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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 19, 2017 <br /> Action Agenda <br /> Item No. 5-a <br /> SUBJECT: Public Hearing on Refinancing Existing Loan Obligations <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Public Hearing Notice Gary Donaldson, (919) 245-2453 <br /> Attachment 2. Resolution Paul Laughton, (919) 245-2152 <br /> Attachment 3. Refinancing Summary Bob Jessup (919) 933-9891 <br /> PURPOSE: To conduct a public hearing on the issuance of up to $51 million to refinance <br /> existing installment financing to achieve an estimated $2.4 million in debt service savings; and <br /> approve a related resolution supporting the County's application to the Local Government <br /> Commission (LGC) for approval of the refinancing plan. <br /> BACKGROUND: The County and its financing team estimates that the total amount to be <br /> refinanced is an amount Not to Exceed $51 million in Limited Obligation Bonds. Although the <br /> Refinancing Summary (Attachment 3) currently identifies an amount of $41.9 million based on <br /> the current market, the difference between the $41.9 million amount in the Refinancing <br /> Summary and the Not to Exceed amount of $51 million in the Resolution is the financing's team <br /> effort to maintain flexibility in accommodating various bond pricing alternatives. The Not to <br /> Exceed amount provides sufficient pricing considerations to refinance the six loans that have <br /> been identified as potential refunding candidates in this negotiated financing. The County's <br /> financing team will work to secure the lowest cost of funds and to maximize the debt service <br /> savings associated with the refunding. <br /> If the Board adopts the resolution indicating its intent to continue with the refinancing plan, the <br /> Board will be asked to consider a resolution giving final approval to the refinancing plans at the <br /> October 3, 2017 BOCC meeting. A copy of the published notice of this hearing is provided as <br /> Attachment 1. <br /> North Carolina statutes require that the County conduct a public hearing on the proposed <br /> financing. After conducting the public hearing and receiving public input, the Board will consider <br /> the adoption of the resolution (Attachment 2). This resolution formally requests the required <br /> approval from the North Carolina Local Government Commission (LGC) for the County's <br /> refinancing. <br />