Harnett County Board of Commissioners. Special Session. Tuesday, January 15, :00 am

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1 Harnett County Board of Commissioners Special Session Tuesday, January 15, :00 am 9:00 am 9:15 am 9:45 am 10:15 am 10:45 am 11:00 am 11:15am 11 :45 am Approval of Resolution of the Board of Commissioners of the Board of the County of Harnett, North Carolina, Sitting as the Governing Body of the South Central Water and Sewer District of Harnett County, Providing for the Issuance of $3,449,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013A, $3,937,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013B, $3,239,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013C and $2,586,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013D of the South Central Water and Sewer District of Harnett County Discussion and consideration of a proposed Ordinance Establishing a Whistleblower Policy, Dwight Snow Discussion regarding ground and special aviation service organization leases at the Harnett Regional Jetport, Barry Blevins West Park Improvements and American Legion Land Acquisition, Carl Davis Boards and Committee representation by commissioners in 2013 Finance Officer's Report, Sylvia Blinson January 22,2013, Regular Meeting Agenda Review* );> Emergency Services is requesting, on behalf of Flat Branch Fire Department, authorization to purchase a new pumper/tanker, Gary Pope Closed session *Please note the January 22,2013, Regular Meeting agenda of the Harnett County Board of Commissioners will be distributed for review at this special session. The agenda is neither completed nor available for distribution until the morning of the special session.

2 Parker Poe Draft EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A special meeting of the Board of Commissioners (the "Board") of the County of Harnett, North Carolina was duly noticed and held on Tuesday, January 15, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board of Commissioners of the County of Harnett, North Carolina, presiding and the following Commissioners present: Commissioners Present: Commissioners Absent: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was -available with the Clerk to the Board and which was read by title: RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, PROVIDING FOR THE ISSUANCE OF $3,449,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013A, $3,937,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013B, $3,239,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013C AND $2,586,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013D OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY BE IT RESOLVED by the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the South Central Water and Sewer District of Harnett County (the "District") that: Section 1. The Board, sitting as the governing body of the District, has determined and hereby finds and declares as follows: (a) The Board, sitting as the governing body of the District, adopted a bond order authorizing $42,000,000 General Obligation Water and Sewer Bonds of the District on December 2, 2002, which order was effective on approval by a majority of the voters who voted thereon at a special referendum duly called and held on February 4,2003, as modified by an order adopted by the Board, sitting as the governing body of the District,

3 on December 7, 2009 to extend the time period for issuing bonds under such order to February 4, (b) There is outstanding $13,211,000 General Obligation Water and Sewer Bond Anticipation Notes, Series 2012B dated October 23, 2012, maturing January 23, 2013, and bearing interest at the rate of 1.00% per annum, which notes were issued in anticipation of the receipt of the proceeds of the sale ofa like amount of bonds. (d) It is necessary at this time for the District to issue (1) $3,449,000 of its General Obligation Water and Sewer Bonds, Series 2013A (the "20l3A Bonds"), (2) $3,937,000 of its General Obligation Water and Sewer Bonds, Series 2013B (the "20l3B Bonds"), (3) $3,239,000 of its General Obligation Water and Sewer Bonds, Series 2013C (the "20l3e Bonds") and (4) $2,586,000 of its General Obligation Water and Sewer Bonds, Series 2013D (the "20l3D Bonds," and together with the 2013A Bonds, the 2013B Bonds and the 2013C Bonds, the "Bonds"), the proceeds of which will be applied to the payment of the outstanding notes at their maturities. (e) The maximum period of usefulness of the District's water system improvements to be financed or refinanced with the proceeds of the Bonds authorized hereby is estimated as a period of 40 years from January 22,2013, the anticipated date of the Bonds, and such period expires on January 22, Section 2. (a) Pursuant to said order, there shall be issued one 2013A Bond in the principal amount of $3,449,000, numbered RA-1, to be dated as of the date of delivery thereof and to mature in annual installments on the first day of June in the following years and in the following amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $50, $67, $91, $124, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 The 2013A Bonds shall bear interest on the unpaid part of such principal at a rate of 3.125% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. 2

4 (b) Pursuant to said order, there shall be issued one 2013B Bond in the principal amount of $3,937,000, numbered RB-l, to be dated as of the date of delivery thereof and to mature in annual installments on the first day of June in the following years and in the following amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $56, $76, $103, $140, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 The 2013B Bonds shall bear interest on the unpaid part of such principal at a rate of 3.125% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. (c) Pursuant to said order, there shall be issued one 2013C Bond in the principal amount of $3,239,000, numbered RC-l, to be dated as of the date of delivery thereof and to mature in annual installments on the first day of June in the following years and in the following amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $53, $67, $85, $109, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 The 20 13C Bonds shall bear interest on the unpaid part of such principal at a rate of 2.50% per annum until payment thereof, such interest to be payable on June 1, 2013, and annually thereafter on the first day of June of each year until paid. 3

5 (d) Pursuant to said order, there shall be issued one 2013D Bond in the principal amount of $2,586,000, numbered RD-1, to be dated as of the date of delivery thereof and to mature in annual installments on the first day of June in the following years and in the following amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $43, $53, $68, $88, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 The 20 13D Bonds shall bear interest on the unpaid part of such principal at a rate of 2.50% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. (e) The Bonds shall be sold to the United States of America, acting by and through Rural Utilities Service, an agency of the United States Department of Agriculture (formerly Farmers Home Administration) ("USDA"), by private sale in accordance with Sections 7 and 8. The Bonds of a series shall not be defeased without written consent of USDA during such time as USDA shall remain the registered owner of the Bonds of such series. The Bonds shall bear interest from the date on which they are authenticated. The principal of and the interest and any redemption premium on the Bonds shall be payable in any coin or currency of the United States of America which is legal tender for the payment of public and private debts on the respective dates of payment thereof. Payment of interest on the Bonds shall be made by the Bond Registrar (hereinafter defined) on each interest payment date to the person appearing on the registration books of the District hereinafter provided for as the registered owner of such Bonds (or the previous Bond or Bonds evidencing the same debt as that evidenced by such Bonds) at the close of business on the record date for such interest, which shall be the 15 th day (whether or not a business day) of the calendar month next preceding such interest payment date. During the time that USDA is the registered owner of the Bonds of a series, payment of the installments of principal and interest when due and payable on the Bonds of such series shall be made at the office of such fiscal agent as USDA shall designate without presentation or surrender thereof and, during any such time as an assignee thereof is the registered owner of the Bonds of a series, payment of the 4

