HomeMy WebLinkAboutAgenda - 10-19-2010 - 6a 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 19, 2010
Action Age V-0
a
Item No.
SUBJECT: Public Hearing and Consideration of Resolution Authorizing Application to the
Local Government Commission to Issue Up to $103.6 Million in General
Obligation Refunding Bonds and Financing of$2 Million for Computer
Hardware/Software and Communications Equipment
DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) Yes
ATTACHMENT(S): INFORMATION CONTACT:
1. Resolution Clarence Grier, 919-245-2453
2. Bond Refunding Analysis Bob Jessup, 919-933-9891
PURPOSE: To hold a public hearing and consider approving a resolution authorizing
application to the Local Government Commission (LGC) to issue up to $103.6 million in General
Obligation Refunding Bonds and to finance $2 Million in computer hardware/software and
communications equipment.
BACKGROUND: Staff maintains contact with several financial advisors who track the County's
bonds against market conditions to identify opportunities to achieve debt service savings
through refunding outstanding debt of the County. Municipal bond interest rates have continued
to fall over the past fiscal year. Davenport & Company LLC, in conjunction with BB&T and Wells
Fargo, has identified an opportunity for debt service savings and provided an analysis of the
potential savings under current market conditions. The current proposal is to refund $84.3
million of various debt obligations of the County. The analysis shows a potential savings of $4.6
million over the remaining life of the debt, with a net present value of $3.9 million. The analysis
shows the reduction in debt service would be approximately $1.7 million in the current fiscal
year, and would average slightly over$165,000 a year for fiscal years 2012 through 2028.
A new option for refunding savings has also presented itself with this refunding. If approved by
the LGC, a majority of the savings from the refunding would be achieved over the first three
fiscal years of the refunding issue. If this method of refunding is pursued, the savings in the first
three years would be approximately $704,000 a year, with an average savings of $130,000
in the remaining 15 years.
Additionally, the County would, as part of this refunding, include the issuance of $2 million to
fund the remaining portions of the Property Information Management System (PIMS) hardware
and software, telephones, financial and payroll software, and Sheriff's Department 911 radios.
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The Local Government Commission requires the percentage savings of debt service to be
approximately 3.0%, or more of the amount of the refunded bonds. The proposal realizes a
4.44% savings. Market conditions could change between now and the time of issuance,
potentially increasing or decreasing savings.
The refunding analysis proposed refunds all of the outstanding maturities of these bonds. The
application to the LGC is proposed for up to $103.6 million in order to allow the flexibility to
refund the additional $19.3 million of outstanding maturities if there will be sufficient additional
savings.
Staff is proposing the Board approve a resolution 1) authorizing staff to proceed with an
application requesting the Local Government Commission's approval to issue up to $103.6
million of General Obligation Refunding Bonds for the purpose of refunding Various debt
obligations of the County, and finance the purchase of computer and telephone related
equipment; and 2) authorizing Davenport and Company, LLC, to serve as Financial Advisor and
the firm of Sanford Holshouser, LLP represented by Bob Jessup to serve as Bond Counsel.
FINANCIAL IMPACT: The resulting financial impact of this action is a savings in future debt
service costs described above.
RECOMMENDATION(S): The Manager recommends that the Board hold the public hearing
and approve the attached resolution 1) authorizing staff to proceed with an application
requesting the Local Government Commission's approval to issue up to $103.6 million of
refunding bonds for the purpose of refunding various debt obligations of the County and finance
the purchase of computer software, Sheriff's Department radios and telephone related
equipment; and 2) authorizing Davenport and Company, LLC to serve as Financial Advisor and
the firm of Sanford Holshouser, LLP represented by Bob Jessup to serve as Bond'Counsel.
RES -Po ojo�--
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Resolution supporting an application to the Local Government Commission
for its approval of financing arrangements for the County—
installment refinancings and certain equipment financing
WHEREAS--
Orange County has previously entered into a variety of installment financings
under the provisions of Section 160A-20 of the North Carolina General Statutes. The
County has determined that refinancing some of these previous financings could produce
significant debt service savings for the County.
