TITLE:title
Financing Letter - Lanes Creek Volunteer Fire Department
body
INFORMATION CONTACT:
Patrick Niland, County Manager’s Office, Deputy County Manager, 704-283-3630
ACTION REQUESTED:
Authorize Board Chair to sign the attached letter.
PRIOR BOARD ACTIONS:
January 6, 2025, Regular Meeting, Agenda Item # 25-005 - Appointed Fire Chief Robert Sweatt to hold a public hearing with respect to the proposed tax-exempt financing and provide a report of such hearing to the Union County Board of Commissioners.
BACKGROUND:
Lanes Creek Volunteer Fire Department, Inc. (the “Fire Department”) desires to construct a new fire station. The Fire Department desires to issue certain tax-exempt bonds in order to finance the project. In order for the Fire Department to issue such tax-exempt bonds for the project, the Internal Revenue Code requires a public hearing and approval of the governing body of the political subdivision where the project is located. Such approval does not make Union County liable for repayment of the debt, it does not constitute a debt of Union County, and it does not implicate the taxing powers of the County.
Based on Board action during the January 6, 2025 Regular Meeting, the Fire Department held a public hearing. As part of the financing documents, the bank requires a letter from Union County, signed by the chair, stating that Lanes Creek is allowed to provide fire service in Union County, they are in good standing, the fire tax district supports fire operations, and that the department has made the county aware of this financing agreement.
FINANCIAL IMPACT:
None.