|
ORANGE COUNTY, NORTH CAROLINA
<br />NOTES TO THE FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2012
<br />Advanced Refundings
<br />
<br />On November 15, 2011, the County issued $24,440,000 in 2011 Refunding General Obligation
<br />Bonds. The proceeds were used to advance refund $23,540,000 of outstanding Public Improvement,
<br />Series 2004 A and B and Public Improvement, Series 2005A General Obligation Bonds. The net
<br />proceeds of $23,540,000 were deposited in an irrevocable trust with an escrow agent to provide funds
<br />for the future debt service payment on the refunded bonds. As a result, the Public Improvement
<br />General Obligation Bonds are considered defeased and the respective liability for those bonds has
<br />been removed from the Statement of Net Assets. The reacquisition price exceeded the net carrying
<br />amount of the old debt by $900,000. The County advance refunded the General Obligation bonds to
<br />reduce its total debt service payments over 12 years by $1,652,510 and to obtain an economic gain
<br />(difference between the present values of the debt service payments on the old and new debt) of
<br />$1,436,657.
<br />On September 29, 2011, the County issued $38,305,000 in 2011 Limited Obligation Bonds. The
<br />proceeds were used to advance refund $42,565,192 of outstanding installment notes payable. The net
<br />proceeds of $42,565,192 were deposited in an irrevocable trust with an escrow agent to provide funds
<br />for the future debt service payment on the installment notes payable. As a result, the installment
<br />notes payable are considered defeased and the respective liability have been removed from the
<br />Statement of Net Assets. The County advance refunded the debt to reduce its total debt service
<br />payments over 16 years by $2,007,589 and to obtain an economic gain (difference between the
<br />present values of the debt service payments on the old and new debt) of $2,106,909.
<br />On April 12, 2012, the County issued $58,980,000 in 2012 Limited Obligation Bonds. $25,031,500
<br />of the Limited Obligation Bonds is new debt issuance. $33,948,500 of the proceeds were used to
<br />advance refund $37,924,897 of outstanding installment notes payable and Certificates of
<br />Participation. The net proceeds of $37,924,897 were deposited in an irrevocable trust with an escrow
<br />agent to provide funds for the future debt service payment on the installment notes payable and
<br />Certificates of Participation. As a result, the installment notes payable and Certificates of
<br />Participation are considered defeased and the respective liability have been removed from the
<br />Statement of Net Assets. The County advance refunded the debt to reduce its total debt service
<br />payments over 4 years by $1,639,377 and to obtain an economic gain (difference between the present
<br />values of the debt service payments on the old and new debt) of $1,455,273.
<br />Conduit Debt Obligations.
<br /> Orange County Industrial Facility and Pollution Control Financing
<br />Authority have issued industrial revenue bonds to provide financial assistance to Mebane Packaging
<br />Company for economic development purposes. These bonds are secured by the properties financed,
<br />as well as by letters of credit and are payable solely from payments received from the private business
<br />involved. Ownership of the acquired facilities is in the name of the private business served by the
<br />bond issuance. Neither the County, the Authority, the State, nor any political subdivision thereof is
<br />obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as
<br />liabilities in the accompanying financial statements. As of June 30, 2012, there is no balance
<br />outstanding.
<br />64
<br />
<br />
|