6 installments of principal when due and payable on the Bonds of such series shall be made at the corporate trust office of U.S. Bank National Association in Raleigh, North Carolina, upon the presentation and surrender thereof, and payment of the interest when due and payable on the Bonds of such series shall be made by check mailed to such assignee at his address as it appears on the registration books of the District hereinafter mentioned without the presentation or surrender thereof. Section 3. The Bonds of a series may be redeemed, at the option of the District, as long as USDA is the owner of the Bonds of such series, at any time prior to the maturity of any installment of the principal thereof, either in whole or in part in the inverse order of the maturity dates of the installments of principal, from any moneys that may be made available for such purpose, at the aggregate principal amount of the installments of principal to be redeemed, together with the interest accrued thereon to the date fixed for redemption, but without any premiums. In case of a redemption of all or any part of the Bonds of a series, a notice of redemption shall be sent by registered mail, mailed at least 40 days prior to the date fixed for redemption, addressed (a) during the time that USDA is the owner of the Bonds of such series, to such other address as USDA may designate by registered or certified mail forwarded to the District at least 50 days prior to any redemption date, and (b) during any time as an assignee of USDA is the owner of the Bonds of such series, to the address as it appears on the registration book of the District hereinafter mentioned. On the date fixed for redemption, notice having been given in the manner and under the conditions hereinabove provided, the Bonds or part thereof called for redemption shall be due and payable at the redemption price provided therefor, plus accrued interest to such date. If moneys sufficient to pay the redemption price of the Bonds or part thereof to be redeemed plus accrued interest thereon to the date fixed for redemption are held at such place as USDA may designate (or, if the Bond or Bonds to be redeemed shall have been assigned by USDA, at the corporate trust office of U.S. Bank National Association in Raleigh, North Carolina, pursuant to Section 2 hereof) in trust for such purpose, interest on the Bonds or part thereof called for redemption shall cease to accrue, such Bond, Bonds or part thereof shall cease to be entitled to any benefits or security under this resolution or to be deemed outstanding, and the registered owners of such Bond, Bonds or part thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof, plus accrued interest to the date of redemption. If an installment of principal of the Bonds shall be redeemed, the Bond Registrar shall direct the registered owner thereof to evidence such redemption by appropriate notation on a schedule to be attached to such Bond for such purpose. Section 4. The Bonds, on surrender thereof at the principal office or corporate trust office of the Bond Registrar, together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, may, at the option of the registered owner thereof, be exchanged for Bonds having maturities corresponding to the maturities of the installments of principal of such Bonds then unpaid issuable in fully registered form in the denomination of $1,000 or any integral multiple thereof, and bearing interest at the same rate. The transfer of the Bond or Bonds may be registered by the registered owner thereof only upon an execution of an assignment thereof duly executed by such registered owner or his attorney or legal representative. Notice of such assignment shall be given promptly by the assignor to the Bond Registrar by registered mail, such notice to be in such form as shall be satisfactory to the Bond Registrar, and upon 5

7 receipt of such notice, such Bond or Bonds shall be registered as to both principal and interest on such registration books in the name of the assignee named in such notice. The transfer of any bond issued in exchange for the Bond or Bonds as provided above may be registered only upon the registration books of the District upon the surrender thereof to the Bond Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall authenticate and deliver in exchange for such Bond or Bonds a new bond or bonds, registered in the name of the transferee, of any denomination or denominations authorized by this resolution, in an aggregate principal amount equal to the unredeemed principal amount of such Bond or Bonds so surrendered, of the same maturity and bearing interest at the same rate. In all cases in which the Bond or Bonds shall be exchanged or the transfer of the Bond or Bonds shall be registered hereunder and a new bond or bonds are to be delivered in exchange therefor, the Bond Registrar shall authenticate and deliver at the earliest practicable time bonds in accordance with the provisions of this resolution. All Bonds surrendered in any such exchange or registration of transfer shall forthwith be canceled by the Bond Registrar. The Bond Registrar shall not be required to make any such exchange or registration of transfer of (a) any Bond or Bonds during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or (b) any Bond or Bonds called for redemption in whole or in part pursuant to Section 3 of this resolution. As to any Bond, the person in whose name the same shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal or redemption price of any such Bond and the interest on any such Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. The District shall appoint such registrars, transfer agents, depositaries or other agents as may be necessary for the registration, registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of installments of principal and interest with respect to the Bond or Bonds. The Finance Officer of the County, acting on behalf of the District, is hereby appointed the registrar, transfer agent and paying agent (the "Bond Registrar") for the Bonds, subject to the right of the governing body of the District to appoint another Bond Registrar, and as such shall keep at his office the books of the District for the registration, registration of transfer, exchange and payment of the Bonds as provided in this resolution; provided, however, that, in the event that the Bond or Bonds of a series registered in the name of USDA are assigned, the paying agent with respect to the Bond or Bonds of such series shall be U.S. Bank National Association, in the City of Raleigh, North Carolina. Section 5. The Bonds shall bear the manual or facsimile signatures of the Chairman of the Board (the "Chairman") and the Clerk to the Board, both acting on behalf of the District, and the corporate seal or a facsimile of the corporate seal of the District or the County shall be impressed or imprinted, as the case may be, on the Bonds. The certificate of the Local Government Commission of North Carolina to be endorsed on the Bonds shall bear the manual or facsimile signature of the Secretary of said Commission, and the 6

