HomeMy WebLinkAboutAgenda - 12-02-2002-5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 2, 2002
Action Agenda
Item No. 5- 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. 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 in March,
1993 and bonds previously refunded in June of 1993, and to take actions necessary to
accomplish this undertaking if the Board so desires.
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 been falling. 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
$125,000 annually and nearly $1,400,000 over the remaining terms if the bonds sold in March,
1993 and other refunded bonds issued in June 1993 were refunded. In July 2001, the County
pursued a similar bond refunding initiative that also yielded significant savings. Staff has 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, and all parties are in
agreement that the County could proceed with a refunding. The fact that the County has
rescheduled the sale of general obligation bonds to March 2003 makes a refunding even more
attractive 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 a Date for a Public Hearing and Authorizing the Finance Director
to File a Debt Statement and the Clerk to Publish a Notice of Public Hearing
These actions are statutory requirements, and the documents have been prepared in
accordance by Bob Jessup, the County's Bond Counsel.
FINANCIAL IMPACT: There is no impact on the current year 2002-2003 budget. Annual
savings of approximately $125,000 are estimated for the fiscal year 2003-2004 and thereafter.
Savings for the remaining 11-year term are estimated to be nearly $1,400,000. 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.
3
Bond Order for Introduction
BOND ORDER AUTHORIZING
OBLIGATION REFUNDING BONDS
$28,000,000
WHEREAS --
THE ISSUANCE OF GENERAL
IN THE MAXIMUM AMOUNT OF
Orange County, North Carolina (the "County"), has previously issued its
general obligation Refunding Bonds, Series 1993, and its general obligation
School Bonds, Series 1993 (together, 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 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 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 $28,000,000.
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.
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This Bond Order takes effect immediately.
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5
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 REFUNDING BONDS IN THE MAXIMUM
AMOUNT OF $28,000,000
AND WHEREAS, Section 159-57 of the General Statutes requires that a
public hearing be held on such bond order prior to its adoption, Section 159-56 of
the General Statutes requires publication of a notice of such hearing, and Section
159-55 of the General Statutes requires the filing of a statement of the County's
debt with the Clerk to the Board prior to the public hearing;
BE IT THEREFORE RESOLVED by the Board of Commissioners of
Orange County, North Carolina, that a public hearing on each such bond order will
be held at 7:30 p.m. (or as soon thereafter as the matter may be heard) on January
21, 2003, at the F. Gordon Battle Courtroom in Hillsborough, North Carolina, and
that the Clerk to this Board is authorized and directed to publish a notice of such
public hearing, in the form provided for in Section 159-56 of the General Statutes,
one time, not less than six days prior to such hearing date, in a newspaper having
general circulation in the County;
AND BE IT FURTHER RESOLVED that the County's Finance Officer is
authorized and directed to prepare and file, prior to the publication of the notice of
public hearing, a sworn statement of the County's net debt in the form prescribed
by statute.
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t0
SWORN STATEMENT OF DEBT
For Orange County, North Carolina
I, Kenneth T. Chavious, being first duly sworn, state that I am the Finance
Officer for Orange County, North Carolina, that I have been designated by the
Board of Commissioners of Orange County to make and file with the Clerk to
such Board of Commissioners a sworn statement of debt, and that the following is
the statement of debt for Orange County as shown by the books in my office,
prepared in accordance with, and made pursuant to the requirements of, Section
159-55 of the North Carolina General Statutes.
A. Gross Debt
1.
Outstanding debt evidenced by bonds:
Purpose Amount ($l
School 58,311,000
Public Facilities 33,665,000
Building 5,815,000
Affordable Housing 1,800,000
Parks 2,664,000
Total $102,255.000
2.
Bonds authorized by orders introduced but not yet adopted:
Purpose
Amount ($l
Total$
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3. Unissued bonds authorized by adopted orders:
4. Outstanding debt not evidenced by bonds:
Purpose Amount (~l
School 26,872,774
Jail 799,613
Office Buildings 1,223,814
Land 323,244
Total $76,200,000
Total $29.219,445
Total Gross Debt (sum of 1 through 4) $207,674,445
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.
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.
76,200,000
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g
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) $ 76,200.000
C. Net Debt, being the difference between
Total Gross Debt (A) and Total Deductions $131,474.445
(B).
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D. Appraised Value of property subject
to taxation, being the value from which the
assessed value last fried 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
$9.106.470,893
1.44%
day of December, 2002.
Kenneth T. Chavious
Finance Officer
Orange County, North Carolina
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STATE OF NORTH CAROLINA
ORANGE COUNTY
Subscribed and sworn before me this day of December, 2002.
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 $9.106.470,893.
WITNESS my signature this day of December, 2002.
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 December , 2002, 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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Notice of Public Hearing -- Orange County Refunding Bonds
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING BONDS IN THE MAXIMUM AMOUNT OF
$28,000,000
WHEREAS --
Orange County, North Carolina (the "County"), has previously issued its
general obligation Refunding Bonds, Series 1993, and its general obligation
School Bonds, Series 1993 (together, 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 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 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 $28,000,000.
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.
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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 $9,106,470,893 and the net debt
thereof, including the proposed bonds, to be not more than $131,444,445. 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 January 21, 2003, F. Gordon Battle Courtroom, Hillsborough,
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).
Donna S. Baker
Clerk, Board of Commissioners
Orange County, North Carolina
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