HomeMy WebLinkAboutAgenda - 04-07-20; 8-g - General Obligation Bond Sale of $20,060,000 for Cedar Ridge Wing and Various Other OCS Improvements 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 7, 2020
Action Agenda
Item No. 8-g
SUBJECT: General Obligation Bond Sale of $20,060,000 for Cedar Ridge High School
Wing and Various Other Orange County School Improvements
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
1. General Obligation Bond Sale Gary Donaldson, 919-245-2453
Resolution Paul Laughton, 919-245-2152
2. PowerPoint Presentation Bob Jessup, 919-933-9891
PURPOSE: To adopt the attached General Obligation (GO) bond resolution for the following
purposes:
1) Formally authorize the sale of$20,060,000 in school bonds;
2) Formally pledge the County's taxing power to provide for payment on the bonds;
3) Approve the proposed form of the bonds;
4) Approve the form of the draft official statement for use in offering bonds to investors;
5) State the County's agreement to comply with the relevant provisions of federal tax law and
the federal rules for continuing disclosure to the securities markets; and
6) Authorize County staff to complete the process of issuing the bonds and authorizing the
final principal payment schedule.
BACKGROUND: On November 8, 2016, Orange County voters approved $120 million in School
Bonds, of which the Orange County Schools GO Bond allocation is $47.9 million based on the
Average Daily Membership at the time of the referendum.
The current GO Bond Financing Plan includes the issuance of $20,060,000 in School General
Obligation Bonds for Orange County Schools. Bond proceeds will fund:
• a wing addition to Cedar Ridge High School ($14,500,000)
• safety and security initiatives at schools district-wide ($1,500,000)
• roofing/building waterproofing replacements at A. L. Stanback Middle School and Grady A.
Brown Elementary ($1,312,993)
• classroom and building improvements at Cameron Park Elementary ($1,000,000)
• mechanical systems/HVAC replacements at Cameron Park Elementary and Grady A.
Brown Elementary ($1,751,007).
The bond sale is scheduled for May 12, 2020 and will be administered by the Local Government
Commission. Following this issuance there will remain $14.4 million in authorized and unissued
School GO bonds and $2.5 million in authorized and unissued Affordable Housing GO bonds.
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The County staff and Orange County Schools (OCS) have worked to develop a Financing Plan
that meets the OCS Cash flow requirements, County Debt Affordability, and Local Government
Commission bond approval requirements.
In accordance with the County Capital Investment Program, and in advisement with the County's
bond counsel and financial advisor, the County staff recommends that the County proceed with
the General Obligation Bond sale. Careful consideration has been taken by the financing team
to enter the bond markets at this time and the team is daily monitoring market conditions up
through the bond sale.
The actual interest rates on these bonds will be set when the Local Government Commission
takes competitive bids from underwriters on May 12, 2020.
FINANCIAL IMPACT: The amortization schedule is based on 20 Year Level Principal. The GO
debt issuance is factored into the County's Debt Affordability Model.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
The creation and preservation of infrastructure, policies, programs and funding necessary
for residents to provide shelter, food, clothing and medical care for themselves and their
dependents.
ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal
impact is applicable to this item:
• ENERGY EFFICIENCY AND WASTE REDUCTION
Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption;
3) increase the use of recycled and renewable resources; and 4) minimize waste stream
impacts on the environment.
RECOMMENDATION(S): The Manager recommends that the Board approve the attached GO
Bond resolution.
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FES-2020-021 Attachment 1
Resolution for the Sale of School Bonds
WHEREAS--
The voters of Orange County have previously approved the issuance of up to
$120,000,000 of the County's general obligation bonds to pay capital costs of
providing school facilities. The County still has $34,600,000 of those school bonds
left to be issued. The Board has now determined that the County should issue
$20,060,000 of the remaining school bonds.
This resolution provides for the issuance of these bonds and takes related
action, such as approving the form of the disclosure document that will be used to
provide information to prospective bond investors.
BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
1. County Will Sell School Bonds - The County will issue and sell up to
$20,060,000 of the unissued school bonds (referred to as the "Bonds" in this
resolution) for their authorized purpose.
2. Payment Provisions. The Bonds will bear interest at the rates
determined at the time of their sale by the Local Government Commission (currently
scheduled for April 21), with interest calculated on the basis of a 360-day year
consisting of twelve 30-day months. The principal of the Bonds will be payable in
annual installments as the Finance Officer may determine after consultation with
the LGC, except that the final maturity for the Bonds must not extend beyond
December 31, 2040.
