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HomeMy WebLinkAboutAgenda - 06-25-2001-9eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 25, 2001 Action Age a Item No. ~~ SUBJECT: Notice of Intent to Pursue a Bond Referendum on November 6, 2001 DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No County Manager ATTACHMENT(S): INFORMATION CONTACT: Draft Notice of Intent Ken Chavious, ext. 2453 _ Draft Resolution John Link or Rod Visser, ext. 2300 Bond Referendum Timetable TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham fi88-7331 Mebane 336-227-2031 PURPOSE: To proceed with the legal requirements and Local Government Commission guidelines necessary for the Bond Referendum proposed for the November 6, 2001 election. BACKGROUND: In late 2000, the BOCC began preliminary discussions on a possible November 2001 bond referendum. Following additional consideration and review of possible projects that might be appropriate for a November 2001 referendum, the BOCC appointed the Orange County Capital Needs Advisory Task Force (CNATF) in February, 2001. The CNATF was a group of concerned parties representing various interests and elected bodies in the County. The CNATF's charge, among other duties, was to review all of the proposed projects from various entities for possible inclusion in the November 2001 bond referendum and recommend a proposed size and the elements of a bond package. The CNATF met during the spring of 2001 and completed its work in late May. The CNATF's final report was provided to the BOCC in early June. Based on that report and other information, the BOCC may wish to move forward with establishing a proposed bond package in order to meet legal obligations associated with a November 2001 bond referendum timeline. In accordance with the proposed timetable, the initial Board action required for the November referendum is the adoption of the "Notice of Intent". Adoption and publication of this notice is a statutory requirement and ofFicially informs the public of the County's plans to have a bond referendum and to issue bonds to fund certain capital projects. The "Notice of Intent" has been prepared by Bond Counsel and establishes the maximum amount of bonds, by purpose, for which the County will be seeking LGC approval. Once adopted, the amount finally agreed upon by the Board can not exceed the maximums established for each specific purpose in the "Notice of Intent." In addition to the statutory requirement for the "Notice of Intent", the LGC requires that the County adopt a resolution which states the "findings of fact" related to the need for the County to issue bonds to fund projects. This resolution has been prepared by Bond Counsel and is essential in obtaining the required approval from the LGC to proceed with the November referendum. FINANCIAL IMPACT: There is no immediate financial impact associated with this action. If bonds are approved and sold, general fund appropriations to pay debt service will be required. During June budget work sessions, the Board has discussed the passibility of proposing for voter approval a maximum total of $75 million in bonds for schools, parks and open space, affordable housing, and senior centers. If approved by voters and subsequently issued, staff estimates that the maximum cumulative tax rate impact for paying debt service on $7'5 million in new general obligation bonds would be approximately 7.3 cents per $100 valuation. In addition to the purposes mentioned, the County's bond counsel .has also pointed out that a fifth purpose related to "County Land" could be considered in the notice of intent for the possible acquisition of property to be used for public purposes to be determined in the future. RECOMMENDATION(S): The Manager recommends that the Board: • confirm the proposed timetable • approve the "Notice of Intent" • adopt the Resolution • authorize the Clerk to publish the "Notice of Intent" DRAFT Orange County, North Carolina Notice of Intent To Apply to the North Carolina Local Government Commission For Approval of General Obligation Sond Issues Please take notice as follows: 1. The Board of Commissioners of Orange County, North Carolina, intends to apply to the North Carolina Local Government Commission for such Commission's approval of general obligation bond issues for the County. 