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HomeMy WebLinkAboutAgenda - 05-16-2017 - 8-e - Introduction of Bond Order for “Two-Thirds” School Bonds and Setting a Related Public Hearing 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 16, 2017 Action Agenda Item No. 8-e SUBJECT: Introduction of Bond Order for "Two-Thirds" School Bonds and Setting a Related Public Hearing DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Bond Order for $5.9 Gary Donaldson, (919) 245-2453 Million in Two-Thirds Robert Jessup, (919) 933-9891 General Obligation Bonds Paul Laughton, (919) 245-2152 for School Capital Requirements Attachment 2. Resolution to Set the Public Hearing PURPOSE: To introduce the bond order and adopt a resolution to set a public hearing on June 20, 2017 for issuance of two-thirds General Obligation bonds. NOTE: This item is not related to the November 2016 bond referendum and being utilized as an additional separate source for financing. BACKGROUND: Pursuant to North Carolina General Statute 159-48, local governments can issue General Obligation bonds each year in an amount equal to two-thirds of the principal amount of debt retired in the previous year. Two-thirds General Obligation bonds may be issued without referendum but are subject to approval by the Local Government Commission in the same manner as other debt financing methods. The County will retire $8.8 million in principal on outstanding General Obligation bonds in FY 2016-17. The statutes allows the County to issue up to two-thirds of the $8.8 million in principal retired or an additional General Obligation bond capacity of $5.9 million in FY 2017-18. This bond capacity cannot be accumulated or carried forward to future years. The Board adopted a resolution at its May 2 meeting providing preliminary approval of this bond issue. Required actions on May 16, 2017 are: • Introduce a Bond Order - the bond order provides the underlying authority and approval for the bond issuance • Adopt a resolution authorizing Public Hearing and authorizing the filing of the sworn statement of debt 2 Required actions after May 16, 2017 are: • Publish notice of public hearing • Hold public hearing on bond order for June 20, 2017 at 7pm at the Southern Human Services Center, 2501 Homestead Road, Chapel Hill, NC. • Final adoption of bond order at June 20, 2017 The current plan is to combine the issuance of these two-thirds bonds with the issuance of the first bonds authorized by the November 2016 referendum. That bond sale is planned for September 2017. FINANCIAL IMPACT: The projected debt service conforms to the County's debt policies, debt affordability analysis, and Capital Investment Plan prioritization. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board approve the introduction of the bond order in the form presented, and adopt the resolution setting the public hearing on June 20 and authorizing the Finance Officer's filing of a debt statement. 3 Attachment 1 Bond Order for Introduction BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS IN THE MAXIMUM AMOUNT OF $5,900,000 WHEREAS-- The Orange County Board of Commissioners has stated its proposal to issue 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 $5,900,000. 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 shall take effect 30 days after its publication following adoption, unless it is petitioned to a vote of the people as provided in Section 159-60 of the North Carolina General Statutes, and in that event the order will take effect when approved by the voters. 4 RES-2017-032 Attachment 2 Resolution setting public hearing and authorizing filing of debt statement WHEREAS, there has been introduced at this meeting a bond order entitled as follows: BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION SCHOOL BONDS IN THE MAXIMUM AMOUNT OF $5,900,000 AND WHEREAS, Section 159-57 of the General Statutes requires that a public hearing be held on the bond order prior to its adoption, Section 159-56 of the General Statutes requires publication of a notice of the hearing, and Section 159-55 of the General Statutes requires the filing of a statement of the County's debt with the Clerk to the Board prior to the public hearing; BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, (1) that a public hearing on the bond order will be held at 7:00 p.m. (or as soon thereafter as the matter may be heard) on June 20, 2017 in the Board's regular meeting room, Southern Human Services Center, Chapel Hill, North Carolina, and (2) that the Clerk to this Board is directed to publish a notice of the public hearing, in the form provided for in Section 159-56 of the General Statutes, one time, not less than six days prior to the hearing date, in a newspaper having general circulation in the County; AND BE IT FURTHER RESOLVED that the County's Finance Officer is directed to prepare and file, prior to the publication of the notice of public hearing, a sworn statement of the County's net debt in the form prescribed by statute.