NORTH CAROLINA
EXECUTIVE SUMMARY
Meeting Date: 11/23/2009
AGENDA #5L
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TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY |
Meeting Date: 11/23/2009 |
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| Title of Agenda Item:
Resolution Providing for the Sale of General Obligation Refunding Bonds. (R-9) Council Goal 5: Improving the 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. At its October 28, 2009 meeting the Council adopted the Bond Order for General Obligation Refunding Bonds and a resolution providing for the publication of the Bond Order. The next step in the refunding process is to adopt a resolution for the sale of the refunding bonds.This resolution does the following: 1. Formally authorizes the sale of up to $5,750,000 in refunding bonds; 2. Formally pledges the Town’s taxing power to provide for payment on the bonds; 3. Approves the proposed form of the bonds themselves; 4. Approves the form of the draft official statement for use in offering bonds to investors; 5. States the Town’s agreement to comply with the relevant provisions of federal tax law; 6. States the Town’s agreement to comply with federal rules for continuing disclosure to the securities markets; 7. Authorizes Town staff to complete the process of issuing the bonds, and approves the steps to that end previously taken. |
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| Fiscal Note: Based on the analysis conducted by the BBT Capital Markets, the Town can save approximately $282,066 (net present value) over the next 10 years by refunding outstanding General Obligation Bonds, Series 1998 and Series 2000. 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 resolution for the sale of refunding bonds. | |||
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| ATTACHMENTS: Viewing attachments may require Adobe Acrobat. |
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| Staff Memorandum | |||
| Resolution | |||