April 1, 2010

MEMO TO: Mayor Charles C. Meeker

Mayor Pro Tem James P. West
Councilor Mary-Ann Baldwin
Councilor Thomas Crowder
Councilor Bonner Gaylord
Councilor Nancy McFarlane
Councilor John Odom
Councilor Russ Stephenson

FROM: J. Russell Allen, City Manager

SUBJECT: Alternate Proposal for Clarence E. Lightner Public Safety Center and
Remote Operations Facilities

The Council spent considerable time in January, February and March reviewing all aspects of the
program and financing of these proposed public facilities. City Administration documented the
responses to all questions and shared this information with the public. In the end, the Council
vote to move forward with the financing and construction was split 4 to 4.

I continue to recommend the proposed facilities, program and financing as the most efficient and
cost effective means for meeting these critical Public Safety, Public Works, Solid Waste Services
and Parks and Recreation operational needs. I will not repeat again the benefits we have
articulated previously, as those remain the same.

I understand that one of the Council’s concerns is any proposed property tax increase, even if it
doesn’t begin until FY 11-12. Since it is impossible to accomplish this building program without
a very modest property tax increase (1 cent) along with some other revenue sources, I am
presenting this alternative to reduce the program such that a property tax increase is not required.

The proposal includes these key elements:

 Complete the design and move forward with construction of the Clarence E. Lightner Public
Safety Center as proposed. This is a progressive program which allows us to take advantage
of historically low construction costs and interest rates.

TELEPHONE (919) 996-3070 • FACSIMILE (919) 996-7623

OFFICES  222 WEST HARGETT STREET  POST OFFICE BOX 590  RALEIGH, NORTH CAROLINA 27602
 Immediately approve the issuance of $100 million of limited obligation bonds (COPs) to be
used as follows:
$20 million - Wilder’s Grove Solid Waste Services Operations Facility (contract
awarded)
$6 million - Purchase of former Stock Building Supply site for the Northeast
Remote Operations Facility (already closed on purchase)
$2 million - Begin design for upfit of the Northeast Remote site and perhaps
one or two other remote facilities
$72 million - GMP1 and GMP2 for the Clarence E. Lightner Public Safety
Center
 A subsequent $100 million limited obligation bond issue would be required early in FY 11-
12 to fund GMP3 and complete construction of the Public Safety Center.
 Upon completion of construction of the Public Safety Center, any savings generated from
value analysis and actual bid construction costs would be allocated to the Remote Operations
Facility building program. This would only fulfill a small portion of the critical needs of
Remote Operations and would not allow the City to exit the Peace Street facilities.
Subsequent funding mechanisms would need to be identified.
 A General Fund Debt model simulating this scenario is attached. Note there is no proposed
additional property tax increase, but an alternate revenue source must be identified of $2
million in FY 11-12, $3 million in FY 12-13 and $4 million in FY 13-14 and subsequent
years. Also note the benefit of sales proceeds from the Peace Street and West Cabarrus
Street facilities has been removed from the model. No additional sources of revenue would
be required in FY 10-11.
 Additionally please see the attached memo from our Treasury Manager describing a unique
short term opportunity which may be available through the American Recovery and
Reinvestment Act (ARRA) to seek an allocation of Recovery Zone Economic Development
Bonds in combination with our typical tax exempt financing. This could further reduce our
total interest cost (TIC) over the first $100 million bond issue by approximately 22% down to
a TIC of 3.46%.
In conclusion, I hope this alternative will be helpful to Council if agreement and consensus
cannot be reached on the original proposal.
JRA:cma

Attachments

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TO: J. Russell Allen, City Manager

FROM: Jerraé Williams, Treasury Manager

CC: Perry E. James, III, CFO

DATE: March 23, 2010

SUBJECT: American Recovery and Reinvestment Tax Act (ARRA): Funding Options for CELPSC and
Remote Operation Sites (North East Site & Wilder’s Grove)

MESSAGE:

The American Recovery and Reinvestment Tax Act (ARRA) of 2009, signed into law by President Obama on February 17,
2009, has provisions for state and local governments to issue municipal bonds for governmental purposes. The ARRA
authorizes municipalities the ability to issue federally subsidized taxable bonds, referred to as “Build America Bonds”
(BAB) no later than the end of calendar year 2010 for governmental projects (i.e. public safety center and remote operation
sites). As described below, BAB are issued as taxable bonds but issuers receive federal subsidies of either 35% or 45% to
equate the costs to more traditional tax exempt rates. The higher 45% subsidy applies to BAB issued to promote economic
development in distressed “recovery zones” referred to as Recovery Zone Economic Development Bonds (RZEDB).

