| | | | | | | |  | Brunswick County Board of Commissioners
ACTION AGENDA ITEM
November 15, 2021 |
Action Item # VII. - 1. From:
Randell Woodruff
| Administration - Initial Resolution Brunswick Limited Obligation Bonds - (Randell Woodruff, County Manager) |
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| | | | | | | | Issue/Action Requested:
Request that the Board of Commissioners approve the Initial Resolution and the engagement of Parker Poe as Bond Counsel and Robert W. Baird & Co., Incorporated to serve as the managing underwriter and/or placement agent for the Brunswick County 2022 Limited Obligation Bonds, Refunding Series 2012 LOBS and call a Public hearing for December 6, 2021. |
| | | | | | | | Background/Purpose of Request:
The County has previously entered into an Installment Financing contract in 2012 to refinance prior contracts which had financed capital costs related to the Detention Center Expansion, two new schools Town Creek Elementary School and Cedar Grove Middle School, and the renovations and additions to Bolivia Elementary, Union Elementary, and South Brunswick Middle Schools. The County is in the process of refunding (refinancing) outstanding bonds for the county where cost savings are 3% or greater which follows county policy. Current estimates result in savings for refunding the Series 2012 LOBs through the issuance of Series 2022 Refunding Limited Obligation Bonds. The current estimate of savings is 6.19% while maintaining the same term ending in 2028. The gross cash savings after deducting fees are estimated at $699,615 with a present value of $674,730 with a conservative estimate of an all-in true interest cost of 1.4%.
The engagement of bond counsel for the county is needed to issue debt. Parker Poe has served as the County's Bond Counsel for many years and is highly regarded throughout the State. Attached is Parker Poe's proposal of a fee of $38,000 with respect to the limited obligation bond.
The engagement of a placement agent for the county is needed to issue debt. The County has worked with Ryan Mayor with Robert W. Baird for several years on various debt issues and found his services satisfactory and very beneficial to the County. Attached is Baird's proposal of a fee of $15,000 with respect to the limited obligation bond.
Initial discussions have begun with the Local Government Commission, Bond Counsel, and Financial Advisors to secure the financing for the 2012 LOBs refunding with a project closing date of January 13, 2022.
Attached is a Resolution authorizing the negotiation of an installment purchase contract, directing the publication of notice with respect thereto and providing for certain other related matters thereto with amounts not to exceed $11,500,000 for the refinancing. Staff recommends that the Board of Commissioners approve the resolution.
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| | | | | | | | Fiscal Impact:
Pre-Audit Certification Required, Reviewed By Director of Fiscal Operations
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| | | | | | | | Approved By County Attorney:
Yes |
| | | | | | | | County Manager's Recommendation:
Recommend the Board of Commissioners approve the Initial Resolution and the engagement of Parker Poe as Bond Counsel and Robert W. Baird & Co., Incorporated to serve as the managing underwriter and/or placement agent for the Brunswick County 2022 Limited Obligation Bonds, Refunding Series 2012 LOBS and call a Public hearing for December 6, 2021. |
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