LOCAL GOVERNMENT COMMISSION AGENDA FEBRUARY 5, 2019

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1 1. PLEDGE OF ALLEGIANCE (PRELIMINARY) RELATED INFORMATION 2. TOAST TO THE FLAG Approximate Per Capita Debt 01/31/19 3. CONFLICT OF INTEREST STATEMENT State: $ 496 Federal: $66, MINUTES FOR APPROVAL January 8, 2019 Page Last request Voted/ Unit Type Purpose Amount Comments Number to Borrow Non-Voted Town of Sparta Revolving Loan Misc. Loan Increase $ 685,406 Unit Letter RL $450K Town of Nags Head Financing Agreement Stormwater Improvements & Fire Station $ 705,000 SOB $11.3MM Town of Youngsville Financing Agreement Street Resurfacing $ 200,000 FA $650K Forsyth County General Obligation Two-Thirds - Schools, Comm. College, Park & $ 23,300,000 GO $430MM Rec, Public Facilities, and Parking Durham County General Obligation Refunding (Schools, Comm. College, Library) $ 50,000,000 FA $60.0MM Saluda, Town of Revenue Water & Sewer $ 2,081,000 IP $489K Lake Waccamaw, Town of Revolving Loan Water $ 1,226,475 RL $1.0MM Davidson, Inc. NC Medical Care Commission 1st Mortgage Revenue Bonds $ 76,000,000 RB $11.1MM Wake Forest Baptist Obligated Group NC Medical Care Commission Health Care Facilities $ 220,000,000 RB $496MM Wake County Board of Education Operating Lease Miscellaneous - Action - Corning Rd. Facility $ 29,900,000 FA $22.7MM The Educational Foundation, Inc. (TENTATIVE) NC Capital Facilities Finance Revenue Bonds $ 98,000,000 8 NA

2 UNITS WITH AUDIT LETTERS PAGE 2 OF 11 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY MISCELLANEOUS: (ACTION ITEMS): TOWN OF SPARTA The Town is requesting approval for an increase of additional funds on a State Revolving Loan. The loan is for the booster pump station for the Crestview pressure zone. The project will include a pump station building with primary and back-up pumps, surge control, flow metering, pressure monitoring, and back-up power source. The project will also include the installation of 2,600 linear feet of 8 inch PVC waterline to interconnect the zone to the rest of the Town's system and also require two 50-foot long encasement pipes set by bore and jack method under NC DOT roadways. The original loan was approved by the LGC on August 1, 2017 for $450,000. The Town is requesting an increase of $235,406 for a total loan amount of $685,406. The increase is due to actual construction bids received being higher than expected due to an increasing cost environment. The Town received a unit letter due to areas of concern regarding financial operations and internal controls. The budgetary reports for the Water and Sewer Capital Project fund of the audit report shows transfers made without budget authorization. This is an indication that the preaudit process required by G.S may not be functioning properly. The Fiscal staff visited the Town on 1/8/2019 and feels the Town has taken the appropriate steps to address the concerns. The Town also provided a satisfactory response to the unit letter that was issued.

3 FINANCING AGREEMENTS PAGE 3 OF 11 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE TOWN OF NAGS HEAD This project consists of stormwater Necessary and expedient Bids in hand. No major deficiencies. No tax increase is Bank: BB&T Stormwater Improvements & Fire improvements and Fire Station # 16 HVAC because the current Fire No defaults noted. anticipated. General Approval Rate: 3.11% Station #16 HVAC Renovations renovations. Station 16 HVAC is Fund revenues will Term: 5 years $705,000 malfunctioning and needs provide for debt service. Market Rate: 3.00% G.S. 160A-20 replaced. Additionally the Payment: Annually Installment Purchase Contract Town is in the design phase S&P: N/A of and wishes to implement Moody's: N/A the 3rd and 4th phases of the stormwater master plan to improve the Town's Installment purchase contract is more timely than issue drainage infrastructure. of G.O. Bonds Debt Ratios-Excluding Enterprise Funds 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 Stormwater 2,994 $ 620,000 1/2/2019 $ - $2,400,190,266 3,651,511 $ % 0.18% $ 1,220 $ 1,455 Municipal Building $ 85,000 Dare County $ 2,834 $ 705,000 TOWN OF YOUNGSVILLE This project consists of the resurfacing of several Necessary and expedient Bids in hand. No major deficiencies. No tax increase is Bank: Union Bank Street Resurfacing streets within the Town limits. because it will allow for the No defaults noted. anticipated. General Approval Rate: 4.34% $200,000 Town to resurface several Fund revenues will Term: 10 years G.S. 160A-20 streets at a reduced cost provide for debt service. Market Rate: 4.10% Installment Purchase Contract due to a lump sum contract. Payment: Monthly S&P: N/A Moody's: N/A Installment purchase contract is more timely than issue of G.O. Bonds Debt Ratios-Excluding Enterprise Funds 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 Street 1,421 $ 200,000 1/10/2019 $ - $202,919, ,990 $ % 0.49% $ 552 $ 693 Franklin Co. $ 1,256

