Agenda - 06-17-2014 - 6h - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 17, 2014 Action Agenda Item No. 6 -h 1 SUBJECT: Authorization and Issuance of Up to $15,500,000 General Obligation Refunding Bonds DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y /N) No Services ATTACHMENT(S): 1. Resolution for the Sale of Up to $15,500,000 General Obligation Refunding Bonds 2. Bond Order 3. Preliminary Refunding Analysis INFORMATION CONTACT: Michael Talbert, 919 - 245 -2308 Clarence Grier, 919 - 245 -2453 Bob Jessup, 919 - 933 -9891 PURPOSE: To approve a resolution and bond order authorizing the issuance of general obligation refunding bonds in the maximum amount of $15,500,000 to refinance existing County bonds. BACKGROUND: This item represents a new round of bond refinancing designed to save the County money on debt service expenditures by taking advantage of low borrowing rates currently available to the County. As interest rates have remained very low, and with the recent upgrade to the County's bond rating, it appears it is now possible for the County to refund more of the old bonds. Current market conditions provide the County opportunity to refund the 2005B General Obligation Refunding Bonds issued in September 2005. The 2005B General Obligation Refunding Bonds were originally issued to refund /refinance the 2001 and 2003 Public Improvement General Obligation Bonds. Current estimates show potential cumulative savings to the County through this refunding of approximately $837,000. The Local Government Commission requires that any refunding provide a savings in debt service of at least 3 percent. This refunding represents a potential savings of 5.6 percent in debt service cost. The savings estimates will change as market conditions vary between now and when the refunding bonds are sold.