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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 18, 2011 <br />Action Agenda <br />Item No. <br />SUBJECT: Adoption of a Resolution for the Sale and a Final Bond Order Authorizing <br />General Obligation Refunding Bonds in the Maximum Amount of $47,000,000 <br />to Refund Public Improvement Bonds Issued in 2004 and 2005 and Adoption <br />of a Resolution Regarding Publication of Bond Order <br />DEPARTMENT: Financial Services <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution for the Sale of Up To <br />$47,000,000 Public Improvement <br />Refunding Bonds <br />Bond Order for Refunding Bonds <br />Resolution Regarding Publication of Bond <br />Order <br />INFORMATION CONTACT: <br />Frank Clifton, 919-245-2300 <br />Clarence Grier, 919-245-2453 <br />PURPOSE: To adopt a Resolution for the Sale and a Final Bond Order Authorizing General <br />Obligation Refunding Bonds in the Maximum Amount of $47,000,000 to Refund Public <br />Improvement Bonds Issued in 2004 and 2005 and to adopt a Resolution Regarding Publication <br />of Bond Order. <br />BACKGROUND: At its September 20, 2011 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 $47 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 4, 2011 board meeting. The Bond Order will be <br />published on October 14, 2011. <br />Market rates have remained low, and the expected savings from refunding the 2004 and 2005 <br />General Obligation Bonds are currently projected to be 4.07 %, which is higher than the 3 <br />percent minimum required by the Local Government Commission to proceed with the sale. The <br />savings achieved will be positively or negatively impacted by future market changes. The Board <br />of County Commissioners must adopt a Resolution for the Sale of Refunding Bonds attached in <br />order to proceed with the sale. <br />FINANCIAL IMPACT: The financial impact of proceeding with the above actions is that the <br />County will possibly be able to achieve savings of future debt service cost. The total amount of <br />future savings will be determined as the County moves closer to the potential issuance of the <br />debt. <br />