BAB are taxable bonds that, combined with the federal subsidies, provide low cost financing to municipalities as an
alternative to traditional tax exempt bonds. Within the BAB taxable structure the issuer is entitled to receive a cash payment
from the federal government in the form of a direct subsidy equal to 35% of the interest payable on the bonds on each
interest payment date (45% subsidy for RZEDB). Direct Subsidy BAB can only be issued to finance capital expenditures
(and not working capital). Capital expenditures are defined as the cost incurred to acquire, construct, or improve land,
building, and equipment.

The State of North Carolina was allocated $418 million for Recovery Zone Bonds with $7.38 million initially allocated to
the City of Raleigh for RZEDB. The State recently created a process to retrieve and reallocate the unused bond
authorization so it could be fully utilized by December 31, 2010. As of March 2010, $184 million of RZEDB has been
reallocated--approximately $70 million remains to be allocated. These amounts do not include RZEDB allocations directed
to North Carolina local governments by the federal government, but the allocations waived that have been subject to
reallocation by the North Carolina Tax Reform Allocation Committee. This process is a “first-come, first-served’ and the
bonds must be issued within 90 days.

Risks:

BAB spreads continue to tighten over time as treasury rates remain volatile. The ratio between the treasury rates and
Municipal Market Data (MMD) will determine if BAB yields will out perform tax exempt yields. The economic benefit of
taxable BAB depends on the issuer’s credit rating and the market however the greatest opportunity for savings with BAB is
realized at the long end of the yield curve with maturities 15-20 years or more.
Proposed Funding Structure:

To achieve the most cost effective financing, the City proposes to utilize a hybrid structure that incorporates RZEDB,
traditional BAB, and traditional tax exempt debt. The amounts designated for each structure will be determined by the
RZEDB amount allocated to the City. You have asked us to model plans that have a first issuance in June 2010 for $100
million to fund two years of cash flows for CELPSC, reimbursement of the North East Site purchase, and the Wilder’s
Grove Solid Waste Transfer Station (details below).

CELPSC $72,533,064
Wilder’s Grove $21,166,936
North East Site $ 6,300,000

$100,000,000

Based on a 30-year market analysis of tax exempt interest rates, the City will issue at the lowest rate in this 30-year period.
Using this proposed hybrid structure will lower the net cost of funds and mitigate the impact of interest rate risk more than
using any of these debt structures alone. The proposed hybrid structure is projected to have a lower interest rate compared
to a typical fixed rate tax exempt issue.

Requirements of Issuers Utilizing BAB:

 Inform the underwriting bank of our intention of incorporating BAB into our debt structure
 Complete the federal form requesting the subsidy payment (Form 8038-CP Return Credit Payments to Issuers of
Qualified Bonds filed 45-90 days before a scheduled interest payment), (Form 8038-G Return for Tax-Exempt
Government Obligations), and (8038-B Return for BAB and RZEDB)
 Obtain placement of selected projects on the Local Government Commission agenda by the May 4, 2010 meeting.
 In addition to the above, RZEDB require:
 Designation of a Recovery Zone
 Designation of entire City of Raleigh as a recovery zone to cover all current and future projects
 Resolution on 12/1/2009 designated the Urban Progress Zone. A copy of the resolution and map
of the designation area are in the agenda packet.
 File ‘Notice of Intent to Issue Recovery Zone Bonds’ with the North Carolina Department of Commerce and
provide descriptions for all projects under consideration by April 9, 2010 (Next committee meeting is April 19,
2010). A copy of this form is in the agenda packet. The projects are the CELPSC and Remote Operations Sites
(NE Site and Wilder’s Grove Solid Waste Station)
 Comply with Federal Davis-Bacon wage rules

Recommendations:

1) Approve resolution designating the entire City of Raleigh as a Recovery Zone;

2) Authorize the City Manager to proceed with the administrative steps necessary to achieve issuance of the
BAB/Recovery Zone Economic Development Bonds, based on an evaluation of the most advantageous financing
structure and applicable project cost inclusion as approved by the City Council;
3) Approve Resolution of making certain findings and determinations regarding the financing of the capital facilities
using Limited Obligation Bonds.

