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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 20, 2011 <br />Action Agenda <br />Item No. 6 -q <br />SUBJECT: Public Hearing on the Issuance of Up to $9.9 Million of Qualified School <br />Construction Bonds for the Chapel Hill — Carrboro City Schools and Orange <br />County Schools <br />DEPARTMENT: Financial Services PUBLIC HEARING: (Y /N) Yes <br />ATTACHMENT(S): <br />Listing of QSCB Projects <br />October 17, 2010 Public Hearing Notice <br />January 2, 2011 Public Hearing Notice <br />Resolution Providing Final Approval of <br />Terms and Documents for QSCB <br />School Improvements Financing <br />INFORMATION CONTACT: <br />Clarence Grier, 919 - 245 -2453 <br />Bob Jessup, 919 - 933 -9891 <br />PURPOSE: To conduct an additional public hearing on the proposed issuance of up to $9.9 <br />million of Qualified School Construction Bonds for the Chapel Hill — Carrboro City Schools and <br />Orange County Schools due the revised public hearing notice dated Sunday, January 2, 2011; <br />and to approve the Resolution Providing Final Approval of Terms and Documents for QSCB <br />School Improvements Financing. <br />BACKGROUND: At the October 5, 2010 meeting the Board of County Commissioners <br />approved proceeding with the preliminary steps necessary to seek Qualified School <br />Construction Bond (QSCB) financing for the Chapel Hill — Carrboro City Schools and Orange <br />County Schools systems in an amount not to exceed $9.9 million. The Board authorized setting <br />a public hearing on the proposed financing for the November 4, 2010 Board Meeting. The <br />public hearing was advertised in the Chapel Hill Herald on October 17, 2010. As a point of <br />correction, the notice of public hearing stated AL Stanback Middle School for the QSCB <br />renovations for Orange County Schools and not CW Stanford as mentioned below. <br />Chapel Hill Carrboro City Schools has applied to the North Carolina Department of Public <br />Instruction (DPI) and received approval to use its 2010 QSCB allocations of $4.6 million for <br />roofing projects at McDougle Middle School and various other projects. Orange County <br />Schools has applied to the North Carolina Department of Public Instruction (DPI) and received <br />approval to use its 2009 and 2010 QSCB allocations of $5.3 million for auditorium renovations <br />at CW Stanford Middle School and various other projects. <br />Qualified School Construction Bonds are tax credit bonds. The issuer receives a tax credit at <br />an interest rate established by the Treasury Department at the time of issuance. The issuer <br />then provides the tax credit to the purchaser of the bonds. The potential purchaser will evaluate <br />