3. Pledge of Faith, Credit and Taxing Power -- The County's full faith
and credit are hereby irrevocably pledged for the payment of the principal of and
interest on the Bonds. Unless other funds are lawfully available and appropriated
for timely payment of the Bonds, the County will levy and collect an annual ad
valorem tax, without restriction as to rate or amount, on all locally taxable property
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in the County sufficient to pay the principal of and interest on the Bonds as the same
become due.
4. Approval of Official Statement for Offering - There has been made
available to each member of the Board a draft of an official statement (the "Official
Statement") relating to the Bonds, which is designed to provide appropriate
information about the County and the financing to prospective investors in the
Bonds. The draft Official Statement remains subject to completion and amendment.
The Board approves the LGC's distribution of the Official Statement to
prospective purchasers of the Bonds. The Official Statement as distributed must be
in substantially the form presented to this meeting, which the Board approves, with
changes as the Finance Officer may approve. The Board ratifies the prior actions of
the Finance Officer and other County representatives, in collaboration with the LGC
staff, in preparing the text of the Official Statement.
The Board acknowledges that it is the County's responsibility, and ultimately
the Board's responsibility, to ensure that the Official Statement in its final form
neither contains an untrue statement of a material fact nor omits to state a material
fact required to be included therein for the purpose for which the Official Statement
is to be used or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. By the adoption of this
resolution, the Board members acknowledge and accept their own responsibility for
causing the County to fulfill these responsibilities for the Official Statement.
The County deems the Official Statement as distributed by the LGC to be a
"final official statement" within the meaning of Rule 15c2-12 of the Securities
Exchange Act of 1934, as amended ("Rule 15c2-12"), except for the omission of
certain final Bond pricing and other information that Rule 15c2-12 allows to be
omitted.
5. Prepayment Provisions - The Board directs the Finance Officer, upon
advice from the LGC, to determine the terms and conditions under which the Bonds
will be subject to prepayment prior to maturity. The Finance Officer shall execute a
certificate prior to the initial delivery of the Bonds designating prepayment terms
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and conditions. This certificate will be conclusive evidence of the Finance Officer's
determination of these terms and conditions.
6. Form of Bonds; Payment Details -- The Bonds will be designated
"General Obligation School Bonds, Series 2020."
The Bonds will be in substantially the form set out in Exhibit A. The Bonds
will be dated the date of their initial issuance, will be in fully registered form, will be
in denominations of$5,000 and integral multiples thereof and will be numbered for
identification from R-1 upward.
The Bonds must be signed by the manual or facsimile signature of the Board's
Chair or the County Manager, and the County's seal must be affixed to the Bonds (or
a facsimile of the seal printed on the Bonds) and attested by the manual or facsimile
signature of the Clerk to this Board or any Deputy or Assistant Clerk. No Bond will
be valid unless at least one of the signatures appearing on the Bond (which may be
the signature of the LGC's representative required by law) is manually applied or
until the Bond has been authenticated by the manual signature of an authorized
officer or employee of a bond registrar selected by the Finance Officer.
Interest on each Bond will be payable semiannually (a) from its date, if it is
authenticated prior to the first interest payment date, or (b) otherwise from the
interest payment date that is, or immediately precedes, the date on which it is
authenticated (unless payment of interest is in default, in which case such Bond will
bear interest from the date to which interest has been paid). Principal, interest and
any prepayment premium will be payable in lawful money of the United States.
The Board directs the Finance Officer to execute a certificate prior to the
initial delivery of the Bonds designating the final aggregate principal amount of the
Bonds (up to the maximum authorized amount of $20,060,000), the final principal
payment schedule, and the interest payment dates for the Bonds. This certificate
will be conclusive evidence of the Finance Officer's approval and determination of
these matters.
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7. Finance Officer as Registrar; Payments to Registered Owners -- The
Board appoints the Finance Officer as Registrar for the Bonds. As Registrar, the
Finance Officer shall maintain appropriate books and records of the ownership of
the Bonds. The County will treat the registered owner of each Bond as the person
exclusively entitled to payment of principal, interest and any prepayment premium
and the exercise of all rights and powers of the owner, except that the County will
make payments to the person shown as owner on the registration books at the end
of the calendar day on the 15th day of the month (whether or not a business day)
preceding each interest payment date.