In addition, the County has previously made a preliminary determination to
proceed with the acquisition and financing of certain equipment, including telephone
equipment and new property information management equipment. The County estimates
the cost of this equipment as approximately$2,000,000.
The North Carolina Local Government Commission must approve the County's
financing arrangements. Under the LGC's guidelines, this governing body must make
certain findings of fact to support the County's application for the LGC's approval of the
financing arrangements.
BE IT RESOLVED by the Board of Commissioners of Orange County, North
Carolina, that the County confirms its preliminary determination to proceed with the
equipment financing and determines to pursue the proposed refinancings. The Board will
make a final determination to proceed with this financing, and to approve financing terms
and conditions, by one or more subsequent resolutions.
BE IT FURTHER RESOLVED that the Board of Commissioners makes the
following findings of fact:
(1) The proposed financings are necessary and appropriate for the County
under all the circumstances. The refinancings will provide significant savings to the
County. The equipment will be useful in maintaining and improving the efficiency of
County operations.
(2) The proposed installment financing is preferable to a bond issue for the
same purpose under all the circumstances.
As the financings that are proposed to be refinanced are all installment financings,
it is most appropriate to carry out the refinancing as an installment financing.
The County has no ability to issue general obligation bonds for equipment project
without referendum approval. It is cost-effective to combine this relatively small
equipment financing with the larger planned installment refinancing.
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(3) The estimated sums to fall due under the proposed financing contract will
be adequate and not excessive for the proposed purpose. The County will closely review
proposed financing rates and debt service levels with the LGC.
(4) As confirmed to the Board at this meeting by the County's Finance Officer,
(a) the County's debt management procedures and policies are sound and in compliance
with law, and(b) the County is not in default under any of its debt service obligations.
(5) The County estimates that the equipment financing will have no material
effect on the County's tax rate. The refinancing will reduce the County's total debt
service obligations. The County believes that the tax rate impacts of the financing and
refinancing are reasonable under all the circumstances.
(6) The County Attorney is of the opinion that the proposed projects are
authorized by law and are purposes for which public funds of the County may be
expended pursuant to the Constitution and laws of North Carolina.
(7) The Board estimates that the maximum amount to be financed for the
equipment project will be $2,000,000. This amount is an estimate; the final amount to be
financed may be somewhat higher or lower than the estimate. The Board estimates that
the maximum amount to be financed to carry out the proposed refinancings will be
$101,600,000, although the actual amount of financing is likely to be lower. The County
may use financing proceeds to pay necessary or incidental costs of carrying out the
financing.
BE IT FURTHER RESOLVED, that the Finance Officer is authorized and
directed to take all appropriate steps toward the completion of the financing, including
completing an application to the LGC for its approval of the proposed financing; that all
actions of the County's Finance Officer and other County representatives in furtherance
of the completion of the contemplated financing are ratified, approved and confirmed;
and that this resolution takes effect immediately.
I certify that the foregoing resolution was duly adopted at a meeting of the Board
of Commissioners of Orange County, North Carolina, duly called and held on October
19, 2010, and that a quorum was present and acting throughout such meeting. Such
resolution remains in full effect as of today.
Dated this day of October, 2010.
