Agenda - 10-17-2017 - 8-d - Resolution to Refinance Existing Loan Obligations

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 17, 2017 Action Agenda Item No. 8-d SUBJECT: Resolution to Refinance Existing Loan Obligations DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1: Resolution Gary Donaldson, (919) 245-2453 Paul Laughton, (919) 245-2152 Bob Jessup, (919) 933-9891 PURPOSE: To consider a resolution giving final approval for the County to issue Limited Obligation Bonds (LOB) of up to $51,000,000 to refinance existing loans, and achieve debt service savings. BACKGROUND: On September 19, 2017 the Board held a public hearing and adopted a resolution giving preliminary approval to issuing limited obligation bonds (LOBs) to refund a variety of existing County loan obligations. The Local Government Commission has approved the financing and the financing plan and documents have been further developed, and the Board needs to consider the accompanying resolution to give final approval to the financing plan and substantially final documents. The Not to Exceed amount of $51 million in the Resolution is the financing's team effort to maintain flexibility in accommodating various bond pricing alternatives. The Not to Exceed amount provides sufficient pricing considerations to refinance the six loans that have been identified as potential refunding candidates in this negotiated financing. The County's financing team will work to secure the lowest cost of funds and to maximize the debt service savings associated with the refunding. The refinancing of existing installment loan obligations is designed to provide savings to the County without extending the terms of the existing loans. The proposed financing would be secured by a lien on some or all of the property purchased or improved through the loans that are being refinanced, as well as the County's promise to repay the financing. This resolution accomplishes the following: 1. Formally authorizes the sale of up to $51,000,000 in limited obligation bonds to refinance existing obligations; 2. Formally approves the use of Morris Grove School and the West Campus office building as collateral for the loan;