HomeMy WebLinkAboutC.054.93010_0980Chairman Johnson declared the meeting to be in a public hearing
Consideration of a Refinancing Pursuant to an Installment Financing Agreement of
a Portion of the Outstanding Installment Payment Revenue Bonds (Iredell County Schools
Projects) Series 2000: The Chairman announced this was the hour and day fixed by the Board
of Commissioners for the public hearing upon the proposed refunding, pursuant to a first
supplemental installment financing agreement (the "Installment Financing Agreement") with
Iredell County Public Facilities Corporation ("the Corporation"), a North Carolina non-profit
corporation, of a portion of the Corporation's outstanding Installment Payment Revenue Bonds
(Iredell County School Projects), Series 2000 ("the 2000 Bonds"), in order to achieve debt
service savings, and that the Board of Commissioners would hear anyone who wished to be
heard with respect to the Installment Financing Agreement and the 2000 Bonds to be refunded.
Finance Director Blumenstcin said that in July of 2000, the board issued $38,180,000 in
Installment Payment Revenue Bonds for school construction (Lake Norman High School, Phase
it of Lakeshore Middle School, a new building at Mooresville High School and other
renovations). She said that because the interest rates had dropped since July 2000, the Bank of
America's Securities had submitted a plan where it was believed that if the market remained
where it had been there was a potential savings of approximately one million dollars on the
maturities due in 2012 through 2020. Blumenstein said the bond counsel had given a favorable
opinion on the financing, as did a separate financial advisor.
Attorney Pope said that in the past, the county had chosen a fixed bond rate route on the
bonds. He said this financing used a variable rate that would change every week, but this type
had to be used to make the bonds marketable. Pope said the county's interests would be
protected due to a "swap" or "the locking in of its risk." He said the county's exposure was
capped, and a worse case scenario would be that the county would not be any worse off than it
already was at the present. Mr. Pope said the best case scenario would be the county might save
a million dollars. He said, however, the probable scenario would be the county would save a lot
of money, but not a million dollars.
Thereupon, the Chairman introduced the following resolution, a copy of which had been
provided to each Commissioner, which was read by title and summarized by the Finance
Director.
RESOLUTION MAKING CERTAIN FINDINGS AND DIRECTING THE FILING OF
AN APPLICATION FOR APPROVAL BY THE LOCAL GOVERNMENT COMMISSION OF
AN INSTALLMENT FINANCING AGREEMENT TO FINANCE THE REFUNDING OF A
PORTION OF OUTSTANDING INSTALLMENT PAYMENT REVENUE BONDS
BE IT RESOLVED by the Board of the Commissioners for the County of Iredell,
North Carolina:
Section]. The Board of Commissioners does hereby find, determine and declare as
follows:
(a) The County of Iredell, North Carolina (the "County') proposes to finance the
refunding of a portion of the outstanding Installment Payment Revenue Bonds (Iredell County
School Projects), Series 2000 (the "2000 Bonds') issued by Iredell County Public Facilities
Corporation (the "Corporation'), pursuant to a first supplemental installment financing
agreement (the "Installment Financing Agreement') with the Corporation under which the
Corporation will finance the refunding of a portion of the 2000 Bonds, and the County will make
Installment Payments (as defined in the Installment Financing Agreement) in amounts sufficient
to pay the principal of and interest on the Installment Payment Revenue Refunding Bonds
(Iredell County School Projects), Series 2003 (the "2003 Bonds'), to be issued and sold by the
Corporation to refund a portion of the 2000 Bonds, it being the express intention of the Board of
Commissioners that only the principal amount of the 2003 Bonds necessary to accomplish the
purposes stated in the Installment Financing Agreement will be issued (estimated not to exceed
$21,000,000 principal amount).
(b) Based on advice from the County's investment bankers as to current tax-exempt
interest rates, the sums to fall due under the Installment Financing Agreement are not excessive
for its stated purpose.