[SEAL]
Clerk,Board of Commissioners
Orange County, North Carolina
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REFUNDING SAVINGS BY SERIES
Orange County,North Carolina
Bond-by-Bond Refunding Analysis as of September 28,2010
Total Refunded Refunding Refunding Savings
Series Par Pv� Par Savings Percent
2002TP Multi Purpose(BB&T) 1,677,586.30 1,677,SS6.30 1,614,162.23 87,027.51 5.188%
2002IP County Bldg(BB&T) 97,000.00 97,000.00 97,646,07 482.39 1.013%
2006IP Schools(BB&T) 6,600,000.00 6,600,000.00 6,193,814.54 623,917.41 9.453%
2007IP Multi Purpose(Suntrust) 42,548,450.00 42,548,450.00 40,300,378.55 2,115,732.25 4.973%
2008IP Animai Shelter(BOA) 6,896,551.72 6,896,551.72 6,573,698.88 174,172.10 2.525%
2009IP Land Aquisition&Housing(BB&T) 3,040,000.00 3,040,Q00.00 2,860,037.66 90,328.20 2.971%
2009IP Solid Waste(BB&'I) 173,600.00 173,600.00 172,281.07 3,011.97 1.735%
2009IP Equipment(BB&T� 1,200,000.00 1,200,000.00 1,190,882.96 20,820.02 1.735%
2Q09IP Mun's Bldgs(BB&T� 5,187,459.00 5,187,459.00 4,885,750.20 151,562.05 2.922%
2009IP Cnty Bldgs&Library(BB&T) 18,689,541.OQ 18,689,541.00 17,627,913.60 559,085.21 2.991%
86,110,188.02 86,110,188.02 81,516,565.76 3,826,639.11 4.444°/a
Assuxnptions:
Delivery Date 12/21/2010
Issuance Expenses 1.000%
Refunding Series MONO1
Escrow Size Based on Lesser of yield or 28SEP 10(SLG)
Interest accrued through delivery is Funded by escrow
PV Savings Based on Replacement arbitrage yield
Savings Expressed as a Percent of Par of refunded bonds
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REFUNDING CANDIDATES RANKED BY POTENTIAL SAVINGS
Orange County,North Carolina
Bond-by-Bond Refunding Analysis as of September 28,2010
(All Dollaz Amounts in Thousands)
Candidate Individual Cumulative
New
Series Maturity Par Rate Yield Refunding 5avings Percent Refunding Savings Percent
2006IP 12/21/2017 600 4.390% 2.200°/a 551 72 12.062°/a 551 72 12.062%
2006IP 12/21/2018 600 4.390% 2.440% 553 72 11.981% 1,104 144 12.021%
2006IP 12/21/2016 600 4.390% 1.920% 552 71 11.897% 1,656 216 11.980%
2006IP 12/21/2019 600 4.390% 2.640% 554 71 11.784% 2,210 286 11.931%
2006IP 12/21/2020 600 4.390% 2.830% 557 68 11.308% 2,767 354 11.506%
2006IP 12/21/2015 600 4.390% 1.640% 555 67 11.139% 3,322 421 11.695%
2006IP 12(21/2014 600 4.390% 1330°l0 569 59 9.875% 3,891 480 11.435%
2006IP 12/21/2021 600 4.390% 3.010% 525 56 9.379% 4,417 537 11.178%
2007II' 07/O1/2017 2,503 4.140% 2.200% 2,359 230 9.181% 6,775 766 10.493°/a
2047IP 07/01/2018 2,503 4.140% 2.440% 2,364 227 9.068% 9,139 993 10.130%
2007IP 07/O1/2016 2,503 4.140% 1.920% 2,360 226 9.033% 11,499 1,219 9.907%
2007IP 07/O1/2019 2,503 4.140% . 2.640% 2,371 221 8.825% 13,870 1,440 9.724%