If there are questions or if you need further information, please let me know.

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 RESOLUTION 2009 - 37

THE CITY COUNCIL OF THE CITY OF RALEIGH

RESOLUTION DESIGNATING RECOVERY ZONE

WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
(“ARRA”) modifies the Internal Revenue Code of 1986, as amended (the “Code”) to authorize,
among others, two new types of bonds entitled “recovery zone economic development bonds” and “recovery zone facility
bonds;” and

WHEREAS, “recovery zone economic development bonds” are a subcategory of taxable build America bonds (as
defined in section 54AA(d) of the Code), issued under provisions of ARRA that have been codified as Section 1400U-2 of
the Code, the proceeds of which are to be used for qualified economic development purposes in a recovery zone; and

WHEREAS, qualified economic development purpose include expenditures for the purpose of promoting
development or other economic activity in a recovery zone, including capital expenditures for property located in the zone
or expenditures for public infrastructure and
construction of public facilities in the zone; and

WHEREAS, ARRA also authorizes a new type of federally tax exempt private activity
bonds entitled “recovery zone facility bonds” in Sections 1400U-1 and 1400U-3 of the Code to
finance construction, renovation, or acquisition of depreciable property by a private taxpayer of a
qualified business in a recovery zone, with “qualified business” defined to include any trade or
business other than residential rental property and certain prohibited uses outlined in the Code;

WHEREAS, sections 1440U-2 through 1400U-3 of the Code, and related Notice 2009-50 issued by the U.S.
Treasury Department (collectively, the “Recovery Zone Act”) define a recovery zone as any area designated by the City as
an area of significant poverty, unemployment, rate of home foreclosure, or general distress;

WHEREAS, the City has determined that the City of Raleigh’s Urban Progress Zone has experienced significant
unemployment and general distress;

WHEREAS, the City has determined that it is in the best interest of the City and its citizens to designate the
Urban Progress Zone (designated as such by the City of Raleigh City Council on December 2, 2008 via Resolution No.
(2008) 759) as a “recovery zone” for purposes of the Recovery Zone Act;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Raleigh, that:

1. The City hereby finds that there is significant unemployment and general distress in the City of Raleigh’s Urban
Progress Zone, and therefore hereby designates the City of Raleigh’s Urban Progress Zone as a recovery zone for purposes
of the Recovery Zone Act.

2. The officers of the City are hereby authorized and directed to take all actions as may be required in furtherance
of the designation of the recovery zone.

Adopted: December 1, 2009

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4
5
6
Remote Operations Facility, Northeast Site: $6,300,000

This item is for the acquisition of a new north East Remote Operations Facility for new Street Maintenance, Vehicle Fleet
Service and Traffic Engineering facilities. This facility would be used for emergency storm operations. The estimate
includes the purchase of the building only. The site will be 123,649 square feet.

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Remote Operations Facility, Wilder’s Grove: $ 21,166,936

This item is for the construction of a new Solid Waste Services Operations Facility on the existing Wilders Grove Landfill.
The estimate includes building and site work costs, off-site development costs, design development contingency, escalation
and a construction contingency in the first phase. The site will be 77,000 square feet.

8
9
Clarence E. Lightner Public Safety Facility,: $72,533,064

The Public Safety Center located in the Downtown Business District will comprise an estimated 174,973 net square feet
and include ECC, Emergency Operations, Traffic Signal Control, and Public Safety Center functions. This building will
also include general office space as part of a proposed 305,000 gross square foot office tower.

10
 A regular meeting of the City Council of the City of Raleigh, North Carolina was held in the City Council
Chambers of the Avery C. Upchurch Government Complex located at 222 West Hargett Street in Raleigh, North Carolina,
the regular place of meeting, at 1:00 p.m. on April 5, 2010.

