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HomeMy WebLinkAboutAgenda - 10-21-2008 - 6aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 21, 2008 Action Agenda Item No. fo -q SUBJECT: Approval of an Order Entitled Extending Time for Issuing Parks and Affordable Housing Bonds Approved in 2001 DEPARTMENT: Finance PUBLIC HEARING: (Y/N) NO ATTACHMENT(S): Order INFORMATION CONTACT: Gary Humphreys, 919-245-2453 Robert Jessup, 919-755-1800 PURPOSE: To approve an Order extending the time for Issuing Parks and Housing Bonds approved in 2001. BACKGROUND: On August 19, 2008, the Board approved seeking an extension of time for the 2001 Authorization to issue Low and Moderate Income Housing Bonds (Affordable Housing Bonds) and the 2001 Authorization to issue Parks, Recreation, and Open Space Bonds, both of which expire November 6, 2008. There are $5.5 million Parks, Recreation and Open Space Bonds and $1.4 million Affordable Housing bonds that remain authorized but unissued. The Local Government Commission approved both of the requested extensions at its October 7, 2008 meeting. The Board of County Commissioners, earlier in this meeting, conducted public hearings on extending each of these authorizations as required by law and may now take action on the Order to extend. The plan is to preserve the County's flexibility to issue general obligation financing should that prove to be more beneficial and cost effective than direct bank financing or other types of financing. Adoption of the attached order prepared by Bond Counsel approving the action of the Local Government Commission will extend the authorization to November 6, 2011. The Parks and Open Space bonds and the Affordable Housing Bonds are necessary for projects which have already been committed to by the Board. 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 Order extending the time for Issuing Parks and Housing Bonds approved in 2001 and direct the Clerk to publish a notice of the Board's action. 2 Extension Order for Adoption Order Extending Time for Issuing Parks and Housing Bonds Approved in 2001 WHEREAS - At a referendum held November 6, 2001, the voters of Orange County authorized the issuance of up to $20,000,000 general obligation bonds of the County for parks, recreation and open space purposes, of which $5,500,000 bonds remain authorized but unissued. In addition, at that same referendum, the voters authorized the issuance of up to $4,000,000 general obligation bonds of the County for low and moderate income housing, of which $1,400,000 bonds remain authorized but unissued. The County has determined that it is desirable to extend the time for issuing such bonds, and has determined to follow the legally-required procedures to obtain such an extension. The North Carolina Local Government Commission has granted the extension, and this Board has held a public hearing on the question of each such extension as required by law. BE IT THEREFORE ORDERED by the Board of Commissioners of Orange County, North Carolina, as follows: 1. This Board approves the actions of the North Carolina Local Government Commission in extending the maximum time period for issuing bonds under the Bond Order entitled "BOND ORDER AUTHORIZING THE ISSUANCE OF .GENERAL OBLIGATION BONDS FOR PARKS, RECREATION AND OPEN SPACE IN THE MAXIMUM AMOUNT OF $20,000,000," which took effect upon its approval by the qualified voters of the County on November 6, 2001, from seven to ten years after the date such Bond Order took effect. The time period is so extended. 2. This Board approves the actions of the North Carolina Local Government Commission in extending the maximum time period for issuing bonds under .the Bond Order entitled "BOND ORDER AUTHORIZING 3 THE ISSUANCE OF GENERAL OBLIGATION LOW AND MODERATE INCOME HOUSING BONDS IN THE MAXIMUM AMOUNT OF $4,000,000," which took effect upon its approval by the qualified voters of the County on November 6, 2001, from seven to ten years after the date such Bond Order took effect. The time period is so extended. 3. The Clerk to this Board is authorized and directed to publish a notice, in the form prescribed by statute, of the Board's adoption of this Order. 4. This Order shall take effect 30 days after its publication as provided in the preceding paragraph.