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4 <br /> 1 <br /> 2 BACKGROUND: The County and its financing team estimates that the total amount to be <br /> 3 refinanced is an amount Not-to-Exceed $24 million in Limited Obligation Bonds. Although the <br /> 4 Refinancing Summary (Attachment 3) currently identifies a principal amount to be refinanced of <br /> 5 $16.6 million, the actual amount to be refinanced is contingent on prevailing market conditions <br /> 6 at the time of market pricing. The Not to Exceed amount provides sufficient pricing <br /> 7 considerations and flexibility for the financing team as it works to secure the lowest interest <br /> 8 costs and maximize debt service savings. <br /> 9 <br /> 10 If the Board adopts the resolution indicating its intent to continue with the refinancing plan, the <br /> 11 Board will be asked to consider a resolution giving final approval to the refinancing plans at the <br /> 12 October 1, 2019 BOCC meeting. A copy of the published notice of this hearing is provided as <br /> 13 Attachment 1. <br /> 14 <br /> 15 North Carolina General Statutes require that the County conduct a public hearing on the <br /> 16 proposed financing. After conducting the public hearing and receiving public input, the Board <br /> 17 will consider the adoption of the resolution (Attachment 2). This resolution formally requests the <br /> 18 required approval from the North Carolina Local Government Commission (LGC) for the <br /> 19 County's refinancing. <br /> 20 <br /> 21 The refinancing of existing installment bond obligations is designed to provide savings to the <br /> 22 County without extending the terms of the existing loans (Attachment 3). The proposed <br /> 23 financing would be secured by a lien on some or all of the property purchased or improved <br /> 24 through the loans that are being refinanced, as well as the County's promise to repay the <br /> 25 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 Financinq Draw 2 2.55% 1.44% <br /> 26 2016 Installment Financing Draw 1 2.30% 1 1.59% <br /> 27 <br /> 28 Gary Donaldson, Chief Financial Officer, made the following presentation: <br /> 29 <br /> 30 <br /> 31 FY 2019-20 Refinancing <br /> 32 Various Bond Obligations <br /> 33 Gary Donaldson, Chief Financial Officer <br /> 34 September 17, 2019 <br /> 35 <br /> 36 Public Hearing Purpose <br /> 37 <br /> 38 ➢ Board Approval for FY 2019-20 Installment Purchase Financing as authorized under <br /> 39 Section 160A-20 of North Carolina General Statutes <br /> 40 ➢ Not to exceed $24,000,000 in Bonds to refinance existing debt and achieve estimated <br /> 41 County savings of$649,464 through final maturity <br /> 42 ➢ Approve Resolution supporting Limited Obligation Bond application to the Local <br /> 43 Government Commission <br /> 44 <br /> 45 Refinancing Terms <br />