8. Advertising Bonds for Sale - The Board directs the Finance Officer, in
collaboration with the LGC, to take all proper steps to advertise the Bonds for sale in
accordance with standard LGC procedures, including through the use of a "Notice of
Sale" document in the LGC's customary form and in substantially the same form as
used for prior County bond sales. The Board directs the Finance Officer to review
and approve a form of Notice of Sale as that officer may determine to be in the
County's best interest.
9. LGC To Sell Bonds -- The County asks the LGC to sell the Bonds, to
receive and evaluate bids and to award the Bonds based on the best bid received.
10. Completing Official Statement after Sale - After the LGC has received
bids and awarded the Bonds to the successful bidder, the Board directs the Finance
Officer, in collaboration with the LGC, to prepare a final Official Statement within the
meaning of Rule 15c2-12. The Board authorizes the Finance Officer to approve the
final document as a final Official Statement. The County, together with the LGC, will
arrange for the delivery within seven business days of the sale date of a reasonable
number of copies of the final Official Statement to the successful bidder on the
Bonds for delivery to each potential investor requesting a copy of the final Official
Statement and to each entity to which the bidder and members of the bidding group
initially sell the Bonds.
11. County Officers To Complete Closing - The Board authorizes the
Finance Officer and all other County officers and employees to take all proper steps
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to deliver the Bonds to the purchaser upon payment for the Bonds, and to take all
other proper steps to complete the issuance of the Bonds.
The Board authorizes the Finance Officer to hold the executed Bonds, and any
other documents permitted by this resolution, in escrow on the County's behalf until
the conditions for the delivery of the Bonds and other documents have been
completed to the Finance Officer's satisfaction. The Finance Officer may then release
the executed Bonds and other documents for delivery to the appropriate persons or
organizations.
Without limiting the generality of the foregoing, the Board specifically
authorizes the Finance Officer to approve changes to any documents previously
signed by County officers or employees, provided that the Bonds must be in
substantially the form approved by this resolution and that any changes must not
substantially alter the intent of the document from that expressed in the form
originally executed. The Finance Officer's authorization of the release of any such
document for delivery will constitute conclusive evidence of that officer's approval
of any changes.
In addition, the Board authorizes the Finance Officer to take all appropriate
steps for the efficient and convenient carrying out of the County's on-going
responsibilities with respect to the Bonds. This authorization includes, without
limitation, contracting with third parties for reports and calculations that may be
required under the Bonds, this resolution, or otherwise with respect to the Bonds.
12. Undertaking for Continuing Disclosure -- The County undertakes, for
the benefit of the beneficial owners of the Bonds, to provide continuing disclosure
with respect to the Bonds as described in Exhibit B.
The Board designates the Finance Officer as the County officer to be primarily
responsible for the County's compliance with its undertakings for continuing
disclosure provided for in this resolution. The Finance Officer will provide for the
filings and reports (including the reports of material events) constituting the
continuing disclosure provided for in this resolution.
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13. Resolutions as to Tax Matters -- The County will not take or omit to
take any action the taking or omission of which will cause the Bonds to be "arbitrage
bonds," within the meaning of Section 148 of the "Code" (as defined below), or
"private activity bonds" within the meaning of Code Section 141, or otherwise cause
interest on the Bonds to be includable in gross income for federal income tax
purposes. Without limiting the generality of the foregoing, the County will comply
with any Code provision that may require the County at any time to pay to the
United States any part of the earnings derived from the investment of the proceeds
of the Bonds, and the County will pay any such required rebate from its general
funds. For this paragraph, "Code" means the United States Internal Revenue Code of
1986, as amended, including applicable Treasury regulations.
14. Book-Entry System for Bond Registration --The County will issue the
Bonds by means of a book-entry system, with one bond certificate for each maturity
immobilized at The Depository Trust Company, New York, New York ("DTC"), and
not available for distribution to the public. The book-entry system for registration
will operate as described in the Official Statement. Therefore, so long as the book-
entry system of registration with DTC is in effect, (a) the County will make Bond
payments only to DTC or its nominee as registered owner of the Bonds, (b) the
County will not be responsible or liable for any transfer of payments to parties other
than DTC or for maintaining, supervising or reviewing the records maintained by
DTC or any other person related to the Bonds, and (c) the County will not send
redemption notices (or any other notices related to the Bonds) to anyone other than
DTC or its nominee. The Board, by resolution, may elect to discontinue the County's
book-entry system with DTC. The Board authorizes the Finance Officer to enter into
any agreements that officer deems appropriate to put into place and carry out the
book-entry system with DTC.