8 certificate of authentication of the Bond Registrar to be endorsed on the Bonds shall be executed as provided hereinafter. If any officer of the County, acting on behalf of the District, or the Local Government Commission of North Carolina whose manual or facsimile signature appears on the Bonds ceases to be such officer before the delivery of such Bonds, such manual or facsimile signature is nevertheless valid and sufficient for purposes the same as if he had remained in office until such delivery, and the Bonds may bear the manual or facsimile signatures of such persons as at the actual time of the execution of such Bonds are the proper officers to sign such Bonds although at the date of such Bonds such persons may not have been such officers. No Bond is valid or obligatory for any purpose or entitled to any benefit or security under this resolution until it has been authenticated by the execution by the Bond Registrar of the certificate of authentication endorsed thereon. hereto. The Bonds and the endorsements thereon shall be in substantially the form attached as Exhibit A Section 6. The County Manager or the Finance Officer of the County is hereby authorized to execute on behalf of the District a no-arbitrage certificate to comply with Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and the applicable regulations promulgated thereunder. The District covenants to take such action as may be required by such no-arbitrage certificate and as may be required in the opinion of nationally recognized bond counsel to cause the Bonds and all actions of the District with respect to the proceeds thereof to comply with the Code. Section 7. The Local Government Commission of North Carolina is hereby requested to sell the Bonds at private sale pursuant to G.S to USDA, subject to the approval of the Chairman, acting on behalf of the District; provided, however, that (1) the purchase price of the 2013A Bonds is at least $3,449,000, and that the maximum interest rate does not exceed 3.125% per annum, (2) the purchase price of the 2013B Bonds is at least $3,937,000, and that the maximum interest rate does not exceed 3.125% per annum, (3) the purchase price of the 2013C Bonds is at least $3,239,000, and that the maximum interest rate does not exceed 2.50% per annum and (4) the purchase price of the 2013D Bonds is at least $2,586,000, and that the maximum interest rate does not exceed 2.50% per annum Section 8. The Finance Officer, acting on behalf of the District, is hereby authorized to approve the purchase price of the Bonds and the rate of interest on the Bonds in connection with the private sale of the Bonds, subject to the provisions of Section 7 of this resolution. Section 9. This resolution may be amended or supplemented, from time to time, without the consent of the holder of the Bonds if in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the registered owners of the Bonds and would not cause the interest on the Bonds to be included in the gross income of a recipient thereof for federal income tax purposes. This resolution may be amended or supplemented with the consent of the registered owners of a majority in aggregate principal amount of the outstanding Bonds, but a modification or amendment may not, without the express consent of any registered owner of Bonds affected, reduce the principal amount of any Bonds, reduce the interest rate payable on it, extend its maturity or the times for paying interest, change the monetary medium in which principal and interest is payable, or reduce the percentage of consent required for amendment or modification. 7

9 Any act done pursuant to a modification or amendment consented to by the registered owners of the Bonds is binding on all holders of the Bonds and will not be deemed an infringement of any of the provisions of this resolution, whatever the character of the act may be, and may be done and perfonned as fully and freely as if expressly pennitted by the tenns of this resolution, and after consent has been given, no registered owner of the Bonds has any right or interest to object to the action, to question its propriety or to enjoin or restrain the District from taking any action pursuant to a modification or amendment. If the District proposes an amendment or supplemental resolution to this resolution requiring the consent of the registered owners of the Bonds, the District shall cause notice of the proposed amendment to be sent to each registered owner by first-class mail, postage prepaid, to the address of such registered owner as it appears on the registration books; but the failure to receive such notice by mail by any registered owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file in the office of the Clerk to the Board for inspection by the registered owners. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the registered owners of a majority in aggregate principal amount of the Bonds then outstanding have consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 10. This resolution is effective on its passage. * * * * * On motion of Commissioner seconded by Commissioner the foregoing resolution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, PROVIDING FOR THE ISSUANCE OF $3,449,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013A, $3,937,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013B, $3,239,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013C AND $2,586,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013D OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY" was duly adopted by the following vote: AYES: NAYS: 8

10 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) ss: I, MARGARET REGINA WHEELER, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a resolution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, PROVIDING FOR THE ISSUANCE OF $3,449,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013A, $3,937,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013B, $3,239,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013C AND $2,586,000 GENERAL OBLIGATION WATER AND SEWER BONDS, SERIES 2013D OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY" adopted by the Board of Commissioners of the County of Harnett, North Carolina at a special meeting duly held on the 15 th day of January, WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the day of January, MARGARET REGINA WHEELER Clerk to the Board of Commissioners County of Harnett, North Carolina 9

11 EXHffiIT A REGISTERED BOND WITHOUT COUPONS (Registered as to both principal and interest) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY GENERAL OBLIGATION WATER AND SEWER BONDS SERIES 2013A No. RA-l $3,449,000 The South Central Water and Sewer District of Harnett County (the "District"), a water district in the State of North Carolina, is justly indebted and for value received hereby promises to pay to the UNITED STATES OF AMERICA UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT or its registered assigns, the principal sum of THREE MILLION FOUR HUNDRED FORTY -NINE THOUSAND DOLLARS in annual installments on the 1 st day of June in the following years and amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $50, $67, $91, $124, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 and to pay interest from the date hereof on the unpaid part of such principal sum at the rate of 3.125% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. The interest so payable on any such interest payment date will be paid to the person in whose name this 2013A Bond is registered at the close of business on the record date for such interest, which shall be the 15 th day (whether or not a business day) of the calendar month next preceding such interest payment date. Both the principal of and the interest on this 2013A Bond are payable in any coin or currency of the United States of America which, at the respective date of payment thereof, is legal tender for the payment of public and private debts. A-I

