The Case Study Assignment

Using information obtained from NC General Statutes $159-148$ and $160$A$-20,$ read the case study scenarios and

respond to the questions that follow. Please include a brief description of how you reached your conclusion$($s$)$

by referencing the SPECIFIC NC General Statute$($s$)$ that apply down to the subsection level. For example, G$.$S$.$

$159-33($a$)(2),$ not G$.$S$.159-33$ unless it does not have sub$-$section$($s$).$ You are not required to cite the text of

the General Statute that applies.

A$.$ The Town of Low Point has made application and received approval from the US Department of Agriculture's

Community Services Program to borrow $$1\mathrm{.}5$ million using an installment purchase agreement to build a new

fire station. The loan will be paid back over $30$ years at a rate of $3\mathrm{.}75\%,$ and the USDA will hold the mortgage

on the fire station property until the loan is paid off. Annual payments will be

$$84,131\mathrm{.}44.$

Can the town legally provide the town hall as a security

interest that will be held by the federal government? Please reference the SPECIFIC NC General Statute$($s$)$

that apply down to the subsection level. For example, G$.$S$.159-33($a$)(2),$ not G$.$S$.159-33$ unless it does not

have sub$-$

section$($s$).$

Will the installment purchase

agreement with the federal government need approval by the Local Government

Commission? Please reference the SPECIFIC NC General Statute$($s$)$ that apply down to the subsection

level. For example, G$.$S$.159-33($a$)(2),$ not G$.$S$.159-33$ unless it does not have sub$-$section$($s$).$

B$.$ The Town of Low Point now wants to purchase a new aerial ladder truck to go in its new fire station. The

ladder truck will cost $$850,000.$ The town would like to finance the purchase rather than use its fund balance

of $$6,385,000.$ The fire truck vendor can also provide a $10$ year lease at $3\mathrm{.}25\%.$ Monthly payments for the next

$10$ years will be $$28,233\mathrm{.}04.$ Title to the truck will be assigned to the town at the beginning of the lease, but

the vendor will file a lien on the truck's title until the end of the lease. The Town of Low Point is not on the

Unit Assistance List $($UAL$)$ developed by the LGC$.$ Will this vendor lease for the ladder truck need the approval

by the Local Government Commission? Please reference the SPECIFIC NC General Statute$($s$)$ that apply down

to the subsection level. For example, G$.$S$.159-33($a$)(2),$ not G$.$S$.159-33$ unless it does not have sub$-$

section$($s$).$

C$.$ The Town of Low Point's police chief is complaining about his department's office space $(2000$ sq $.$ ft $.),$ now that

the fire chief has a brand new fire station. The police department is currently located in offices in town hall,

but everyone agrees that they need more room and a more central location. Sufficient space $(4500sq.ft.)$ has

recently become available in a strip mall located in the middle of town. The mall's owner would like to have a

police presence on his property and has offered a rate of $$24$ per $sq.$ ft $.$ which is significantly less than the

current market rate for office space of $$36$ per sq$.$ ft $.$ The owner wants a minimum term of six years and will

make all the up fits needed to accommodate the space for the police department as part of the deal. Annual

lease payments would be $$108,000$ excluding utilities, taxes, etc. Would this six year operating lease require

the approval of the Local Government Commission? Please reference the SPECIFIC NC General Statute$($s$)$ that

apply down to the subsection level. For example, G$.$S$.159-33($a$)(2),$ not G$.$S$.159-33$ unless it does not have

sub$-$section$($s$).$

Resources:NC General Statutes

Grading Criteria

Equal credit for the correct answer and the specific$/$detailed NC General Statute reference$($s$)$ of where you

found the answer.