Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 17, 2017 <br /> Action Agenda <br /> Item No. 6-b <br /> SUBJECT: Revision to General Obligation Bond Sale Amount <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Revised General Obligation Bond Gary Donaldson, 919-245-2453 <br /> Sale Resolution Paul Laughton, 919-245-2152 <br /> Bob Jessup, 919-933-9891 <br /> PURPOSE: To provide final Board authorization for general obligation bond sale issues for 1) <br /> two-thirds school bonds in the amount of $5,900,000; 2) voter-approved school bonds in the <br /> amount of $21,000,000; and 3) voter-approved affordable housing bonds in the amount of <br /> $2,500,000. The aforementioned bond amounts represent the first tranche of authorized <br /> general obligation bonds. <br /> BACKGROUND: On October 3, 2017, the Board of Commissioners approved the sale of <br /> general obligation bonds for various purposes in the amount of $40 million. Based on the <br /> overbid results of Chapel Hill-Carrboro City Schools (CHCCS) Lincoln Center project and upon <br /> the direction of the Local Government Commission, the County must reduce the amount of <br /> voter-approved school bonds to be sold from $40 million to $21 million on this first issuance of <br /> bonds. The attached resolution approves that change. <br /> This change does not impact the Orange County Schools first bond issuance amount of $15.9 <br /> million. The CHCCS bond amount is changed from $24 million to $5 million pending the <br /> CHCCS final decision on project amounts for its projects. The initial $5 million is to reimburse <br /> for CHCCS design expenditures to date on the Lincoln Center and Chapel Hill High School and <br /> cash flow the remainder of design expenditures through the Chapel Hill High School bid <br /> openings in April/May 2018. This additional time will allow CHCCS to determine a definitive <br /> funding plan for its bond projects. The County would then present a revised funding application <br /> and recommendation of issuing remaining first bonds for CHCCS in April/May 2018 to the Local <br /> Government Commission. <br /> In accordance with the County Capital Investment Plan and in advisement with the County's <br /> bond counsel and financial advisor, County staff recommends that the County proceed with a <br /> General Obligation Bond Sale. <br />