12 During the time that the United States of America is the registered owner of this 2013A Bond, payment of the installments of principal and interest when due and payable on this 20 13A Bond shall be made at the office of such fiscal agent as the United States of America shall designate without presentation or surrender hereof and, during any such time as an assignee hereof is the registered owner of this 20l3A Bond, payment of the installments of principal when due and payable on this 20l3A Bond shall be made at the corporate trust office of U.S. Bank National Association, Raleigh, North Carolina, on the presentation and surrender hereof, and payment of the interest when due and payable on this 20l3A Bond shall be made by check mailed to such assignee at his address as it appears on the Bond registration books of the District hereinafter mentioned without the presentation or surrender hereof. On receipt of said payments of principal and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar hereinafter mentioned, and the District shall be fully discharged of its obligation on this 20 l3a Bond to the extent of the payment so made. On final payment this 20 l3a Bond shall be surrendered to the Bond Registrar for cancellation. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of said District is hereby irrevocably pledged. This 2013A Bond is duly authorized and issued under and pursuant to The Local Government Finance Act, Chapter 159, as amended, of the General Statutes of North Carolina, an order adopted by the Board of Commissioners (the "Boarcf') of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, which order was approved by the vote ofa majority of the qualified voters of the District who voted at a referendum duly called and held, and a resolution duly passed by the Board, as amended (the "Resolution"), for the purpose of providing funds to finance certain improvements to the water and sewer system of the District. At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, this 2013A Bond may be exchanged for an equal aggregate principal amount of Bonds having maturities corresponding to the maturities of the installments of principal of this 2013A Bond then unpaid, issuable in fully registered form in the denomination of $1,000 or any integral multiple thereof and bearing interest at the same rate. This 2013A Bond is registered as to both principal and interest in the name of the United States of America on books of the District kept by the Finance Officer of the County, acting on behalf of the District, as Bond Registrar, and the transfer hereof may hereafter be registered by the registered owner hereof only upon an execution of an assignment hereon duly executed by such registered owner or his attorney or legal representative. Notice of such assignment shall be given promptly by the assignor to the Bond Registrar by registered mail, such notice to be in such form as shall be satisfactory to the Bond Registrar, and upon receipt of such notice this 2013A Bond shall be registered as to both principal and interest on such registration books in the name of the assignee named in such notice. This 2013A Bond or any part hereof at the time outstanding may be redeemed, at the option of the District, as long as USDA is the owner of the Bonds, at any time prior to the maturity of any installment of the principal thereof, either in whole or in part in the inverse order of the maturity dates of the installments of principal, from any moneys that may be made available for such purpose, at the aggregate principal amount of the installments of principal to be redeemed, together with the interest accrued thereon to the date fixed for redemption, but without any premiums. A-2

13 On the date designated for redemption, notice having been given and moneys for payment of the redemption price being held in trust for such purposes, all as provided in the Resolution, this 20 l3a Bond or part hereof shall become and be due and payable, and the interest on this 20 l3a Bond or part hereof so redeemed shall cease to accrue. The Bond Registrar shall not be required to exchange or register any transfer of (a) any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or (b) any Bond called for redemption in whole or in part pursuant to the Resolution. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this 20l3A Bond have happened, exist and have been performed in regular and due form and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within said District sufficient to pay the principal of and the interest on this 20 13A Bonds as the same shall become due; and that the total indebtedness of the District, including this 2013A Bond, does not exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the County of Harnett, North Carolina, by resolution duly passed by its Board, sitting as the governing body of the District, has caused this 20l3A Bond to be manually signed by its Chairman and the Clerk to the Board, both acting on behalf of the District, and its corporate seal to be impressed hereon, all as of the 22 nd day ofjanuary, [SEAL] Chairman Board of Commissioners Clerk to the Board of Commissioners A-3

14 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within 2013A Bond has been approved under the provisions of The Local Government Finance Act of North Carolina By: T. Vance Holloman Secretary of the Local Government Commission A-4 PP AB v3

15 CERTIFICATE OF AUTHENTICATION This 20 13A Bond is issued under the provisions of the within-mentioned Resolution. Finance Officer of the County of Hamett, North Carolina, as Bond Registrar Authorized Signature Date of authentication: January 22, 2013 A-5

16 transfers unto ASSIGNMENT FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells, assigns and the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the Presence of: NOTICE: The signature must be guaranteed by an officer of a commercial bank, trust company, or by a member firm of The New York Stock Exchange or other national securities exchange. Notarized or witnessed signatures are not acceptable. NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration of enlargement or any change whatever. A-6

17 EXHffiITB REGISTERED BOND WITHOUT COUPONS (Registered as to both principal and interest) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY GENERAL OBLIGATION WATER AND SEWER BONDS SERIES 2013B No. RB-l $3,937,000 The South Central Water and Sewer District of Harnett County (the "District"), a water district in the State of North Carolina, is justly indebted and for value received hereby promises to pay to the UNITED STATES OF AMERICA UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT or its registered assigns, the principal sum of THREE MILLION NINE HUNDRED THIRTY-SEVEN THOUSAND DOLLARS in annual installments on the 1 5t day of June in the following years and amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $56, $76, $103, $140, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 and to pay interest from the date hereof on the unpaid part of such principal sum at the rate of 3.125% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. The interest so payable on any such interest payment date will be paid to the person in whose name this 2013B Bond is registered at the close of business on the record date for such interest, which shall be the 15 th day (whether or not a business day) of the calendar month next preceding such interest payment date. Both the principal of and the interest on this 2013B Bond are payable in any coin or currency of the United States of America which, at the respective date of payment thereof, is legal tender for the payment of public and private debts. B-1