15. Finding as to Useful Life and Term of the Bonds - The Board finds
and determines that the average weighted maximum useful life of the projects to be
financed with the proceeds of the Bonds is at least twenty-five years, subject to
ordinary maintenance for projects of this type, and therefore the term of the Bonds
will be within that maximum useful life.
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16. Miscellaneous Provisions - The Board authorizes all County officers
and employees to take all further action as they may consider desirable in carrying
out the purposes of this resolution. The Board ratifies all prior actions of County
officers and employees in this regard. Upon the absence, unavailability or refusal to
act of the Chair, the County Manager or the Finance Officer, any of the other named
officers may assume any responsibility or carry out any function assigned to
another officer in this resolution. In addition, upon the unavailability of the Chair or
the Clerk, respectively, any of the rights or responsibilities directed to such officers
may be carried out or exercised by the Vice Chair or any Deputy or Assistant Clerk.
All other resolutions, or parts thereof, in conflict with this resolution are repealed,
to the extent of the conflict. This resolution takes effect immediately.
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EXHIBIT A - Form of Bonds
REGISTERED REGISTERED
Number R-X
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
ORANGE COUNTY
General Obligation School Bond, Series 2020
INTEREST RATE MATURITY DATE DATED DATE CUSIP
% August 1, May 7, 2020 684 609 XXX
REGISTERED OWNER: *****CEDE & CO.*****
PRINCIPAL AMOUNT: **** THOUSAND DOLLARS
($ ,000)***
ORANGE COUNTY, NORTH CAROLINA (the "County'), for value received,
promises to pay to the registered owner of this Bond, or registered assigns or legal
representative, the principal amount stated above on the maturity date stated
above, subject to prior redemption as described below, and to pay interest on this
Bond semiannually on each February 1 and August 1, beginning February 1, 2021, at
the annual rate stated above. Interest is payable (a) from the dated date stated
above, if this Bond is authenticated prior to February 1, 2021, or (b) otherwise from
the February 1 or August 1 that is, or immediately precedes, the date on which this
Bond is authenticated (unless payment of interest on this Bond is in default, in
which case this Bond will bear interest from the date to which interest has been
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paid). Interest is calculated based on a 360-day year consisting of twelve 30-day
months.
This Bond is one of an issue of the County's $20,060,000 General Obligation
School Bonds, Series 2020 (the "Bonds"), of like date and tenor, except as to number,
denomination, rate of interest, privilege of redemption and maturity. The Bonds are
issued pursuant to a resolution adopted by the County's governing Board of
Commissioners on April 7, 2020, and the Constitution and laws of the State of North
Carolina, including the Local Government Bond Act.
The County's full faith and credit are pledged for the payment of principal of
and interest on this Bond.
The Bonds are issued by means of a book-entry system, with one bond
certificate for each maturity immobilized at The Depository Trust Company, New
York, New York ("DTC"), and not available for distribution to the public. Transfer of
beneficial ownership interests in the Bonds in the principal amount of$5,000 or any
integral multiple thereof will be effected on the records of DTC and its participants
pursuant to rules and procedures established by DTC and its participants. Principal
and interest on the Bonds are payable by the County to DTC or its nominee as
registered owner of the Bonds. The County is not responsible or liable for such
transfer of ownership or payments or for maintaining, supervising or reviewing the
records maintained by DTC, its participants or persons acting through such
participants.
Bonds maturing prior to August 1, 2031, are not subject to redemption prior
to maturity. Bonds maturing on August 1, 2031, and thereafter are redeemable, at
the County's option, from any moneys that may be made available for that purpose,
in whole or in part on any date not earlier than August 1, 2030, at a redemption
price of 100% of the principal amount to be redeemed, plus interest accrued to the
redemption date, without premium.
