HomeMy WebLinkAboutP-0060 - General Obligation Bonds
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POLICY FOR INSERTION INTO THE POLICY MANUAL
MEETING DATE: September 13. 1984 NUMBER: P:0060
EFFECTIVE DATE: September 13, 1984 .REVISIONS:
POLICY•
GENERAL OBLIGATION BONDS
The issuance of general obligation bonds under the net debt
reduction rules by Orange County shall be excercised only
when there exists a health, safety and welfare. hazard and/or
to construct a capital facility needed to protect the health,
safety, and welfare from emergency conditions.
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Thurmond Murphy, representative of FHA, indicated the (busty would
not be obligated until the issuance of bonds. The next step would be final
plane and specifications and advertisement forbids.
Cbnmissioner Marshall asked the length of time the Board has to give
FHA the specifics they need and Murphy indicated they would give the Board the
time, they need to work out the project.
Oomanissior~er Whined indicated that issuing net debt hoods is a faf r-
ly normal practice with camties and municipalities. She law, without the wte
Of the people, allows issuance of 2/3 of the debt retirement for the previous
fiscal year. Because Ckatge County has never issued net bebt reduction bonds,
Comoa~issi.oner Whined indicated that the Hoard needs to establish the criteria
or oonditions that Orange Oourity will use in the issuing of such bonds. It is
quite clear that a health hazard exists in the 6fl.and Rstates area which should
be listed as one criteria. Another would be the critical wndition that exists
at Sflard School. The issuance of net debt reduction bonds should be reserved
for emergency situations only and have very specific purposes.
Gledhill noted that the Boni Oounsel is concerned that before yvu
incur a debt that all the people in Grange County are responsible for repaying,.
that you have public purposes that affect all the people in CArange County.
Motion was made by cAmnissio~ner Whined, seoorded by C7anmissianer ~ - J3 - fl ~f
Walker that as a matter of policy the issuance of general obligation bonds
under the net debt reduction rules by Change C7ounty be exercised only when
there exists a health. safety and welfare hazard andlor to oonetruct a capital
facility needed to prcot~ect the health, safety and welfare from emergency
aotxliticna.
VO-1.'Es i~lNIl+lOtT6.
Cloamissioner Whined noted there are other policy issues that should
be addressed at a later time before other decisions are made.
Th~psan indicated that the figures on the Letter of intent to meet
conditions will be adjusted to reflect the operating budget fees.
Motion was made by Cona-issioner Whined, seconded by Chair Willhoit
to approve the letter of intent and authorize the Chair to sign.
VC11'E: NjD~7S.
s. Rsot~sr ~t~ ~~
Motion was made by Caaamissianer Marshall, seconded by Qommissioner
Whined to approve the request for obligation of fondle in the amount of
5200,000 at an interest rate of 7.75$ and to set the amount of the grant at
X598,300.
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