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HomeMy WebLinkAboutAgenda - 10-06-2015 - 7a 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 6, 2015 Action Agenda Item No. 7-a SUBJECT: Additional Discussion Regarding a November 2016 Bond Referendum and Possible Consideration of a Preliminary Resolution To Set Bond Purposes and Amounts DEPARTMENT: County Manager, Finance and PUBLIC HEARING: (Y/N) No Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Proposed Preliminary Resolution To Set Bond Purposes and Amounts Bonnie Hammersley, 919-245-2300 Paul Laughton, 919-245-2152 PURPOSE: To continue discussion regarding a November 2016 Bond Referendum, and to consider adoption of a preliminary resolution to set bond purposes and amounts. BACKGROUND: In several meetings during the past year, the Board of Commissioners has discussed the scheduling of a General Obligation Bond Referendum. A large part of the incentive for moving forward with a bond referendum is the repair, renovation, and upgrading of existing older school facilities. Both school systems completed facilities assessments reflecting needs totaling approximately $330 million. The scope of study for Chapel Hill-Carrboro City Schools included schools constructed prior to 1990, while the Orange County Schools study included all district buildings. At the Board of Commissioners January 30, 2015 Retreat, the Board directed staff to develop materials for Board consideration regarding the Board formally expressing its intent to schedule a November 2016 Bond Referendum, including a total bond package amount of approximately $125 million. The Board also directed staff to move forward with the development of a process for a November 2016 Bond Referendum similar to the process utilized during the County's 2001 Bond Referendum. At its March 3, 2015 Regular meeting, the Board discussed its intent to schedule a November 2016 Bond Referendum to address County and School capital needs; discussed the proposed creation of, structure, and charge for a proposed Capital Needs Advisory Task Force; and discussed the potential need for the services of a qualified facilitator for the Task Force. The Board subsequently requested additional information from staff and the two school systems for continued discussion at a future meeting. 2 The Board further discussed this item at its April 21, 2015 meeting, and approved the scheduling of a November 2016 Bond Referendum to address School Capital needs. The Board also approved its intent for a bond package totaling approximately $125 million, and supported the concept of a Bond Education Committee. This Committee's composition, appointment process, and public outreach responsibilities would be discussed and decided on at a future meeting. At a work session on September 10, 2015, the Board continued its discussion and received a presentation on the fiscal impacts for various bond issue scenarios. This agenda item includes a proposed resolution by which the Board could make a preliminary determination as to bond purposes and amounts. This resolution would give direction to staff in discussing the County's plans with staff of the North Carolina Local Government Commission (LGC), which is a State agency that must approve substantially all County borrowings, and in preparing the remaining formal proceedings for Board action. After the adoption of this resolution, the Board could delete proposed purposes or reduce the amount of bonds proposed for any purpose, but could add a purpose or increase the amount of bonds proposed for any purpose only by re-starting the process with another resolution like that presented here. A motion to approve the resolution should specify the purposes and amounts of bonds to be authorized for purposes specified in the motion. When the Board has determined the amounts, staff will suggest a number for the tax-rate equivalent impact to be included in the motion for completion of the resolution. To summarize the procedure for calling the referendum— a) Board considers a resolution such as that presented, (i) to set maximum parameters of bond purposes and amounts, (ii) to make certain "findings of fact" required by the LGC application process, and (iii) to authorize staff to proceed with the LGC application process and the remaining formal steps for the bond issue. b) County staff will discuss the proposed bond program with the LGC staff and complete an application for LGC approval. c) Staff will present to the Board the proposed forms of the "Bond Orders", the short authorization proceedings required by law. The Bond Orders are first presented to a Board meeting for"introduction", with no formal vote on the Bond Orders required. d) Then there will be a required public hearing on the Bond Orders. e) After the public hearing (at the same meeting or a subsequent meeting), the Board will take a final vote on the Bond Orders, and on a separate resolution to put the questions before the voters. There will be a separate Bond Order and ballot question for each purpose for which bonds are proposed. Staff will schedule the remaining steps for completion prior to the Board's 2016 summer recess, as directed by the Board. 3 FINANCIAL IMPACT: There is no immediate financial impact related to the discussion of a November 2016 Bond Referendum. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this agenda item: • GOAL: ENABLE FULL CIVIC PARTICIPATION Ensure that Orange County residents are able to engage government through voting and volunteering by eliminating disparities in participation and barriers to participation. RECOMMENDATION(S): The Manager recommends that the Board 1) continue its discussion of a November 2016 Bond Referendum, 2) provide direction to staff, as appropriate, and 3) consider adopting the preliminary resolution at the Board's pleasure. 4 RES-2015-053 Resolution Stating an Intent To Proceed with a Referendum For Oranp-e County General Oblip-ation Bonds WHEREAS: The Orange County Board of Commissioners has reviewed the need for capital improvements for various public purposes. The Board of Commissioners has considered alternative means of financing the costs of the desired improvements, and has made a preliminary determination to finance at least some of the costs of these projects through the issuance of general obligation bonds. The issuance of these bonds is subject to the approval of the County's voters at a bond referendum. BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Board makes an initial determination to proceed with a referendum on November 8, 2016, for County general obligation bonds for the following purposes and in the following maximum amounts: Purpose Maximum Amount ($) 5 2. The Board makes the following findings of fact in support of its determination: (a) The proposed capital projects are necessary and expedient for the County. (b) The amount of bonds proposed is adequate and not excessive for the proposed purpose. Although capital needs for the stated purposes may exceed the amount of bonds proposed, the Board finds that this level of bond funding is appropriate considering the County's resources and other needs. (c) The County's debt management and budgetary and fiscal management policies have been carried out consistently in accordance with the law. (d) The Board expects a potential annual tax rate equivalent impact to the County related to paying debt service on the bonds of approximately cents per $100 of assessed valuation. 3. (a) The Finance Officer is authorized and directed to proceed with the proper steps toward the authorization of the referendum, including proceeding with an application to the North Carolina Local Government Commission (the "LGC") for its approval of the bonds. The Board appoints the Finance Officer as the County's authorized representative with respect to the LGC application process. (b) The Finance Officer, in collaboration with the Clerk, is authorized and directed to publish a notice of the Board's intent to apply to the LGC for approval of the bonds. This notice must be in the form prescribed by statute and consistent with this resolution. (c) All County representatives are authorized to take all such further action as they may consider necessary or desirable in connection with the furtherance of the purposes of this resolution. This resolution takes effect immediately.