2. The separate purposes of the proposed bond issues, and the maximum amount of the bonds to be issued for each purpose, are as follows: Purpose Public school facilities Parks and open space Affordable housing Senior centers Amount $ xx,xxx,xx xx,xxx,xx x,xxx,xx x,xxx,xx 3. Any citizen or taxpayer of Orange County may; within seven days of this publication, file with the County's Board of Commissioners (by writing to the Clerk of the Boaxd of Commissioners, Orange County, Post Office Box S 181, Hillsborough, North Carolina 27278) and the North Carolina Local Government Commission in Raleigh (by writing to the North Carolina Local Government Commission, Attention: Secretary of the ComYx~ission, Albemarle Building, 325 North Salisbury St., Raleigh, North Carolina 27603-1385), a written statement of any objections such citizen or taxpayer may have to the issuance of such bonds. By order of the Board of Commissioners. Beverly A. Blythe Clerk, Board of Commissioners Orange County, North Carolina DRAFT Resolution Stating Intent To Proceed with a Referendum For Orange County General Obligation Bonds WHEREAS: 4 In February, 2001, the Board of Commissioners of Orange County, North Carolina, appointed a capital needs advisory task force to review potential capital projects for County funding and to provide to the Board a recommendation for the elements and sire of a proposed County bond referendum for November, 2001. The task force has provided a recommendation to the Board, and the Board has carried out its own deliberations and evaluations of candidates for bond financing. As a result of these deliberations and evaluations, the Board has made the determination to proceed toward a bond referendum as described in this resolution. BE IT THEREFORE RESOLVED by the Soard of Commissioners of Orange County, North Carolina, as follows: 1. The Board makes an initial determination to proceed with a referendum for County general obligation bonds in the maximum amounts and for the purposes set forth below: Purpose Public school facilities Parks and open space Affordable housing Senior centers Amount (~) xx,xxx,xx xx,xxx,xx x,xxx,xx X,XXX,XX 2. The Board hereby makes the following findings of fact in support of its determination -- a) The proposed capital projects are necessary and expedient for the County. The Board makes reference to the task force report for an explanation of projects considered by the Board in the process of determining the amounts and purposes for proposed bonds, although the Board notes that the projects eventually DRAFT 5 funded with bond proceeds will depend on final project costs and the County's evolving needs. b) The amount of bonds proposed is adequate and not excessive for the proposed purpose. ,The proposed bond amounts have been derived from the Board's consideration of the task force report and other sources. c) The County's debt management and budgetary and fiscal management policies have been carried out consistently in accordance with the law. d) The Board expects a maximum potential tax impact to the County of 7.3 cents per $100 of .assessed valuation. The Board recognizes that its past estimates of maximum tax increases necessary to support bond payments have turned out to be accurate. 3. 'The Finance Officer is authorized and directed to proceed with the proper steps toward the authorization of the referendum, including proceeding. with an application to the North Carolina Local Government Commission (the "LGC") for its approval of such bonds. 4. The Finance Officer is authorized and directed to publish a notice of the Board's intent to apply to the LGC for approval of the bonds. This notice must be in the form prescribed by statute .and consistent with this resolution. 5. The Finance Officer is authorized and directed to employ bond counsel to represent the County in the authorization and issuance of such bonds. 6.. All County officers and employees are authorized and directed to take all such further action as they may consider necessary or desirable in connection with the furtherance of the purposes of this resolution. All such prior actions of County officers and employees are ratified, approved and confirmed. All other resolutions, or parts thereof, in conflict with this resolution are repealed, to the extent of the conflict. This resolution takes effect immediately. 6 . Oran a Caun -- ro osed Timetable for November Sond Referendum Event Date 1. Determine tentative referendum plan By early June 2. Meet with LGC staff By late Spring 3. Give informal notice to County Board of By late Spring Elections 4. Obtain school board resolutions 5. Board adapts "own words" resolution explaining purpose for issue and adopts resolution authorizing publication of notice of intent to file LGC application 6. Publish notice of intent to file application 7. File LGC application By mid-June At June 25 Board meeting (scheduled meeting for budget adoption) As soon as possible after step 6 and in any event by .7/15 Between 7/25 and 8/13 (must be at least 10 days after event 4 and prior to event 6) 8. Board introduces bond orders and schedules public hearing 9. Clerk files sworn statement of debt 10. Publish notice of public hearing 11. Hold public hearing 12. Adopt bond order; formally set ballot question and referendum date 13. Publish bond order as adopted 14. Publish notice of referendum (twice) 15. Referendum occurs At $/14 Board meeting Any time between event 6 and event 8 By 8/20 (after event 9 and at least six days prior to event 11) At 8/27 Board meeting At 8/27 or 9/4 Board meeting As soon as possible after event 12 By 9/24; then by 10/2 11/6