Minutes - Nov. 16, 2015 Reg. Meeting

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BK: 00027 PG: 0946 The Chair ruled the motion had been adopted unanimously. At this time Chair Dalrymple read and presented a Resolution Honoring Cooperative Extension Director Susan Condlin on her upcoming retirement, a copy of which is attached to these Minutes and by this reference made a part hereof. The Board heard a presentation from Mr. Ted Cole, Davenport & Company, LLC, regarding a potential refunding of the 2006 Certificates of Participation (COPs) when the county issued $28,355,000 to fund a new middle school, construct a multi-purpose room at Floyd L. Knight School, construct and equip a 26 -acre Tramway Road Park, renovate and repair facilities at Central Carolina Community College, and install a new roof at the Dennis A. Wicker Civic Center. The 2006 COPs are secured by Southern Lee High School and San Lee Middle School on a parity basis with the County's Refunding Certificate of Participation, Series 2012. The 2006 COPs have current interest rates ranging from 4.0% - 5.0% and are callable at any time beginning April 1, 2017, with no prepayment penalty. In 2012, the County refinanced the Certificates of Participation issued in 2004 and realized significant savings. Since that time, Davenport & Company has been monitoring the markets for a potential refunding of the 2006 COPs. In February 2014, the market was looking favorable for a refunding but the County decided the savings were not yet significant enough. Mr. Cole discussed potential savings for refunding at this time along with estimated debt service savings. The County has the option to advance refund all or a portion of the 2006 COPs to achieve debt service savings. In order to accomplish this refunding, the County would issue new Certificates of Participation and use the proceeds to purchase securities for an escrow that would fund the debt service requirements of the 2006 COPs through April 1, 2017. Based on current municipal market interest rates, the County could refund all or a portion of the $21,600,000 of outstanding 2006 COPs and realize the following levels of estimated debt service savings: • Gross Savings $1,485,003 • Net Present Value Savings $1,246,712 • NPV % Savings of Refunded COPs 6.5% • Average Annual Savings $114,231 • Negative Arbitrage $458,791 Note: the estimated savings figures listed above are preliminary and subject to change based on market conditions. The County could consider two potential options for implementing the potential refinancing: A public sale or a direct bank loan for Refunding Certificates of Participation. County Manager John Crumpton stated his recommendation was to authorize Davenport & Company to seek bids through the bank bid process. After discussion, Commissioner Oldham moved to recommend the refinancing and authorize staff to bring the bid process to the Board at the December 7tn meeting for review and consideration. Upon a vote, the results were as follows: Aye: Dalrymple, Frazier, Knecht, Oldham, Reives, Sloan, and Smith Nay: None The Chair ruled the motion had been adopted unanimously. The Board considered a Proclamation for Farm -City Week. 4-H Director Bill Stone introduced Ms. Elissa Neal, Lee County 4-H member who presented the Farm -City Proclamation designating the