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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 15, 2009 <br />Action Agenda <br />Item No. 4 - K <br />SUBJECT: Adoption of Final Bond Resolution Authorizing General Obligation Refunding <br />Bonds in the Maximum Amount of $27,000,000 to Refund Public Improvement <br />Bonds Issued in 2001 and 2003 <br />DEPARTMENT: Financial Services Department PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): <br />Resolution <br />Preliminary Draft Official Statement <br />INFORMATION CONTACT: <br />Gary Humphreys 919-245-2453 <br />Bob Jessup 919-933-9891 <br />PURPOSE: To adopt a final bond resolution authorizing the sale of Genera! Obligation <br />Refunding Bonds in the maximum amount of $27,000,000 to refund Public Improvement Bonds <br />issued in 2001 and 2003. <br />BACKGROUND: At the October 6, 2009 meeting the Board of County Commissioners <br />authorized application to the Local Government Commission for approval to issue General <br />Obligation Refunding Bonds in an amount not to exceed $27 million and authorized staff to <br />proceed with those actions necessary to proceed with the refunding. The Board adopted the <br />bond order to issue the bonds at the October 20, 2009 board meeting. The Bond Order was <br />published November 6, 2009. <br />Market rates rose which appeared to reduce the potential savings from the refunding to a level <br />below the 3% minimum required by the Local Government Commission to proceed with the <br />sale. The County's Financial Advisor prepared a recent analysis which showed that the <br />required 3% savings can be achieved on at least a portion of the refunding. The savings <br />achieved will be positively or negatively impacted by future market changes. A new sale date of <br />January 12, 2010 has been set. <br />In order to proceed with the refunding, the Board of County Commissioners must adopt a <br />Resolution for the Sale of Refunding Bonds (attached). <br />FINANCIAL IMPACT: The resulting financial impact of this action is a saving in future debt <br />service costs which will be determined when the bonds are sold. <br />RECOMMENDATION(S): The Manager recommends that the Board adopt the Resolution for <br />Sale of Refunding Bonds. <br />