If less than all of the Bonds stated to mature on different dates are called for
redemption, the County will select the Bonds to be redeemed in such manner as the
County may determine. If less than all of the Bonds of any one maturity are called
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for redemption, the particular Bonds or portions of Bonds to be redeemed from that
maturity will be selected by lot in such manner as the County in its discretion may
determine; provided, however, that the portion of each Bond to be redeemed will be
in the principal amount of $5,000 or some integral multiple thereof, and that, in
selecting Bonds for redemption, each Bond will be considered as representing that
number of Bonds which is obtained by dividing the principal amount of such Bond
by $5,000. Notwithstanding the foregoing, so long as a book-entry system with DTC
is used for determining beneficial ownership of Bonds, if less than all of the Bonds
within a maturity are to be redeemed, DTC and its participants will determine which
of the Bonds within any such maturity are to be redeemed. If a portion of a Bond is
called for redemption, the County will issue a new Bond to the registered owner in a
principal amount equal to the unredeemed portion, upon the registered owner's
surrender of the Bond.
The County will send notice of redemption to DTC or its nominee as the
registered owner of the Bonds in such manner as may be provided for under DTC's
then-current operating procedures. The County will send this notice not more than
60 days and not less than 30 days prior to the date fixed for redemption. The County
is not responsible for sending redemption notices to anyone other than DTC or its
nominee.
If (a) DTC determines not to continue to act as securities depository for the
Bonds or (b) the County so elects, the County will discontinue the book-entry
system with DTC. If the County does not identify another qualified securities
depository to replace DTC, the County will deliver replacement Bonds in the form of
fully registered certificates.
The County Finance Officer has been appointed Registrar for the Bonds. As
Registrar, the Finance Officer will maintain appropriate books and records
indicating ownership of the Bonds.p The County will treat the registered owner of
this Bond as the person exclusively entitled to payment of principal and interest and
the exercise of all other rights and powers of the owner, except that the County will
make Bond payments to the person shown as owner on the County's registration
books on the Record Date, which is the end of the calendar day on the 15th day of
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the month (whether or not a business day) preceding each interest payment date.
Principal and interest are payable in lawful money of the United States of America.
The County intends that North Carolina law will govern this Bond and all
matters of its interpretation.
All acts, conditions and things required by the Constitution and laws of the
State of North Carolina to happen, exist or be performed precedent to and in the
issuance of this Bond have happened, exist and have been performed, and the issue
of Bonds of which this Bond is one, together will all other indebtedness of the
County, is within every debt and other limit prescribed by the Constitution and laws
of the State of North Carolina.
IN WITNESS WHEREOF, Orange County, North Carolina, has caused this Bond
to be signed by its County Manager, its seal to be affixed hereto and attested by the
Clerk to its Board of Commissioners, and this Bond to be dated May 7, 2020.
(SEAL)
ATTEST:
(Sample only- do not sign (Sample only - do notsignl
Clerk, Board of Commissioners County Manager
Orange County, North Carolina Orange County, North Carolina
The Bonds have been approved by
the North Carolina Local Government
Commission in accordance with the
Local Government Bond Act.
(Sample only- do notsignl
Greg C. Gaskins
Secretary, Local Government Commission
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[Orange County, North Carolina
$20,060,000 General Obligation School Bonds, Series 2020]
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and
transfer(s) unto
(Please print or type transferee's name and address, including zip code)
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OR TRANSFEREE:
the within bond and all rights thereunder, hereby irrevocably constituting and
appointing , Attorney, to transfer said bond on the books
kept for the registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE:
Signature(s) must be (Signature of Registered Owner)
guaranteed by a participant in the NOTICE: The signature above
Securities Transfer Agent Medallion must correspond with the name of the
Program ("STAMP") or similar program registered owner as it appears on the
front of this bond in every particular
without alteration or enlargement or
any change whatsoever.
