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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 2, 2010 <br />Action Agenda <br />Item No. ~' - O <br />SUBJECT: Authorization and Issuance of General Obligation Refunding Bonds, Including <br />Bonds Previously Authorized and Up to $7,000,000 of Additional Bonds <br />DEPARTMENT: Financial Services Department <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Bond Order <br />Resolution Regarding Publication of <br />Bond Order <br />Amendment to Bond Resolution <br />INFORMATION CONTACT: <br />Clarence G. Grier, 919-245-2453 <br />Bob Jessup, 919-933-9891 <br />PURPOSE: To authorize the issuance of additional general obligation refunding bonds in the <br />maximum amount of $7,000,000 to refund public improvement bonds issued in 2004, to amend <br />a previous authorization for the sale of refunding bonds to allow for the refunding of the 2004 <br />bonds and to adjust the schedule for the bond sale, and to take other appropriate action. <br />BACKGROUND: On December 15, 2009, the Orange County Board of Commissioners adopted <br />a resolution (the "Prior Bond Resolution") to approve the issuance of County general obligation <br />refunding bonds in the maximum amount of $27,000,000 to refinance County bonds issued in <br />2001 and 2003. In this resolution, the Board approved the sale of the refunding bonds not later <br />than March 1, 2010. <br />The County's Financial Advisor recently prepared an analysis which demonstrated that the <br />County can still achieve debt service savings from the planned refunding that exceeds the 3% <br />present value savings threshold recommended by the Local Government Commission. The <br />savings to be achieved from the refunding will continue to change based on changing market <br />conditions. <br />Market rates and conditions have now made it possible for the County also to refinance a <br />portion of its general obligation public improvement bonds issued in 2004 (the "2004 Bonds"). <br />To include these bonds in the refunding, the Board is requested to adopt an appropriate Bond <br />Order that will authorize the refunding of the 2004 Bonds. The Board is also requested to adopt <br />a resolution providing for the required publication of a notice of the publication of this Bond <br />Order. <br />The Prior Bond Resolution would then be amended to include the 2004 Bonds among the <br />County bonds eligible for refinancing through the issuance of the refunding bonds. The total <br />amount of refunding bonds that may be sold will remain unchanged at $27,000,000. The final <br />