HomeMy WebLinkAbout061405 Item 2ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 14, 2005
Action Agenda
Item No. a
SUBJECT: Refunding of General Obligation Bonds
DEPARTMENT: Finance PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
Bond Order for Introduction
Resolution
Sworn Statement of Debt
Public Hearing Notice
INFORMATION CONTACT:
Ken Chavious, ext 245 -2453
TELEPHONE NUMBERS:
Hillsborough
732 -8181
Chapel Hill
968 -4501
Durham
688 -7331
Mebane
336- 227 -2031
PURPOSE: To consider refunding general obligation bonds issued by the County on April 4,
2000 in order to take advantage of favorable market conditions, and to take the required actions
necessary to execute this task.
BACKGROUND: The Finance Director has been monitoring the bond market and assessing the
impact on the County's outstanding bonds and other debt instruments over the past year as
interest rates have remained low. Finance staff have worked with financial advisors at Ferris,
Baker and Watts to generate a number of bond refunding analyses during the past several
months. The most recent of these analyses revealed that the County could save approximately
$109,000 annually and over $1,500,000 over the remaining terms of the outstanding bonds
originally sold in April 2000. Staff have been in contact with both the Local Government
Commission (LGC) and Bond Counsel reviewing the recent refunding analysis and the potential
benefits to the County. In addition to the refunding, the County will need to sell 2001 voter
approved bonds over the summer to provide cash for projects such as the Orange County
Schools Middle School #3. A refunding is more attractive when it can be scheduled along with
a "new money" sale because of the ability to " piggy back" many of the duties required by
County staff, the LGC and Bond Counsel. This eliminates duplication of effort and saves
money in issuance costs.
The Finance Director has taken the first step in the refunding process by contacting the LGC in
a letter of application requesting approval to proceed with the refunding. Since the LGC has
reviewed the refunding analysis ahead of time, it is expected that swift approval will be granted.
In order to continue the refunding process the Board is required to take the following actions:
Introduce the Bond Order For the Bond Refunding.
Adopt a Resolution setting establishing June 23, 2005 as the date for the Public Hearing,
authorizing the Finance Director to File a Debt Statement and the Clerk to Publish a Notice
of Public Hearing.
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These actions are statutory requirements and the documents have been prepared in
accordance by Bob Jessup, Bond Counsel.
FINANCIAL IMPACT: There is no impact on the current year, 2004 -2005 budget. Annual
savings of $109,000 are estimated for the fiscal year 2005 - 2006.. Savings for the remaining 13
year term are estimated to be over $1,500,000. Issuance costs for the refunded bonds are
rolled into the refunding with no out of pocket costs to the County.
RECOMMENDATION(S): The Manager recommends that the Board introduce the Bond Order
and adopt the Resolution setting a date for a public hearing, authorizing the Finance Director to
file a Debt Statement and authorizing the Clerk to publish a Notice of Public Hearing.
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Bond Order for Introduction -- Refundinj Bonds
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING BONDS IN THE MAXIMUM AMOUNT OF
$359000,000
WHEREAS --
Orange County, North Carolina (the "County "), has previously issued its
general obligation Public Improvement Bonds, Series 2000A and 2000B (the
"Prior Bonds "). Based on the current state of the municipal bond market, the
County has determined that refinancing all or a portion of the outstanding balance
of the Prior Bonds would provide savings to the County.
The County has applied to the North Carolina Local Government
Commission for its approval of the issuance of County refunding bonds to carry
out the refinancing of the Prior Bonds. The LGC 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 refunding
bonds of the County to provide for the refinancing of all or a portion of the
outstanding balance of the Prior Bonds, including paying related financing costs
and other necessary or incidental costs.
2. The maximum aggregate principal amount of the bonds issued for
such purpose will be $35,000,000.
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 available for public inspection.
5. This Bond Order takes effect immediately.
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Resolution setting public hearing and
authorizinLy 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 REFUNDING BONDS IN THE MAXIMUM
AMOUNT OF $3590009000
AND WHEREAS, Section 159 -57 of the General Statutes requires that a
public hearing be held on such bond order prior to its adoption, Section 159 -56 of
the General Statutes requires publication of a notice of such 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 such bond order will
be held at 7:30 p.m. (or as soon thereafter as the matter may be heard) on June 23,
2005, in the Board's regular meeting room at the County's Southern Human
Services Center, 2501 Homestead Road, Chapel Hill, North Carolina, and (2) that
the Clerk to this Board is authorized and directed to publish a notice of such public
hearing, in the form provided for in Section 159 -56 of the General Statutes, one
time, not less than six days prior to such hearing date, in a newspaper having
general circulation in the County;
AND BE IT FURTHER RESOLVED that the County's Finance Officer is
authorized and 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.
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S
SWORN STATEMENT OF DEBT
For OranIze County, North Carolina
I, Kenneth T. Chavious, being first duly sworn, state that I am the Finance
Officer for Orange County, North Carolina, that I have been designated by the
Board of Commissioners of Orange County to make and file with the Clerk to such
Board of Commissioners a sworn statement of debt, and that the following is the
statement of debt for Orange County as shown by the books in my office, prepared
in accordance with, and made pursuant to the requirements of, Section 159 -55 of
the North Carolina General Statutes.
A.
