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l <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 19, 1997 <br /> Action Agenda <br /> Item No. g_C <br /> SUBJECT: Bond Proceeds Reimbursement Resolutions <br /> DEPARTMENT: Finance PUBLIC HEARING: (YIN) <br /> BUDGET AMENDMENT: (YIN) <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolutions Ken Chavious ext 2453 <br /> TELEPHONE NUMBERS: <br /> Hillsborough 732-8181 <br /> Chapel Hill 968-4501 <br /> Durham 688-7331 <br /> Mebane 227-2031 <br /> PURPOSE: To consider adoption of resolutions authorizing reimbursement of the County from <br /> proceeds of the sale of bonds for capital project expenses that may be needed prior to scheduled <br /> bond sales. <br /> BACKGROUND: In past bond referendums there were occasions in which the approved projects <br /> incurred expenditures prior to the actual sale of the authorized bonds. For example, in 1992 the East <br /> Chapel Hill High School project needed funds for the purchase of land prior to the proposed bond <br /> sale and closing date. The board had adopted reimbursement resolutions which authorized the <br /> county to provide the funding upfront and to reimburse itself from bond proceeds. <br /> The sale of bonds and receipt of proceeds takes approximately 120 days. This process involves a <br /> significant amount of interaction between County staff, Bond Counsel and the Local Government <br /> Commission, as well as significant bond issuance costs. These factors apply regardless of the <br /> amount of bonds sold. Because of the timeframes and costs, it is in the County's best interest to <br /> schedule bond sales only when significant amounts of funds are needed for the projects involved. <br /> Reimbursement resolutions will allow the County to proceed with planned projects while providing <br /> flexibility on the scheduling of bond sales. <br /> The regulations of the Internal Revenue Service require the governing board to adopt resolutions <br /> stating its intent to reimburse itself with bond proceeds for capital project expenses incurred with <br /> local funds. Bond Counsel has prepared the required resolutions for each of the four approved <br /> purposes. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the four <br /> reimbursement resolutions. <br />