Present: Mayor Charles C. Meeker, presiding, and Council Members

Absent: Council Members

Also Present:

* * * * * *

___________________ introduced the following resolution the title of which was read and copies of which had

been distributed to each Council Member:

Resolution No. 2010-____

RESOLUTION DESIGNATING A RECOVERY ZONE PURSUANT TO THE AMERICAN
RECOVERY AND REINVESTMENT TAX ACT OF 2009 FOR THE PURPOSE OF ISSUING
RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE
FACILITY BONDS; DESIGNATING CERTAIN RECOVERY ZONE PROJECTS; AND
AUTHORIZING THE CITY MANAGER TO FILE AN APPLICATION WITH THE NORTH
CAROLINA TAX REFORM ALLOCATION COMMITTEE FOR AN ALLOCATION OF
CAPACITY FOR RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS FOR SUCH
PROJECTS

WHEREAS, the American Recovery and Reinvestment Tax Act of 2009 (“ARRA”) creates several financing
techniques for State and Local Governments to finance infrastructure and other needs in addition to those previously
available, and one of those new financing techniques is the financing of facilities in “Recovery Zones” within the meaning
of ARRA through the issuance of Recovery Zone Facility Bonds and Recovery Zone Economic Development Bonds
(“Recovery Zone Bonds”);

WHEREAS, Recovery Zone Bonds are to be issued with respect to or to finance certain expenditures located in or
attributable to an area within the jurisdiction of the City that the City Council (the “Council”) determines has a significant
level of one or more of the following factors: poverty, unemployment, home foreclosures, or general distress (such factors
referred to herein as the “Distress Factors”); and

WHEREAS, the Council has determined that the Distress Factors referred to in the proceeding paragraph are
evident throughout the territorial area of the City and the City desires to designate the entire territorial area of the City as a
“Recovery Zone” to provide for the possible issuance of Recovery Zone Bonds (such area being referred to herein as the
“Recovery Zone”);

WHEREAS, the Council is determining whether to undertake continued funding of two significant projects in the
City consisting of (i) the acquisition of a new City facility to be known as the Clarence E. Lightner Public Safety Center to
provide needed administrative and operating facilities for the City police and fire departments and emergency response,
traffic management and other City departments and (ii) the construction of new City facilities commonly referred to as the
“remote operations facilities” to be constructed on several existing sites now owned by the City, or sites to hereafter be
acquired by the City, such facilities to be used by the City as support facilities in performing its City services and programs,
and the City wishes to consider possible funding of such projects as Recovery Zone projects funded with the proceeds of
Recovery Zone Economic Development Bonds;

WHEREAS, ARRA establishes a procedure pursuant to which allocations to issue Recovery Zone Economic
Development Bonds to various local governments that will not be utilized by such local governments may be reallocated to
other local governments for use, and the State of North Carolina has established a procedure for the North Carolina Tax

11
Reform Allocation Committee (the “Committee”) to reallocate such unused capacity, and the Council has determined to
direct the City Manager to file an application with the Committee for an additional reallocation of North Carolina’s unused
allocation; and

NOW THEREFORE, BE IT RESOLVED, by the City Council as follows:

Section 1. Underlying Conditions of Distress. The Council hereby finds and determines that the entire area
within the jurisdictional boundaries of the City suffers from the following conditions (each an “Underlying Condition of
Distress”): (i) significant increases in unemployment during calendar years 2008 and 2009, (ii) significant increases in
home foreclosures and business failures during the calendar years 2008 and 2009, (iii) a material decline (using historical
numbers) in retail sales and (iv) a significant decline in sales tax revenues resulting in constraints on the governmental
services provided by the City within the Recovery Zone since 2008.

Section 2. Distress Factors. The Council hereby finds and determines that, as a result of the Underlying
Conditions of Distress, the Recovery Zone has experienced a significant level of one or more of the Distress Factors (i.e.,
poverty, unemployment, home foreclosures or general distress).