2002II' 10/O1/2016 60 3.890% 1.920% 56 5 8.740% 13,925 1,445 9.720%
2002IP 10J01l2017 60 3.890% 2.200% 56 5 8.620% 13,9$1 1,451 9.716%
2007IP 07/O1/2020 2,503 4.140% 2.830% 2,384 208 8306% 16,365 1,659 9.513%
2007IP 07/O1/2015 2,503 4.140% 1.640% 2,373 208 8.305% 18,738 1,866 9.362%
2002IP 07/01/2016 60 3.890% 1.920% 56 5 8.298% 18�794 1�871 9.358%
2002IP 10(O1l2015 60 3.890% 1.640% 56 5 8.295% 18,849 1,876 9.355%
2002IP 07/O1/2017 60 3.890% 2.20Q% 56 5 8.254% 18,905 1,881 9.352%
2002IP 04/O1/2017 60 3.890% 2.200% 56 5 7.887% 18,961 1,886 9348%
2002IP 04l01/2016 60 3.890% 1.920% 56 5 7.854% 19,016 1,891 9.343%
2Q�6IP 12/21/2013 604 4.390% 1.056% 580 47 7.837% 19,596 1,938 9300%
2002IP 07/O1/2015 60 3.890% 1.640% 56 5 7.774% 19,652 1,942 9.295% �
2002IP O1/O1/2017 60 3.890% 2.200% 56 5 7.517% 19,708 1,947 9.290%
2002IP 01J01/2016 60 3.890% 1.920% 56 4 7.408% 19,763 1,951 9.285%
2002IP 1QlQ1(2Q14 60 3.890% 1.330% 57 4 7.360% 19,821 1,956 9.279%
2002IP 04/O1/2015 60 3.890% 1.640% 56 4 7.251% 19,877 1,960 9.274%
2007IP 07/O1/2014 2,503 4.140% 1.330% 2,435 177 7.066% 22,312 2,137 9.040%
2002IP 07/0112014 60 3.890% 1.330% 57 4 6.751% 22,369 2,141 9.034%
2002IP O1(O1/2015 60 3.890% 1.640% 56 4 6.726% 22,425 2,145 9.028%
2009IP 07/24/2016 200 3.600% 1.920% 187 13 6.606°/u 22,612 2,158 9.008%
2009IP 4 07/24/2016 336 3.600% 1.920% 314 22 6.606% 22,927 2,180 8.975%
2009IP 5 07J24l2016 1,280 3.600% 1.920% 1,198 85 6.606% 24,124 2,265 8.856%
2009IP 07/24/2015 2QQ 3.600% 1.640% 188 13 6.369% 24,312 2,278 8.837%
2009IP_4 07/24/2015 336 3.600% 1.640% 316 21 6.369% 24,629 2,299 8.805°/a
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REFUNDING CANDIDATES RANKED BY POTENTIAL SAVINGS
Orange County,North Carolina
Bond-by-Bond Refunding Analysis as of September 28,2010
(All Dollar?unounts in Thousands)
Candidate Individual Cumulative
New
Series Maturity Par Rate Yield Refunding Savings Percent Refunding Savings Percent
2009IP_5 07/24/2015 1,280 3.600% 1.640% 1,204 82 6.369% 25,833 2,381 8.691%
2007IP 07/O1/2021 2,503 4.140% 3.010% 2,247 158 6.305% 28,080 2,538 8.492%
2009IP 07/24/2017 200 3.600% 2.200% 187 13 6.286% 28,267 2,551 8.477%
2009IP_4 07/24/2017 336 3.600% 2.200% 314 21 6.286% 28,581 2,572 8.453%
2009IP_5 07/24/2017 1,280 3.600% 2.200% 1,197 80 6.286% 29,778 2,653 8.365%
2002IP 04/O1/2014 60 3.890% 1330% 57 4 6.140% 29,836 2,656 8.361%
2008IP 09/12/2016 276 3.680% 1.920% 261 16 5.751% 30,096 2,672 8339%
2009IP 07/24/2018 240 3.600% 2.440% 225 14 5.732% 30,321 2,686 8319%
2009IP_4 07/24/2018 405 3.600% 2.440% 380 23 5.732% 30,701 2,709 8.287%
2009IP 5 07/24/2018 1,391 3.600% 2.440% 1,303 80 5.732% 32,004 2,789 8.183%
