Laserfiche WebLink
r <br />MAR 16 199 800K 89 P�vF 34 <br />BOND REFINANCING STATUS <br />OMB Director Joe Baird presented the following memo dated <br />March 10, 1993: <br />TO: Members of the Board <br />Of County Commissioners <br />DATE: March 10, 1993 <br />SUBJECT: BOND FINANCING STATUS <br />FROM: Joseph A. Baird <br />OMB Director <br />DESCRIPTION AND CONDITIONS <br />Interest rates in the bond market reached their lowest point in a decade with 30 year tax exempt <br />bonds selling at an average of 5.6% interest rate (fixed). In an effort to take advantage of these <br />low interest rates, staff has been working with our underwriter, bond counsel, financial advisor, <br />rating agency and bond issuers on refinancing all the County's utility bond issues and financing <br />some proposed utility capital projects. The Utility bond issues proposed to be refinanced are: <br />Interest <br />Rate <br />Amount of <br />Bond <br />Bond Issue <br />5% <br />$9,200,000 <br />F.H.A Gifford Sewer Revenue Bonds, Series 1989 <br />7% <br />$450,000 <br />F.H.A. Bent Pine Revenue, Series 1989 <br />7385% <br />$6,510,000 <br />Water and Sewer Refunding Bonds, Series 1989 <br />6.70% <br />$9,205,000 <br />Water and Sewer Revenue Bonds, Series 1991 <br />7.75% <br />$6,075,000 <br />North County Sewer Assessment Bonds, Series 1989 <br />7.68% <br />$720,000 <br />Rodiridge Water and Sewer Assessment, Sef1es 1990 <br />There is a potential to reduce annual debt service payments by refinancing other County debt <br />William R. Hough and Company reviewed the Golf Course debt and based on today's bond <br />market we could save approximately $40,000 in annual debt service payments. Staff feels we <br />should review all our debt bond issues and refinance if their is substantial savings. <br />We are aware that the Board of County Commissioners would like staff to send out proposals for <br />each bond issue; however, because of the time involved (usually sig to eight weeks) in sending out <br />proposals, we could miss the opportunity of taking advantage of the low interest rates. In light <br />of the circumstances, we are requesting permission to utilize William R. Hough and Company for <br />the other County refinancing since they are currently working on the Utility refinancing. <br />RECOMMENDATION <br />Board of County Commissioners authorize staff to proceed in refinancing Utility debt and <br />authorize staff to utilize William R. Hough & Company for the other County refinancing, if <br />necessary. <br />W <br />