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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: August 14, 2001 <br /> Action Agenda <br /> Item No. Q <br /> SUBJECT: Supplemental Bond Resolution <br /> DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Ken Chavious, ext. 2453 <br /> TELEPHONE NUMBERS: <br /> Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Durham 688-7331 <br /> Mebane 336-227-2031 <br /> PURPOSE: To adopt a supplemental resolution related to the recent sale of refunding bonds <br /> authorized by the Board of Commissioners on June 25, 2001. <br /> BACKGROUND: On June 25, 2001, the Board of Commissioners adopted a resolution <br /> providing for the sale of refunding bonds. The Bond Resolution provided that the refunding <br /> bonds would be subject to prepayment by the County prior to their maturity. After consultation <br /> with the staff of the North Carolina Local Government Commission and upon recommendation <br /> from the County's financial advisor, the Finance Officer determined it would enhance the <br /> savings to the County if the refunding bonds were not subject to prepayment. Adoption of this <br /> resolution, the Board ratifies this determination by the Finance Officer. <br /> FINANCIAL IMPACT: As mentioned above, this action changes the prepayment provisions of <br /> the debt related to the refunding bonds. Changing these provisions will increase the amount of <br /> savings for the County. Savings have been previously estimated to be in the range of$50,000 <br /> annually. Based on preliminary estimates, the favorable interest rate in concert with this action <br /> will yield average savings of approximately $70,000. <br /> RECOMMENDATION(S): The Manager recommends that the Board adopt the supplemental <br /> resolution. <br />