Orange County NC Website
Browse       Search
<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 5, 2018 <br /> Action Agenda <br /> Item No. 6-c <br /> <br />SUBJECT: Limited Obligation Series 2018 Bonds <br /> <br />DEPARTMENT: Finance and Administrative <br /> Services <br /> <br /> <br /> <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Resolution <br /> <br /> Gary Donaldson, 919-245-2453 <br />Paul Laughton, 919-245-2152 <br />Bob Jessup, 919-933-9891 <br /> <br />PURPOSE: To adopt a resolution for the issuance of Series 2018 Limited Obligation Bonds <br />(LOBS) with a not to exceed amount of $8.8 million to support the County’s FY 2017-18 Capital <br />Investment Plan (CIP). The financing resolution 1) gives final approval to allow the financing to <br />proceed; 2) approves the form of the official statement; 3) states the County's commitment to <br />comply with federal tax and securities laws; and 4) authorizes staff to complete the financing. <br /> <br />BACKGROUND: Pursuant to North Carolina General Statute 160A-20, the County seeks to <br />issue approximately $8.1 million in Series 2018 Limited Obligation Bonds. <br /> <br />The County conducted a public hearing at its May 15, 2018 Board of County Commissioners <br />(BOCC) meeting and received approval from the BOCC to proceed with the financing. The <br />notice of public hearing was advertised in The Herald Sun and The News of Orange. <br /> <br />If the Board adopts the resolution, the County plans to close on this financing on June 19, 2018. <br />Key terms of the financing include: <br /> <br />1) Issuing approximately $8.1 million to finance capital investment projects, equipment and <br />vehicles for the current fiscal year; <br />2) Estimate of maximum debt service applicable to these CIP projects would require the <br />highest debt service of $1.2 million in FY 2019-20; and <br />3) The tax rate equivalent for the estimated highest debt service is approximately .67 cents <br /> <br />FINANCIAL IMPACT: The Series 2018 Limited Obligation Bonds are included and compliant <br />with County’s CIP and Debt Affordability Plan. <br /> <br />SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br />this 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 /> <br />RECOMMENDATION(S): The Manager recommends that the Board approve the attached <br />resolution. <br />1