Section 3. Designation of Recovery Zone. Based upon the findings and determinations of the Underlying
Conditions of Distress and the resulting Distress Factors, the Board hereby designates the entire area within the
jurisdictional boundaries of the City as the “Recovery Zone” for the City. Such designation is in addition to the designation
made by the Council at its meeting on December 1, 2009. The Council hereby authorizes the City Manager: (i) to take all
necessary steps to identify appropriate projects for which the issuance of bonds will further the goals established for
Recovery Zone Bonds in order to cure the Distress Factors within the Recovery Zone; (ii) to identify other economic
development incentives and programs which may be available under federal or North Carolina law for such projects which
will further the goals established for Recovery Zone Bonds; and (iii) to work with the Office of Economic Development of
the State of North Carolina to plan for the issuance of Recovery Zone Bonds for identified projects.

Section 4. Designation of Projects as Recovery Zone Projects. The Council hereby designates the Clarence E.
Lightner Public Safety Center and the “remote operations facilities” referenced above to be Recovery Zone Projects that the
City may finance with Recovery Zone Economic Development Bonds. The Council hereby directs the City Manager to file
an application with the Committee for allocation of North Carolina’s authority to issue Recovery Zone Economic
Development Bonds to finance all or a portion of such projects.

Section 5. This resolution shall take effect upon its passage.

Upon motion of Council Member ________________, seconded by Council Member

_________________________, the foregoing resolution entitled “RESOLUTION DESIGNATING A RECOVERY ZONE
PURSUANT TO THE AMERICAN RECOVERY AND REINVESTMENT TAX ACT OF 2009 FOR THE PURPOSE OF
ISSUING RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS;
DESIGNATING CERTAIN RECOVERY ZONE PROJECTS; AND AUTHORIZING THE CITY MANAGER TO FILE
AN APPLICATION WITH THE NORTH CAROLINA TAX REFORM ALLOCATION COMMITTEE FOR AN
ALLOCATION OF CAPACITY FOR RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS FOR SUCH
PROJECTS” was passed by the following vote:

Ayes:

Noes:

* * * * * *
I, Gail G. Smith, CMC, City Clerk of the City of Raleigh, North Carolina, DO HEREBY CERTIFY that the
foregoing is a true copy of so much of the proceedings of the City Council of said City at a regular meeting held on April 5,
2010, as it relates in any way to the passage of the foregoing resolution and that said proceedings are recorded in the
minutes of said City Council.

12
 I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was given as required by North
Carolina law.

WITNESS my hand and official seal of said City this __ day of April, 2010.

13
 A regular meeting of the City Council of the City of Raleigh, North Carolina was held in the City Council

Chambers of the Avery C. Upchurch Government Complex located at 222 West Hargett Street in Raleigh, North Carolina,

the regular place of meeting, at 1:00 p.m. on April 5, 2010.

Present: Mayor Charles C. Meeker, presiding, and Council Members

Absent: Council Members

Also Present:

* * * * * *

___________________ introduced the following resolution the title of which was read and copies of which
had been distributed to each Council Member:
Resolution No. 2010-____
RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING THE
FINANCING OF CERTAIN ADDITIONAL CAPITAL FACILITIES FOR THE CITY WITH
THE PROCEEDS OF LIMITED OBLIGATION BONDS ISSUED PURSUANT TO A TRUST
AGREEMENT AND SUPPLEMENTAL TRUST AGREEMENT THERETO AND REQUESTING
THE LOCAL GOVERNMENT COMMISSION TO APPROVE THE FINANCING
ARRANGEMENT

BE IT RESOLVED by the City Council (the “City Council”) for the City of Raleigh, North Carolina (the
“City”) as follows:
Section 1. The City Council does hereby find and determine as follows:

(a) In order to acquire, construct and equip certain capital improvements including, but not limited to, (i) the

acquisition of a new City facility to be known as the Clarence E. Lightner Public Safety Center to provide needed

administrative and operating facilities for the City police and fire departments and emergency response, traffic management

and other City departments and (ii) the construction of new City facilities commonly referred to as the “remote operations

facilities” to be constructed on several existing sites now owned by the City, or sites to hereafter be acquired by the City,

such facilities to be used by the City as support facilities in performing its City services and programs (together, the

“Project”), the City has entered into a Trust Agreement, dated as of October 1, 2009 (the “Trust Agreement”), between the

City and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented from time to time pursuant to

supplements thereto, pursuant to which the City will issue limited obligation bonds (the “Bonds”) for the purposes

described therein. Such Trust Agreement and the related plan of finance constitute an installment contract financing

pursuant to Section 160A-20 of the General Statutes of North Carolina, as amended.

