Agenda 05-21-19 8-a - Minutes - Laserfiche WebLink

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14 1 Gary Donaldson, Chief Financial Officer 2 May 2, 2019 3 4 Purpose: 5 ➢ Limited Obligation Bonds pursuant to NC Statute Section 160A-20 6 ➢ Payments for the Limited Obligation Bonds, Series 2019A will be made to Trustee by 7 March 25 (for April 1 debt service) and by September 25 (for October 1 debt service); 8 estimated interest rate not to exceed 4% 9 10 ➢ The Series 2019A Limited Obligation Bonds are secured by a Deed of Trust, with a 11 security interest in various County buildings and land with a total collateral value 12 estimated at $15.7 million 13 ➢ The Series 2019A Limited Obligation Bonds will fund various County projects including: 14 - Vehicles and Equipment (5-8 Years): $4.0 Million 15 - County/School Facility Improvements: $11.7 Million 16 - Land/ Easements: $0.4 Million 17 - Total: $16.1 Million 18 19 Key Financing Terms: 20 21 ➢ Security Pledge- County collateral Government Services Annex, Government Services 22 Link Center, District Attorney Building, Emergency Operations Center and the Northern 23 Campus Site Land 24 ➢ Maturity Term- 5- 20 Year maturities matches with the useful life of the assets 25 ➢ Estimated Interest Rates- up to 4% subject to market conditions 26 ➢ Maximum Annual Debt Service not exceeding $1.7 Million (FY 2020-21) 27 ➢ Source of Repayment- Property Tax, Article 46 Sales Tax (for Hillsborough EDD Utility) 28 and Solid Waste Fees (for Vehicles and Equipment) 29 ➢ Subordinate Lien and Pledge to General Obligation Bonds 30 ➢ Rating Affirmations- AA1/AA+/AA+ from Moody's, Standard & Poor's and Fitch Ratings 31 32 Key Debt Model Metrics - graph 33 34 Financing Schedule 35 36 Bob Jessup, Bond Counsel, said the recommended action is to adopt the resolution. 37 Commissioner Dorosin asked if it could be explained how this is limited versus general 38 obligation if property tax is the source of repayment. 39 Bob Jessup said there is a difference between the property tax being the expected 40 source of the repayment and a limited obligation bond, and the County having made a legally 41 enforceable promise to levy property taxes as may be necessary, which is what occurs in a 42 general obligation bond. He said it is the expected source, but if a limited obligation bond is not 43 paid, one cannot be forced to raise taxes as one theoretically could be when failing to pay a 44 general obligation bond. 45 Commissioner Dorosin said it is not pledging the taxing authority. 46 Bob Jessup said yes. 47 Commissioner Marcoplos asked if the "Rogers Road Community Center infrastructure" 48 could be clarified. 49 Gary Donaldson said it was part of the utility infrastructure connections for water and 50 sewer.