Agenda - 10-03-2017 - 8-h - General Obligation Bond Sale

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 3, 2017 Action Agenda Item No. 8-h SUBJECT: General Obligation Bond Sale DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: General Obligation Bond Sale Resolution Gary Donaldson, 919-245-2453 Paul Laughton, 919-245-2152 Bob Jessup, 919-933-9891 PURPOSE: To approve a resolution providing final Board authorization for general obligation bond sale issues: 1) two-thirds school bonds in the amount of $5,900,000; 2) voter-approved school bonds in the amount of $40,000,000; and 3) voter-approved affordable housing bonds in the amount of $2,500,000. This is the first issuance of school and affordable housing general obligation bonds approved by the voters in the November 2016 election. BACKGROUND: At its June 20, 2017 regular meeting, the Board authorized the issuance of up to $5,900,000 of County general obligation school bonds. This was based on the North Carolina General Statutes which allow the County to issue general obligation bonds each year in an amount up to two-thirds of the principal retired in the prior fiscal year, without the need for voter approval. In addition, on November 8, 2016, the voters of Orange County approved the issuance of up to $120,000,000 of the County general obligation school bonds and up to $5,000,000 of general obligation affordable housing bonds. In accordance with the County Capital Investment Plan and in advisement with the County's bond counsel and financial advisor, staff recommends that the County proceed with a General Obligation Bond Sale. The Local Government Commission (LGC) has approved the aforementioned County General Obligation Bond applications and bond sale. The attached resolution for Board approval accomplishes the following: 1) Formally authorizes the sale of the $5,900,000 "two-thirds" school bonds, $40,000,000 in voter-approved school bonds, and $2,500,000 in voter-approved affordable housing bonds; 2) Formally pledges the County's taxing power to provide for payment on the bonds; 3) Approves the proposed form of the bonds;