4 GENERAL OBLIGATION BONDS LOCAL GOVERNMENT COMMISSION PAGE 4 OF 11 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY COUNTY OF FORSYTH Necessary and expedient Cost estimates No major deficiencies. A tax increase is Approvals: $23,300,000 To provide funds to pay the costs of the to meet County needs. provided by School, No defaults noted. anticipated for these Amount not to exceed: $23,300,000 Fitch: AAA General Obligation Bonds following projects: Community College projects, as follows: Moody's: Aaa (Two-thirds net debt reduction) The County will be offering and County Schools: $ Term: 20-year level principal S&P: AAA Schools Maintenance and renovation projects at various $107,500,000 G.O. Bonds professional staff, with C. College: $ schools. concurrently with these the exception of the Park & Rec: $ Sale: Competitive sale Community College Renovation and modernization projects at bonds, to provide parking facilities, P. Impr: $ Sale Date: March 5, 2019 Forsyth Technical Community College. additional funds for the which were provided Parking: $ Parks & Recreation Expansion, renovation and modernization projects. school, community college by Walter Robbs $ Financing Team: and parks and recreation Architects. Public Facilities Maintenance and renovation projects at various projects. Bond Counsel: Womble Bond Dickinson (US) LLP County buildings. Financial Advisor: DEC Associates, Inc. Parking Facilities Construction of parking facilities at the County Courthouse, to be supplemented by approximately $7,000,000 cash. Debt Ratios-Excluding Enterprise Funds 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 Schools 373,625 $ 8,500,000 N/A 1 $ 327,390,000 $ 36,524,719,379 $ 452,005,000 $ % 2.20% $ 2,086 $ 2,148 Community College 2,300,000 Parks and Recreation 2,000,000 Public Facilities 2,000,000 Parking Facilities $ 8,500,000 23,300,000 (1) Election not required pursuant to G.S

5 GENERAL OBLIGATION REFUNDING BONDS LOCAL GOVERNMENT COMMISSION PAGE 5 OF 11 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT FEASIBILITY/ TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY DURHAM COUNTY Refund all of the County's outstanding bond Necessary and expedient Amount is adequate, No major deficiencies. A tax increase is not Structure: Moody's: Aaa $50,000,000 anticipation notes, issued under the Draw Note to provide fixed rate, with other available No defaults noted. anticipated. Approximately level principal maturing June 1, S&P: AAA General Obligation Refunding program that was approved by the long term debt. funds of the County, 2020/2039. Bonds Commission on March 17, to refund the notes. G.S The bonds will be issued Negotiated Sale: February 14, 2019 BAN's Outstanding: pursuant to a bond order Schools $ 23,491,334 and a bond resolution Approvals: Community College 1,183,182 adopted by the Board of Amount not to exceed: $50,000,000 Library 18,421,061 Commissioners of the Rate not to exceed: 5.00% Museum of Life and Science 6,904,423 County on January 28, $ 50,000, Bond Counsel: Parker Poe Adams & Bernstein LLP Underwriters: Merrill Lynch, Pierce, Fenner & Smith, Inc. (Sr. Manager) The notes were issued pursuant to bond Wells Fargo Bank, National Association (Co-Manager) orders that were approved by voters at Underwriters' Counsel Robinson Bradshaw & Hinson, P.A. referenda held on November 8, Financial Advisor: DEC Associates, Inc. Debt Ratios-Excluding Enterprise Funds 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 307,007 $ 50,000,000 N/A $ 170,000,000 $ 36,159,221,674 $ 495,855, % 1.84% $ 2,169 $ 2,169

