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Agenda - 09-20-2011 - 8c
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Agenda - 09-20-2011 - 8c
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Last modified
2/21/2012 12:44:45 PM
Creation date
12/22/2011 3:44:53 PM
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BOCC
Date
9/20/2011
Meeting Type
Regular Meeting
Document Type
Agenda
Agenda Item
8-c
Document Relationships
RES-2011-083 Resolution Authorizing Application to the Local Government Commission to Issue Up to $17.04 Million in General Obligation Refunding Bonds
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\Board of County Commissioners\Resolutions\2010-2019\2011
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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 20, 2011 <br />Action Agenda <br />Item No. $ -G uQ~ <br />SUBJECT: Resolution Authorizing Application to the Local Government Commission to <br />Issue Up to $17.04 Million in General Obligation Refundin Bonds <br />DEPARTMENT: Financial Services <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />1. Resolution <br />2. Bond Refunding Analysis <br />INFORMATION CONTACT: <br />Clarence Grier, 919-245-2453 <br />Bob Jessup, 919-933-9891 <br />PURPOSE: To consider approving a resolution authorizing application to the Local Government <br />Commission (LGC) to issue up to $17.04 million in General Obligation Refunding Bonds to <br />refund the 2004A&B General Obligation Bonds. <br />BACKGROUND: Staff continues to maintain contact with financial advisors who provide <br />analysis on the County's bonds against market conditions to identify opportunities to achieve <br />debt service savings through refunding outstanding debt of the County. As a result of the <br />recent market conditions, financial advisors Davenport and Company, Bond Counsel Bob <br />Jessup of Sanford Holshouser, LLP, and staff have identified an additional refunding <br />opportunity for debt service savings and have provided an analysis of the potential savings <br />under current market conditions. The additional proposal is to refund $17.04 million of the <br />2004A&B General Obligation Bonds of the County. The analysis shows a potential savings of <br />$846,000 over the remaining life of the debt, with a net present value of $733,000. The <br />analysis shows the reduction in debt service would average slightly over $70,000 a year for <br />fiscal years 2012 through 2023. <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 realizes a <br />4.333% savings. Market conditions could change between now and the time of issuance, <br />potentially increasing or decreasing savings. <br />Additionally, as an update on the County's recent refunding of $42.8 million, due to the credit <br />quality of bond offering and market conditions, the debt service savings on the refunding totaled <br />$2 million, which was $245,000 more than the preliminary estimated savings analysis provided <br />at the September 8, 2011 Board Meeting. <br />
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