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HomeMy WebLinkAboutRes 131 - Auth Refund of BondsDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of November 5, 2012 Please see directiomIor completing this document on the next page. DATE: October 31, 2012 FROM: Marty Wynne Finance Phone # (541) 388-6559 TITLE OF AGENDA ITEM: Consideration and signature of Resolution #2012-131. A resolution authorizing the refunding of the bonds as described in the resolution. PUBLIC HEARING ON THIS DATE? NO BACKGROUND AND POLICY IMPLICATIONS: Consideration of Resolution #2012-131, authorizing the refunding of certain bonds as described in the resolution. FISCAL IMPLICATIONS: Present value total savings is estimated to be approximately $990,000. RECOMMENDATION & ACTION REQUESTED: Approval and signature of Resolution #2012-131. ATTENDANCE: Marty Wynne DISTRIBUTION OF DOCUMENTS: Marty Wynne, Finance Department 388-6559 REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Authorizing the County's General * Obligation Refunding Bonds * RESOLUTION NO. 2012-13) * WHEREAS, the Board of County Commissioners (the "Board") of Deschutes County, Oregon (the "County") previously issued its General Obligation Refunding Bonds, Series 2002, dated September 1, 2002 (the "2002 Bonds") to refund portions of the County's General Obligation Bonds, Series 1993B dated April 1, 1993, its General Obligation Bonds, 1996 Series A dated March 1, 1996, and its General Obligation Bonds, Series 1996 dated October 1, 1996; and WHEREAS, interest rates have declined since the 2002 Bonds were issued; and WHEREAS, the 2002 Bonds are paid from property taxes, and the County may be able to reduce its debt service costs and property tax levies for the 2002 Bonds by issuing general obligation refunding bonds to refund the 2002 Bonds~ and BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows: Section 1. Authorization. The County hereby authorizes the issuance of General Obligation Refunding Bonds (the "Refunding Bonds") to refund all or any portion of the Refundable Bonds to achieve debt service savings. The Refunding Bonds may be issued in an amount that is sufficient to refund all or any portion of the Refundable Bonds and to pay costs related to issuing the Refunding Bonds and refunding the Refundable Bonds. The Refunding Bonds shall be sold and issued as provided in this resolution pursuant to the Oregon Constitution and applicable provisions of Oregon Revised Statutes Chapter 287 A. Section 2. Delegation. The Finance Director, the County Administrator or the Finance Director's designee (the "County Official") are hereby authorized on behalf of the County and without further action by the Board, to: 2.1. Issue the Refunding Bonds in one or more series that may be sold at different times. 2.2. Participate in the preparation of, authorize the distribution of, and deem final the preliminary and final official statements and any other disclosure documents for the Refunding Bonds. 2.3. Establish the final principal amounts, maturity schedules, interest rates, sale prices, redemption terms, payment terms and dates, record date and other terms of each series of the Refunding Bonds. 2.4. Solicit competitive bids for the purchase of each series of the Refunding Bonds and award their sale to the bidder offering the most favorable terms to the County, or select one or PAGE 1 OF 3 -RESOLUTION NO. 2012-131 (11105/12) more underwriters, negotiate the terms of the sale of each series of Refunding Bonds, and sell that series to those underwriters. 2.5. Undertake to provide continuing disclosure for each series of the Refunding Bonds in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission. 2.6. Appoint and enter into agreements with a paying agent, verification agent, escrow agent, registrar and any other professionals and service providers that the County Official determines are desirable in connection with the Refunding Bonds. 2.7. Apply for ratings for each series of Refunding Bonds, determine whether to purchase municipal bond insurance or obtain other forms of credit enhancements for each series of Refunding Bonds, enter into agreements with the providers of credit enhancement, and execute and deliver related documents. 2.8. Execute and deliver a bond declaration for each series of Refunding Bonds specifying the terms under which each series of Refunding Bonds is issued, and making covenants for the benefit of the owners of the Refunding Bonds. The bond declarations may also contain covenants for the benefit of any credit providers. 2.9. Determine whether each series of Refunding Bonds will bear interest that is excludable from gross income under the Internal Revenue Code of 1986, as amended, or is includable in gross income under that code. If a series bears interest that is excludable from gross income under that code, the County Official may enter into covenants to maintain the excludability of interest on that series of the Refunding Bonds from gross income. 2.10. Determine whether the Refunding Bonds will reduce costs to the County's taxpayers, and select the maturities of the Refundable Bonds to be refunded and cause notice of call and redemption to be given as required by law. 2.11. Enter into escrow deposit agreements and take any other actions to call, defease and refund the Refundable Bonds. 2.12. Issue, sell and deliver the Refunding Bonds and execute any documents and take any other action in connection with the Refunding Bonds which the County Official finds will be advantageous to the County. Section 3. Security. The Refunding Bonds are general obligations of the County. The full faith and credit of the County are pledged to the successive owners of each of the Refunding Bonds for the punctual payment of such obligations, when due. The County covenants with the owners of the Refunding Bonds to levy annually a direct ad valorem tax upon all ofthe taxable property within the County in an amount without limitation as to rate or amount, and outside of the limitations of Sections 11 and 11 b, Article XI of the Oregon Constitution, after taking into consideration discounts taken and delinquencies that may occur in the payment of such taxes and other monies available for the payment of debt service on the Refunding Bonds, to pay interest accruing and the principal maturing on the Refunding Bonds promptly when and as they become due. Section 4. Appointment of Bond Counsel and Financial Advisor. The law firm of Hawkins Delafield & Wood LLP, is appointed as bond counsel to the County and Western Financial Group LLC, is appointed as financial advisor to the County with respect to the Refunding Bonds. PAGE 2 OF 3 RESOLUTION NO. 2012-131 (11/05/12) Section 5. Effective Date. This resolution shall take effect immediately upon its adoption. DATED this __th day of November, 2012. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ANTHONY DEBONE, Chair ALAN UNGER, Vice Chair ATTEST: Recording Secretary TAMMY BANEY, Commissioner Record of Adoption Vote Commissioner Yes No Abstained Excused Anthony DeB one Alan Unger Tammy Baney PAGE 3 OF 3 ~RESOLUTION NO. 2012-131 (11/05/12)