Agenda - 12-02-2002-5a - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 2002 Action Agenda Item No. 5- A SUBJECT• Refunding of General Obligation Bonds DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Bond Order for Introduction Resolution Sworn Statement of Debt Public Hearing Notice INFORMATION CONTACT: Ken Chavious, ext. 2453 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider refunding general obligation bonds issued by the County in March, 1993 and bonds previously refunded in June of 1993, and to take actions necessary to accomplish this undertaking if the Board so desires. BACKGROUND: The Finance Director has been monitoring the bond market and assessing the impact on the County's outstanding bonds and other debt instruments over the past year as interest rates have been falling. Finance staff have worked with financial advisors at Ferris, Baker and Watts to generate a number of bond refunding analyses during the past several months. The most recent of these analyses revealed that the County could save approximately $125,000 annually and nearly $1,400,000 over the remaining terms if the bonds sold in March, 1993 and other refunded bonds issued in June 1993 were refunded. In July 2001, the County pursued a similar bond refunding initiative that also yielded significant savings. Staff has been in contact with both the Local Government Commission (LGC) and Bond Counsel reviewing the recent refunding analysis and the potential benefits to the County, and all parties are in agreement that the County could proceed with a refunding. The fact that the County has rescheduled the sale of general obligation bonds to March 2003 makes a refunding even more attractive because of the ability to "piggy back" many of the duties required by County staff, the LGC and Bond Counsel. This eliminates duplication of effort and saves money in issuance costs. The Finance Director has taken the first step in the refunding process by contacting the LGC in a letter of application requesting approval to proceed with the refunding. Since the LGC has reviewed the refunding analysis ahead of time, it is expected that swift approval will be granted. In order to continue the refunding process the Board is required to take the following actions: Introduce the Bond Order For the Bond Refunding • Adopt a Resolution setting a Date for a Public Hearing and Authorizing the Finance Director to File a Debt Statement and the Clerk to Publish a Notice of Public Hearing