6 NORTH CAROLINA MEDICAL CARE COMMISSION (NCMCC) PAGE 6 OF 11 NECESSARY AND EXPEDIENT DEBT DATE & MANNER OF PROJECT ADEQUATE NOT EXCESSIVE MANAGEMENT FEASIBILITY SALE/ADVERSE EFFECTS TERMS/OTHER INFORMATION THE PINES AT DAVIDSON, INC. NCMCC has previously No major A feasibility study 2019A: Term: North Carolina Medical Care Commission Retirement Facilities approved the project. All deficiencies. No completed by Clifton Public Sale in $5,000 Series A: 1/1/2049; Series B: 3/13/2023 First Mortgage Revenue Bonds The Pines at Davidson necessary permits and defaults noted. Larson Allen, LLP shodenominations. Pricing is Project Series 2019A and 2019B approvals have been received. estimated debt currently scheduled for Interest Rate: The project is under a service coverage of March 7, 2019 and will Series A - Fixed Amount (par) not to exceed: $ 76,000,000 Guaranteed Maximum Price. at least 2.13 times not conflict with any other True Interest Cost: 4.94% through revenue bond issue. Expected Underwriting Fee: not to exceed $7.95/1000 Location: Davidson (Mecklenburg County) Series B - Variable Licensed beds: 250 Independent living units, The Bank 2019B: 81% (1 Month LIBOR %); currently 3.09% 30 assisted living units and purchaser, for the Direct Purchase Loan with 51 skilled nursing beds 2019B Bonds STI STI Institutional & Structure: Overall approximate level debt service payments. Institutional & Government, Inc. currently 2019B is an entrance fee loan expected to be repaid with The proceeds from the sale of the 2019 Bonds will be used to: Government, Inc., is anticipated to close on entrance fees by October 2021, but with a maturity date in (a) pay or reimburse the cost of improving and expanding the performed its own March 13, March Existing Facility, including (1) constructing, furnishing and equipping credit review and Transfer is restricted to two new multi-story apartment buildings (38 new independent living found it to be certain entities, including units) and parking, (2) constructing, furnishing and equipping a satisfactory. Qualified Institutional APPROVALS: two-story skilled nursing building with 40 nursing beds and renovating Buyers (QIBs) Amount not to exceed $76,000,000 the existing skilled nursing facility, resulting in a net of 24 new nursing Final maturity not to exceed July 1, 2049 beds, (3) creating a new independent living dining area (4) renovating Anticipated Fitch rating: Interest Rates not to exceed: the assisted living dining area, and (5) expanding and renovating BBB+ 2019A: True Interest Cost 6% 3,400 square feet of fitness space (collectively, the Project ); 2019B: Initial rate not to exceed 6% (b) pay interest on the 2019 Bonds during construction of the Project; (c) fund a debt service reserve fund, if necessary, and (d) pay cost of issuance. FINANCING TEAM: Bond Counsel: Robinson, Bradshaw & Hinson, P.A. Expected Sources and Uses of Funds Borrower's Counsel: McGuireWoods LLP Sources: Senior Managing Underwriter (2019A): B.C. Ziegler & Company Par Amount - Series A $ 46,235,000 Co-Managing Underwriter (2019A): BB&T Capital Markets Par Amount - Series B $ 11,905,100 Underwriters' Counsel: Womble Bond Dickinson (US) LLP Equity Contribution $ 15,400,000 Purchaser (2019B): STI Institutional & Government, Inc. Total Sources of Funds $ 73,540,100 (subsidiary of SunTrust Bank) Purchaser Counsel: Moore & Van Allen PLLC Uses: Trustee: U.S. Bank National Association Global Project Fund Deposits Series A $ 42,032,942 Corporate Trust Services Project Fund Deposits Series B $ 11,702,980 Auditor & Feasibility Consultant: Clifton Larson Allen, LLP Equity for Project and Issuance Costs $ 15,400,000 Financial Advisor - HJ Sims Funded Interest Accounts (Series A&B) $ 3,157,514 Cost of Issuance (Series A&B) $ 784,314 Underwriter's Discount (Series A) $ 462,350 Total Uses of Funds $ 73,540,100

