Agenda - 04-19-2016 - 5-a - Public Hearing on General Obligation Bond Orders and Other Appropriate Action

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2 for authorization to issue County General Obligation Bonds in an amount not to exceed $125 million. The Board subsequently adopted a resolution at the March 22, 2016 regular meeting to schedule a public hearing on the bond orders at this April 19, 2016 regular meeting. The resolution also included conducting a second public hearing at the Board's May 5, 2016 regular meeting. The bond authorization schedule therefore calls for the first public hearing at tonight's meeting. In response to public comment, or otherwise, the Board can decide (a) not to put forward either or both of the proposed Orders, or (b) to lower the amount of either or both orders. The Board cannot, however, add a purpose for proposed bonds or increase either amount of bonds without re-starting the bond authorization process. Because of oddities related to the approval process with the Local Government Commission, bond counsel recommends that, after this first public hearing, the Board repeat a previous step of"introducing" the two Bond Orders. That step is included in the Manager's recommendation. The second public hearing is scheduled for May 5, 2016 at the County's Whitted Human Services Center, 300 West Tryon Street, Hillsborough, North Carolina, 27278. After that second public hearing, the Board will be asked to approve the Bond Orders, and then consider a resolution to formally call for the November bond referendum and approving the ballot questions. The referendum is scheduled for the regular election date, November 8. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact if the referendum is approved. The tax rate equivalent for the estimated highest debt service payment is expected to range from 3.70-5.83 cents per $100 of assessed valuation. The projected debt service conforms to the County's debt policies and debt affordability analysis which was completed by the County's financial advisors. SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: 1) Conduct a first scheduled public hearing to receive public comment on the questions of the validity of the bond orders and the advisability of issuing the bonds; 2) Close the public hearing and decide (a) not to put forward either or both of the proposed Orders, or (b) to lower the amount of either or both orders (The Board cannot, however, add a purpose for the proposed bonds or increase either amount of bonds without re- starting the bond authorization process.); 3) In preparation for the second public hearing on May 5, 2016, introduce again (per Bond Counsel) the two bond orders which state the Board of County Commissioners' proposal to issue General Obligation Bonds to pay capital costs for providing school facilities and for housing for persons with low and moderate income. • The first bond order introduction authorizes the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities.