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HomeMy WebLinkAboutAgenda - 11-19-1997 - 8c l ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 19, 1997 Action Agenda Item No. g_C SUBJECT: Bond Proceeds Reimbursement Resolutions DEPARTMENT: Finance PUBLIC HEARING: (YIN) BUDGET AMENDMENT: (YIN) ATTACHMENT(S): INFORMATION CONTACT: Resolutions Ken Chavious ext 2453 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To consider adoption of resolutions authorizing reimbursement of the County from proceeds of the sale of bonds for capital project expenses that may be needed prior to scheduled bond sales. BACKGROUND: In past bond referendums there were occasions in which the approved projects incurred expenditures prior to the actual sale of the authorized bonds. For example, in 1992 the East Chapel Hill High School project needed funds for the purchase of land prior to the proposed bond sale and closing date. The board had adopted reimbursement resolutions which authorized the county to provide the funding upfront and to reimburse itself from bond proceeds. The sale of bonds and receipt of proceeds takes approximately 120 days. This process involves a significant amount of interaction between County staff, Bond Counsel and the Local Government Commission, as well as significant bond issuance costs. These factors apply regardless of the amount of bonds sold. Because of the timeframes and costs, it is in the County's best interest to schedule bond sales only when significant amounts of funds are needed for the projects involved. Reimbursement resolutions will allow the County to proceed with planned projects while providing flexibility on the scheduling of bond sales. The regulations of the Internal Revenue Service require the governing board to adopt resolutions stating its intent to reimburse itself with bond proceeds for capital project expenses incurred with local funds. Bond Counsel has prepared the required resolutions for each of the four approved purposes. RECOMMENDATION(S): The Manager recommends that the Board approve the four reimbursement resolutions. ORANGE COUNTY BOARD OF COMMISSIONERS REIMBURSEMENT RESOLUTION -- SCHOOL CONSTRUCTION PROJECTS WHEREAS, the County Manager has described to the Board the desirability of adopting a resolution, as provided under federal tax law, to facilitate the County's using financing proceeds to reimburse the County for capital expenditures on school construction projects made prior to closing on a bond issue or other financing, and the Board desires to adopt such a resolution; BE IT RESOLVED by the Board of Commissioners of Orange County, as follows: Section 1. This reimbursement resolution is for school construction projects, including construction of new school buildings, renovation of existing school buildings and the possible acquisition of land. Section 2. The projects are to be financed. The currently expected type of financing (which is subject to change) is general obligation bonds. The currently expected maximum amount of bonds or other obligations to be issued or contracted for the projects is $47,000,000. Section 3. Funds that have been advanced, or may be advanced, from the County's General Fund or any designated school capital projects fund for project costs are intended to be reimbursed from financing proceeds. Section 4. The adoption of this resolution is intended as a declaration of the County's official intent to reimburse project expenditures from financing proceeds. 3 ORANGE COUNTY BOARD OF COMMISSIONERS REIMBURSEMENT RESOLUTION -- PARKS AND RECREATIONAL FACILITIES PROJECTS WHEREAS, the County Manager has described to the Board the desirability of adopting a resolution, as provided under federal tax law, to facilitate the County's using financing proceeds to reimburse the County for capital expenditures on parks and recreational facilities projects made prior to closing on a bond issue or other financing, and the Board desires to adopt such a resolution; BE IT RESOLVED by the Board of Commissioners of Orange County, as follows: Section 1. This reimbursement resolution is for parks and recreational facilities projects, including the acquisition of land. Section 2. The projects are to be financed. The currently expected type of financing (which is subject to change) is general obligation bonds. The currently expected maximum amount of bonds or other obligations to be issued or contracted for the projects is $6,000,000. Section 3. Funds that have been advanced, or may be advanced, from the County's General Fund for project costs are intended to be reimbursed from financing proceeds. Section 4. The adoption of this resolution is intended as a declaration of the County's official intent to reimburse project expenditures from financing proceeds. 4 ORANGE COUNTY BOARD OF COMMISSIONERS REIMBURSEMENT RESOLUTION -- LOW AND MODERATE INCOME HOUSING PROJECTS WHEREAS, the County Manager has described to the Board the desirability of adopting a resolution, as provided under federal tax law, to facilitate the County's using financing proceeds to reimburse the County for capital expenditures on affordable housing projects made prior to closing on a bond issue or other financing, and the Board desires to adopt such a resolution; BE IT RESOLVED by the Board of Commissioners of Orange County, as follows: Section 1. This reimbursement resolution is for projects related to providing housing for persons of low and moderate income. Section 2. The projects are to be financed. The currently expected type of financing (which is subject to change) is general obligation bonds. The currently expected maximum amount of bonds or other obligations to be issued or contracted for the projects is $1,800,000. Section 3. Funds that have been advanced, or may be advanced, from the County's General Fund for project costs are intended to be reimbursed from the financing proceeds. Section 4. The adoption of this resolution is intended as a declaration of the County's official intent to reimburse project expenditures from financing proceeds. ORANGE COUNTY BOARD OF COMMISSIONERS REIMBURSEMENT RESOLUTION -- SEWER EXPANSION PROJECTS WHEREAS, the County Manager has described to the Board the desirability of adopting a resolution, as provided under federal tax law, to facilitate the County's using financing proceeds to reimburse the County for capital expenditures on sewer expansion projects made prior to closing on a bond issue or other financing, and the Board desires to adopt such a resolution; BE IT RESOLVED by the Board of Commissioners of Orange County, as follows: Section 1. This reimbursement resolution is for projects related to expanding sewer systems. Section 2. The projects are to be financed. The currently expected type of financing (which is subject to change) is general obligation bonds. The currently expected maximum amount of bonds or other obligations to be issued or contracted for the projects is $1,200,000. Section 3. Funds that have been advanced, or may be advanced, from the County's General Fund for project costs are intended to be reimbursed from the financing proceeds. Section 4. The adoption of this resolution is intended as a declaration of the County's official intent to reimburse project expenditures from financing proceeds.