Agenda - 09-03-2002 - 9a - Laserfiche WebLink

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i ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 3, 2002 Action Age d a Item No. -q_ SUBJECT: Scope and Timeline for Sale of 2001 Bonds and Alternative Financing DEPARTMENT: Finance/Budget PUBLIC HEARING: (Y!N) No ATTACHMENT(S): INFORMATION CONTACT: Ken Chavious, ext 2453 Bond Refunding Debt Service Comparison Donna Dean, ext 2151 Bond Sale Event Timetable TELEPHONE NUMBERS: Bond/ARemative Financing Tables Hillsborough 732-8181 (under separate cover) Chapel Hill 968.4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To review, amend as needed, and approve, staff plans to pursue the first sale of voter approved 2001 general obligation bonds and the first installment of planned alternative capital financing. BACKGROUND: In summer 2001, the Board approved a plan to pursue $112.7 million in capital financing for major school and County capital projects through FY 2006-07. This total included two components: 1) $75 million in general obligation bonds that were subsequently approved by Orange County voters in November 2001; and 2) $37.7 million in alternative financing that would be arranged through mechanisms such as private,placement loans or the issuance of Certificates of Participation (COPs). During the process of reviewing and approving the 2002-03 County operating budget and 2002- 12 Capital Investment Plan in June 2002, the Board directed several refinements to the originally proposed timelines for certain bond and alternative financing projects. Staff 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 capital financing arrangements. Preliminary indications from 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 for the first bond sale and alternative financing installment. The Budget Director plans to make a brief PowerPoint presentation, review the spreadsheets accompanying this abstract, and respond to any Board questions about possible changes to the project timelines. Particular note should be made of Table 5, which captures Orange:County