18 During the time that the United States of America is the registered owner of this 2013B Bond, payment of the installments of principal and interest when due and payable on this 20 13B Bond shall be made at the office of such fiscal agent as the United States of America shall designate without presentation or surrender hereof and, during any such time as an assignee hereof is the registered owner of this 2013B Bond, payment of the installments of principal when due and payable on this 2013B Bond shall be made at the corporate trust office of U.S. Bank National Association, Raleigh, North Carolina, on the presentation and surrender hereof, and payment of the interest when due and payable on this 2013B Bond shall be made by check mailed to such assignee at his address as it appears on the Bond registration books of the District hereinafter mentioned without the presentation or surrender hereof. On receipt of said payments of principal and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar hereinafter mentioned, and the District shall be fully discharged of its obligation on this 2013B Bond to the extent of the payment so made. On final payment this 2013B Bond shall be surrendered to the Bond Registrar for cancellation. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of said District is hereby irrevocably pledged. This 2013B Bond is duly authorized and issued under and pursuant to The Local Government Finance Act, Chapter 159, as amended, of the General Statutes of North Carolina, an order adopted by the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, which order was approved by the vote of a majority of the qualified voters of the District who voted at a referendum duly called and held, and a resolution duly passed by the Board, as amended (the "Resolution"), for the purpose of providing funds to finance certain improvements to the water and sewer system of the District. At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, this 20 13B Bond may be exchanged for an equal aggregate principal amount of Bonds having maturities corresponding to the maturities of the installments of principal of this 2013B Bond then unpaid, issuable in fully registered form in the denomination of $1,000 or any integral multiple thereof and bearing interest at the same rate. This 2013B Bond is registered as to both principal and interest in the name of the United States of America on books of the District kept by the Finance Officer of the County, acting on behalf of the District, as Bond Registrar, and the transfer hereof may hereafter be registered by the registered owner hereof only upon an execution of an assignment hereon duly executed by such registered owner or his attorney or legal representative. Notice of such assignment shall be given promptly by the assignor to the Bond Registrar by registered mail, such notice to be in such form as shall be satisfactory to the Bond Registrar, and upon receipt of such notice this 2013B Bond shall be registered as to both principal and interest on such registration books in the name of the assignee named in such notice. This 20 13B Bond or any part hereof at the time outstanding may be redeemed, at the option of the District, as long as USDA is the owner of the Bonds, at any time prior to the maturity of any installment of the principal thereof, either in whole or in part in the inverse order of the maturity dates of the installments of principal, from any moneys that may be made available for such purpose, at the aggregate principal amount of the installments of principal to be redeemed, together with the interest accrued thereon to the date fixed for redemption, but without any premiums. B-2

19 On the date designated for redemption, notice having been given and moneys for payment of the redemption price being held in trust for such purposes, all as provided in the Resolution, this 2013B Bond or part hereof shall become and be due and payable, and the interest on this 20 l3b Bond or part hereof so redeemed shall cease to accrue. The Bond Registrar shall not be required to exchange or register any transfer of (a) any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or (b) any Bond called for redemption in whole or in part pursuant to the Resolution. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this 2013B Bond have happened, exist and have been performed in regular and due fonn and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within said District sufficient to pay the principal of and the interest on this 20 l3b Bonds as the same shall become due; and that the total indebtedness of the District, including this 20 l3b Bond, does not exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the County of Harnett, North Carolina, by resolution duly passed by its Board, sitting as the governing body of the District, has caused this 20 l3b Bond to be manually signed by its Chairman and the Clerk to the Board, both acting on behalf of the District, and its corporate seal to be impressed hereon, all as ofthe 22 nd day of January, [SEAL] Chairman Board of Commissioners Clerk to the Board of Commissioners B-3

20 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within 2013B Bond has been approved under the provisions of The Local Government Finance Act of North Carolina By: ---,- T. Vance Holloman Secretary of the Local Government Commission B-4

21 CERTIFICATE OF AUTHENTICATION This 2013B Bond is issued under the provisions of the within-mentioned Resolution. Finance Officer of the County of Hamett, North Carolina, as Bond Registrar Authorized Signature Date of authentication: January 22, 2013 B-5

22 transfers unto ASSIGNMENT FOR VALUE RECENED the undersigned registered owner thereof hereby sells, assigns and the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the Presence of: NOTICE: The signature must be guaranteed by an officer of a commercial bank, trust company, or by a member firm of The New York Stock Exchange or other national securities exchange. Notarized or witnessed signatures are not acceptable. NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration of enlargement or any change whatever. B-6

23 EXHffiITC REGISTERED BOND WITHOUT COUPONS (Registered as to both principal and interest) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY GENERAL OBLIGATION WATER AND SEWER BONDS SERIES 2013C No. RC-1 $3,239,000 The South Central Water and Sewer District of Harnett County (the "District"), a water district in the State of North Carolina, is justly indebted and for value received hereby promises to pay to the UNITED STATES OF AMERICA UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT or its registered assigns, the principal sum of THREE MILLION TWO HUNDRED THIRTY-NINE THOUSAND DOLLARS in annual installments on the 1 81 day of June in the following years and amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT 2015 $53, $67, $85, $109, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 and to pay interest from the date hereof on the unpaid part of such principal sum at the rate of 2.50% per annum until payment thereof, such interest to be payable on June 1, 2013, and annually thereafter on the first day of June of each year until paid. The interest so payable on any such interest payment date will be paid to the person in whose name this 2013C Bond is registered at the close of business on the record date for such interest, which shall be the 15 1h day (whether or not a business day) of the calendar month next preceding such interest payment date. Both the principal of and the interest on this 2013C Bond are payable in any coin or currency of the United States of America which, at the respective date of payment thereof, is legal tender for the payment of public and private debts. C-1

24 During the time that the United States of America is the registered owner of this 2013C Bond, payment of the installments of principal and interest when due and payable on this 20 13C Bond shall be made at the office of such fiscal agent as the United States of America shall designate without presentation or surrender hereof and, during any such time as an assignee hereof is the registered owner of this 2013C Bond, payment of the installments of principal when due and payable on this 2013C Bond shall be made at the corporate trust office of U.S. Bank National Association, Raleigh, North Carolina, on the presentation and surrender hereof, and payment of the interest when due and payable on this 2013C Bond shall be made by check mailed to such assignee at his address as it appears on the Bond registration books of the District hereinafter mentioned without the presentation or surrender hereof. On receipt of said payments of principal and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar hereinafter mentioned, and the District shall be fully discharged of its obligation on this 2013C Bond to the extent ofthe payment so made. On final payment this 2013C Bond shall be surrendered to the Bond Registrar for cancellation. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of said District is hereby irrevocably pledged. This 2013C Bond is duly authorized and issued under and pursuant to The Local Government Finance Act, Chapter 159, as amended, of the General Statutes of North Carolina, an order adopted by the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, which order was approved by the vote of a majority of the qualified voters of the District who voted at a referendum duly called and held, and a resolution duly passed by the Board, as amended (the "Resolution"), for the purpose of providing funds to finance certain improvements to the water and sewer system of the District. At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, this 20 l3c Bond may be exchanged for an equal aggregate principal amount of Bonds having maturities corresponding to the maturities of the installments of principal of this 2013C Bond then unpaid, issuable in fully registered form in the denomination of $1,000 or any integral multiple thereof and bearing interest at the same rate. This 20 l3c Bond is registered as to both principal and interest in the name of the United States of America on books of the District kept by the Finance Officer of the County, acting on behalf of the District, as Bond Registrar, and the transfer hereof may hereafter be registered by the registered owner hereof only upon an execution of an assignment hereon duly executed by such registered owner or his attorney or legal representative. Notice of such assignment shall be given promptly by the assignor to the Bond Registrar by registered mail, such notice to be in such form as shall be satisfactory to the Bond Registrar, and upon receipt of such notice this 20l3C Bond shall be registered as to both principal and interest on such registration books in the name of the assignee named in such notice. This 20 l3c Bond or any part hereof at the time outstanding may be redeemed, at the option of the District, as long as USDA is the owner of the Bonds, at any time prior to the maturity of any installment of the principal thereof, either in whole or in part in the inverse order of the maturity dates of the installments of principal, from any moneys that may be made available for such purpose, at the aggregate principal amount of the installments of principal to be redeemed, together with the interest accrued thereon to the date fixed for redemption, but without any premiums. C-2