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[Orange County, North Carolina
$20,060,000 General Obligation School Bonds, Series 2020]
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Exhibit B -- Undertaking for Continuing Disclosure
The County undertakes, for the benefit of the beneficial owners of the Bonds,
to provide the following items and information to the Municipal Securities
Rulemaking Board (the "MSRB"):
(a) by not later than seven months from the end of each of the County's
fiscal years, audited County financial statements for such fiscal year, if available,
prepared in accordance with Section 159-34 of the General Statutes of North
Carolina, as it may be amended from time to time, or any successor statute, or, if
such audited financial statements are not available by seven months from the end of
any fiscal year, unaudited County financial statements for such fiscal year, to be
replaced subsequently by audited County financial statements to be delivered
within 15 days after such audited financial statements become available for
distribution;
(b) by not later than seven months from the end of each of the County's
fiscal years, (i) the financial and statistical data as of a date not earlier than the end
of the preceding fiscal year (which data will be prepared at least annually, will
specify the date as to which such information was prepared and will be delivered
with any subsequent material events notices specified in subparagraph (c) below)
for the type of information included under heading "The County - Debt Information"
and "- Tax Information" in the final Official Statement (excluding any information on
overlapping or underlying units), and (ii) the combined budget of the County for the
current fiscal year, to the extent such items are not included in the audited financial
statements referred to in (a) above;
(c) in a timely manner, not in excess of ten business days after the
occurrence of the event notice of any of the following events with respect to the
Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults;
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(3) unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) unscheduled draws on any credit enhancements reflecting financial
difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form
5701-TEB) or other material notices or determinations with respect to the tax
status of the Bonds, or other material events affecting the tax status of the Bonds;
(7) modifications to rights of the beneficial owners of the Bonds, if
material;
(8) calls for redemption of the Bonds (other than calls pursuant to sinking
fund redemption), if material, and tender offers;
(9) defeasances;
(10) release, substitution or sale of any property securing repayment of the
Bonds;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar proceedings related to
the County or any other person or entity that may at any time become legally
obligated to make payments on the Bonds (collectively, the "Obligated Persons");
(13) the consummation of a merger, consolidation, or acquisition involving
an Obligated Person or the sale of all or substantially all of the assets of the
Obligated Person, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material;
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(14) Appointment of a successor or additional trustee or the change of name
of a trustee, if material;
(15) Incurrence of a financial obligation (as defined below) of the County, if
material, or agreement to covenants, events of default, remedies, priority rights, or
other similar terms of a financial obligation of the County, any of which affect
Bondholders, if material; and
(16) Default, event of acceleration, termination event, modification of terms
or other similar events under the terms of a financial obligation of the County, any of
which reflect financial difficulties; and
(d) in a timely manner, notice of a failure of the County to provide required
annual financial information described in (a) or (b) above on or before the date
specified.
"Financial obligation" means (a) a debt obligation, (b) a derivative instrument
entered into in connection with, or pledged as security or a source of payment for,
an existing or planned debt obligation, or (c) a guarantee of an obligation described
in either clause (a) or (b). The term "financial obligation" shall not include
municipal securities as to which a final official statement has been provided to the
MSRB consistent with Rule 15c2-12.
For the purposes of the event identified in subparagraph (12) above, the
event is considered to occur when any of the following occurs: the appointment of a
receiver, fiscal agent or similar officer for an Obligated Person in a proceeding under
the U.S. Bankruptcy Code or in any other proceeding under state or federal law in
which a court or governmental authority has assumed jurisdiction over
substantially all of the assets or business of the Obligated Person, or if such
jurisdiction has been assumed by leaving the existing governing body and officials
or officers in possession but subject to the supervision and orders of a court or
governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority
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having supervision or jurisdiction over substantially all of the assets or business of
the Obligated Person.
If the County fails to comply with the undertaking described above, any
beneficial owner of the Bonds may take action to protect and enforce the rights of all
beneficial owners with respect to such undertaking, including an action for specific
performance; provided, however, that failure to comply with such undertaking will
not be an event of default and will not result in any acceleration of payment of the
Bonds. All actions will be instituted, had and maintained in the manner provided in
this paragraph for the benefit of all beneficial owners of the Bonds.
The County shall provide the documents and other information referred to
above to the MSRB in an electronic format as prescribed by the MSRB and
accompanied by identifying information as prescribed by the MSRB.
The County may discharge its undertaking as set forth in this resolution by
providing such information in any manner that the United States Securities and
Exchange Commission subsequently authorizes in lieu of the manner described
above.
The County reserves the right to modify from time to time the information to
be provided to the extent necessary or appropriate in the County's judgment,
provided that:
(a) any such modification may only be made in connection with a change
in circumstances that arises from a change in legal requirements, change in law, or
change in the identity, nature, or status of the County;
(b) the information to be provided, as modified, would have complied with
the requirements of Rule 15c2-12 as of the date of the final Official Statement, after
taking into account any amendments or interpretations of Rule 15c2-12, as well as
any changes in circumstances; and
(c) any such modification does not materially impair the interests of the
beneficial owners, as determined either by parties unaffiliated with the County or by
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the approving vote of the registered owners of a majority in principal amount of the
Bonds pursuant to the terms of the bond resolution, as it may be amended from time
to time, at the time of the amendment.
