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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 16, 2017 <br /> Action Agenda <br /> Item No. 8-e <br /> SUBJECT: Introduction of Bond Order for "Two-Thirds" School Bonds and Setting a Related <br /> Public Hearing <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. Bond Order for $5.9 Gary Donaldson, (919) 245-2453 <br /> Million in Two-Thirds Robert Jessup, (919) 933-9891 <br /> General Obligation Bonds Paul Laughton, (919) 245-2152 <br /> for School Capital <br /> Requirements <br /> Attachment 2. Resolution to Set the <br /> Public Hearing <br /> PURPOSE: To introduce the bond order and adopt a resolution to set a public hearing on June <br /> 20, 2017 for issuance of two-thirds General Obligation bonds. <br /> NOTE: This item is not related to the November 2016 bond referendum and being utilized <br /> as an additional separate source for financing. <br /> BACKGROUND: Pursuant to North Carolina General Statute 159-48, local governments can <br /> issue General Obligation bonds each year in an amount equal to two-thirds of the principal <br /> amount of debt retired in the previous year. Two-thirds General Obligation bonds may be <br /> issued without referendum but are subject to approval by the Local Government Commission in <br /> the same manner as other debt financing methods. <br /> The County will retire $8.8 million in principal on outstanding General Obligation bonds in FY <br /> 2016-17. The statutes allows the County to issue up to two-thirds of the $8.8 million in principal <br /> retired or an additional General Obligation bond capacity of $5.9 million in FY 2017-18. This <br /> bond capacity cannot be accumulated or carried forward to future years. The Board adopted a <br /> resolution at its May 2 meeting providing preliminary approval of this bond issue. <br /> Required actions on May 16, 2017 are: <br /> • Introduce a Bond Order - the bond order provides the underlying authority and approval <br /> for the bond issuance <br /> • Adopt a resolution authorizing Public Hearing and authorizing the filing of the sworn <br /> statement of debt <br />