11/4/1981 - Laserfiche WebLink

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County will be 14.1450. The Bonds will pay interest from October 1, 1981. Mr. Leedy informed the Board of a technical amendment the Bond Counsel feels is needed in the proposed bond resolution. There is an I.R.S. regulation that says no issuer can capitalize a reserve account at more than 15% of the face value of the bonds, and this will not allow them to capitalize the full $112,000 reserve account. Bond Counsel John Kelly, therefore, has suggested an amendment stating that the County will capitalize from bond proceeds and other legal sources the difference needed to make this equal to one year's reserve, or about $8,000. Finance Officer Barton explained that the original bond issue did not pledge all of the $446,599 entitlement, and during the budgeting process, we have put this all into a reserve account; so, there is an excess above and beyond what is legally required, and this is what can be used to make up the difference. Finance Officer Barton discussed coverage requirements, noting that some suggestions were made to change the investment structure of the reserve account. He explained that we had two CD's on the original issue, and he went out in the market and to cover the reserve account, purchased U.S.Treasury securities that coincide with the last payment of this bond issue so that bond holders would have a fixed rate investment. These are Treasury Notes that mature in 2001 at a discount that yields 15.3%. Attorney Collins reviewed the amending Resolution which will allow the issuance of a series of Junior Bonds to complete the renovation and equipping of the County Administrative Complex. On Motion by Commissioner Scurlock, seconded by Commissioner Bird, Commissioner Fletcher voted in opposition, the Board by a 4 to 1 vote adopted Resolution 81-87. i 4 ' e.m 48 PAGE 67