(b) In order to secure its obligations under the Trust Agreement and the Bonds, the City has executed and

delivered a Deed of Trust (the “Deed of Trust”), from the City to the deed of trust trustee named therein for the benefit of

the Trustee, granting a lien of record on certain of the sites comprising the Project and certain other facilities financed or

refinanced pursuant to the Trust Agreement, together with all improvements and fixtures located and to be located thereon.

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 (c) The determination to finance the various components of the capital improvements to be financed under the

Trust Agreement shall be made from time to time by the City Council pursuant to a resolution with regard to the given

component. The City Council has determined to proceed at this time with the further financing of the acquisition,

construction and equipping of the Clarence E. Lightner Public Safety Center and the remote operations facilities described

above.

(d) Under the proposed plan of finance, the further financing of the Project would be financed under a Second

Supplemental Trust Agreement, to be dated as of April 1, 2010 (the “Second Supplemental Trust Agreement”), between the

City and the Trustee supplementing the Trust Agreement, pursuant to which the City will issue its Limited Obligation

Bonds (Governmental Facilities Project), Series 2010 (the “2010 Bonds”).

Section 2. The City Council hereby approves the filing of an application with the Local Government
Commission for approval of the Second Supplemental Trust Agreement and the issuance of the 2010 Bonds and
requests the Local Government Commission to approve such Second Supplemental Trust Agreement and the issuance
of the 2010 Bonds and the proposed financing relating thereto. In connection therewith the City Council hereby finds
and determines that:
(a) entering into the Second Supplemental Trust Agreement and issuing the 2010 Bonds is preferable to a general

obligation bond or revenue bond issue in that (i) the City does not have the constitutional authority to issue non-voted

general obligation bonds pursuant to Article V, Section 4 of the North Carolina Constitution because the City has not

retired a sufficient amount of debt in the preceding fiscal year to issue a sufficient amount of general obligation bonds for

the Project without an election; (ii) the nature of the Project and the facilities to be financed are such that a revenue bond

financing under The State and Local Government Revenue Bond Act is not feasible; (iii) the cost of the Project exceeds the

amount to be prudently provided from currently available appropriations and unappropriated fund balances; (iv) the

circumstances existing require that funds be available to continue construction of the Project as soon as practicable and the

time required for holding an election for the issuance of voted general obligation bonds pursuant to Article V, Section 4 of

the North Carolina Constitution and the Local Government Bond Act will delay the continuation of construction and

acquisition of the Project by several months; and (v) the necessity of the Project for the public safety of the citizens of the

City and the efficient administration by the City of its municipal services dictates that the Project be financed by a method

that assures that the Project will be constructed in an expedient manner;

(b) the continued financing of the Project through the issuance of the 2010 Bonds is reasonable comparable to the

costs of issuing general obligation bonds or other available methods of financing and is acceptable to the City Council;

(c) bond counsel to the City will render an opinion to the effect that the proposed undertaking as described above

is authorized by law and is a purpose for which public funds may be expended pursuant to the Constitution and laws of the

State of North Carolina;

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 (d) the debt management policies of the City have been carried out in strict compliance with law, and the City is

not in default under any obligation for repayment of borrowed money; and

(e) an increase in taxes necessary to pay debt service on the 2010 Bonds will not be excessive.

