Agenda - 05-05-2004-2 - Laserfiche WebLink

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z #10 that are now to be used towards the constn~ction of CHCCS High School #3 instead, Elementary #10 funding is now reflected on the debt issuance schedule to come from alternative financing, County staff have coordinated with school and Town staffs regarding updated cash flaw needs for various partner projects, The debt issuance schedule has been modified to reflect such changes (e.g, Homestead Aquatic Center and Southern Community Park) in the pace of individual project planning and approval, Staff have also included plans to issue two-thirds net debt reduction bonds, which can be used next fiscal year because the County will not have issued any new debt for FY 2003-04, Proceeds from those bonds would be used for a portion of Whiffed Human Services Center renovations, Little River Park development, and other County projects that the BOCC can specify at a later date. The Finance Director, Budget Director and the County's Band Counsel recently met with representatives of the North Carolina Local Government Commission (LGC) to discuss the planned capital financings, The LGC, an arm of the State Treasurer's Office, is statutorily charged with conducting the sale of all local government bonds and with overseeing most other long-term financing arrangements for local governments, Preliminary indications from the LGC staff are that the County's capital financing plans are acceptable and should receive a favorable decision from the Commission when formally presented for approval in the coming months, This meeting affords the Board the opportunity to review again, in detail the specific projects and dollar amounts proposed far issuing debt in the upcoming year, The Budget Director plans to make a brief PowerPoint presentation, review the spreadsheets accompanying this abstract, and respond to any Board question about possible changes to the project timelines, It is important to note the following points; At this time, staff proposes to pursue $18,850,000 in alternative financing, consisting of the issuance of $10,350,000 in COPS and $4,200,000 in 2/3 bonds along with $19,740,000 in 2001 voter approved bonds, Staff currently plans to pursue these issuances concurrently in order to achieve economies in staff time and issuance costs, The Finance Director and Bond Counsel will briefly review the steps to be taken leading up to these capital financings, including the required Board actions. FINANCIAL IMPACT: As was explained during the public information campaign leading up to the November 2001 band referenda, the cumulative debt service impacts from the plan for bond sales an alternative financing could range farm 7 to 10 cents on the property tax rate, depending on size, timing and prevailing interest rates, The annual cost of debt service associated with the first issuance of debt far this financing plan equates to about 1,8 cents per $100 of assessed valuations. Depending on how the LGC structures debt service payments associated with this sale, the anticipated tax rate impact for the next fiscal year (FY 2004-05) would be less than one cent since the sale is projected to occur during the year, Staff projects the full year tax rate impact of this particular issuance to range between three and four cents per $100 of assessed valuations, It is important to note that all planned debt issuance is in accordance with the County's debt issuance policy and well within the parameters established therein. RECOMMENDATION (S): The Manager recommends that the Board review and amend, as needed, the list of projects and amounts to be included in this issuance of debt, including the 1997 sewer bonds; approve the issuance of $4..2 million in additional two-thirds net debt bonds to be used for County projects; and direct staff to proceed with all necessary steps to effect the financings, in accordance with the schedule prepared by Bond Counsel,