HomeMy WebLinkAboutC.054.93010_1274 (2)COUNTY MANAGER'S REPORT
Presentation from Finance Director Susan Blumenstein regardine the 2003 Certificates
of Participation (COPS) and an update on Sales fax Revenues
COPS
Blumenstein distributed Preliminary Official Statements (POS) for the 2003
COPS. She said the POS was in the amount of $40,230,000.00, and this included the
possible refunding of the 2002 installment note with the Bank of America.
Mrs. Blumenstein said that, recently, most of the documents relating to the 2003
issuance were in the amount of $47,000,000.00, and the reason for the higher amount
was due to not having all of the bids. She said that if the bids had exceeded the working
amount, then, it would have been necessary to abandon all previous work, and to start
the process all over. She gave the following estimated architectural costs for the COPS
projects (Woodland Heights Elementary, Harmony Elementary, Scotts Elementary,
Mooresville Intermediate, and Mitchell College).
Deduct Local Funding (5,232,545) (already in place)
Total 37,222,610
Add: Estimated Closing costs 661,765
Amount to be Borrowed: $37,884.375
Mrs. Blumenstein said the Local Government Commission required at least a 3%
net present value savings on existing debt refinancings/refundings, and for this reason,
the Bank of America refinancing probably would not occur. She said the estimated
savings at this time appeared to be around 1.5%, and if the refinancing did not occur, the
$40,230,000.00 would be reduced by $3.5 million. She said the 2003 issuance would be
for 20 -year bonds, and the "all -in interest" (interest + all closing costs) would be around
4.3%.
Commissioner Williams asked Blumenstein to comment on the county's present
indebtedness.
Blumenstein said bond rating agencies looked at the proportion of debt service to
the entire general fund budget. She said the county was at about 10%, and the rating
agencies typically became concerned if counties were over 15%. Mrs. Blumenstein said
that when the county was compared to other like -sized counties, it had considerably less
debt. She said that as the general fund grew, and the debt didn't change, the percentage
dropped proportionately.
REVENUE FROM SALES TAXES
Blumenstein said sales tax distributions were now being received on a monthly
basis instead of the previous quarterly cycle. She said last week, the third monthly
report was received. Blumenstein mentioned that for 2003-04, revenues were being
Total for all Projects
Construction & site development
$35,785,826
Offsite DOT Road Improvements
750,000
Water/Sewer Extension
650,000
Architect's fees
2,155,778
Other costs
Offsite design
5,000
Soil testing
85,000
Other
177,000
Fumiture/Equipment
1,282,064
Contingency
1,564,487
Project Totals
$42,455,155
Deduct Local Funding (5,232,545) (already in place)
Total 37,222,610
Add: Estimated Closing costs 661,765
Amount to be Borrowed: $37,884.375
Mrs. Blumenstein said the Local Government Commission required at least a 3%
net present value savings on existing debt refinancings/refundings, and for this reason,
the Bank of America refinancing probably would not occur. She said the estimated
savings at this time appeared to be around 1.5%, and if the refinancing did not occur, the
$40,230,000.00 would be reduced by $3.5 million. She said the 2003 issuance would be
for 20 -year bonds, and the "all -in interest" (interest + all closing costs) would be around
4.3%.
Commissioner Williams asked Blumenstein to comment on the county's present
indebtedness.
Blumenstein said bond rating agencies looked at the proportion of debt service to
the entire general fund budget. She said the county was at about 10%, and the rating
agencies typically became concerned if counties were over 15%. Mrs. Blumenstein said
that when the county was compared to other like -sized counties, it had considerably less
debt. She said that as the general fund grew, and the debt didn't change, the percentage
dropped proportionately.
REVENUE FROM SALES TAXES
Blumenstein said sales tax distributions were now being received on a monthly
basis instead of the previous quarterly cycle. She said last week, the third monthly
report was received. Blumenstein mentioned that for 2003-04, revenues were being