2002IP 10/O1/2013 60 3.890% 1.050% 58 3 5.686% 32,063 2,792 8.179%
2009IP 07/24/2014 200 3.600% 1.330% 193 11 5.645% 32,256 2,804 8.164%
2009IP_4 07/24/2014 336 3.600% 1330% 324 19 5.645% 32,580 2,822 8.139%
2009IP_5 07/24/2014 1,280 3.600% 1.330% 1,236 72 5.645% 33,816 2,895 8.051°/a
2002IP O1/O1/2014 60 3.890% 1330% 57 3 5.527% 33,874 2,898 8.046%
2008IP 09/12/2015 276 3.680% 1.640% 262 15 5.486% 34,136 2,913 8.027%
2008IP 09/12/2017 276 3.680% 2.200% 261 15 5.458% 34,396 2,928 8.008%
2007IP 07/O1/2013 2,503 4.140% 1.050% 2,481 127 5.083% 36,878 3,055 7.820%
2009IP 07/24/2019 240 3.600% 2.640% 226 12 5.070% 37,103 3,068 7.803%
2009IP_4 07/24/2019 405 3.600% 2.640% 381 21 5.070% 37,484 3,088 7.776%
2009IP_5 07/24/2019 1,391 3.600% 2.640% 1,307 71 5.070% 38,792 3,159 7.684%
2002IP 07/O1/2013 60 3.890% 1.050% � 58 3 4.996% 38,850 3,162 7.680%
2006IP 12/21/2012 600 4390% 0.861% 593 30 4.977% 39,443 3,192 7.641%
2008IP 03/12/2016 276 3.680% 1.920% 261 14 4.962% 39,703 3,205 7.624%
2008IP 09/12/2018 276 3.680% 2.440% 261 14 4.933% 39,965 3,219 7.606%
2008IP 03/12/2017 276 3.680% 2.200% 261 13 4.819% 40,225 3,232 7.SS8%
2007IP 07/O1/2022 2,503 4.140% 3.130% 2,268 119 4.766% 42,493 3,351 7.432%
2008IP 09/12/2014 276 3.680% 1.330% 269 13 4.735% 42,762 3,364 7.415% '
2008IP 03/12/2015 276 3.680% 1.640% 262 13 4.542% 43,024 3,377 7.398%
. 2008IP 03/12/2018 276 3.680% 2.440% 261 12 4.419% 43,285. 3,389 7.380%
2008IP 09/12/2019 276 3.680% 2.640% 262 12 4.304% 43,547 3,401 7.362%
2002IP 04/O1/2013 60 3.890% 1.050% 58 3 4.304% 43,606 3,404 7358%
2009IP 07/24/2013 200 3.600% 1.050% 197 8 4.194% 43,802 3,412 7344%
2009IP_4 07/24/2013 336 3.600% 1.050% 331 14 4.194% 44,133 3,426 7.321%
2009IP_5 07/24/2013 1,280 3.600% 1.050% 1,259 54 4.194% 45,392 3,480 7.238%
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REFUNDING CANDIDATES RANKED BY POTENTIAL SAVINGS
Orange County,North Carolina
Bond-by-Bond Refunding Analysis as of September 28,2010
(All Dollar Ainounts in Thousands)
Candidate . Individual Cumulative
New
Series Maturity Par Rate Yield Refunding Savings Percent Refunding Savings Percent
2009IP 07/24/2020 240 3.600% 2.830% 227 10 4.157% 45,G19 3,490 7.223%
2009IP_4 07/24/2020 405 3.600% 2.830% 383 17 4.157% 46,002 3,507 7.197%
2009IP_5 07/24/2020 1,391 3.600% 2.830% 1,315 58 4.157% 47,317 3,564 7.113%
2008IP 03/12/2019 276 3.680% 2.640% 262 11 3.891% 47,579 3,575 7.095%
2009IP_3 07/24/2014 300 3.050% 1.330% 289 11 3.775% 47,868 3,586 7.076%
2009IP_2 07/24/2014 43 3.050% 1.330% 42 2 3.775% 47,910 3,588 7.073%
2002IP_2 10/07/2012 12 4.170% 0.861% 12 0 3.708% 47,922 3,589 7.072% '
2008IP 03/12/2014 276 3.680% 1.330% 269 10 3.617% 48,191 3,599 7.053%
