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HomeMy WebLinkAboutS Public Hearing on the Issuance of Refunding Bonds and Adoption of Refunding Bond Orders MARGARET W. BROWN. CHA//ORANGE COUNTY BOARD OF COMMISSIONERS ALICE M_ CORDON. VICE CHAIR POST OFFICE BOX 81 81 MOSES CAREY, JR. STEPHEN H. HALKIOT/S 200 SOUTH CAMERON STREET BARRY JACOBS HILLSBOROUGH, NORTH CAROLINA 27278 I, Donna S. Baker, County Clerk of the County of Orange, North Carolina, do hereby certify' that the attached is a true and correct excerpt of the minutes of the Board of County Commissioners' meeting held on January Zl, 2003. This the 28~' day of January, 2003. l . ` ~ y~ I~t° £~` ~~ ~ ` ~~U\ ~f ~r~~~r~ D nn .Baker County Clerk WWW. CO.ORA NGE. NG. US PROTECT/NG AND PRESERV/NG -PEOPLE, RESOURCES, QUAL/TY OF L/FE ORANGE COUNTY, NORTH CAROL/NA -YOU COUNT! (9 f 9) 245-2 f 30 • FAX (9 f 9) 644-0246 Public hearing on issuance of refunding bonds and adoption of refunding bonds. Ken Chavious is going to tell us about that. Ken Chavious At the December 2"d meeting the board introduced a bond order that is required in order for the county to pursue a refunding of Bonds that we issued in 1993. Total amount of refunded bonds is approximately 26 million dollars. We have estimated that by refunding these bond the county could save in excess of hundred and twenty five thousand dollars annually on its debt service payments. And about 1.3 million dollars for the remaining 11 year term of the bonds. You also may recall that you have scheduled a regular bond sale for March, a sale in which we will piggyback this refunding on and with that we will be able to realize a savings in issuance cost as well. The statutory and Local Government Commissions requirements call a Public Hearing on the advisability of issuing the Refunding Bonds. The Board has established tonight as a time for this public hearing. All other required steps leading up to this .hearing have been accomplished. Tonight we are asking to Board to go ahead and conduct the Public Hearing that is required and afterwards we are asking the Board to officially adopt this Bond Order as well as adopting a resolution providing for the publication of the bond order by the Clerk. These are also required steps in order to accomplish the refunding . There is one other thing we will have bring back to you at the 2°a meeting in February and that is the your approval of the official statement that is required for us to issue these bonds. I will stop right there and be glad to answer any questions you might have. Margaret Brown-Are there any questions from Board members? Barry Jacobs- did you say 26 million or 28 million, all the documents say 28 million Ken -right the latest numbers I have gotten from the financial advisor was 26 million, the market must have changed, maybe Bob can answer that. I think it is an amount not to exceed 28 million in the original documents Bob Jessup-It is an amount not to exceed in the original document Margaret Brown-are there any other questions, I have no one signed up to speak. She asked if anyone would like to speak. No one come forward Margaret Brown-is there a motion from the board? Steve Halkiotis-to close the public hearing Margaret Brown: is there a motion to close public hearing and received. Motion received to close public hearing and passed. Margaret Brown -there is a manager's recommendation to adopt the bond order and a resolution for Bond Order Publication. Moses Carey-so moved Steve Halkiotis -Second Margaret Brown-All those in favor please say AYE. Margaret Brown-Unanimous vote MARGARET W. BROWN, CHAIR ORANGE COUNTY BOARD OF COMMISSIONERS AL/CE M. CORDON, VICE CHA/R POST OFFICE BOX 8181 MOSES CAREY, JR. STEPHEN H. HALK/OTIS 200 SOUTH CAMERON STREET BARRY JACOBS HILLSBOROUGH, NORTH CAROLINA 27278 CERTIFICATION ~ ~ I hereby certify that at the regular meeting of the Board of County Commissioners on December 2, 2002 the Chair of the Board of County Commissioners, Margaret W. Brown, introduced the Bond Order by Title by reading it aloud, "Bond Order Authorizing the Issuance of General Obligation Refunding Bonds in the Maximum Amount of $ 28, 000, 000" and that the Bond Order would be back for final action at the January 21, 2003 Commissioners' meeting. Attached are the minutes of the December 2, 2002 Commissioners