Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 5, 2004 <br />Action Agenda <br />Item No. 2 <br />SUBJECT: Scope and Timetable far Issuance of General Obligation Bonds, Alternative <br />Financing, and Two-Thirds Net Debt Reduction Bonds <br />DEPARTMENT: Budget/Finance <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT (S): <br />May 5, 2004 Proposed Debt Issuance <br />Schedule <br />September 3, 2002 BOCC Approved Debt <br />Issuance Schedule <br />INFORMATION CONTACT: <br />Donna Dean, 919-245-2151 <br />Ken Chavious, 919-245-2453 <br />Robert Jessup, Bond Counsel <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To review, amend as needed, and approve, staff plans to pursue the second <br />sale of voter approved 2001 general obligation bonds, the second installment of planned <br />alternative capital financing, issuance of two-thirds net debt bands, and sale of the 1997 <br />voter approved Efland sewer bonds. <br />BACKGROUND: On September 3, 2002, the Board approved a plan to pursue $112.7 <br />million in capital financing for major school and County capital projects through 2006-07. <br />This total included two components: 1) $75 million in general obligation bonds that were <br />subsequently approved by Orange County voters in November 2001; and 2) $37.7 million in <br />alternative financing that would be arranged through mechanisms such as private placement <br />loans or the issuance of Certificates of Participation (COPs). In accordance with the <br />September 3 approved plan, staff procured alternative financing of $3.475 million in <br />December 2002 and issued bonds totaling $19.175 million in April 2003. <br />In addition to the above-mentioned plan, the County needs to issue the $1,2 million in <br />sanitary sewer bonds for Efland Sewer (approved by the voters in November 1997), <br />because the Local Government Commission requires general obligation bonds to be issued <br />within seven years. The authorization an the sewer bonds will expire this November 2004, <br />These bonds will be used with other funds for the Efland Sewer expansion. <br />The proposed May 2004 debt issuance schedule includes a number of modifications from, <br />and additions to, the debt issuance schedule approved by the BOCC in September 2002. <br />For example, the new schedule reflects the BOCC's formal decision to reallocate $12,8 <br />million in bond funds originally planned for Chapel Hill-Carrbaro Schools' Elementary School <br />