2002IP O1/O1/2013 60 3.890°/a 1.050% 58 2 3.611% 48,249 3,601 7.049%
2007IP 07/O1/2023 2,503 4.140% 3.210% 2,282 90 3.585% 50,531 3,690 6.887%
2008IP 09/12/2020 276 3.680% 2.830% 263 9 3.424% 50,795 3,700 6.870%
2008IP 09/12/2013 276 3.680% 1.050% 274 9 3.252% 51,069 3,709 6.851%
2002IP 10/O1/2012 60 3.890% 0.861% 60 2 3.237% 51,129 3,711 6.847%
2008IP 03/12/2020 276 3.680% 2.830% 263 9 3.100% 51,392 3,719 6.828%
2002IP_2 07/07/2012 12 4.170% 0.861% 12 0 2.893% 51,404 3,720 6.827%
2009IP_2 07/24/2013 43 3.050% 1.050% 43 1 2.845% 51,447 3,721 6.824%
2009IP_3 07/24/2013 300 3.050% 1.050% 294 9 2.845% 51�741 3,729 6.802%
2007IP 07/O1/2024 2,503 4.140% 3.270% 2,293 65 2.590% 54,034 3,794 6.619%
2002IP 07/O1/2012 60 3.890% 0.861% 60 1 2.491% 54,094 3,796 6.614%
2007IP 07/O1/2012 2,503 4.140% 0.861% 2,535 59 2.341% 56,629 3,854 6.436%
2002IP_2 04/07/2012 12 4.170% 0.861% 12 0 2.076% 56,641 3,855 6.435%
2009IP 07/24/2012 200 3.600% 0.861% 201 4 1.992% 56,842 3,859 6.420%
2009IP_4 07/24/2012 336 3.600% 0.861% 338 7 1.992% 57,180 3,865 6395% �
2009IP_5 07/24/2012 1,280 3.600% 0.861% 1,287 25 1.992% 58,467 3,891 6304%
2008IP 03/12/2013 276 3.680% 1.050% 274 5 1.974% 58,741 3,896 6.285%
2009IP 07/24/2021 240 3.600% 3.010% 214 4 1.796% 58,955 3,901 6.267%
2009IP_4 07/24/2021 405 3.600% 3.010% 361 7 1.796% 59,316 3,908 6.239%
2009IP_5 07/24/2021 1,391 3.600% 3.010% 1,239 25 1.796% 60,555 3,933 6.142%
2006IP 12/21/2011 600 4.390% 0.611% 604 10 1.748% 61,159 3,943 6.101%
2002IP 04/O1/2012 60 3.890% 0.861% 60 1 1.743% 61,219 3,944 6.097%
2007IP 07/O1/2025 2,503 4.140% 3.350% 2,307 36 1.430% 63,526 3,980 5.923%
2002IP_2 O1/07/2012 12 4.170% 0.861% 12 , 0 1.258% 63,538 3,980 5.923%
2009IP 2 07/24/2012 43 3.050% 0.861% 44 1 1.177% 63,581 3,981 5.920%
2009IP_3 07/24/2012 300 3.050% 0.861% 301 4 1.177% 63,882 3,984 5.898%
2008IP 09/12/2021 276 3.680% 3.010% 248 � 3 1.082% 64,130 3,987 5.879%
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REFUNDING CANDIDATES RANKED BY POTENTIAL SAVINGS
Orange County,North Cazolina
Bond-by-Bond Refunding Ana(ysis as of September 28,2010
(All Dollar Amounts in Thousands)
Candidate Individual Cumulative I
New
Series Maturity Par Rate Yield Refunding Savings Percent Refunding Savings Percent
2008IP 09/12/2012 276 3.680% 0.861% 280 3 1.001% 64,411 3,990 5.859%
2002IP O1/O1/2012 60 3.890% 0.861% 60 1 0.994% 64,470 3,991 5.855%
2008IP 03/12/2021 276 3.680% 3.010% 248 2 0.838% 64,718 3,993 5.835%
2002IP 2 10/07/2011 12 4.170% 0.611% 12 0 0.619% 64,731 3,993 5.834%
2002IP 10/O1/2011 60 3.890% 0.611% 61 0 0.420% 64,792 3,993 5.829%
2007IP 07/O1/2026 2,503 4.140% 3.430% 2,321 7 0.283% 67,113 4,000 5.633%
