The Board will hear a request to authorize the Director of Finance to hold competitive bidding to award a Certificate of Participation debt issuance to the investor with the lowest True Interest Cost (TIC) consistent with revised authorities. On April 21, the Board authorized the County Administrator and Director of Finance to proceed with a debt restructuring to increase the County's annual payment rate by 10 percent, to $4.4 million, over 30 years for a minimum of $28 million in net proceeds. The money would be used to address infrastructure needs to County properties. Staff is requesting to revise the authority because of subsequent changes in the debt issuance market, increasing interest rates. Staff requests authority to go to market for annual debt payments of $4.5 million over 30 years, resulting in net proceeds of at least $24 million, in order to maximize the proceeds of sale, net of escrow and corresponding cost of issuance.
The Board approved the request and authorized the Director of Finance to hold a competitive bidding.
Need more info? See the staff report about the debt issuance.
Contact: Matthew Hymel, County Administrator
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