Craven, County of General Obligation Refunding $ 8,500,000 6 RL $16.1M Non-voted Dobson, Town of Revenue Bond Water $ 2,096,000 7 IP $500K Burke, County of Revolving Loan Sewer $ 1,634,000 8 FA $21M Walstonburg, Town of Revolving Loan Sewer $ 173,650 8 GO $73K Yadkin Valley Sewer Authority Revolving Loan Sewer $ 1,509,090 8 RL $966K Yadkin Valley Sewer Authority Revolving Loan Sewer $ 599,899 8 RL $966K High Point, City of Annexation Misc. - Action $ IP $35M Yadkin Valley Sewer Authority Revolving Loan Misc. - Action - loan increase $ 198,014 9 RL $966K Southeastern Regional Medical Center NC Medical Care Commission Misc. - Non-Action - change in interest rate 9 NCMCC $63.7M

2 UNITS WITH AUDIT LETTERS PAGE 2 OF 9 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY TOWN OF PILOT MOUNTAIN Replacement of 1810 LF of existing 4" force main with Necessary and Cost estimates The Town received a unit letter due to the The projection of net Loan from State of North Carolina NA Sewer 1810 LF of new force main (like-for-like replacement) and expedient to meet code provided by McGill percentage of general fund balance available revenues prepared by Term: 20 years $1,264, LF of existing 6" and 8" gravity sewer with 6000 LF of requirements and to Associates, PA. relative to expenditures being significantly less the unit indicates that The rate, as established under G.S. 159G-22 new 8" gravity sewer (like-for-like to code replacement). A replace equipment that than that of comparable units. In the Water and future revenues will be this program for the respective Revolving Loan SCADA telemetry system will be installed on all of the is more than 40 years Sewer fund, cash provided by operating activities adequate to cover the loan, State or federal, is not to Town's 19 sewer pump stations to enable remote old. The aged lines are was less than principal payments and interest cost of operations and exceed 4%. monitoring of the stations and proactively alert operators beyond their useful life expense. This indicates that the rate structure or debt service. when issues arise or when a station fails to operate within and allow for a collections did not generate adequate operating Water: $38.52 the normal parameters. significant amount of cash flow. A unit visit was conducted on Sewer: $38.52 inflow and infiltration to February 5, occur. TOWN OF TAYLORSVILLE Installation of 2000 LF of 2" waterline along 5th Avenue Necessary and Cost estimates The Town received a unit letter due to the The projection of net Loan from State of North Carolina NA Water and Linneys Mountain Road, 325 LF of 2" waterline along expedient to provide provided by West percentage of general fund balance available revenues prepared by Term: 20 years $222,300 Black Oak Ridge Road, and a 4" meter at the Black Oak residents with adequate Consultants, PLLC. relative to expenditures being significantly less the unit indicates that The rate, as established under G.S. 159G-22 Ridge Road-Linneys Mountain Road intersection. pressures in low than that of comparable units. Overexpenditures future revenues will be this program for the respective Revolving Loan pressure areas. and/or reporting deficits were noted on several adequate to cover the loan, State or federal, is not to capital project funds, such as the Industrial Blvd cost of operations and exceed 4%. and NC DOT Commercial Park Avenue project, debt service. Matheson Park Shelter project and Rural Economic Water: $29.25 Development Building Re-use project. In the Water Sewer: $26.75 and Sewer fund, Wastewater Treatment Plant project and Sewer Collection System Rehab project both reported over expenditures. A unit visit was conducted on February 25, 2019.

