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21 <br /> 1 <br /> 2 Series 2020 Limited Obligation Bonds <br /> 3 Spring Financing Resolution <br /> 4 March 10, 2020 <br /> 5 <br /> 6 Purpose <br /> 7 ➢ Conduct Public Hearing for Limited Obligation Bonds pursuant to NC Statute Section <br /> 8 160A-20 <br /> 9 ➢ Obtain Board Approval to Proceed with Filing Local Government Commission <br /> 10 Application for Series 2020 Financing <br /> 11 ➢ Funds our FY 2019-20 Capital Investment Plan through this Series 2020 Limited <br /> 12 Obligation Bonds are secured by a Deed of Trust, with a security interest in the Northern <br /> 13 Campus and a portion of the Southern Campus <br /> 14 ➢ The Series 2020 Limited Obligation Bonds will fund various County projects including: <br /> 15 - Vehicles and Equipment (5-8 Years useful life): $717,228 <br /> 16 - County Facilities (up to 20 years useful life): $33.1 Million* <br /> 17 - School Facilities (up to 20 years useful life): $8.6 Million <br /> 18 Total: $42.3 Million <br /> 19 * $29 Million represents remaining amount for Northern Campus construction <br /> 20 <br /> 21 Projects to be Financed (chart) <br /> 22 <br /> 23 Key Financinq Terms <br /> 24 ➢ Security Pledge- County assets and annual County appropriations <br /> 25 ➢ Maturity Term- 5- 20 Year maturities matches the useful life of the assets <br /> 26 ➢ Estimated Interest Rates- up to 3% subject to market conditions <br /> 27 ➢ Maximum Annual Debt Service not exceeding $4.2 Million (FY 2021-22) <br /> 28 ➢ Source of Repayment- Property Tax, Solid Waste Fees and Sportsplex Fees <br /> 29 ➢ Limited Obligation Bonds are Subordinate Lien to AAA General Obligation Bonds <br /> 30 ➢ Anticipated Limited Obligation Bonds- AA1/AA+/AA+ from Moody's, Standard & Poor's <br /> 31 and Fitch Ratings <br /> 32 <br /> 33 Key Debt Model Metrics (chart) <br /> 34 <br /> 35 Financinq Schedule (chart) <br /> 36 <br /> 37 Commissioner Marcoplos asked if schools' "other various projects" line is determined <br /> 38 the same way as the fiscal year budget; as collaboration between the school and County <br /> 39 prioritizing projects. <br /> 40 Gary Donaldson said yes. <br /> 41 Commissioner Marcoplos asked if any specific projects are interesting. <br /> 42 Gary Donaldson said no, there are projects across all facilities, and it will be a matter of <br /> 43 prioritizing the major needs. He said the amounts they are ready to finance may be slightly <br /> 44 lower when staff returns to the BOCC, due to projects not being ready to move forward. <br /> 45 Commissioner Price asked if there is a difference between improvements to older <br /> 46 schools and other various projects. <br /> 47 Gary Donaldson said that is the designation that the schools have for looking at older <br /> 48 facilities that require more capital needs. He said it distinguishes between the older and the <br /> 49 newer schools. <br />