25 On the date designated for redemption, notice having been given and moneys for payment of the redemption price being held in trust for such purposes, all as provided in the Resolution, this 20 13C Bond or part hereof shall become and be due and payable, and the interest on this 20 13C Bond or part hereof so redeemed shall cease to accrue. The Bond Registrar shall not be required to exchange or register any transfer of (a) any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or (b) any Bond called for redemption in whole or in part pursuant to the Resolution. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this 2013C Bond have happened, exist and have been performed in regular and due fonn and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within said District sufficient to pay the principal of and the interest on this 20 13C Bonds as the same shall become due; and that the total indebtedness of the District, including this 2013C Bond, does not exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the County of Harnett, North Carolina, by resolution duly passed by its Board, sitting as the governing body of the District, has caused this 2013C Bond to be manually signed by its Chairman and the Clerk to the Board, both acting on behalf of the District, and its corporate seal to be impressed hereon, all as of the 22 nd day of January, [SEAL] Chairman Board of Commissioners Clerk to the Board of Commissioners C-3

26 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within 2013C Bond has been approved under the provisions of The Local Government Finance Act of North Carolina By: T. Vance Holloman Secretary of the Local Government Commission C-4

27 CERTIFICATE OF AUTHENTICATION This 2013C Bond is issued under the provisions of the within-mentioned Resolution. Finance Officer of the County of Hamett, North Carolina, as Bond Registrar Authorized Signature Date of authentication: January 22, 2013 C-5

28 transfers unto ASSIGNMENT FOR VALUE RECENED the undersigned registered owner thereof hereby sells, assigns and the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the Presence of: NOTICE: The signature must be guaranteed by an officer of a commercial bank, trust company, or by a member firm of The New York Stock Exchange or other national securities exchange. Notarized or witnessed signatures are not acceptable. NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration of enlargement or any change whatever. C-6

29 EXHffiITD REGISTERED BOND WITHOUT COUPONS (Registered as to both principal and interest) UNITED STATES OF AMERICA STATE OF NORTH CAROLINA SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY GENERAL OBLIGATION WATER AND SEWER BONDS SERIES 2013D No. RD-l $2,586,000 The South Central Water and Sewer District of Harnett County (the "District"), a water district in the State of North Carolina, is justly indebted and for value received hereby promises to pay to the UNITED STATES OF AMERICA UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT or its registered assigns, the principal sum of TWO MILLION FIVE HUNDRED EIGHTY -SIX THOUSAND DOLLARS in annual installments on the 1 st day of June in the following years and amounts: YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF PRINCIPAL YEAR OF MATURITY AMOUNT MATURITY AMOUNT MATURITY AMOUNT MATURITY 2015 $43, $53, $68, , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 PRINCIPAL AMOUNT $88,000 90,000 92,000 94,000 97,000 99, ,000 90,000 and to pay interest from the date hereof on the unpaid part of such principal sum at the rate of 2.50% per annum until payment thereof, such interest to be payable on June 1,2013, and annually thereafter on the first day of June of each year until paid. The interest so payable on any such interest payment date will be paid to the person in whose name this 2013D Bond is registered at the close of business on the record date for such interest, which shall be the 15 th day (whether or not a business day) of the calendar month next preceding such interest payment date. Both the principal of and the interest on this 2013D Bond are payable in any coin or currency of the United States of America which, at the respective date of payment thereof, is legal tender for the payment of public and private debts. D-1

30 During the time that the United States of America is the registered owner of this 2013D Bond, payment of the installments of principal and interest when due and payable on this 20 13D Bond shall be made at the office of such fiscal agent as the United States of America shall designate without presentation or surrender hereof and, during any such time as an assignee hereof is the registered owner of this 2013D Bond, payment of the installments of principal when due and payable on this 2013D Bond shall be made at the corporate trust office of U.S. Bank National Association, Raleigh, North Carolina, on the presentation and surrender hereof, and payment of the interest when due and payable on this 2013D Bond shall be made by check mailed to such assignee at his address as it appears on the Bond registration books of the District hereinafter mentioned without the presentation or surrender hereof. On receipt of said payments of principal and interest, written acknowledgment of the receipt thereof shall be given promptly to the Bond Registrar hereinafter mentioned, and the District shall be fully discharged of its obligation on this 2013D Bond to the extent of the payment so made. On final payment this 2013D Bond shall be surrendered to the Bond Registrar for cancellation. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of said District is hereby irrevocably pledged. This 2013D Bond is duly authorized and issued under and pursuant to The Local Government Finance Act, Chapter 159, as amended, of the General Statutes of North Carolina, an order adopted by the Board of Commissioners (the "Board") of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, which order was approved by the vote of a majority of the qualified voters of the District who voted at a referendum duly called and held, and a resolution duly passed by the Board, as amended (the "Resolution"), for the purpose of providing funds to finance certain improvements to the water and sewer system of the District. At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, this 20 13D Bond may be exchanged for an equal aggregate principal amount of Bonds having maturities corresponding to the maturities of the installments of principal of this 2013D Bond then unpaid, issuable in fully registered form in the denomination of $1,000 or any integral multiple thereof and bearing interest at the same rate. This 2013D Bond is registered as to both principal and interest in the name of the United States of America on books of the District kept by the Finance Officer of the County, acting on behalf of the District, as Bond Registrar, and the transfer hereof may hereafter be registered by the registered owner hereof only upon an execution of an assignment hereon duly executed by such registered owner or his attorney or legal representative. Notice of such assignment shall be given promptly by the assignor to the Bond Registrar by registered mail, such notice to be in such form as shall be satisfactory to the Bond Registrar, and upon receipt of such notice this 2013D Bond shall be registered as to both principal and interest on such registration books in the name of the assignee named in such notice. This 2013D Bond or any part hereof at the time outstanding may be redeemed, at the option of the District, as long as USDA is the owner of the Bonds, at any time prior to the maturity of any installment of the principal thereof, either in whole or in part in the inverse order of the maturity dates of the installments of principal, from any moneys that may be made available for such purpose, at the aggregate principal amount of the installments of principal to be redeemed, together with the interest accrued thereon to the date fixed for redemption, but without any premiums. On the date designated for redemption, notice having been given and moneys for payment of the redemption price being held in trust for such purposes, all as provided in the Resolution, this 2013D Bond D-2

