Agenda - 08-19-2008- 6a - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 19, 2008 Action Agen a Item No. ~-~ SUBJECT: Issuance of Remaining 2001 Voter Approved Bonds DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Gary Humphreys, 245-2453 Robert Jessup, 919-755-1800 PURPOSE: To request authority to issue the remaining unissued $1. 4 million Affordable Housing 2001 voter approved bonds and $5.5 million Parks and Open Space unissued bonds as Alternative Financing. BACKGROUND: In the November 2001 referendum, $75 million in general obligation bonds was approved by the voters for several purposes. Included in that amount was the authorization to issue $4.0 million for Affordable Housing and $20 million for Parks and Open Space. In April of 2003, the County issued the first installment of $19.175 million in general obligation bonds from the 2001 authorization which included $1.3 million of Affordable Housing bonds and $3.625 million of Parks and Open Space Bonds. In August of 2004, the County issued the second installment of $19.74 million in general obligation bonds from the 2001 authorization which included $1.3 million of Affordable Housing bonds and $3.625 million of Parks and Open Space Bonds. In September of 2005, the County issued the third installment of $29.185 million in general obligation bonds from the 2001 authorization which did not include any bonds for Affordable Housing or Parks and Open Space. There is currently $6.9 million of unissued general obligation bonds from the 2001 voter approved authorization, which consists of $1.3 million for Affordable Housing and $5.5 million for Parks and Open Space. In consultation with Bond Counsel, staff believes that due to the small size of the issue relative to the issuance costs and additional requirements involved in issuing general obligation bonds, along with the favorable environment which has persisted for alternative financing, that it could be advantageous to issue alternative financing for this remaining amount rather than general obligation bonds. In the near future, staff will be asking the Board to proceed with the issuance of additional alternative financing to accomplish the purchase of the Gateway Center, County Campus, Chapel Hill Carrboro Elementary School #11, and the Efland Sewer project. The issuance of this financing would occur in the early part of calendar year 2009. At that time, the County would also issue the remaining $6.9 million for Affordable Housing and Parks and Open