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APPROVED 9/712005 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET 1NORK SESSION JUNE 14, 2005 7:30 p.m. The Orange County Board of Commissioners met for a budget work session on Tuesday, June 14, 2005 at 7:30 p.m. at the Government Services Center in Hillsborough, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners Valerie P. Foushee, Alice Gordon, Stephen Halkiotis and Barry Jacobs COUNTY ATTORNEYS PRESENT: Geoffrey Gledhill and S. Sean Borhanian COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Managers Rod Visser and Gwen Harvey and Clerk to the Board Donna S. Baker {All other staff members will be identified appropriately below}. NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. Commissioner Jacobs announced that Chair Carey would be late. 1. Chair Review of Schedule and Topics 2. Refunding of General Obligation Bonds John Link said that the staff is proposing that the Board consider refunding certain general obligation bonds that were incurred in the past. This means refinancing, and a savings to the County of $109,000 a year, so that over the remaining life of the debt, the County could save $1.5 million. Finance Director Ken Chavious said that they are asking the Board of County Commissioners to take steps required by the Local Government Commission {LGC} to refund up to about $35 million in the bonds issued in April 2000. He has been working with the firm that worked with the County on the last bond refunding, and they have done the required analysis and have requested permission from the LGC to pursue this refunding, and permission has been granted. The sale has been tentatively scheduled for August 16th by the LGC. In order to accomplish the refunding process, the Board is required to take the following actions: 1. The Board must introduce the Bond Order for the Bond Refunding. 2. Adopt a resolution establishing June 23, 2005 as the date for the Public Hearing, authorizing the Finance Director to File a Debt Statement and the Clerk to Publish a Notice of Public Hearing. The County Bond Counsel, Bob Jessup, has prepared all of the appropriate documents. Commissioner Halkiotis asked about the expected rate of the bond and Ken Chavious said the original bonds were sold from 5.25-5.3°I°, and they are expecting the net present value benefit to be about 4.02°~. Commissioner Halkiotis highlighted the fact that the County has refunded bonds in the past to a total savings in excess of $5 million. Commissioner Jacobs introduced the bond order: Bond Order Authorizing the issuance of general obligation refunding bonds in the maximum amount of $35,000,000.