HomeMy WebLinkAboutAgenda 08-14-2001 - 8d 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 14, 2001
Action Agenda
Item No. Q
SUBJECT: Supplemental Bond Resolution
DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Ken Chavious, ext. 2453
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To adopt a supplemental resolution related to the recent sale of refunding bonds
authorized by the Board of Commissioners on June 25, 2001.
BACKGROUND: On June 25, 2001, the Board of Commissioners adopted a resolution
providing for the sale of refunding bonds. The Bond Resolution provided that the refunding
bonds would be subject to prepayment by the County prior to their maturity. After consultation
with the staff of the North Carolina Local Government Commission and upon recommendation
from the County's financial advisor, the Finance Officer determined it would enhance the
savings to the County if the refunding bonds were not subject to prepayment. Adoption of this
resolution, the Board ratifies this determination by the Finance Officer.
FINANCIAL IMPACT: As mentioned above, this action changes the prepayment provisions of
the debt related to the refunding bonds. Changing these provisions will increase the amount of
savings for the County. Savings have been previously estimated to be in the range of$50,000
annually. Based on preliminary estimates, the favorable interest rate in concert with this action
will yield average savings of approximately $70,000.
RECOMMENDATION(S): The Manager recommends that the Board adopt the supplemental
resolution.
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SUPPLEMENTAL BOND RESOLUTION
WHEREAS.-
On June 25, 2001, the Board of Commissioners (the "Board") of Orange
County, North Carolina (the "County"), adopted a resolution providing for the sale
of certain refunding bonds, among other matters (the "Bond Resolution").
The Bond Resolution provided that the refunding bonds would be subject to
prepayment by the County prior to their maturity. After consultation with the staff
of the North Carolina Local Government Commission and upon recommendation
from the County's financial advisor, the Finance Officer determined it would
enhance the savings to the County if the refunding bonds were not subject to
prepayment.
By this resolution, the Board ratifies this determination by the Finance
Officer.
BE IT THEREFORE RESOLVED by the Board of Commissioners of
Orange County, North Carolina, as follows:
1. Notwithstanding any other provision of the Bond Resolution, the
Refunding Bonds (as defined in the Bond Resolution) will not be subject to
redemption or prepayment prior to their maturities. The prior actions of the
Finance Officer and any other County representatives consistent with this
provision are ratified, approved and confirmed.
2. Except as provided above, the Board confirms the provisions of the
Bond Resoution.