7 NORTH CAROLINA MEDICAL CARE COMMISSION (NCMCC) PAGE 7 OF 11 NECESSARY AND EXPEDIENT DEBT DATE & MANNER OF PROJECT ADEQUATE NOT EXCESSIVE MANAGEMENT FEASIBILITY SALE/ADVERSE EFFECTS TERMS/OTHER INFORMATION WAKE FOREST BAPTIST OBLIGATED GROUP NCMCC has previously No major An agreed-upon- Series A, B, C and D public Terms: (d/b/a WFBMC, NCBH & WFUHS) approved the project. deficiencies. No procedures review offering in $5,000 Series A: 12/01/2033; Series B: 12/01/2048; Health Care Facilities Revenue Bonds, defaults noted. performed by Clifton denominations. Pricing is Series C: 06/01/2048; Series D: 12/01/2048 Series 2019 A, B, C, and D Any Certificates of Need Larson Allen LLP, scheduled for February 21, Amount: Not to exceed $220,000,000 required for the construction for five years that 2019 and will not conflict with Interest rates: Locations: Winston-Salem & Clemmons (Forsyth County) portion of this financing have shows estimated any other revenue bond issue. Series A - Fixed Mocksville (Davie County); High Point (Guilford County); North been received. Major debt service Series B - Fixed (3-7 yrs) Wilkesboro (Wilkes County); Lexington (Davidson County); construction components are coverage of at least Series A, B, C and D Bonds Series C - Fixed (3-7 yrs) Bermuda Run (Davie County) Licensed beds: 1,510 subject to guaranteed maximum 3.8 times through anticipate having the Series D - Floating (3-5 yrs) price contracts, based on final following ratings: Project: The proceeds of the financing will be used for A) design plans and have been Moody's: A2 True Interest Cost: 3.68% Payment or reimbursement of all or a portion of the costs for approved by Division of Health S & P: A Expected Underwriting Fee: not to exceed $4.75/1000 the Series 2019 Projects which include the following: (1) the Service Regulation. acquisition of a 351-bed acute care hospital and related health Structure: Series A is level debt service through Series care system located at High Point Regional Health, (2) (a) the B, C, and D have a back loaded amortization schedule to construction and equipping of ~10,000 sq. ft. of new space, create a level aggregate debt structure. the renovation of ~6,800 sq. ft. of existing space within the existing surgical services suite in the Davie Medical Center (b) APPROVALS: the construction and equipping of ~7,500 sq. ft. orthopedic Amount not to exceed: $220,000,000 surgery clinic in the Davie Medical Center (3) the construction Final maturity not to exceed: December 1, 2048 and equipping of a new ~26,500 sq. ft. surgical facility at the Initial Interest Rate: Not to exceed 6.0%. Lexington Medical Center. (4) the renovation of two floors on the main campus of Wake Forest Baptist Medical Center FINANCING TEAM located in Winston-Salem, consisting of (a) the relocation of Bond Counsel: McGuireWoods LLP pediatric psychiatry to another physical location and Borrower's Counsel: Hawkins Delafield & Wood LLP developing in its place a new general acute care unit with 30 Senior Managing Underwriter: Wells Fargo Bank, National licensed beds, (b) the renovation of space to accommodate 19 Association patient observation beds and create four minor procedure Expected Sources and Uses of Funds Co-Managing Underwriters: Citigroup Global Markets Inc. & rooms, and (c) the expansion and modernization of the Sources: Goldman, Sachs & Co. neonatal intensive care unit to include 51 private rooms with Bond Proceeds Underwriters' Counsel: Robinson, Bradshaw & Hinson P.A. two of the rooms reserved for twins. B) refinancing a taxable Par Amount - Series A $ 40,415,000 Trustee: The Bank of New York Mellon Trust Company, N.A. bank loan made to the Medical Center, NCBH and WFUHS Par Amount - Series B $ 53,525,000 Auditor: KPMG LLP (the Taxable Loan ), and C) paying cost of issuance. Par Amount - Series C $ 49,060,000 Financial Advisor: Ponder & Co. Par Amount - Series D $ 44,605,000 Feasibility Consultant; Clifton Larson Allen LLP Premium (Series A,B,C&D) $ 24,928,918 Total Sources of Funds $ 212,533,918 Uses: Project Fund Deposits (Series B,C,and D) $ 165,000,000 Refunding Taxable Loan (Series A) $ 45,655,000 Cost of Issuance $ 1,876,050 Additional Costs $ 2,868 Total uses of funds $ 212,533,918