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Gross Debt
1. Outstanding debt evidenced by bonds:
Purpose
Amount ($)
School
96,469,785
Public Facilities
16,462,855
Parks
12,877,360
Total $125,810,000
2. Bonds authorized by orders introduced but not yet adopted:
Purpose Amount ($)
Refunding Bonds 35,000,000
3. Unissued bonds authorized by adopted orders:
Purpose
Amount
Total$ 35,000,000
Schools
Parks
Affordable Housing
Senior Center
25,685,000
5,500,000
1,400,000
3,500,000
Total
4. Outstanding debt not evidenced by bonds:
Purpose Amount (
ON
5
School 20,806,704
Jail 240,939
Office Buildings 1,297,813
Land 1,909,897
Equipment 450375253
36,085,000
Total $28,292.606
Total Gross Debt (sum of 1 through 4) $ 225.187.606
B. Deductions from Gross Debt
1. Funding and refunding bonds
authorized by orders introduced but not yet
adopted.
2. Funding and refunding bonds
authorized but not yet issued.
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35,000,000
7
3. Amounts held in sinking funds or
otherwise for the payment of any part of the
principal of gross debt, other than debt incurred
for water, gas, electric light or power purposes or
sanitary sewer purposes (to the extent deductible
under Section 159 -55(b) of the General Statutes),
or two or more of these purposes.
4. Bonded debt included in gross debt
and incurred, or to be incurred, for water, gas or
electric light or power purposes, or any two or
more of such purposes.
5. Bonded debt included in gross debt
and incurred, or to be incurred, for sanitary sewer
purposes (to the extent deductible under Section
159 -55(b) of the General Statutes),
6. Uncollected special assessments
levied for local improvements for which any part
of gross debt (that is not otherwise deducted) was
or is to be incurred, to the extent that the special
assessments will be applied, when collected, to
the payment of any part of the gross debt.
7. Estimate of special assessments to be
levied for local improvements for which any part
of gross debt (that is not otherwise deducted) was
or is to. be incurred, to the extent that the special
assessments will be applied, when collected, to
the payment of any part of the gross debt.
Total deductions (Sum of 1 through 7) $ 35,000,000
C. Net Debt, being the difference between
Total Gross Debt (A) and Total Deductions $ 190.187,606
(B)•
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D. Appraised Value of property subject
to taxation, being the value from which the
assessed value last fixed for taxation was
computed, as revealed by the County tax
records and certified by the County Tax
Assessor.
E. Percentage that Net Debt bears to the
appraised value of property subject to
taxation.
WITNESS my signature this
0
$10,084,687,332
1.88%
day of June, 2005.
Kenneth T. Chavious
Finance Officer
Orange County, North Carolina
929730
I
STATE OF NORTH CAROLINA
ORANGE COUNTY
Subscribed and sworn before me this day of June, 2005.
Notary Public
[Seal]
My commission expires
I, John Smith, Orange County Tax Assessor, hereby certify that the assessed
value last fixed for taxation in Orange County, as revealed by Orange County tax
records (before the application of any assessment ratio), is $10,084,687,332.
WITNESS my signature this day of June, 2005.
Tax Assessor
Orange County, North Carolina
I, the Clerk to the Board of Commissioners of Orange County, North
Carolina, certify that the foregoing is a true copy of a statement which was filed
with me on June , 2005, after the introduction of, and before the public hearing
on, an order authorizing refunding bonds of Orange County, North Carolina, and
that said statement is open to public inspection in my office.
Clerk, Board of Commissioners
Orange County, North Carolina
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Q
Notice of Public Hearing -- OranLye County Refunding Bonds
The Orange County Board of Commissioners has called for a public hearing
at 7:30 p.m. on June 23, 2005, related to the following bond order. Further
information regarding the hearing appears at the end of this notice.
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING BONDS IN THE MAXIMUM AMOUNT OF
$3590009000
WHEREAS --
Orange County, North Carolina (the "County "), has previously issued its
general obligation Public Improvement Bonds, Series 2000A and 2000B (the
"Prior Bonds "). Based on the current state of the municipal bond market, the
County has determined that refinancing all or a portion of the outstanding balance
of the Prior Bonds would provide savings to the County.
The County has applied to the North Carolina Local Government
Commission for its approval of the issuance of County refunding bonds to carry
out the refinancing of the Prior Bonds. The LGC 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 refunding
bonds of the County to provide for the refinancing of all or a portion of the
outstanding balance of the Prior Bonds, including paying related financing costs
and other necessary or incidental costs.
2. The maximum aggregate principal amount of the bonds issued for
such purpose will be $35,000,000.
3. Taxes will be levied in an amount sufficient to pay the principal of
and interest on the bonds so issued.
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4. A sworn statement of debt prepared by the County's Finance Officer
has been filed with the Clerk to this Board and is available for public inspection.
5. This Bond Order takes effect immediately.
The foregoing order has been introduced and a sworn statement of debt has
been filed under the Local Government Bond Act showing the appraised value of
Orange County, North Carolina, to be at least $10,084,687,332 and the net debt
thereof, including the proposed bonds, to be not more than $190,187,606. A tax
will be levied to pay the principal of and interest on the bonds if they are issued.
Anyone who wishes to be heard on the questions of the validity of the bond
order and the advisability of issuing the bonds may appear at a public hearing or an
adjournment thereof to be held at 7:30 p.m. (or as soon thereafter as the matter may
be heard) on June 23, 2005, in the Board's regular meeting room at the County's
Southern Human Services Center, 2501 Homestead Road, Chapel Hill, North
Carolina.
Persons wishing to make written comments in advance of the hearing or
wishing more information concerning the subject of the hearing may contact
Kenneth T. Chavious, Finance Officer, Orange County, Post Office Box 8181,
Hillsborough, NC 27278 (telephone 919/245- 2453).
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