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Form #: B -52 <br />7/18/91 <br />DEPARTMENT: Finance DATE: April 19, 2010 <br />STAFF CONTACT: Mike Okumoto PHONE: 933 -6240 <br />A. REQUEST: <br />Approval to amend Ordinances 04 -59, 07 -120, 08 -106, 08 -148, and 09 -153 is requested. The proposed <br />amendments to the interest rate and redemption provisions of these ordinances will allow the County to <br />issue taxable bonds under the American Recovery and Reinvestment Act (ARRA) <br />It is also requested that the Finance Committee review be waived due to the minor nature of the changes <br />and because the bond issuance process will begin shortly. <br />B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />Ordinances 04 -59, 07 -120, 08 -106, 08 -148, and 09 -153 represent bond ordinances with authorization for <br />CIP funding that has not been fully issued. The County is planning a bond issue in July which will refinance <br />current short term bond anticipation notes that are outstanding and borrow an additional amount based on <br />expected expenditures during the upcoming months. The exact amount will be determined closer to the <br />bond sale date and will be dependent on interest rates and expenditure trends. <br />The American Recovery and Reinvestment Act(ARRA), provides an interest subsidy to the County on <br />taxable bonds, providing an attractive option for financing capital improvements. It is likely that we will issue <br />taxable (vs. the traditional tax - exempt) bonds to take advantage of the interest subsidy. <br />The requested amendments will allow the County to issue Build America Bonds or Recovery Zone <br />Economic Development Bonds that are authorized under ARRA in the event that market conditions remain <br />favorable for these types of bonds. <br />SIGNED: <br />DEPARTMENT OF FINANCE <br />REQUEST FOR COUNCIL ACTION <br />DATE: .yl /thn <br />