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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 5, 2026 <br /> Action Agenda <br /> Item No. 8-m <br /> SUBJECT: Amendments to the Series 2019 A and B Limited Obligation Bond Documents <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Authorizing Amendments to Gary Donaldson, 919-245-2453 <br /> 2019 Financing Documents Bob Jessup, 919-933-9891 <br /> Supplemental Amending Trust <br /> Agreement <br /> PURPOSE: To approve a resolution related to an Orange County request to the North Carolina <br /> Local Government Commission (LGC)to amend the financing documents associated with its 2019 <br /> Limited Obligation Bonds (Series 2019A and Series 20198) to reallocate remaining bond <br /> proceeds to eligible project costs. <br /> BACKGROUND: In 2019, Orange County issued two series of Limited Obligation Bonds: <br /> • $14,135,000 Series 2019A Bonds <br /> • $29,745,000 Series 2019B Bonds <br /> • $43,880,000 TOTAL <br /> At the time of the bond issuance, the County provided the Local Government Commission (LGC) <br /> with a list of projects for which bond proceeds were to be used. Due primarily to project delays <br /> resulting from the COVID-19 pandemic as described below, the County did not spend all proceeds <br /> within the required three-year Internal Revenue Service (IRS) spend down timeframe. Therefore, <br /> the Bank of New York (as the Trustee) transferred the escrowed proceeds from its Series 2019 <br /> Project Account to a Principal Account. Per the bond document, these transferred proceeds are <br /> restricted to payments on Series 2019 maturities only through 2039 (final maturity). <br /> Approximately $10.2 million remains from the Series A and B Bonds including accumulated <br /> investment earnings. <br /> Explanation of COVID-related Delays <br /> The delay in expending proceeds was primarily attributable to COVID-19-related disruptions, <br /> including: <br /> • Supply chain interruptions, <br /> • Design and engineering delays, <br /> • Permit processing delays, and <br />