1992 - 05-04-92 Regular Meeting - Laserfiche WebLink

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rr,,iY 1=1 ~r,c' 656 Memorandum To: William K. Cowan County Manager From: John A. Crumpto , inance Director Subject: Refunding 1986 ool Bonds Date: May 13, 1992 As you are aware, at our Due Diligence Meeting in Raleigh with the Local Government Commission, it was suggested that the County consider refunding the 1986 School Bonds. The reason for considering this is that the interest rates on the Bonds are currently running at 7.6% annual and a refunding could bring the rates below 6%. If we combine the refunding with our new 9.7 million issue for the Enrichment Center and Jail/Courthouse facility, the cost of going to market will be shared between the two issues. After extensive review of proposals submitted by Alex Brown & Associates, J. L. Peller and Wachovia Bank & Trust, consulting with officials at the Local Government Commission, and Jim Lepeen, our Bond Counsel, I recommend that the County notify the Local Government Commission of its intentions to refund the 1986 School Bond Issue. The savings to the County could range between $200,000 and $375,000 over the remaining term of the Bonds taking into consideration the cost to reissue and the higher non-qualified bank rate for the Jail Courthouse/Enrichment Center Bonds. The savings annually will range between $20,000 to $35,000 per year. I am still consulting with the Local Government Commission and our Bond Counsel and will present additional information to the Commissioners at their May 18, 1992 meeting. At that meeting a resolution will need to be passed authorizing the reissue. In conclusion, if we are to meet the June 16th sale date, we must move quickly. At the May 18th meeting, I will be able to discuss this recommendation in greater detail and feel the Commisisoners will see the benefits of pursuing it. JAC:bgb