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2 <br /> The refinancing of existing installment bond obligations is designed to provide savings to the <br /> County without extending the terms of the existing loans (Attachment 3). The proposed <br /> financing would be secured by a lien on some or all of the property purchased or improved <br /> through the loans that are being refinanced, as well as the County's promise to repay the <br /> financing. <br /> Five Refunding Bond Opportunities Original Current Market <br /> Interest Rates Interest Rates <br /> 2010 General Obligation Bonds 3.49% 1.91% <br /> 2012 Installment Financing 2.45% 1.65% <br /> 2013 Installment Financing 2.13% 1.34% <br /> 2016 Installment Financing Draw 2 2.55% 1.44% <br /> 2016 Installment Financing Draw 1 2.30% 1.59% <br /> FINANCIAL IMPACT: There is no financial impact related to conducting the public hearing and <br /> considering the resolution. However, there will be a financial impact in proceeding with the <br /> refinancing. A preliminary estimate of the net present value savings through final loan maturity <br /> is $649,464 based on current market estimates as of August 28, 2019. The net present value <br /> savings represents 3.90% of the refunded bonds. <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 /> ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal <br /> impact associated with this item. <br /> RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing <br /> and adopt the resolution supporting the application to the Local Government Commission for <br /> approval of the refinancing. <br />