3 FINANCING AGREEMENTS PAGE 3 OF 9 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE CITY OF EDEN Resurfacing tennis courts; construction of a Necessary and expedient Bids in hand for No major deficiencies. No tax increase is Bank: BB&T $945,700 splash pad / bath house; construction of to improve recreational streets; price quotes No defaults noted. anticipated. General Approval Rate: 3.63% Recreation, Streets & Sidewalk Matrimony Creek Greenway Phase II (clearing, opportunities and to in hand. Fund revenues will Term: 15 Years G.S.160A-20 grading, and installing a granite dust surface to improve city streets that provide for debt service. Market Rate: 3.40% Installment Contract the additional trail area); Draper River Landing are in poor or very poor Payment: Annually Private Placement improvements including removal of trees and condition. trimming of limbs to allow for crane access to S&P: A- the river and beam stubs and base plates for Moody's: A3 the piers; resurfacing of various streets; and improvements to Stadium Drive sidewalk. Installment purchase contract is more timely than issue of G.O. Bonds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Recreation 15,908 $ 459,000 2/19/2019 $ - $ 892,176,523 $ 3,916,283 $ % 0.54% $ 246 $ 306 Streets $ 380,000 Rockingham County $709 Sidewalk $ 106,700 $ 945,700 TOWN OF HIGHLANDS Construction of a fiber optic cable backbone Necessary and expedient Bid is in hand. No deficiencies or No tax or rate increase Bank: Branch Bank & Trust $4,600,000 throughout Town. The network would support to deliver more efficient and defaults noted. is required. Debt Amount $ 4,600,000 Fiber Backbone "smart city" services and applications effective municipal service will be paid Approval Rate: 3.66% G.S. 160A-20 supporting the Town's electric utility, sanitation services and bolster from revenues to the Term (years): 15 Years Financing Agreement services, lighting systems and public safety wireless connectivity in an Electric Fund. Market Rate: 3.55% Private Placement capabilities. The network would also allow a area where cellular Average monthly Payment: Annual principal and semi-annual interest third party vendor to deliver communication connectivity can be residential bill = $ services to the Town. inadequate. Bank placement will not be rated. Current G.O. ratings: S&P: N/A Moody's: N/A Installment purchase contract is more timely than issue Expected Sources and Uses of Funds: of G.O. Bonds. Sources: Bank Loan $ 4,600,000 Total Sources $ 4,600,000 Uses: Project Fund $ 4,600,000 Total Uses $ 4,600,000 To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Telecommunications 941 $ 4,600,000 12/13/2018 $ - $ 1,731,600,731 $ 1,443,242 $ % 0.35% $ 1,534 $ 6,422 Macon County $779

4 FINANCING AGREEMENTS PAGE 4 OF 9 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE CITY OF KING Purchase and acquisition of real property for a Necessary and expedient Value of property No major deficiencies. No tax increase is Bank: BB&T $900,000 police department. The property includes land because the current police verified by tax card. No defaults noted. anticipated. General Approval Rate: 3.50% Police Department (3.72 acres) and an existing building department is out of space Agreement of sale Fund revenues will Term: 15 Years G.S.160A-20 (approximately 10,000 square feet). in an old facility with no and purchase of provide for debt service. Market Rate: 3.60% Installment Contract room for expansion. The property exists Payment: Annually Private Placement costs associated with the between the City and purchase of the already the seller. S&P: Not Rated existing property is less Moody's: Not Rated than the costs of new construction. Installment purchase contract is more timely than issue of G.O. Bonds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Municipal Building 6,238 $ 900,000 2/4/2019 $ - $ 629,765,511 $ 1,176,186 $ % 0.33% $ 189 $ 333 Stokes County $593 TOWN OF OCEAN ISLE BEACH This project consists of the construction of a Necessary and expedient Bids in hand. No major deficiencies. No tax increase is Bank: First Bank New Town Hall new Town Hall facility. The facility has a because the Town desires to No defaults noted. anticipated. General Approval Rate: 3.25% $5,700,000 proposed footprint of 27,000 square feet. construct a facility which Fund revenues will Term: 20 Years G.A. 160A-20 will be located on the provide for debt service. Market Rate: 3.50% Installment Purchase Contract mainland side of the island Payment: Annually and will also serve as an S&P: N/A emergency command Moody's: N/A center in the event of a natural disaster or event. Installment purchase contract is more timely than issue of G.O. Bonds To Property Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Purpose Estimated Census Amount Public Hearing & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Municipal Building 622 $ 5,700,000 2/4/2019 $ - $1,702,663,728 8,691,610 $ % 0.85% $ 13,974 $ 23,138 Brunswick County $643

5 FINANCING AGREEMENTS PAGE 5 OF 9 NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE WILKES COMMUNITY Installation of energy conservation measures Necessary and expedient Cost estimates and No major No tax increase is Vendor: Ameresco, Inc. COLLEGE (ECMs) at the community college. ECMs to help the Community guaranteed savings deficiencies or no anticipated. Energy Lender: The initial direct lender will be the vendor, $1,155,968 include upgrades to interior and exterior College become more reviewed by the defaults were savings will service Ameresco, Inc., with an immediate G.S. 160A-20 lighting systems, installation/upgrades to energy efficient and professional noted per the 2018 the debt. assignment for the term of the loan to Installment Purchase HVAC energy management systems, maintaining needed engineering firms annual report (the Key Government Finance, Inc. Guaranteed Energy Savings installation of networked HVAC controls and infrastructure by installing Advanced Energy and last audited report Contract (GESC) other system updates for the purpose of new equipment and Energy Trust, LLC. available based on Private Placement increased efficiency and energy savings. fixtures, and provision of the biannual audit Amount: $1,111,174 ($1,155,968 with capitalized other beneficial ECMs. cycle.) interest accrued during construction) Total est. Cost: $ 1,978,394 Term: Approx. 17 Years, 6 months, semi-annual payments sized Total Guaranteed Savings: $ 2,025,025 to accommodate the savings realization pattern. Total est. Savings: $ 2,032,727 The term of the GESC is 16.5 years. Rate: 3.875% Special Counsel to Wilkes County Board of Education: Womble Bond Dickinson (US) LLP