31 or part hereof shall become and be due and payable, and the interest on this 20 13D Bond or part hereof so redeemed shall cease to accrue. The Bond Registrar shall not be required to exchange or register any transfer of (a) any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or (b) any Bond called for redemption in whole or in part pursuant to the Resolution. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this 2013D Bond have happened, exist and have been performed in regular and due form and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within said District sufficient to pay the principal of and the interest on this 20 13D Bonds as the same shall become due; and that the total indebtedness of the District, including this 2013D Bond, does not exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the County of Harnett, North Carolina, by resolution duly passed by its Board, sitting as the governing body of the District, has caused this 2013D Bond to be manually signed by its Chairman and the Clerk to the Board, both acting on behalf of the District, and its corporate seal to be impressed hereon, all as of the 22 nd day of January, [SEAL] Chairman Board of Commissioners Clerk to the Board of Commissioners D-3

32 CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within 2013D Bond has been approved under the provisions of The Local Government Finance Act of North Carolina By: T. Vance Holloman Secretary of the Local Government Commission D-4

33 CERTIFICATE OF AUTHENTICATION This 20 13D Bond is issued under the provisions of the within-mentioned Resolution. Finance Officer of the County of Hamett, North Carolina, as Bond Registrar Authorized Signature Date of authentication: January 22, 2013 PP AB v3 D-5

34 transfers unto ASSIGNMENT FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells, assigns and the within Bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the Presence of: NOTICE: The signature must be guaranteed by an officer of a commercial bank, trust company, or by a member firm of The New York Stock Exchange or other national securities exchange. Notarized or witnessed signatures are not acceptable. NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration of enlargement or any change whatever. D-6

35 AN ORDINANCE ESTABLISHING A WHISTLEBLOWER POLICY FOR HARNETT COUNTY Purpose Harnett County is committed to the highest standard., of moral and ethical behavior by its employees, administrators, and elected officials. The purpose of this policy is to prohibit dishonest acts and/or fraudulent activity and to advise employees, administrators, and elected officials of their responsibility to report suspected fraudulent activity to the appropriate County office. In addition, this policy assigns responsibility for the development of adequate internal controls and performance of investigations relating to fraud. Scope of Policy This applies to any fraud, or suspected fraud, involving employees, administrators, and elected officials. as well as consultants, vendors, contractors, outside agencies, and/or any other parties having a business relationship with Harnett County. This policy also applies to employees of local boards, agencies and commissions over which the Board has authority to require general policies to be followed. Policy The Harnett County Administration and all levels of management are responsible for the prevention and detection of fraud, misappropriations, and other inappropriate conduct. Fraud is defined in this policy as a willful or deliberate act or failure to act with the intention of obtaining an unauthorized benefit. Any fraud that is detected or suspected will be reported immediately to the Harnett County Legal Staff, which will conduct an objective and impartial investigation into the fraudulent activity, along with other applicable departments and/or law enforcement agencies, as deemed necessary or appropriate. Any individual found to have engaged in fraudulent activity, as defined by this policy, is subject to disciplinary action by Harnett County, which may include dismissal, as well as prosecution by appropriate law enforcement authorities and any other civil remedies allowed by law. The Harnett County Legal Staff is defined as the County Attorney and the County legal department senior attorney. It is noted that it is the responsibility of the County Legal Staff to notify the County Manager of pending investigations. Actions Constituting Fraud As used in this policy, the term "fraud" includes, but is not limited to, the following: Any dishonest or fraudulent act; Forgery or alteration of a check, bank draft, or any other financial document or account:

36 Misappropriation of funds, securities, supplies, or other assets; Impropriety in the handling or reporting of money or fmancial transactions; Accepting or seeking anything of material value from vendors, contractors, or other persons providing services/materials to the County; Using County funds to make unauthorized purchases; Authorizing or receiving compensation for hours not worked; Any similar or related inappropriate conduct. Other Inappropriate Conduct Suspected improprieties concerning an employee's moral, ethical, or behavioral conduct should be resolved by departmental management and Human Resources rather than the County Legal Staff. If there is a question as to whether an action constitutes fraud, contact the County Legal Staff for guidance. Duties and Responsibilities Employees, supervisors, department heads and administrators at all levels are responsible for setting the appropriate tone of tolerance for fraudulent acts by complying with all laws, rules, regulations and policies. Department heads, supervisors, and elected officials should be aware of the types of fraud that could occur within their area of responsibility and should be alert for any indication of fraud. Department heads, supervisors, and elected officials are responsible for establishing and maintaining proper internal controls that will provide for the security and accountability of the resources entrusted to them. Reporting Procedures Any employee of Harnett County who has a reasonable basis for believing a fraudulent act has occurred, or is occurring, has a responsibility to promptly notify their supervisor, Department head, or the County Legal Staff. Supervisors, elected officials, and/or Department heads have a responsibility to immediately notify the County Legal Staff of fraudulent activity reported to them by employees. Reporting options are as follows: (1) via anonymous internet reporting link that will be available on the Harnett County website ( or (2) via written notice sent to the attention of the County Legal Staff. Insofar as possible, the confidentiality of the whistleblower will be maintained. However, identity may have to be disclosed to conduct a thorough investigation, to comply with the law, and to provide accused individuals their legal right of defense. Harnett County will not retaliate against a whistieblower No person acting on behalf of the County shall: Dismiss, or threaten to dismiss, any employee; Discipline, suspend, or threaten to discipline or suspend an employee; Impose any penalty upon an employee; or Intimidate or coerce an employee 2

