On June 27, the Board authorized the sale of up to $30.0 million in General Obligation (GO) bonds to finance replacement fire equipment; a bunkroom addition for the Salem Church station; renovation of Courtland High School; and school technology, bus replacements, and capital maintenance.
On August 16, the County closed on the sale of $26.155 million for these projects with an all-in interest rate of 2.31% being achieved. Twelve bidders submitted offers to purchase the County's bonds with only 0.001% separating the winning bid and the second best bid. Overall, 0.11% separated the winning bid from the 12th bid.
When the Board authorized the sale of the new-money GO bonds in June, the issuance of up to $18.0 million was also authorized for the potential refunding of the outstanding 2009B bonds. When the new money bonds were sold in early August, the market was not such that it would have been advantageous to issue refunding bonds at that time. The County's financial advisors continue to monitor the market and staff will work with them to refund the 2009B bonds if and when it is financially beneficial to do so.
The attached budget adjustment allocates the bond proceeds among the projects and to the payment of the costs associated with issuance of the bonds. It also adjusts the County's debt service to be in line with that expected to be incurred in FY 2018 now that the bonds sale has been finalized.