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HomeMy WebLinkAboutAgenda - 10-07-2008 - 4fORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 7, 2008 Action Agenda Item No. ~-~ SUBJECT: Resolution Authorizin Public Hearings on Extension of Bond Authorizations DEPARTMENT: Finance Department PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolution INFORMATION CONTACT: Gary Humphreys, 919-245-2453 Robert Jessup, 919-755-1800 PURPOSE: To approve a resolution to schedule public hearings as required by North Carolina Statute 159-64 for the extension of two Orange County 2001 bond authorizations. BACKGROUND: At the August 19, 2008 meeting, the Board of County Commissioners directed staff to seek an extension of the maximum time of the 2001 Bond Authorizations for the issuance of general obligation bonds. There remains unissued $1.4 million of Affordable Housing Bonds and $5.5 million of Parks and Open Space Bonds. These two authorizations are set to expire on November 6, 2008. The plan is to preserve the flexibility of the County to issue general obligation financing should it prove to be more beneficial and cost effective than direct bank financing. A request for the extension of the authorizations for the 2001 bonds has been submitted to the Local Government Commission (LGC). The LGC will take action on this request the morning of October 7, 2008. The County must then hold a public hearing on each of the actions of the LGC. Once these public hearings are completed, the BOCC may then adopt an extension order approving the actions of the LGC which will become effective in 30 days. The public hearings for each of the bond authorizations is proposed for October 21, 2008. The attached resolution requires a published notice in a newspaper having general circulation in the County not less than six (6) days prior to the public hearing. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact in proceeding with the actual issuance of the bonds. RECOMMENDATION(S): The Manager recommends that the Board approve the resolution authorizing the scheduling and advertising of public hearings at the Board's October 21, 2008 regular meeting for the extensions of the two 2001 bond authorizations. 2 Orange County - Resolution ratifying request to extend time to issue bonds, providing for required public hearings on the extension, and taking related action WHEREAS - The voters of Orange County, at a referendum held November 7, 2001, authorized the issuance of up to (a) $20,000,000 general obligation bonds for parks, recreation and open space purposes, and (b) up to $4,000,000 general obligation bonds for low and moderate income housing. From these bonds, there remains authorized and unissued $5,500,000 of the parks bonds and $1,400,000 of the housing bonds. By law, the time to issue these bonds will expire on November 7, .2008, unless the North Carolina Local Government Commission (the "LGC") acts to extend the time during which the bonds may be issued, and unless the County Board subsequently approves the extension. The County's Board of Commissioners has previously determined to request that the LGC extend the time to issue the bonds, and the County's Financial Services Director has begun the process of seeking LGC approval. The LGC is expected to approve the extension October 7, 2008. Subsequent approval by this Board must come after a public hearing. BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. The Board confirms its previous determination to request that the LGC extend the time for the issuance of the bonds from seven to ten years from November 7, 2001. 2. The County Manager and the Finance Officer are authorized and directed. to take all action they may deem appropriate to obtain the LGC's approval of the extension. All previous actions of County representatives toward this end are ratified, approved and confirmed. 3. The Board will hold a public hearing on the question of the extension. There will be a separate hearing for each of the two bond orders considered for extension. The County Manager is authorized and directed to establish the time, date and place of the hearings. The Clerk to this Board is authorized and directed, in consultation with the County Manager, to publish a notice of each such public hearing, in the form provided for by statute, one time, not less than six days prior to such hearing date, in a newspaper having general circulation within the County. 4. This resolution takes effect immediately.