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HomeMy WebLinkAboutAgenda - 05-05-2016 - 6-a - Public Hearing on General Obligation Bond Orders and Formal Approval of Bond Referenda and Ballot Questions 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 5, 2016 Action Agenda Item No. 6-a SUBJECT: Public Hearing on General Obligation Bond Orders and Formal Approval of Bond Referenda and Ballot Questions 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 Attachment 3. Resolution Regarding Details for Bond Referenda PURPOSE: To: 1) Conduct a second 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. The Board can then either proceed to step (3) without changes to the Bond Orders as previously introduced, or in the alternative the Board may decide either (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 restarting the bond authorization process.); 3) Adopt the first bond order (Attachment 1) authorizing the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities; 4) Adopt the second bond order (Attachment 2) authorizing the issuance of General Obligation Bonds in an amount not to exceed $5 million for housing for persons with low and moderate income; and 5) Adopt the Resolution regarding details for bond referenda (Attachment 3) to formally schedule the November bond referenda and approve the ballot questions. 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, for authorization to issue County General Obligation Bonds in an amount not to exceed $125 million. 2 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 March 22, 2016 resolution also included conducting a second public hearing at the Board's May 5, 2016 regular meeting. The Board conducted the first public hearing on April 19, 2016, and after closing that public hearing, the Board introduced 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 Board held open any final action on the Bond Orders until after the May 5 public hearing. The bond authorization schedule therefore calls for the second public hearing at tonight's May 5, 2016 meeting. In response to public comment, or otherwise, the Board can either proceed without changes to the Bond Orders as previously introduced, or 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. Assuming the Board decides to proceed with the Bond Orders as previously introduced, three separate and distinct Board actions will be necessary: 1) Adopt the first bond order (Attachment 1) authorizing the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities; 2) Adopt the second bond order (Attachment 2) authorizing the issuance of General Obligation Bonds in an amount not to exceed $5 million for housing for persons with low and moderate income; and 3) Adopt the Resolution regarding details for bond referenda (Attachment 3) to formally schedule the November bond referenda and approve the ballot questions. These separate and distinct actions are included in the Manager's recommendations. The referendum as proposed is scheduled for the regular election date, November 8, 2016. 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 second 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. The Board can then either proceed to step (3) without changes to the Bond Orders as previously introduced, or in the alternative the Board may decide either (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 3 proposed bonds or increase either amount of bonds without restarting the bond authorization process.); 3) Adopt the first bond order (Attachment 1) authorizing the issuance of General Obligation Bonds in an amount not to exceed $120 million to support school facilities; 4) Adopt the second bond order (Attachment 2) authorizing the issuance of General Obligation Bonds in an amount not to exceed $5 million for housing for persons with low and moderate income; and 5) Adopt the Resolution regarding details for bond referenda (Attachment 3) to formally schedule the November bond referenda and approve the ballot questions. 4 Attachment 1 Bond order for adoption 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 for adoption 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. 6 RES-2016-037 Attachment 3 Resolution regarding details for bond referenda WHEREAS, there have been adopted at this meeting bond orders entitled as follows: BOND ORDER AUTHORIZING THE ISSUANCE OF ORANGE COUNTY GENERAL OBLIGATION SCHOOL BONDS IN THE MAXIMUM AMOUNT OF $120,000,000, SUBJECT TO VOTER APPROVAL 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 AND WHEREAS, these bond orders are to take effect when approved by the voters; AND WHEREAS, the General Statutes require certain additional actions to complete the process of authorizing the bonds and the bond referendum; BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Clerk to this Board is directed to publish a notice of the adoption of each of these Bond Orders, in the form provided for in Section 159-58 of the General Statutes, one time in a newspaper having general circulation in the County. 2. Each Bond Order will be subject to a bond referendum to be held within the County on November 8, 2016. 3. The Board requests that the Orange County Board of Elections conduct the referenda in the manner provided for by law. 4. The respective ballot questions shall be in the following forms: 7 ORANGE COUNTY SCHOOL BONDS Shall the order authorizing Orange County general obligation bonds in the maximum amount of $120,000,000 plus interest to pay capital costs of providing school facilities and paying related costs, and providing that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the bonds, as adopted by the County's Board of Commissioners on May 5, 2016, be approved? ORANGE COUNTY BONDS FOR LOW AND MODERATE INCOME HOUSING Shall the order authorizing Orange County general obligation bonds in the maximum amount of$5,000,000 plus interest to pay capital costs of providing housing for persons of low and moderate income and paying related costs, and providing that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the bonds, as adopted by the County's Board of Commissioners on May 5, 2016, be approved? 5. The Clerk to this Board is directed to transmit a certified copy of this resolution to the Orange County Board of Elections within three days after today. 6. The Clerk to this Board is directed to publish notice of such bond referenda as required by Section 159-61 of the General Statutes.