Agenda - 05-19-2015 - 7c - Laserfiche WebLink

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for approval of the financing and refinancing arrangements (Attachment 1). County staff has been in contact with the LGC staff, and staff expects no obstacles to receiving LGC approval. If the Board adopts the final financial resolution (Attachment 2 — beginning on page 15 of this package) giving final approval to the financing and refinancing plans at tonight's meeting, staff expects the LGC to approve the financing and refinancing plans at the LGC's meeting on June 2, 2015. Under the current schedule, staff expects to set the final interest rates and other terms of the financing around June 15, and to close on the financing and refinancing by the end of June 2015. It should be noted that the installment financing issuance package has been reduced by $400,000 with the removal of planning funds for the Southern Orange Campus project. Due to the timing of this current financing package, these planning funds can be combined with the financing of the Southern Human Services Center expansion project scheduled in FY 2016 -17. The Board is requested to approve a financing amount not to exceed $28,000,000, and a maximum interest rate of 3.75 %. The final financial resolution (Attachment 2) includes as Exhibit B a list of draft documents. These lengthy documents are available to the Board and the public for review upon request from the Orange County Finance and Administrative Services Department. FINANCIAL IMPACT: There will be a financial impact associated with approval of the financing. At current rates, preliminary estimates of maximum debt service applicable to the capital investment projects and equipment financing would require the highest debt service payment of $1,732,695 falling in FY 2016 -17. The tax rate equivalent for the estimated highest debt service payment is approximately 1.06 cents. However, a portion of this debt financing is related to projects where the debt service payments will be paid for from Sportsplex and Solid Waste Enterprise funds, as well as a Water and Sewer project to be paid from the Article 46 quarter -cent Sales Tax proceeds earmarked for economic development. The General Fund portion of this annual debt service is estimated at $1.1 million or a tax rate equivalent of approximately 0.67 cents. Based on current resources and the retirement of some existing debt, no adjustment to the tax rate associated with this financing is anticipated to occur during the period noted. Regarding the refinancing, it is estimated that the County will realize savings of approximately $451,788 over the life of the refinancing term. The financing does include amounts to pay transaction costs. RECOMMENDATION(S): The Manager recommends that the Board approve the resolution (Attachment 2 — beginning on page 15 of this package) authorizing the steps to move forward with the financing of the stated capital projects and equipment, and the refinancing of the two 2006 installment financing issuances.