HomeMy WebLinkAboutAgenda - 12-07-1999 - 5a
SUBJECT: Introduction of Bond Order for the Issuance of Two-Thirds Net Debt Reduction
Bonds
ACTION AGENDA ITEM ABSTRACT
Meeting Date:. December 7, .1999
Action Agenda
Item No. S_q
DEPARTMENT: Finance
ORANGE COUNTY
BOARD OF COMMISSIONERS
PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Ken Chavious/Bob Jessup, ext 2453
Bond Order
Public Hearing Resolution
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider introducing the Bond Order required for authorizing the issuance of
two-thirds net debt reduction general obligation bonds and adopting a resolution setting the
public hearing date and authorizing the Finance Director to file a Sworn Statement of Debt.
BACKGROUND: At the November 16, 1999 meeting, the .Board adopted a resolution
authorizing staff to pursue the issuance of two-thirds net debt reduction general obligation
bonds. totaling $2,846,000.. These bonds will be used to finance major renovations to the
Whiffed Human Services Center and Northern Human Services Center. The projects to be
financed have been outlined in the County's Capital Investment Plan. Bond Counsel prepared. a
tentative schedule of events or actions required to take place in order to meet a final sale date
of April 4, 2000. In accordance .with the schedule, the Finance Director has submitted an
application to the Local Government Commission for the issuance. of the Bonds. The next step
in the process is the introduction of the Bond Order..
The Bond Order is introduced by the Chair, Clerk or someone else reading the title of the Order
into the record. In addition, a statement for the record should be made indicating that the Bond.
Order will be set for final consideration at a later. meeting.. The Board need not take a vote for
the introduction. Once the Bond Order has been introduced, the Board needs to seta date fora
public hearing and authorize the Finance Director. to file a Sworn Statement of Debt. The public
hearing date. proposed on the schedule prepared by Bond Counsel is January 18, 2000 and the
Finance Director is prepared to file. the Sworn Statement of Debt.: The required documents
have been prepared by Bond Counsel and are attached.
2
FINANCIAL IMPACT: There is no financial impact related to the introduction of the Order,
however, once bonds are finally sold it is estimated that annual debt service costs could range
from $200,000 to $230,000. These debt service costs have already been planned and factored
into the County's approved 1999-2009 CIP.
RECOMMENDATION(S): The Manager recommends that the Chair introduce the Bond Order
and that the Board establish a Public Hearing on January 18, 2000 and authorize the Finance
Director to file a Sworn Statement of Debt.
3
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION
PUBLIC BUILDLNG BONDS OF ORANGE COUNTY, NORTH CAROLINA, IN
THE MAXIMUM AMOUNT OF $2,846,Qt~
WHEREA(.S --
By resolution adopted on November 16, 1999, the Board of Commissioners of
Orange County, North Carolina, stated its proposal to issue County general obligation
bonds to pay for public buildings.
By law, the County may issue such bonds without referendum approval because
the amount of the proposed bonds does not exceed two-thirds of the amount by which the
County reduced its outstanding indebtedness in the 1998-99 fiscal year.
The County has applied to the North Carolina Local Government Commission (the
"LGC") for its approval of such bonds, and the LGC has notified the County of its
acceptance of such application.
BE IT .THEREFORE ORDERED by the Board of Commissioners of Orange
County, North Carolina, as follows:
1. There are hereby ordered to be issued general obligation public building
bonds of the County to pxy capital costs of providing public buildings, together with
related financing and other necessary or incidental costs. The bonds issued for this
purpose may be combined for sale with bonds authorized for similar or different
purposes.
2. The nnaximum aggregate principal amount of the bonds issued for such
purpose shall be $2,$46,000.
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
bccn filed with the CIerk to this Board and is available for 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 159-64 of
the North Carolina General Statutes, and in that event the order shall take effect when
approved by the voters.. .
1
Resolution setting public hearing and
authorizing filing of debt statp*„p~~
WHEREAS, there has been introduced at this meeting a bond order entitled as
follows:
BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION PUBLIC BUILDING BONDS OF ORANGE COUN'T'Y,
NORTH CAROLINA, IN THE MAXIMUM AMOUNT OF $2,846,000;
AND WHEREAS, Section 159-5? of the General Statutes requires that a public
hearing be held on each 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 such bond order shall be held at 7:30
p.m. (or as soon thereafter as the matter may be heard) on January 18, 2000, in the
meeting room of the County's .Southern Human Services Center, 2501 Homestead Road,
Chapel Hill, 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
Genteral 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 debt in the form prescribed by statute.
4
SWORN STATEMENT OF DEBT
For Orange Coun North Carolina
I, Kenneth T. Chavious, being first duly sworn, do hereby 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, North Carolina, 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, North Carolina, 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 (Sl
Total $59,565,000
2. Bonds authorized by orders introduced but not yet adopted:
Amount (Sl
Public Buildings ~ 2,846,000
Total $2,846,000
3. Unissued bonds authorized by adopted orders:
Schools 47,000,000
Parks 6,000,000
Affordable Housing 1,800,000
Sewer 1,200,000
Total $56,000,000
4. Outstanding debt not evidenced by bonds:
Purpose
Vehicle
Schools
Jail
Public buildings
Total
Total Gross Debt (sum of 1 through 4)
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.
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.
Amount (~~,
4,777
19,978,127
1,395,337
1,573,788
$22,952,029
$141.363.029
0
0
0
0
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). 1,200,000
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 0
any part of the gross debt.
7. Estimate of special assessments ±o 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. 0
Total deductions (Sum of 1 through 7) $1,200,000
C. Net Debt, being the difference between
Total Gross Debt (A) and Total Deductions (B). $140,163,029
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. $6,707,190,520
E. Percentage that Net Debt bears to the
appraised value of property subject to taxation. 2.0897%
WITNESS my signature this /3~ day of December, 1999.
Kenneth T. Chavious
Finance Officer
Orange County, North Carolina
STATE OF NORTH CAROLINA
ORANGE COUNTY
Subscribed and sworn before me this ~.~~day of December, 1999.
r4 OFFICIAL SEAL
Notary Public • No~tli Carolina
~t=J'• °- ORANGE COUNTY
~' EVELYN M. CECIL otary Public
~y1rSeal I,; Comrnissiorr Expires
My commission expires ~~~~~ ~Q~ y
I, John Smith, Orange County Tax Assessor, hereby certify that the assessed value
last fixed for taxation in Orange County, North Carolina, as revealed by County tax
records (before the application of any assessment ratio), is $6,707,190,520.
WITNESS my signature this l3~day of December, 1999.
John S '
ssessor
Orange County, North Carolina
I, Beverly A. Blythe, Clerk to the Board of Commissioners of Orange County,
North Carolina, do hereby certify that the foregoing is a true copy of a statement which
was filed with me on December /~ 1999, after the introduction of, and before the
public hearing on, orders authorizing bonds of Orange County, North Carolina, and that
said statement is open to public inspection in my office.
Bever .Blythe
Clerk, Board of Commissioners
Orange County, North Carolina