2009IP 07/24/2022 240 3.600% 3.130% 216 -0 -0.092% 67,329 4,000 5.614%
2009IP_4 07/24/2022 405 3.600% 3.130% 364 -0 -0.092% 67,693 4,000 5.582%
2009IP_5 07/24/2022 1,391 3.600% 3.130% 1,250 -1 -0.092% 68,944 3,999 5.474%
2002IP 2 07/07/2011 12 4.170% 0.611% 12 -0 -0.267% 68�956 3,998 5.473% I
2008IP 03/12/2012 276 3.680% 0.861% 280 -1 -0388% 69,236 3,997 5.451% �
2002IP 07/O1/2011 60 3.890% 0.611% 61 -0 -0.396% 69,297 3,997 5.446%
2009IP 07/24/2011 160 3.600% 0.611% 164 -1 -0.586% 69,461 3,996 5.433%
2009IP_4 07/24/2011 336 3.600% 0.611% 345 -2 -0.586% 69,806 3,994 5.406%
2009IP_5 07/24/2011 1,280 3.600% 0.611% 1,312 -8 -0.586% 71,118. 3,987 5.304%
2008IP 09/12/2022 276 3.680% 3.130% 251 -2 -0.780% 71,368 3,985 5.281%
2007IP 07/O1/2011 2,503 4.140% 0.611% 2,586 -20 -0.789% 73,954 3,965 5.086%
2007IP 07/O1/2027 2,503 4.140% 3.510% 2,336 -21 -0.845% 76,290 3,944 4.902%
2009IP_2 07/24/ZO11 43 3.050% 0.611% 44 -0 -0.857% 76,334 3,943 4.899%
2009IP_3 07/24/2011 300 3.050% 0.611% 307 -3 -0.857% 76,641 3,941 4.877%
2008IP 03/12/2022 276 3.680% 3.130% 251 -3 -0.971% 76,891 3,938 4.858%
2002IP O1/O1/2011 60 3.890% 0.611% 60 -1 -1.022% 76,952 3,937 4.853%
2002IP_2 O1/07/2011 12 4.170% 0.611% 12 -0 -1.032% 76,964 3�937 4.852% �
2002IP_2 04/07/2011 12 4.170% 0.611% 12 -0 -1.154% 76,976 3,937 4.851%
2002IP 04/O1/2011 60 3.890% 0.611% 61 -1 -1.214% 77,037 3,936 4.847%
2009IP 07/24/2023 240 3.600% 3.210°/a 217 -4 -1.612% 77,254 3,933 4.828%
2009IP_4 07/24/2023 405 3.600% 3.210% 366 -7 -1.612% 77,621 3,926 4.796%
2009IP 5 07/24/2023 1,391 3.600% 3.210% 1,258 -22 -1.612% 78,879 3,904 4.689%
2008IP 09/12/2011 276 3.680% 0.611% 286 -4 -1.619% 79,165 3,899 4.668%
2008IP 09/12/2023 276 3.680% 3.210% 252 -6 -2.268% 79,417 3,893 4.645%
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REFUNDING CANDIDATES RANKED BY POTENTIAL SAVINGS
Orange County,North Carolina
Bond-by-Bond Refunding Analysis as of September 28,2010
(All Dollar Ainounts in Thousands)
Candidate Individual Cumulative
New
Series Maturity Par Rate Yield Refunding Savings Percent Refunding Savings Percent
2008IP 03/12/2023 276 3.680% 3.210% 252 -7 -2.424% 79,669 3,886 4.622%
2009IP 07/24/2024 240 3.600% 3.270% 218 -7 -2.934% 79,887 3,879 4.601%
2009IP_4 07/24/2024 405 3.600% 3.270Q/o 369 -12 -2.934% 80,256 3,867 4.565%
2009IP_5 07/24/2024 1,387 3.600% 3.270% 1,261 -41 -2.934% 81,517 3,827 4.444%
86,110 • 81,517 3,827
Maximum Cumulative Savings 4,000 •
With Refunding Bond Issue 67,113
Assumptions: I!
Delivery Date 12/21/2010 I
Issuance Expenses 1.000%
Refunding Series , MONO1
Escrow Size Based on Lesser ofyield or 28SEP10(SLG)
' Interest accrued through delivery is Funded by escrow .