8 NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY (NCCFFA) LOCAL GOVERNMENT COMMISSION PAGE 8 OF 11 (TENTATIVE) FINANCIAL CAPABILITY PUBLIC FACILITIES MANNER OF SALE FOR PUBLIC BENEFIT, PROJECT AND SECURITY MADE AVAILABLE ADVERSE EFFECTS NO DISCRIMINATION TERMS/OTHER INFORMATION The Educational Foundation, INC. Debt service coverage is Orange Water & Direct Placement with Resolution and covenant Term: 21 years Revenue Bonds, Series 2019 estimated to range from 1.33 Sewer Authority has BB&T Community received from Board of Interest Rate: Variable Location: Chapel Hill (Orange County) times to 4.05 times for the next the capacity and will Holdings Co. The issue Directors that the Project (79% of One-Month LIBOR) %; currently 2.65% Amount not to exceed $98,000,000 5 years. provide water/sewer is currently anticipated will be operated for the G.S. 159D services. to close on February 28, public good as part of the Structure: Interest payments only in the first year with a 20 year The purpose of issuing the 2019 UNC-CH has capacity University's educational amortization following thereafter through maturity. The proceeds of the 2019 Bonds will be used to (a) Bond is to retire taxable loans and will provide mission and it will benefit retire existing taxable bank bridge loans that were and finance renovations, electrical services. the University community used to finance project construction; (b) provide construction and equipping of PSNC Energy has without regard to race, The Bond has an initial term of 10 years and may be extended by further financing to complete project costs. The new facilities, and finance capacity and will creed, color or national the Bank. Should the Bank not extend the initial term, the projects include: (i) renovations to the locker rooms related cost of issuance. provide natural gas origin. Borrower has the option to find another loan provider or the Bank at the Dean Smith Center, (ii) the construction and services is required to pay off the NCCFFA Bond and enter into a taxable equipping of a new indoor practice field, (iii) the The Project will be owned, loan on terms agreeable to the Bank and the Borrower. construction and equipping of a new field hockey operated and managed by the stadium, (iv) the construction and renovation of a Borrower or an affiliated or new soccer and lacrosse stadium, (v) the related entity, including the APPROVALS construction and equipping of a track complex and University of North Carolina at Amount: not to exceed $98,000,000 various athletic fields, and (vi) the installation of Chapel Hill. Final Maturity: not to exceed: February 28, 2041 synthetic turf borders and resodding of natural grass Initial Fixed Rate: not to exceed 6% turf at Kenan Stadium (collectively, the Project ); and (c) pay certain costs incurred in connection with FINANCING TEAM the authorization and issuance of the Bonds. The Bond Counsel: McGuireWoods LLP Project will be owned, operated and managed by the Borrower's Counsel: In-house Borrower or an affiliated or related entity. The Educational Foundation, Inc. ( The Rams Club ) and related Scholarship Endowment Trust were created in Purchaser: BB&T Community Holdings Co to provide private financial support for athletic scholarships and athletic facilities as well as other private Purchaser's Counsel: Moore & Van Allen PLLC support for athletic programs at The University of North Carolina at Chapel Hill (the University ). The Rams Club has provided over $200 million in athletic scholarship support and over $100 million in athletic facility renovations Sources: which benefit the University's athletic programs. The University is not directly obligated on the debt of The Rams Bond Proceeds $ 98,000,000 Club as The Rams Club is a separate 501(c)(3) organization. The audited financial statements of The Rams Total Sources of Funds $ 98,000,000 Club and the Scholarship Endowment Trust as of June 30, 2018 show cash balances of approximately $35.6M and total net assets of approximately $285.2M. Uses: Refinance Taxable Loans $ 80,000,000 Deposit to Project Fund 17,765,000 Cost of Issuance $ 235,000 Total uses of funds $ 98,000,000

9 REVENUE BONDS PAGE 9 OF 11 PROJECT IS AMOUNT OF PROJECT NECESSARY & IS ADEQUATE BUT DEBT PROJECT EXPEDIENT NOT EXCESSIVE FEASIBILITY MANAGEMENT MARKETABILITY TERMS/ OTHER INFORMATION CITY OF SALUDA Necessary and expedient Bids in hand. The projection of net No major deficiencies. USDA commitment to Term: RBAN: 12 months Water & Sewer because existing 4" and 6" revenues prepared by No defaults noted. purchase the bonds RB: 40 years $2,081,000 gravity sewer are aging and the unit indicates that upon substantial Interest Rate: Fixed Revenue Bond undersized and do not meet future revenues will be completion of the Structure: G.S. 159; Article 5 State standards. The new adequate to cover the project. RBAN: Interest due at maturity. sewer line between Hwy 176 cost of operations and RB: Approximately level debt service Construction of water and sewer improvements which includes and Chestnut Street will debt service. approximately 3600 LF of water line, fire hydrants, appurtenances serve approximately a dozen Water: $66.00 APPROVALS and valves. Replacement of a water booster pump station pumps are new customers. Upgrading Sewer: $38.50 Issue Amount Revenue Bond: $2,081,000 proposed along with a SCADA system to control the pumps. Many waterlines will improve water Issue Amount Revenue BAN: $2,081,000 improvements to the sewer system include the installation of pressure, bring them into Final Maturity: approximately 5030 LF of 8" gravity sewer line to replace existing state compliance & provide RBAN: No later than 2/20/2020 4" and 6" gravity sewer. A new sewer line is proposed between Hwy fire protection. The water RB: 2060 or 40 years after the maturity of the RBAN 176 and Chestnut Street. The existing Hwy 176 lift station will be system infrastructure is also demolished and replaced with a new precast concrete pump station. aging with some of the lines Interest Rate: being nearly 80 years old RBAN: Not to exceed 5% USDA Loan $ 2,081,000 and in need of repair. RB: $1,903, % Available Cash $ 86,000 RB: $178, % $ 2,167,000 FINANCING TEAM Bond Counsel: Womble Bond Dickinson (US) LLP Revenue BAN: To be approved by the Secretary of the Commission Revenue Bond: USDA Rural Development Registrar: City Manager

