Orange County NC Website
Browse       Search
2 <br /> 4) Approves the form of the draft official statement for use in offering bonds to investors; <br /> 5) States the County's agreement to comply with the relevant provisions of federal tax law <br /> and the federal rules for continuing disclosure to the securities markets; and <br /> 6) Authorizes County staff to complete the process of issuing the bonds, and approves the <br /> steps to that end previously taken. This includes authorizing the Finance Officer to take <br /> all appropriate action to close these bonds. <br /> The affordable housing bonds will be issued on a taxable basis which means the interest rates <br /> on these bonds will be higher than on the school bonds, but staff in conjunction with the LGC <br /> and the County's financial adviser will structure the bond payment schedule to minimize the <br /> impact. Many local governments routinely issue their affordable housing bonds on a taxable <br /> basis because assets financed with those bonds routinely end up in private (non-governmental) <br /> ownership or use, in a manner not consistent with federal tax rules for tax-exempt borrowing. <br /> The actual interest rates on these bonds will be set when the LGC takes competitive bids on <br /> October 24, and the bond closings are scheduled for November 14 and 15. <br /> FINANCIAL IMPACT: The General Obligation bonds are included in the County's FY 2017- <br /> 2022 Capital Investment Plan and the debt affordability report from the Board's June 13, 2017 <br /> work session which indicated a tax equivalent impact ranging from 4.56 cents (upfront) to 5.76 <br /> cents (incremental). <br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br /> this agenda item: <br /> • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY <br /> The creation and preservation of infrastructure, policies, programs and funding necessary <br /> for residents to provide shelter, food, clothing and medical care for themselves and their <br /> dependents. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the attached <br /> resolution and authorize the Manager and Chair to execute any appropriate documents. <br />