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Agenda - 10-06-2009 - 6a
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Agenda - 10-06-2009 - 6a
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Last modified
2/3/2010 1:45:50 PM
Creation date
10/2/2009 12:45:13 PM
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BOCC
Date
10/6/2009
Meeting Type
Regular Meeting
Document Type
Agenda
Agenda Item
6a
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Minutes - 20091006
(Linked From)
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\Board of County Commissioners\Minutes - Approved\2000's\2009
RES-2009-071a Providing Preliminary Approval for Issuance of General Obligation Refunding Bonds
(Linked From)
Path:
\Board of County Commissioners\Resolutions\2000-2009\2009
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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 6, 2009 <br />Action Agenda <br />Item No. (p -a <br />SUBJECT: Resolution Authorizing Application to the Local Government Commission to <br />Issue Up to $27 Million in General Obligation Refundin Bonds <br />DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) NO <br />ATTACHMENT(S): <br />Resolution <br />INFORMATION CONTACT: <br />Gary Humphreys 919-245-2453 <br />Bob Jessup 919-933-9891 <br />PURPOSE: To consider approving a resolution authorizing application to the Local <br />Government Commission to issue up to $27 million in General Obligation Refunding Bonds. <br />BACKGROUND: Staff maintains contact with several financial advisors who track the County's <br />bonds against market conditions to identify opportunities to achieve debt service savings <br />through refunding outstanding debt of the County. Municipal bond interest rates have continued <br />to fall in recent months. BB&T Capital Markets has identified an opportunity for debt service <br />savings and brought an analysis of the potential savings under current market conditions. The <br />current proposal is to refund $9.19 million of General Obligation (GO) debt issued in 2001 and <br />$6.525 million of GO debt issued in 2003. The analysis shows a potential savings of $589,000 <br />over the remaining life of the debt with a net present value of $496,000. The analysis shows a <br />reduction in debt service would be approximately $30,000+ in the current fiscal year and would <br />average a little over $50,000 a year for fiscal years 2011 through 2021. <br />The Local Government Commission requires the percentage savings of debt service to be <br />approximately 3.0% or more of the amount of the refunded bonds. The proposal shows a <br />3.16% savings. Market conditions could change between now and the time of issuance either <br />increasing or decreasing savings. The refunding analysis proposed does not refund all of the <br />outstanding maturities of these bonds. The application to the LGC is proposed for up to $27 <br />million in order to allow the flexibility to refund the additional $6.8 million of outstanding <br />maturities if there will be sufficient additional savings. <br />Staff is proposing the Board approve a resolution 1) authorizing staff to proceed with an <br />application requesting the Local Government Commission's approval to issue up to $27 million <br />of refunding bonds for the purpose of refunding a part of the County's outstanding 2001 and <br />2003 General Obligation Bonds; and 2) authorizing BB&T Capital Markets, a Division of Scott <br />and Stringfellow, LLC ("BB&T Capital Markets"), to serve as Financial Advisor and the firm of <br />Sanford Holshouser, LLP represented by Bob Jessup to serve as Bond Counsel. <br />
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