meeting that reflects these actions. County Commissioner Moses Carey made a motion to adopt the Resolution to set the public hearing for January 21, 2003 and authorized the Finance Director, Ken Chavious, to file the sworn statement of debt of the Bond Order Authorizing the Issuance of General Obligation Refunding Bonds in the Maximum Amount of $28, 000, 000; Commissioner Alice Gordon seconded the motion. VOTE: UNANIMOUS This the 27th day of January, 2003 ~_d~~4~ n~~f Don a S. Baker, Clerk to the Board --~`!' ~~ ;:,~ ~ ~ ,, 1 i r' _ S ~=, - ~ m ~~~L'i ~~ I~i~ ~ ~~ '~,6 ~ ~, ~ ``,~ WWW. CO.ORANGE. NC. US PROTECTING AND PRESERVING -PEOPLE, RESOURCES, QUALITY OF L/FE ORANGE COUNTY, NORTH CAROL/NA -YOU COUNT! (919) 245-2 f 30 • FAX (9 f 9) 644-0246 The Board considered authorizing the refunding of bonds issued in March 1993 and bonds previously refunded in June 1993. Finance Director Ken Chavious said that this item was to take the necessary actions to allow the County to refund up to $28 million in bonds that were issued in 1993. The current estimate is that by refunding these 1993 bonds, the County could save approximately $1.4 million over the remaining term, which is about 11 years.. This would be about $125,000 annually. He has requested permission from the LGC to pursue this undertaking. The plan is to do this in March and it could be piggybacked with the regular bond sale to save some money in the issuance costs. In order to do the refunding on schedule, the Board has to take some actions. The first action is to introduce the bond order for the refunding bonds. The Board does not have to vote on the bond order introductions. The second action is for the Board to adopt a resolution that establishes January 21st as a public hearing on the refunding bond order. The resolution also authorizes the Finance Director to file the sworn statement of debt and authorizes the Clerk to publicize the notice of the public hearing. All appropriate documents have been prepared. Chair Brown read the bond order title as follows: The Bond Order Authorizing the Issuance of General Obligation Refunding Bonds in the Maximum Amount of $28 Million. A motion was made by Commissioner Carey, seconded by Commissioner Gordon to adopt the resolution setting a date for a public hearing, authorizing the Finance Director to file a Debt Statement, and authorizing the Clerk to publish a Notice of Public Hearing as stated below: RESOLUTION SETTING PUBLIC HEARING AND AUTHORIZING FILING OF DEBT STATEMENT WHEREAS, there has been introduced at this meeting a bond order entitled as follows: BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS IN THE MAXIMUM AMOUNT OF $28,000,000 AND WHEREAS, Section 159-57 of the General Statutes requires that a public hearing be held on such bond order prior to its adoption, Section 159-56 of the General Statutes requires publication of a notice of such hearing, and Section 159-55 of the General Statutes requires the filing of a statement of the County's debt with the Clerk to the Board prior to the public hearing; BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, that a public hearing on each such bond order will be held at 7:30 p.m. (or as soon thereafter as the matter maybe heard) on January 21, 2003, at the F. Gordon Battle Courtroom in Hillsborough, North Carolina, and that the Clerk to this Board is authorized and directed to publish a notice of such public hearing, in the form provided for in Section 159-56 of the General Statutes, one time, not less than six days prior to such hearing date, in a newspaper having general circulation in the County; AND BE IT FURTHER RESOLVED that the County's Finance Officer is authorized and directed to prepare and file, prior to the publication of the notice of public hearing, a sworn statement of the County's net debt in the form prescribed by statute. VOTE: UNANIlVIOUS Clerk's Certificate as to Bond Order The undersigned Clerk of the Board of Commissioners of Orange County, North Carolina, certifies that attached hereto is a correct and complete copy of a Bond Order resolution duly adopted by such Board of Commissioners at a regular meeting duly called and held on January 21, 2003. A quorum was present and acting throughout such meeting. The Bond Order was adopted after a public hearing concerning adoption