During the FY 2020 Budget and CIP processes, staff discussed the need to issue bonds to accomplish certain FY 2020 capital projects planned in the FY 2020 CIP and Budget. Projects for which borrowed funds are anticipated to be used are as follows:
- School technology, bus replacements, and capital maintenance projects;
- Renovations and expansion of Courtland High School;
- Replacement of Computer Aided Dispatch (CAD) system;
- Animal Shelter expansion/renovations;
- Co. 6 bunkroom addition and renovation; and
- Rt. 17 widening & bridge replacement.
The attached resolution presented for the Board's approval includes language giving staff latitude to refund any series of GO bonds previously issued by the County that may be to the County's advantage to refund this year. As we have done in the past, Finance staff will continue working with our financial advisors to determine which outstanding bonds are ripe for refunding given market conditions as we approach the time of the bond sale. We refund for the purpose of gaining interest savings. We do not refinance which extends the length of payback term on the bonds.
Debt service related to this GO issuance is included in the FY 2020 Adopted Budget. A future budget adjustment will be necessary to record the bond proceeds and issuance costs once the transaction is finalized. Due to the amount of the future budget adjustment, a public hearing will be required.
Staff requests that the Board approve the attached resolution and related documents for the GO issuance to occur this summer. As is always the case when we request Board approval of bond documents, the documents are subject to further edits as we finalize the bond transaction, but are substantially complete at this time. Additionally, staff requests that a public hearing to budget the bond proceeds be authorized to follow the closing of the bond sale, the timing of which is to be determined.