NORTH CAROLINA
EXECUTIVE SUMMARY
Meeting Date: 10/28/2009
AGENDA #5k
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TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY |
Meeting Date: 10/28/2009 |
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| Title of Agenda Item:
Adoption of Bond Order for Proposed Refunding of Outstanding General Obligation Bonds. (R-4a) (R-4b) (R-4c) Council Goal 5: Improve Town's Fiscal Condition. |
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| Background:
At its September 28, 2009 meeting, the Council adopted a resolution providing preliminary approval for the issuance of General Obligation Refunding Bonds. The resolution authorized the Town Manager, Finance Officer and other Town Officials to take actions necessary to proceed with the refunding of the 1998 and 2000 Bonds. The next step in the refunding process is to adopt an authorizing bond order and for the refunding bonds and to adopt a resolution regarding the publication of the bond order. The bond order authorizes the issuance of a maximum of $5,750,000 in refunding bonds. This amount is larger than the amount we currently plan on issuing in order to address the potential for declining rates to increase the amount of the refunding. |
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| Fiscal Note: Based on the analysis conducted by the BBT Capital Markets, the Town can save approximately $332,230 (net present value) over the next 10 years by refunding outstanding General Obligation Bonds, Series 1998 and Series 2000. The aggregate principal amount of debt to be issued for the purposes of refunding will not exceed $4.9 million. The actual amount of debt issued will depend on the interest rates prevailing at the time of sale. | |||
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| Recommendations: That the Council adopt the Bond Order for General Obligation Refunding Bonds and a resolution providing for the publication of the Bond Order, in the forms presented. The Bond Order authorizes the issuance of a maximum of $5,750,000 to refund public improvement bonds issued in 1998 and 2000. The resolution authorizes and directs the Town Clerk to publish a notice of the Bond Order in a newspaper of general circulation. | |||
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| ATTACHMENTS: Viewing attachments may require Adobe Acrobat. |
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| Staff Memorandum | |||
| Resolution A | |||
| Resolution B | |||
| Resolution C | |||