August 15, 2005                                                                                          ITEM # 6



Item Title:  Introduction of Bond Order Authorizing Approximately $41,000,000 General

Obligation School Bonds (“Two-Thirds Bonds”) and Calling for a Public Hearing on the

Proposed Bond (“Two-Thirds Bonds”) Order on September 19, 2005



Specific Action Requested:

That the Board of Commissioners authorizes the publication of the bond Order as introduced and calls for a public hearing on September 19, 2005.


Item Summary:

The County will be executing several financings this fiscal year, which include:


(1) Issuance of $41,000,000 of school debt. As indicated in the capital-planning model, the County will be issuing $41,000,000 of school bonds. The County is authorized by statute to issue 2/3 of the principle retired in the previous fiscal year without a referendum. In fiscal year 2004, the County retired $69,700,000 in debt and is authorized to issue under the 2/3 rules approximately $46 million.


(2) Execution of legal structure to create a commercial paper program. Over the next couple of months, the Board will be asked to authorize the necessary paperwork to setup a commercial paper program as outlined in a memo dated June 17, 2005 (attached.) 


(3) Refinancing of any bonds that might provide the County savings. Staff will also be reviewing our existing bonds as always to look for any savings the County can achieve through refinancing.  As of today, there have been no identified savings; however, Finance will continue to monitor bond markets and identify possible savings. 


The request before the Board is to accept the introduction of the bond order for the 2/3 school bonds for $41 million, authorize publication of the bond order, and call for a public meeting on the bond order for September 19, 2005.


At the September 19, 2005 meeting the Board will be asked to hold the public hearing for the 2/3 school bonds and adopt the bond order as introduced.  At that time, staff will also present resolutions and documents to execute a commercial paper program.



(1)   Resolution authorizing publication of the Bond Order as introduced and call for a public hearing on September 19, 2005 (includes Sworn Statement of Debt)

(2)   Calendar of events for Commercial Paper Program and Issuance of 2/3 School Bonds

(3)   Commercial Paper Program Memo