6 GENERAL OBLIGATION REFUNDING BONDS LOCAL GOVERNMENT COMMISSION PAGE 6 OF 9 NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY CRAVEN COUNTY All or portion of bonds to be Refunded: Necessary and expedient Amount is adequate No major deficiencies. Debt service will be Structure: Moody's: Aa2 $8,500,000 $8,275,000 General Obligation Refunding to provide savings on the to defease debt. No defaults noted. substantially reduced. Current refunding: Net present value S&P: AA G.S Bonds, Series 2009, sold December 2009 outstanding issue. savings of $224,752, or 2.716% of the (The Refunding Bond General Obligation Refunding at a true interest cost of %. Outstanding refunded bonds. will not be rated) Bond (Private Placement) maturities have an interest rate of 4.0%. The refunding bond will be structured with no extension of maturities, with the final maturity in Level annual savings are calculated at $56,188 annually. Sale: Bank Placement Sale Date: Approvals: Amount: Not to exceed $8,500,000 Bank Rate: 2.56% Financing Team: Bond Counsel: Womble Bond Dickinson (US) LLP Financial Advisor: First Tryon Advisors Bank: PNC Bank, NA Bank Counsel: Parker Poe Adams & Bernstein LLP Escrow Agent: US Bank, N.A. To Property Per Per Bonds Authorized Assessed Existing Debt Excluding Values Capita Capita Purpose Estimated Census Amount Election Date & Unissued Valuation Enterprise Funds Tax Rate Before After Before After Refunding 103,557 $ 8,500,000 N/A - $ 9,510,500,192 $ 51,272, % 0.54% $ 495 $ 496

7 REVENUE BONDS PAGE 7 OF 9 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION TOWN OF DOBSON Necessary and Bids in hand. The projection of net No major USDA commitment Term: RBAN: 16 months Water expedient because the revenues prepared by deficiencies. No to purchase the RB: 40 years $2,096,000 plant has been in the unit indicates that defaults noted. bonds upon Interest Rate: Fixed Revenue Bond operation almost 50 future revenues will be substantial Structure: G.S. 159; Article 5 years without major adequate to cover the completion of the RBAN: Interest due at maturity. upgrades. In its current cost of operations and project. RB: Approximately level debt service Improvements to an existing 1.5 MGD water treatment state, the water debt service. plant which includes a 400,000 gallon backwash residuals treatment plant does Water: $25.79 APPROVALS holding tank, sludge pump station and dewatering boxes, not have the ability to Sewer: $31.39 Issue Amount Revenue Bond: $2,096,000 rehabilitation of mixed-media filters, sedimentation basin remove solids/sludge Issue Amount Revenue BAN: $2,096,000 concrete repairs, installation of clearwell tank baffles, from filter backwash Final Maturity: chemical feed improvements, window and door waste and/or RBAN: No later than 7/15/2020 replacements, and other related improvements. sedimentation basin RB: 2060 or 40 years after the maturity of the RBAN solids. The backwash/drain Interest Rate: discharge is now RBAN: Not to exceed 5% USDA Loan $ 2,096,000 regulated by a NPDES RB: $1,735, % USDA Grant $ 985,000 Permit and a provision RB: $361, % ARC Grant $ 300,000 of the Permit requires NC Rural Center Grant $ 500,000 that the Town install a FINANCING TEAM Surry County $ 100,000 solids removal system. Bond Counsel: Sanford Holshouser, LLP Available Cash $ 200,000 Revenue BAN: To be approved by the Secretary $ 4,181,000 of the Commission Revenue Bond: USDA Rural Development Registrar: Town Manager