10 REVOLVING LOAN LOCAL GOVERNMENT COMMISSION PAGE 10 OF 11 PROPOSED ISSUE IS NECESSARY AND ADEQUATE NOT DEBT FEASIBLITY/ TERMS/OTHER INFORMATION UNIT PROJECT EXPEDIENT EXCESSIVE MANAGEMENT TAX INCREASE PREFERABLE TO A BOND ISSUE MARKETABILITY TOWN OF LAKE WACCAMAW Construction of two (2) new public wells which will include Necessary and expedient due Cost estimates No major deficiencies. No The projection of net Loan from State of North Carolina N/A Water drilling two (2) test wells, chemical analysis of water to the age of the Town's two provided by defaults noted. revenues prepared by Term: 20 years $1,226,475 samples, installing two (2) permanent wells, & associated (2) wells which were installed Engineering Services the unit indicates that The rate, as established under G.S. 159G-22 building, electrical controls, treatment systems, and in The wells are PA. future revenues will be this program for the respective Revolving Loan telemetry systems, as well as connection to the Town's operating beyond their useful adequate to cover the loan, State or federal, is not to water system. Each well will be equipped with emergency life and a serious public cost of operations and exceed 4%. generators for backup power supply, providing system health threat exists if one well debt service. redundancy. The Town currently only has two (2) wells is down for extended periods. Water: $21.00 located near the Flemington Dr. and NC 214 intersection. Sewer: $42.60

11 MISCELLANEOUS LOCAL GOVERNMENT COMMISSION PAGE 11 OF 11 MISCELLANEOUS: Wake County Board of Education Operating Lease - Corning Road Facility G.S. 115C-530 and G.S (ACTION ITEMS): Wake County Public School System ("WCPSS"), requests approval of a 15 year operating lease Raleigh Durham Office Partners, LLC for 75,864 square feet ("SF") of office space at 111 Corning Road in Cary for use as administrative and educational support function facilities. The facilities are necessary because of the continued growth of the student population. The lease agreement provides options to renew for two additional eight year periods. The building is proximate to WCPSS's administrative facilities in Crossroads Corporate Park and will provide functional and operating economies because of its proximity to the existing administrative offices. WCPSS finds the terms of the proposed lease with a base rate of $23.75/SF to be generally favorable to other available office space in the particular market under current conditions based on an internal study performed for WCPSS. WCPSS also performed a build/lease analysis. The purchase of the site is not possible because of the lessor's unwillingness to sell the building. WCPSS also requests approval of an eight year extension of a 173,741 SF lease originally entered into in 2010 in the Crossroads Office Park. This will make the existing lease coterminous with the new lease and will capture lower current rental rates and will continue operational efficiencies. The rates in effect at the inception of the extension will be the same for the new lease and the existing lease and, based on the study, are favorable at $27.75/SF. WCPSS has met the budgetary requirements specified by G.S. 115C-530 for entering into the lease and the Board of Commissioners of Wake County ("Board") has made the appropriate resolutions under that statute making necessary findings, approving the lease and providing additional funds to support the lease and additional operating costs. The rental cost of the operating lease of the newly leased space for the initial 15 year period is approximately $29.9 million with per year costs equaling approximately $1.84 million in year 1 and $2.46 million in year 15. The rental cost of the operating lease extension of originally leased space for the 8 year extension period is approximately $41.7 million with per year costs equaling approximately $4.82 million in year 1, 2027, and $5.63 million in year 8.The Staff of the Local Government Commission has reviewed the transaction and recommends approval.