Agenda - 03-01-1994-IX-B - Laserfiche WebLink

Browse Search

1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda ACTION AGENDA ITEM ABSTRACT Item No =x-a Meeting Date: March 1, 1994 SUBJECT: Options for Sale of Additional 1992 School Bonds ----------------------------------------------------------------------- DEPARTMENT Manager/Finance/Budget PUBLIC HEARING YES NO x -------------------------------- ------------------------------- ATTACHMENT(S) INFORMATION CONTACT Possible Bond Sale Calendar Rod Visser, ext 2300 Graphic Summary of Potential Ken Chavious, ext 2450 Debt Service Payments Sally Kost, ext 2152 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 ----------------------------------------------------------------------- PURPOSE: To consider options for selling the remaining school bonds that were authorized by Orange County voters during the November 1992 referendum. BACKGROUND: In March 1993, the County sold the first $22 million of the $52 million in school bonds approved by Orange County voters in November 1992. The amount of the first installment was established based on bond project cash flow projections prepared by the two school systems for the period March 1993-March 1994. Actual expenditures of these funds have been somewhat slower than those projections. Therefore, proceeds remaining from the first sale are sufficient to cover school project activity at least through June 1994, based on recently revised cash flow needs submitted by the two school systems. Staff' s original assumption was that the $52 million would be sold in three installments - one each in Spring 1993, Spring 1994, and Spring 1995. If the County stays with the original plan, cash flow requirements would dictate sales of $15.5 million in late Spring 1994, and the remaining $14.5 million in Spring 1995. In addition to the original plan, there are a number of other options the County may consider for selling the remaining bonds. One option which staff would like specifically to put forth for consideration by the Board would be the sale of all remaining bonds in June 1994. There are a number of possible advantages to this approach, including: * Savings on issuance costs. Each time the County sells bonds, there are significant administrative, legal and advertising costs, which may run from $45,000-$65,000, depending on the size of the issue. The County could realize these dollar savings, and significant savings in staff time, by pursuing only one, rather than two, bond sales.