PV Savings Based on Replacement arbitrage yield
Savings Expressed as a Percent of Par of refunded bonds
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Oct 6,2010 7:13 pm Prepazed by BB&T Capital Markets Page 3
SAVINGS
Orange County,North Carolina I
Refunding of IPs(Level) �
Present Va1ue
Prior Refunding to 12/21/2010
Date Debt Service Debt Service Savings @ 2.6527479%
06/30/2011 1,908,115.02 92,494.79 1,815,620.23 1,812,408.83
06/30/2012 9,343,361.37 9,175,787.50 167,573.87 140,324.44
06/30/2013 9,122,501.61 8,958,337.50 164,164.11 134,508.69
06/30/2014 8,862,438.69 8,695,418.75 167,019.94 134,440.15
06/30/2015 8,627,004.96 8,459,862.50 167,142.46 131,632.05
06/30/2016 8,053,408.10 7,885,600.00 167,808.10 129,722.35
06/30/2017 7,828,448.07 7,659,400.00 169,048.07 127,814.68
• 06/30/2018 . 7,484,243.31 7,316,000.00 168,243.31 125,863.55
06/30/2019 7,362,579.14 7,198,300.00 164,279.14 119,716.56
06/30/2020 7,139,039.69 6,973,900.00 165,139.69 117,642.87
06/30/2021 6,915,500.26 6,749,900.00 165,600.26 115,286.93
06/30/2022 6,691,960.81 6,524,000.00 167,960.81 114,144.82
06/30/2023 5,868,421.38 5,700,250.00 168,171.38 117,011.47
06/30/2024 5,395,359.85 5,226,750.00 168,609.85 117,914.14
06/30/2025 4,934,088.96 4,765,250.00 168,838.96 115,939.68
06/30/2026 2,761,894.97 2,594,875.00 167,019.97 114,004.88
06/30/2027 2,658,276.98 2,489,375.00 168,901.98 112,236.99 I
06/30/2028 2,554,658.99 2,388,250.00 166,408.99 107,650.57
113,511,302.16 108,853,751.04 4,657,551.12 3,888,263.63
Savin�s Summary
PV of savings from cash flow 3,888,263.63
Plus:Refunding funds on hand 4,094.20
Net PV Savings 3,892,357.83
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Oct 6,2010 7:31 pm Prepazed by BB&T Capital Mazkets Page 3
SAVINGS
Orange County,North Carolina
Refunding of IPs(Upfront)
Present Value
Prior Refunding to 12/21l2010
Date Debt Service Debt Service Savings �;a 2.6671099%
06/30/2011 1,908,115.02 93,082.63 1,815,032.39 1,811,804.18
06/30/2012 9,343,36137 8,226,725.Q0 1,116,63637 1,076,393.49
06/30/2013 9,122,501.61 8,078,225.00 1,044,276.61 980,053.82
06/30/2014 8,862,438.69 8,858,100.00 4,338.69 -17,397.87
06f30l2015 8,627,004.96 8,624,587.50 2,417.46 -18,131.96
06/30/2016 8,053,408.10 8,051,85Q.00 1,558.10 -17,514.78 �
06/30/2017 7,828,448.07 7,826,750.00 1,698.07 -16,562.47 .
06I30/2018 7,4$4,243.31 7,479,350.00 4,893.31 -11,404.00
06/30l2014 7,362,579.14 7,357,650.00 4,929.14 -10,718.99
06/30/2020 7,139,039.69 7,134,150.00 4,889.69 -10,138.13
06/30/2021 6,915,500.26 6,910,850.00 4,650.26 -9,734.67
06/30I2022 6,691,960.81 6,689,750.00 2,210.81 -11,287.68
06(30l2023 5,868,421.38 5,864,875.00 3,546.38 -4,337.72
06/30/2024 5,395,359.85 5,390,000.00 5,359.85 689.95
06/30/2025 4,934,088.96 4,931,750.00 2,338.96 -536.06
46/30J2026 2,761,894.97 2,759,250.00 2,644.97 1,982.46
06/30/2027 2,658,276.98 2,656,250.00 2,026.98 1,434.38
06/30/2028 2,554,658.99 2,552,250.00 2,408.99 1,554.74
113,511,302.16 109,485,445.13 4,025,857.03 3,746,148.70
Sav�s Summary
PV of savings from cash flow 3,746,148.70
Plus:Refunding funds on hand 2,712.70
Net PV Savings 3,748,861.40 .
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