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2 <br /> • Broader disruptions to normal work patterns <br /> The County now seeks to amend the bond documents to permit the transfer of these funds back <br /> to the Proceeds Account from the Principal Account so funds can be applied to eligible capital <br /> project costs. <br /> The Trustee has reviewed the proposal and agreed that bondholder consent is not required; <br /> however, LGC approval is necessary to amend the attached bond financing documents. <br /> FINANCIAL IMPACT: The proposed amendment is financially advantageous. The 2019A Bonds <br /> carry a true interest cost of approximately 2.47%, and the 2019B Bonds carry a true interest cost <br /> of approximately 2.06%. Given current market conditions, borrowing new funds to finance eligible <br /> projects would almost certainly result in higher interest costs. Reallocating the remaining low-cost <br /> proceeds avoids unnecessary future borrowing at higher rates. <br /> As shown on the Project Uses table below, the County will reserve approximately $400,000 to <br /> make excess investment earnings payments to the Internal Revenue Service. The County has <br /> confirmed this IRS rebate liability with the arbitrage services provider prior to spending any <br /> remaining funds on these projects listed below. <br /> 2019A Bonds <br /> Approximately $9,700,000 in proceeds remain on hand, including accumulated investment <br /> earnings. The County will allocate these funds with two primary ways; 1)Apply proceeds to close- <br /> out completed park projects, and 2) Apply proceeds to FY 2026 and FY 2027 Capital Investment <br /> Plan (CIP) projects as follows: <br /> Project Uses Amount <br /> Completed Projects-Parks 347,000 <br /> and recreation facilities <br /> (Blackwood Farms, Millhouse, <br /> Soccer.com and Sportsplex) <br /> FY 2027 CIP Project- Link 1,800,000 <br /> Center repair and renovation <br /> FY 2026 CIP Project- 2,800,000 <br /> Vehicle replacements <br /> FY 2026 Project- School 3,789,471 <br /> capital projects <br /> Make payment to IRS for 400,000 <br /> excess investment earnings <br />