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HomeMy WebLinkAboutAgenda - 04-19-2016 - 5-a - Public Hearing on General Obligation Bond Orders and Other Appropriate Action 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 19, 2016 Action Agenda Item No. 5-a SUBJECT: Public Hearing on General Obligation Bond Orders and Other Appropriate Action DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Bond Order for $120 Gary Donaldson, (919) 245-2453 Million in General Paul Laughton, (919) 245-2152 Obligation Bonds for Robert Jessup, (919) 933-9891 Schools Attachment 2. Bond Order for $5 Million in General Obligation Bonds for Affordable Housing PURPOSE: To: 1) Conduct a first scheduled public hearing to receive public comment on the questions of the validity of the bond orders and the advisability of issuing the bonds; 2) Close the public hearing and decide (a) not to put forward either or both of the proposed orders, or (b) to lower the amount of either or both orders (The Board cannot, however, add a purpose for the proposed bonds or increase either amount of bonds without re- starting the bond authorization process.); 3) In preparation for a second public hearing on May 5, 2016, introduce again (per Bond Counsel) the two bond orders which state the Board of County Commissioners' proposal to issue General Obligation Bonds to pay capital costs for providing school facilities and for housing for persons with low and moderate income. • The first bond order introduction authorizes the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities. • The second bond order introduction authorizes issuance of General Obligation Bonds in an amount not to exceed $5 million for housing for persons with low and moderate income. 4) Hold open final action on the Bond Orders until after the May 5 public hearing. BACKGROUND: The Board of County Commissioners adopted a resolution on October 6, 2015 for the County to issue up to $120 million for Schools and up to $5 million for Affordable Housing. The Board made a determination to proceed with a referendum on November 8, 2016, 2 for authorization to issue County General Obligation Bonds in an amount not to exceed $125 million. The Board subsequently adopted a resolution at the March 22, 2016 regular meeting to schedule a public hearing on the bond orders at this April 19, 2016 regular meeting. The resolution also included conducting a second public hearing at the Board's May 5, 2016 regular meeting. The bond authorization schedule therefore calls for the first public hearing at tonight's meeting. In response to public comment, or otherwise, the Board can decide (a) not to put forward either or both of the proposed Orders, or (b) to lower the amount of either or both orders. The Board cannot, however, add a purpose for proposed bonds or increase either amount of bonds without re-starting the bond authorization process. Because of oddities related to the approval process with the Local Government Commission, bond counsel recommends that, after this first public hearing, the Board repeat a previous step of"introducing" the two Bond Orders. That step is included in the Manager's recommendation. The second public hearing is scheduled for May 5, 2016 at the County's Whitted Human Services Center, 300 West Tryon Street, Hillsborough, North Carolina, 27278. After that second public hearing, the Board will be asked to approve the Bond Orders, and then consider a resolution to formally call for the November bond referendum and approving the ballot questions. The referendum is scheduled for the regular election date, November 8. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact if the referendum is approved. The tax rate equivalent for the estimated highest debt service payment is expected to range from 3.70-5.83 cents per $100 of assessed valuation. The projected debt service conforms to the County's debt policies and debt affordability analysis which was completed by the County's financial advisors. SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: 1) Conduct a first scheduled public hearing to receive public comment on the questions of the validity of the bond orders and the advisability of issuing the bonds; 2) Close the public hearing and decide (a) not to put forward either or both of the proposed Orders, or (b) to lower the amount of either or both orders (The Board cannot, however, add a purpose for the proposed bonds or increase either amount of bonds without re- starting the bond authorization process.); 3) In preparation for the second public hearing on May 5, 2016, introduce again (per Bond Counsel) the two bond orders which state the Board of County Commissioners' proposal to issue General Obligation Bonds to pay capital costs for providing school facilities and for housing for persons with low and moderate income. • The first bond order introduction authorizes the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities. 3 • The second bond order introduction authorizes issuance of General Obligation Bonds in an amount not to exceed $5 million for housing for persons with low and moderate income. 4) Hold open final action on the Bond Orders until after the May 5 public hearing. 4 Attachment 1 Proposed bond orders for introduction BOND ORDER AUTHORIZING THE ISSUANCE OF ORANGE COUNTY GENERAL OBLIGATION SCHOOL BONDS IN THE MAXIMUM AMOUNT OF $120,000,000, SUBJECT TO VOTER APPROVAL WHEREAS -- The Board of Commissioners of Orange County, North Carolina, has stated its proposal to issue general obligation bonds to pay capital costs of providing school facilities. The County has applied to the North Carolina Local Government Commission for its approval of such bonds, and 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 school bonds of the County to pay capital costs of providing school facilities, together with related financing and other necessary or incidental costs. 2. The maximum aggregate principal amount of the bonds issued for such purpose will be $120,000,000. 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 open to public inspection. 5. This Bond Order will take effect when approved by the County's voters in the manner provided by law. 5 Attachment 2 BOND ORDER AUTHORIZING THE ISSUANCE OF ORANGE COUNTY GENERAL OBLIGATION BONDS FOR HOUSING FOR PERSONS OF LOW AND MODERATE INCOME IN THE MAXIMUM AMOUNT OF $5,000,000, SUBJECT TO VOTER APPROVAL WHEREAS -- The Board of Commissioners of Orange County, North Carolina has stated its proposal to issue general obligation bonds to pay capital costs of providing housing for persons of low and moderate income. The County has applied to the North Carolina Local Government Commission for its approval of such bonds, and 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 bonds of the County to pay capital costs of providing housing for persons of low and moderate income, together with related financing and other necessary or incidental costs. 2. The maximum aggregate principal amount of the bonds issued for such purpose will be $5,000,000. 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 open to public inspection. 5. This Bond Order will take effect when approved by the County's voters in the manner provided by law.