Section 3. The City Council hereby determines that it is in the City’s best interest to proceed at this time with
the continued financing of the Project through the issuance of the 2010 Bonds as described above. No provision of the
Trust Agreement or the 2010 Bonds shall be construed or interpreted as creating a pledge of the faith and credit of the
City within the meaning of any constitutional debt limitation. No provision of the Trust Agreement or the 2010 Bonds
shall be construed or interpreted as creating a delegation of governmental powers nor as a donation by or a lending of
the credit of the City within the meaning of the constitution of the State. The Trust Agreement and the 2010 Bonds
shall not directly or indirectly or contingently obligate the City to make any payments beyond those appropriated in the
sole discretion of the City Council for any fiscal year; provided, however, that any failure or refusal by the City
Council to appropriate funds which results in the failure by the City to make any payment coming due with respect to
the 2010 Bonds will in no way obviate the occurrence of the event of default resulting from such nonpayment. No
deficiency judgment may be rendered against the City in any action for breach of a contractual obligation under the
Trust Agreement or the 2010 Bonds and the taxing power of the City is not and may not be pledged directly or
indirectly or contingently to secure any moneys due under the Trust Agreement or the 2010 Bonds.
Section 4. This resolution shall take effect immediately upon its passage.

Upon motion of Council Member ________________, seconded by Council Member

_________________________, the foregoing resolution entitled “RESOLUTION MAKING CERTAIN FINDINGS
AND DETERMINATIONS REGARDING THE FINANCING OF CERTAIN ADDITIONAL CAPITAL
FACILITIES FOR THE CITY WITH THE PROCEEDS OF LIMITED OBLIGATION BONDS ISSUED
PURSUANT TO A TRUST AGREEMENT AND SUPPLEMENTAL TRUST AGREEMENT THERETO AND
REQUESTING THE LOCAL GOVERNMENT COMMISSION TO APPROVE THE FINANCING
ARRANGEMENT” was passed by the following vote:
Ayes:

Noes:

* * * * * *
I, Gail G. Smith, CMC, City Clerk of the City of Raleigh, North Carolina, DO HEREBY CERTIFY that the
foregoing is a true copy of so much of the proceedings of the City Council of said City at a regular meeting held on
April 5, 2010, as it relates in any way to the passage of the foregoing resolution and that said proceedings are recorded
in the minutes of said City Council.
I DO HEREBY FURTHER CERTIFY that proper notice of such regular meeting was given as required by
North Carolina law.
WITNESS my hand and official seal of said City this __ day of April, 2010.

City Clerk

[SEAL]

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WCSR 4295787v1
CITY OF RALEIGH 3-23-10 Scenario
GENERAL DEBT MODEL Remove property sales of Deveroux/Cabarrus St. and measure how much debt can be issued without a tax increase
CURRENT YEAR PLUS FUTURE YEARS PROJECTION $100M @ 3.46% AI-TIC 25 yr amort level prin using hybrid of BAB's/TE/RZEDBs make whole
$100M @4.50% 25 yr amort level prin TE
with Alternate Revenue Source

FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
Beginning Balance $ 36,303,306 $ 44,138,366 $ 42,682,558 $ 44,595,183 $ 38,115,880 $ 32,556,715 $ 27,851,540 $ 24,935,529 $ 23,913,479 $ 20,828,197 $ 20,076,448 $ 21,412,282 $ 26,718,009 $ 33,802,979 $ 47,505,007
Continuing Revenues:
General Fund Allocation 34,921,173 37,223,309 37,689,008 38,168,678 38,662,738 39,171,621 39,784,514 40,419,343 41,076,910 41,758,042 42,463,602 43,194,481 43,951,606 44,735,936 45,548,467
Tech Fund Allocation 3,889,188 3,785,088 3,680,988 3,576,888 3,472,788 3,368,688 3,264,588 3,160,488 3,056,388 - - - - - -
Facility Fee Revenues* 3,000,000 3,500,000 4,000,000 4,120,000 4,243,600 4,370,908 4,502,035 4,637,096 4,776,209 4,919,495 5,067,080 5,219,093 5,375,666 5,536,935 5,703,044
Other Revenues 2,367,723 2,525,936 2,816,803 3,143,934 2,883,196 2,831,701 2,636,812 2,406,960 2,244,390 2,154,253 2,141,185 2,200,606 2,371,456 2,718,213 3,326,483
Subtotal Continuing Revenues 44,178,084 47,034,333 48,186,798 49,009,500 49,262,322 49,742,918 50,187,949 50,623,888 51,153,897 48,831,790 49,671,867 50,614,180 51,698,727 52,991,084 54,577,993
Future Revenues to be Dedicated:
$33.5M 1yr note for Interim Funding CELPSC/Remote Ops 34,505,000
Alternate Revenue Source 2,000,000 3,000,000 4,000,000 4,000,000 4,000,000 4,000,000 - - - - - - -
Reimbursement of Debt Svc borrowing in Budget 1,850,000
Reimb Remote Op Bldg Acq 09-10/Transit Fac 11-12/RCCC AMP Loan Repayment 6,300,000 164,946 2,664,946 164,946 164,946 164,946 164,946 164,946
Total New Revenues 42,655,000 164,946 4,664,946 3,164,946 4,164,946 4,164,946 4,164,946 4,164,946 - - - - - - -
Total Revenues 86,833,084 47,199,279 52,851,744 52,174,446 53,427,268 53,907,864 54,352,895 54,788,834 51,153,897 48,831,790 49,671,867 50,614,180 51,698,727 52,991,084 54,577,993
Total Available Resources: Beginning Bal. + Total Rev. 123,136,390 91,337,645 95,534,303 96,769,629 91,543,148 86,464,579 82,204,435 79,724,363 75,067,376 69,659,988 69,748,315 72,026,462 78,416,736 86,794,063 102,082,999

