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Counsel and is attached. The County's recent $40 million bond sale and the proposed amount <br />of the high school financing places the County above the $10 million threshold for "bank <br />qualification". This means that a private placement financing would have significantly higher <br />interest rates than the County normally receives on "bank qualified" installment purchases. In <br />addition, rising interest rates make taxable and other non-bank qualified financings less <br />attractive. The LGC has recommended that County staff pursue a public offering in the form of <br />Certificates of Participation (COPs). While this type of financing is more complicated and time <br />consuming, the interest rates are lower and the overall costs to the County would be <br />significantly less. The timetable mentioned above is for the issuance of COPS and Bab Jessup, <br />the County's Bond Counsel, will be on hand to discuss in detail the process. Similar to private <br />placement financing, the issuance of COPs also requires a public hearing. The proposed <br />timetable has established June 29, 2000 as the date for that public hearing. <br />FINANCIAL IMPACT: There is no impact resulting from actions taken by the Board at this <br />meeting. However, if the Board approves an underwriting proposal and installment purchase <br />contract, semi annual debt payments will be required. Funding for annual debt service will be <br />provided by Orange County Schools out of their pay-as-you-go allocations in the ten year <br />Capital Investments Plan. <br />RECOMMENDATION{S): The Manager recommends that the Board authorize staff to proceed <br />with the financing by adoption of the Resolution; establish the public hearing date for June 29, <br />2000; and instruct the Clerk to publish the hearing notice by June 16, 2000. <br />