8 REVOLVING LOAN LOCAL GOVERNMENT COMMISSION PAGE 8 OF 9 NECESSARY AND ADEQUATE NOT DEBT FEASIBLITY/ TERMS/OTHER INFORMATION EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY BURKE COUNTY Replacement of buried steel structure and appurtenances Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA Sewer (including pumps and valves) with new submersible pump replace an existing structure provided by West defaults noted. revenues prepared by Term: 20 years $1,634,000 or above-ground suction lift pumps, enclosures, and that is past its useful life Consultants, PLLC. the unit indicates that The rate, as established under G.S. 159G-22 appurtenances; replacement of manual bar screen with a (over 30 years old) and is now future revenues will be this program for the respective Revolving Loan new channel grinder; replacement of standby generator at a critical point of needing adequate to cover the loan, State or federal, is not to set and auto-transfer switch with new system; electrical improvements. The existing cost of operations and exceed 4%. improvements; rehabilitation of interior of existing concrete pump station has failed a few debt service. wetwell that will be retained; replacement of 7600 LF of times causing sanitary sewer Water: $ " force main (circa 1978) with new force main. overflows (SSO's). Sewer: $46.20 TOWN OF WALSTONBURG Replacement of four (4) manholes, raise five (5) manholes, Necessary and expedient to Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA Sewer re-grout twelve (12) manholes, replace twenty (20) manhole address inflow/infiltration (I&I) provided by Draper defaults noted. revenues prepared by Term: 20 years $173,650 frames and grates with water-tight frames and grates, issues within the gravity Aden Associates, the unit indicates that The rate, as established under G.S. 159G-22 replace one small pump station. Replacement of fourteen sewer collection system. PA. future revenues will be this program for the respective Revolving Loan (14) service connections and plug fifteen (15) inactive adequate to cover the loan, State or federal, is not to services lines. A full study of the collection system, cost of operations and exceed 4%. through a combination of smoke testing, videoing and debt service. visual inspection of each manhole within the system. The Water: $68.00 newly installed flow meter will be tested for accuracy and Sewer: $ some flow testing of lines may be done to isolate and pinpoint areas of excessive flow. YADKIN VALLEY SEWER Replacement of pumps, rails, discharge pipes and valves Necessary and expedient Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina NA AUTHORITY at the Fox Hall Pump station; Rehabilitation of PVH Pump because of pump station provided by West defaults noted. revenues prepared by Term: 20 years Sewer Station and Hampton Inn Pump Station which consists of deficiencies due to age, Consultants, PLLC. the unit indicates that The rate, as established under $1,509,090 converting each station to a submersible pump station by deterioration and poor future revenues will be this program for the respective G.S. 159G-22 installing submersible pumps with appurtenances; foundation soils. adequate to cover the loan, State or federal, is not to Revolving Loan Elimination of the Shore St Pump Station by installing cost of operations and exceed 4%. approximately 1670 LF of 8" PVC pipe and 5 manholes to debt service. an existing 8" gravity line; Elimination of the Dutchman Water: N/A Creek Pump Station by constructing approximately 2200 Sewer: $36.67 LF of 8" gravity sewer and 8 manholes; and replacement of 100 LF of 3" PVC force main and installing an air release / vacuum valve at the Osborne St Pump Station. YADKIN VALLEY SEWER This project consists of the rehabilitation of 15,840 linear Necessary and expedient Cost estimated No major deficiencies The projection of net Loan from State of North Carolina N/A AUTHORITY feet (LF) of 8" gravity sewers with cured-in-place-pipe to reduce the impact of inflow provided by No defaults noted. revenues prepared by Term: 20 years Sewer (CIPP) on N. Bridge, replacing crushed clay pipe near First and infiltration (I/I) on its West Consultants, the unit indicates that The rate, as established under $599,899 Baptist Church with 765 linear feet (LF) of 8" gravity sewer, system, particularly to PLLC. future revenues will be this program for the respective G.S. 159G-22 replace 4" and 6" orangeburg or thin-walled PVC (Poly address sanitary sewer adequate to cover the loan, State or federal, is not to Revolving Loan Vinyl Chloride) pipe in Jonesville, and wet well repair and overflow near the Regional cost of operations and exceed 4%. pipe replacement at the Forest Hills pump station. Pump Station. debt service. Sewer: $36.67

9 MISCELLANEOUS LOCAL GOVERNMENT COMMISSION PAGE 9 OF 9 MISCELLANEOUS: City of High Point (ACTION ITEMS): The City of High Point and the following fire departments have requested approval of annexation payment schedules developed in accordance with G.S. 160A-31.1, whereby the City will make lump sum payments for the City's proportionate share of outstanding debt as follows: Volunteer Fire Department Effective Annexation Date Payment Period Reimbursement Colfax Fire Department 9/10/ $ Horneytown Fire Department 9/10/ $ Yadkin Valley Sewer Authority The Authority is requesting approval for an increase of funds on a State Revolving Loan. The Loan is for the rehabilitation of concrete structures and to improve access to digester mixers; rehabilitation of sludge drying beds; effluent line stream erosion (stabilize approximately 100 ft. of eroded embankment); and replacement of waste-activated sludge (WAS) pumps. The original loan amount was approved by the LGC on August 7, 2018 for $966,000. The Authority is requesting an increase of $198,014 for a total loan amount of $1,164,014. The increase is due to bids received for the referenced project being over the original estimates. MISCELLANEOUS: Southeastern Regional Medical Center (NON ACTION ITEMS): The Local Government Commission and the North Carolina Medical Care Commission previously approved the Southeastern Regional Medical Center Project Series 2017B Bonds. Southeastern Regional Medical Center is changing their interest rate on the 2017B Bonds pursuant to the terms of the existing Trust Agreement, which will continue to be held by BB&T Community Holdings Co. The original interest rate was % of 1 Month LIBOR %; the new interest rate is 79% of 1 Month LIBOR %.