37 because the employee has acted in accordance with the requirements of this policy. However, it shall also be a violation of this policy for any informant to make a baseless allegation of fraudulent activity that is made with reckless disregard for truth and that is intended to be disruptive or to cause harm to another individual. Any violation of this section will result in disciplinary action which may include dismissal. Persons reporting suspected fraudulent activity should refrain from confrontation with the suspect and should not discuss the matter with others unless specifically asked to do so by the County Legal Staff. Investigative Procedures The County Legal Staff has the primary responsibility for investigating the reported fraudulent activity; however, the County Legal Staff may contact other individuals (such as a Department Head, member of Management Team, etc.) as deemed appropriate to establish a team to investigate the suspected fraudulent activity. Members of the investigative team will have: Free and unrestricted access to all County records and premises, whether owned or rented, as permitted by law; AND The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who may use or have custody of any such items or facilities when it is within the scope of their investigation. In the instances where the investigation indicates possible criminal activity, the investigation will be turned over to the appropriate law enforcement agency. The results of the investigation conducted by the County Legal Staff will be communicated orally and/or in writing to the County Manager, the audit firm engaged to perform Harnett County's annual audit, and/or other appropriate designated personnel. Confidentiality All participants in a fraud investigation shall keep the details and result,; of the investigation confidential. Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know, in order to protect the reputations of persons suspected of fraudulent activity but subsequently found innocent of wrongdoing and to protect the County from potential civil liability. Media Issues Any person contacted by the County Legal Staff with respect to an investigation into fraudulent activity shall refer the media to the County Attorney. The suspected fraud or audit investigation 3

38 shall not be discussed with media by any person other than the County Legal Staff or County Manager. Sanctions Employees and Administrators Employees and administrators suspected of participating in fraudulent activity may be suspended without pay during the course of the investigation, in accordance with policies as established by Harnett County's Personnel Ordinance. Employees and administrators found to have participated in fraudulent activity will be subject to disciplinary action up to and including termination from employment and probable criminal prosecution or civil action. Employees and administrators found to have knowledge of fraudulent activity and who knowingly failed to report the activity will be subject to disciplinary action up to and including tennination from employment. If disciplinary action is warranted, such action will be taken after consultation between the County Manager, the Human Resources Director, the County Legal Staff, and other offices as deemed necessary and/or appropriate. Consultants, vendors, contractors, outside agencies, and/or any other parties having a business relationship with Harnett County. The relationship of individuals or entities associated with Harnett County found to have participated in fraudulent activity as defmed by this policy will be subject to review, with the possible consequence of modification or termination of the relationship. If such action is warranted, the County Legal Staff, the County Manager and/or other appropriate offices will be consulted prior to the action being taken. Criminal or civil action may be taken against such individuals or entities. Adopted by the Harnett County Board of Commissioners on, 2013 and effective immediately. 4

39 Gina Wheeler From: Sent: To: Subject: Carl Davis Wednesday, December 05, :01 PM Gina Wheeler Special Session Info Two attachments: Site plan and Budget. Other info: -Land donation of 204 acres from HFTC is being used as the Local Match for the Parks and Recreation Trust Fund Grant (PARTF). -Two Appraisals were done: $546,000 and $815,000 -Project must be completed by 6/30/2014 -Project time line (proposed) -Bid Documents and Specs to be completed by mid-january for Legal Dept review. -Project advertised for bids: late January or early Feb -BoC approval and award of project: early March -Construction begins in mid to late March (estimated 6 months) -Park opens to citizens in Sept County pays for Construction and gets reimbursed 100% by State. Carl R. Davis II~ CPRP Harnett County Parks and Recreation Director P.O. Box 816 (mailing) 1100 E. McNeill St. (physical) Lillington, NC (910) (910) Fax 1

40 Project Costs Anderson Creek Park, Phase 1 Harnett County PARTF Application WK Dickson Co., Inc. January 2011 Building Costs Project Elements Walking Trail - 6' wide (asphalt) Overlook Structure (wood deck) Picnic Shelter Restroom Building Site Preparation (clearing, grading, and erosion control) Site Utilities (Sewer, Water, Power) Gravel drive (18' wide with shoulder and ditch section) Gravel parking (12 spaces with surface drainage) IMlscellaneous (Secunty Gate, picnic table, grill, trash receptacle, bench) Signs (Way finding, stop, entrance, interpretive) Disc Golf Playground (age 5-12 with accessible surfacing) Contingency for the Cost of Building 5% Value of Land to be Purchased Land Acquistion Cost to Develop Project Cost Related to Building and Planning Planning and design - construction management, construction documents, permitting Total Project Cost Total PARTF Grant Request Total Local Match Qty 3, , Unit Total Item Unit Costs Cost LF $15 $51,000 EA $5,000 $5,000 EA $38,000 $38,000 EA $55,000 $55,000 LS $30,000 $30,000 LS $35,000 $35,000 LF $30 $120,000 SY $18 $9,000 LS $5,000 $5,000 LS $12,000 $12,000 LS $18,000 $18,000 EA $49,350 $49,350 $427,350 % 0.05 $21,368 AC $2,500 $500,000 % 0.12 $51,282 $1,000,000 $500,000 $500,000

41 H~rf!'att Coo.int~ ip~,rk~and ReCraiil~!Q!iI Li!1~iil'l;gt{)iIl,. N,!;i!rthC~ir'!)!,ii!''l:til