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<br />Page 604
<br />
<br />August 16, 2004
<br />
<br />(G-3)
<br />
<br />Propo.ed ...row Restructuring Strategy
<br />
<br />Pam Dubois, peputy County Manager, presented the proposal to pursue an
<br />escrow restructuring program in which Cabarrus County could recover potential
<br />savings by refunding the investments in the escrow account of the 2004
<br />General Obligation Refunding. She explained the program is designed to help
<br />issuers recapture negative arbitrage through the liquidation of existing
<br />State and Local Government series (SLGS) securities and the purchase of new,
<br />higher yielding (qheaper) replacement investments. Ms. Dubois stated there
<br />is a potential to recoup up to $l million from the escrow account with,
<br />accounting and legal fees of approximately $200,000.00. The County's
<br />financial adviser has recommended IMAGE (Investment Management Advisory
<br />Group, Inc.) / should the County decide to proceed with the refunding.
<br />However, another company, Springsted, has also expressed an interest in
<br />providing this service. Ms. Dubois further reported that Mecklenburg County
<br />has been successfu~ in recovering funds from their escrow accounts. Finally,
<br />she stated that ehanges to the investment of SLGS will be announced on
<br />September 30, 200"" and the window of opportunity may be narrowing for the
<br />County to recoup any of these funds.
<br />
<br />There was brief discussion regarding the proposed escrow restructuring,
<br />including the contingency fee contracts with the companies providing the
<br />service. Board members requested additional information. including a
<br />comparison of fees charged by the two companies, the firm used by Mecklenburg
<br />County and possible referrals from the North Carolina Association of County
<br />Commissioners.
<br />
<br />UPON KOTION' of Commissioner Privette, seconded by Commissioner
<br />Carpenter and unanimously carried, the Board tabled Item G-3 until the August
<br />25/ 2004/ meeting for further discussion and information from staff.
<br />
<br />(G-4)
<br />
<br />Amendment oae,
<br />
<br />Self Financing Bonds
<br />
<br />Pam Dubois, Deputy County Manager, presented information regarding
<br />Amendment One: Self Financing Bonds that will be on the November 2M ballot in
<br />North Carolina. She explained that a self-financing bond is an economic
<br />development tool that is used by communities to attra'ct jobs and revitalize
<br />communities and neighborhoods. The bonds can be used to pay for public
<br />improvements that ,spur private development. The North Caroling Association
<br />of County Commissioners, the League of Municipalities and the North Carolinà
<br />Citizens for Busiaessand Industry, among others, have endorsed Amendment
<br />One.
<br />
<br />UPON KOTION of Commissioner Privette, seconded by Commiuioner
<br />carpenter and unanimously approved, the Board adopted the following
<br />resolution of support for Amendment One:
<br />
<br />a..olution No. 2004-28
<br />
<br />RESOLUTION IN SUPPORT OF AMENDMENT ONE:
<br />SELF-FINANCING BONDS: A LOCAL ECONOMIC DEVELOPMENT TOOL TO CREATE
<br />QUALITY JOBS, REVITALIZE COMMUNITIES AND ATTRACT NEW
<br />ECONOMIC OPPORTUNITIES IN NORTH CAROLINA
<br />
<br />WHEREAS, Cabarrus county has
<br />development;'and
<br />
<br />a need ,to
<br />
<br />jobs
<br />
<br />and economic
<br />
<br />attract
<br />
<br />more
<br />
<br />WHEREAS, self-financing development bonds will have a direct impact on
<br />creating new, jobs, new investment, and strengthening the tax base in
<br />our state; and
<br />
<br />WHEREAS, communities across the nation have used these bonds successfully to
<br />promote economic development; and
<br />
<br />WHEREAS, the use of these bonds will make a difference for every community -
<br />urban, subur~an and rural; and
<br />
<br />WHEREAS, these bonds will give local governments flexibility to pursue
<br />multiple type. of economic development projects including industrial
<br />site development, redevelopment of existing industrial and Brownfield
<br />sites, affor4able housing and community revitalization; and
<br />
<br />WHEREAS, these bonds allow North Carolina's local governments to use a new
<br />mechanism to invest in public impPOvements designed to attract private
<br />sector investment; and
<br />
<br />WHEREAS, North Carolina is only one of two states in the nation that do not
<br />have this economic development tool; and
<br />
<br />A,I
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