Expenditures:
Issued General Governmental Debt Service** 34,666,974 39,413,200 38,493,219 37,159,611 36,137,368 35,213,973 32,570,362 31,452,890 30,221,735 25,944,845 25,076,090 22,427,259 22,111,312 17,165,362 12,817,973
Funds for Transit Fac/Remote Ops Fac Acq/RCCC AMP Loan 9,826,050

Authorized but Unissued:

10/11/05 Ref GO Streets $30M Unissued (potential Fall 10/11 Sale) - 825,000 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380 2,510,380
10/9/07 Ref GO Parks in Reval Model (Potential $30M 10/11, $30M 11/12, $28.6M 12/13) 675,000 2,306,284 3,056,284 4,713,562 5,571,562 7,207,040 7,207,040 7,207,040 7,207,040 7,207,040 7,207,040 7,207,040 7,207,040 7,207,040
Subtotal: Authorized but Unissued-Est'd Debt Service: - 1,500,000 4,816,664 5,566,664 7,223,942 8,081,942 9,717,420 9,717,420 9,717,420 9,717,420 9,717,420 9,717,420 9,717,420 9,717,420 9,717,420
Prin Pmt $33.5M 1yr note for Interim Funding CELPSC/Remote Ops 34,505,000 - - - - - - - - - - - - - -
New Projects:
CELPSC/Remote Operations Sites 25 yr Level Prin - 7,741,887 7,629,237 15,927,474 15,625,124 15,317,124 14,981,124 14,640,574 14,300,024 13,921,274 13,542,524 13,163,774 12,785,024 12,406,274 12,027,524
Subtotal New Projects - 7,741,887 7,629,237 15,927,474 15,625,124 15,317,124 14,981,124 14,640,574 14,300,024 13,921,274 13,542,524 13,163,774 12,785,024 12,406,274 12,027,524
Total Expenditures $ 78,998,024 $ 48,655,087 $ 50,939,120 $ 58,653,749 $ 58,986,433 $ 58,613,039 $ 57,268,906 $ 55,810,884 $ 54,239,179 $ 49,583,539 $ 48,336,034 $ 45,308,453 $ 44,613,757 $ 39,289,057 $ 34,562,918
Ending Balance-General Debt Model $ 44,138,366 $ 42,682,558 $ 44,595,183 $ 38,115,880 $ 32,556,715 $ 27,851,540 $ 24,935,529 $ 23,913,479 $ 20,828,197 $ 20,076,448 $ 21,412,282 $ 26,718,009 $ 33,802,979 $ 47,505,007 $ 67,520,082

*assumes 3.00% annual grwth in rev dedication (From Streets Facility Fees and Parks Acq Facility Fees) 56% 88% 88% 65% 55% 48% 44% 43% 38% 40% 44% 59% 76% 121% 195%
**Includes Issued General Debt through 2-12-10

Gen Debt Model-JW Treasury

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