of the Bond Order, held immediately prior to the Board's consideration of the Bond Order. The public hearing included a presentation by County staff and an opportunity for public comment (although no such comment was received). This is the same Bond Order that was introduced at a Board meeting on December 2, 2002. This Bond Order has not been repealed, revoked, rescinded or amended, and remains in full effect as of today. ~ITNESS my signature and the seal of Orange County, North Carolina, this _~~ay of January, 2003. ~' ~A~-] ~~i~ '~ `t ~ ~'~ ~~ s '~°~r4 ea=~`~° Donna S. Baker Clerk, Board of Commissioners Orange County, North Carolina 86038.1 M BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS IN THE MAXIMUM AMOUNT OF $28,000,000 WHEREAS -- Orange, County, North Carolina (the "County"), has previously issued its general obligation Refunding Bonds, Series 1993, and its general obligation School Bonds, Series 1993 (together, the "Prior Bonds"). Based on the current state of the municipal bond market, the County has determined that refinancing all or a portion of the outstanding balance of the Prior Bonds would provide savings to the County. The County has applied to the North Carolina Local Government Commission for its approval of the issuance of County refunding bonds to carry out the refinancing of the Prior Bonds. The Commission has accepted the County's application.. BE IT ORDERED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. There are hereby ordered to be issued general obligation refunding bonds of the County to provide for the refinancing of all or a portion of the outstanding balance of the Prior Bonds, including paying related financing costs and other necessary or incidental costs. 2. The maximum aggregate principal amount of the bonds issued for such purpose will be $28,000,000. 3. Taxes will be levied in an amount sufficient to pay the principal of and interest on the bonds so issued. 4. A sworn statement of debt prepared by the County's Finance Officer has been filed with the Clerk to this Board and is available for public inspection. 5. This Bond Order takes effect immediately. 85731.1 t ` ,~ THE SANFORD HOLSHOUSER LAW FIRM PLLC SENATOR TERRY SANFORD (1917-1998) GOVERNOR JAMES E. HOLSHOUSER, JR. ONE EXCHANGE PLAZA 219 FAYETTEVILLE STREET SUITE 1000 RALEIGH, NORTH CAROLINA 276Q1 MAILING ApDRESS: POST OFFICE BOX 2447 RALEIGH, NORTH CAROLINA 27602 TELEPHONE 919/755-1800 FACSIIvIILE 919/829-0272 January 24, 2003 Donna Baker Clerk to the Board of Commissioners Orange County Post Office Box 8181 Hillsborough, NC 27278 Proceedings for Orange County Bond Issue Dear Ms. Baker: To complete the files for our friends at the Local Government Commission, I need a few things from you, as follows: 1. ,Certified copy of bond order. I have enclosed five copies of a form by which you can certify the adoption of the bond order that the County Commissioners adopted on January 21. Please review this item and if it looks in order to you, as I hope it will, please date, sign and seal all five copies. Please keep one for your own records, if you wish, and then return the others to me. 2. Minutes from December 2. I need a certified copy of the draft minutes from the December 2 meeting, reflecting the Board's action in introducing the bond order and setting the public hearing for the January 21 meeting. 3. Minutes from January 21. Finally, I need a certified copy of the draft minutes from the January 21 meeting, showing the conduct of the public hearing, and then the Board's action in adopting both the bond order and the resolution authorizing the publication of the notice of adoption of the bond order. 86043.1 THE SANFORD HOLSHOUSER LAW FIRM Donna Baker ~u January 24, 2003 Page 2 I only need one copy of each of the extracts referenced in paragraphs 2 and 3 above. Please send these items along to me at your convenience. It would be a help for me to have these in hand by February 4. I have included an addressed return envelope for your convenience in sending these back to me. Thank you for your continuing assistance. As always, please let me know if you have any questions or comments about any of this. Very truly yours, SANFORD HOLSHOUSER ,~ ert .Jessup Jr. cc: Kenneth T. Chavious Geoffrey E. Gledhill, Esq. (By first-class mail, without enclosures) 86043.1