HomeMy WebLinkAboutC.054.93010_0982(b) The Series 2000 Bonds are payable from Installment Payments made by the
County under the Installment Financing Agreement, dated as of July 1, 2000, between the
Corporation and the Courcy.
(c) Under current conditions obtaining in the tax-exempt bond market, the County
has been advised by finance professionals that the County can achieve significant debt service
savings by (i) arranging for the Corporation to issue variable rate refunding bonds to advance
refund a portion of the Series 1000 Bonds and (it) simultaneously entering into an interest rate
swap agreement in order to create a svnthetic fixed rate on the refunding bonds.
(d) The County can achieve this economic result by entering into an interest rate
swap agreement (a "Swap Agreement') with a qualified provider (a "Counterparty'). Under
such an agreement, the Counterparty will agree to make, for the period ending on the date the
refunded Series 2000 Bonds are redeemed (June 1, 2010), variable interest rate payments based
upon the lesser of(]) the then current tax-exempt variable rate on the variable rate refunding
bonds and (2) a specified percentage of LIBOR (London interbank Offered Rate) or another
established rate on a notional amount corresponding to the principal amount of the variable rate
refunding bonds, and after such date, a specified percentage of LIBOR or another established
rate, and the County will agree to pay, the Counterpartyfixed rate interest payments on the same
notional amount.
Section 2. Subject to the limitations set forth in this resolution, the Director of
Finance and Administration of the County, is hereby authorized to negotiate on behalf of the
County an arrangement for a Swap Agreement for an interest rate swap with respect to said
refunding bonds from a variable rate of interest to a fixed rate. The Swap Agreement shall be
substantially in the form of the international Swap Dealers Association Inc. Master Agreement,
the form of which has previously been provided to the Director of Finance and Administration,
with such changes as shall be negotiated by the County. The notional amount with respect to
which the Swap Agreement payments shall relate shall not exceed $21,500,000 and the fixed
interest rate payable by the County, to the Counterparty under the Swap Agreement shall not
exceed 3.5% per annum. The County Manager or the Director of Finance and Administration is
hereby authorized to execute and deliver the final Swap Agreement on behalf of the County.
Section 3. The Director of Finance and Administration is hereby authorized to file an
application of the County with the North Carolina Local Government Commission for approval
of the County's entering into a Swap Agreement under the terms set forth in this resolution, and
the North Carolina Local Government Commission is hereby requested to approve the same. In
connection with the Local Government Commission's consideration of such application, the
Board makes the following findings and determinations:
(a) The annual audits of the County show the County to be in strict compliance with
debt management policies and that the budgetary and fiscal management policies are in
compliance with law.
(b) Entering into a Swap Agreement is expedient for the County.
(c) No increases in taxes are expected to be necessary to enable the County to make
the payments expected to be required with respect to the Swap Agreement.
Section 4. Efficient Capital Corporation is hereby authorized to act as Financial
Advisor to the County with respect to the Swap Agreement authorized hereby.
Section 5. Bank of America, N.A. is hereby approved as the Counterparty under the
Swap Agreement,
Section 6. The County Manager, the County Attorney, the Director of Finance and
Administration and the Clerk to the Board of Commissioners are each hereby authorized to
execute on behalf of the County the various certificates, proofs, instruments or other documents
to be executed in connection with the delivery of the Swap Agreement. All actions previously
taken by the County and its representatives in connection with the subject swap are hereby
ratified and approved.
Section 7. This resolution shall take effect immediately upon its passage.
Upon a olio of Commissioner Williams, the foregoing resolution was passed by the
following vote:
Ayes: 4; Nays - 0.
The Chairman thereupon announced that the foregoing resolution had been adopted.
Request for Approval of the Final Documents Regarding the Refinancing of the 1992
Certificates of Participation (COPS) & to Appoint Wendy Workman as the Acting Clerk to