Any annual financial information containing modified operating data or
financial information will explain, in narrative form, the reasons for the modification
and the effect of the change in the type of operating data or financial information
being provided.
18
21
114%��W-MMOMM.
ORANGE COUNTY
NORTH CAR LIN
Series 2020 General Obligation Bonds
Gary Donaldson, Chief Financial Officer
April , , 2020
22
GO Referendum GO Bond Issuances to Date
Voter Authorization of $ 120 million School GO Bonds
$85 million of GO School Bonds issued to date :
- $21 million Series 2017B GO School Bonds for both Orange County
Schools (OCS) and Chapel Hill-Carrboro City Schools (CHCCS) CHCCS
- $64.4 million Series 2018 GO School Bonds for CHCCS/Chapel Hill
High School
- $20 million this Series 2020 GO School Bonds for OCS
Remaining Authorized and Unissued GO School Bonds of $14.5 N4e�
-
ORANGE COUNTY
NORTH CAROLINA
23
Background and Purpose
➢ November 8, 2016 voters approved $120 million in School Bonds of which the Orange County
Schools GO Bond allocation is $47.9 million based on the Average Daily Membership
➢ Bond Referendum was approved by two-thirds of the Orange County voters
➢ $14.5 million of authorized and unissued GO School Bonds and $2.5 million of Affordable
Housing GO Bonds remains to be issued by FY 2022-23
➢ To fund Orange County Schools projects:
- Cedar Ridge High School Wing $14.5 million
- District-wide Security Initiatives $1.5 million
- A.L. Stanbeck/Grady Brown Elementary roofing/waterproofing $1.3 Million
- Cameron Park Elementary Classroom improvements $1 million
- Cameron Park/Grady Brown Elementary Mechanical and HVAC $1.7 million
Total: $20 N4e --
ORANGE COUNTY
NORTH CAROLINA
24
20 Year Level Principal
GenereIObIiga11onSchOO| Donds, Ser|es 2020
Maturity Date Principal
Total 20,060,000
8/*/2021- 1,005.000
8/1/2022 1-,()05,000
8/±/2025 3,005,000
8/±/2024 ±,005,000
8/1/2025 $,005;OO
8/1/2026 T,D03,00o
8/1/2027 1,005,000
8/±/2028 ±,005,000
8/1/2029 $,005,000
8/1/2030 1-,()05,000
8/±/2031- 3,005,000
8/1/2032 1,005,000
8/1/2033 s,O00.000
8/±/2034 3,000,000
8/*/2035 1-000,000
8/1/2036 1-,()00,000
8/±/2037 3,000,000
8/1/2038 T,DOO,ODO
8/±/2039 T.000,OO
8/1/2040 1-000,000
PFelimmarya rid r.uH.&clmc;rk3nEe
�
ORANGE COUNTY
NORTH CAROLINA
25
Key Debt Model Metrics
Debt Ratios 10-Year Payback Debt to Assessed Value DS to GF Revenues
2020 65.17% 1.63% 13.26%
2021 64.61% 1.69% 14.33%
2022 62.52% 1.88% 16.75%
2023 62.33% 1.88% 16.49%
2024 64.14% 1.82% 16.66%
2025 65.88% 1.69% 15.79%
2026 68.11% 1.53% 15.07%
Note: Includes the Spring 2020 Financing plus future 2021-2026 CIP projects as of March 23,2020.
ORANGE COUNTY
NORTH CAROLINA
26
Debt Service Retirement and Additional Debt Capacity
Existing and Proposed Tax Supported Debt Service
45.0
.2 40.0 —
35.0 ■-
30.0
25.0 -
20.0 -
15.0 -
10.0 - - - - - - - - - - -, ■ ■ ■ ■ ■ —
11 ■ e
o � 0 C C10C) IDo0iDoCDIDCDC1OoI
NC14 " " C%j
• Existin g • 2020
Note: Additional Debt Capacity beginning FY 2025; with proposed
GO Bond Referendum November 2024
ORANGE COUNTY
NORTH CAROLINA
27
Questions/Comments
ORANGE COUNTY
NORTH CAROLINA