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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 20, 2017 <br /> Action Agenda <br /> Item No. 5-a <br /> SUBJECT: Public Hearing and Adoption of Bond Order and Resolution Related to $5.9 <br /> Million Two-Thirds School Bonds <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Bond Order for $5.9 Gary Donaldson, (919) 245-2453 <br /> Million in Two-Thirds Robert Jessup, (919) 933-9891 <br /> General Obligation Bonds Paul Laughton, (919) 245-2152 <br /> for Schools <br /> Attachment 2. Resolution to Publish the <br /> Bond Order <br /> PURPOSE: To conduct a public hearing as outlined in the two-thirds bond authorization <br /> schedule and adopt the bond order and resolution to publish the bond order. The bond order <br /> authorizes the issuance of two-thirds General Obligation Bonds in an amount not to exceed $5.9 <br /> million to support school facilities, and the bonds replace the General Fund pay-as-you-go <br /> funding in FY 2017-18 and a portion in FY 2018-19, as reflected in the Capital Investment Plan <br /> (CI P). <br /> (Note: The two-thirds bonds are separate and unrelated to the bonds for schools that were <br /> approved by voters in November 2016.) <br /> BACKGROUND: Pursuant to North Carolina General Statute 159-48, local governments can <br /> issue General Obligation bonds each year in an amount equal to two-thirds of the principal <br /> amount of debt retired in the previous year. Two-thirds General Obligation bonds may be <br /> issued without referendum but are subject to approval by the Local Government Commission in <br /> the same manner as other debt financings. <br /> The County will retire $8.8 million in principal on outstanding General Obligation bonds in FY <br /> 2016-17. The Statutes allow the County to issue up to two-thirds of the $8.8 million in principal <br /> retired or an additional General Obligation bond capacity of $5.9 million in FY 2017-18. This <br /> bond capacity cannot be accumulated or carried forward to future years. The Board adopted a <br /> resolution at its May 2, 2017 meeting providing preliminary approval of this bond issue. The <br /> bond order was introduced at the May 16, 2017 BOCC meeting and a resolution authorizing <br /> tonight's public hearing was adopted as well. <br />