BC 2004 08 16 - Laserfiche WebLink

Home Browse Search

August 16, 2004 Page 604 (G-3) Proposed Escrow Restructuring Strategy Pam Dubois, Deputy County Manager, presented the proposal to pursue an escrow restructuring program in which Cabarrus County could recover potential savings by refunding the investments in the escrow account of the 2004 General Obligation Refunding. She explained the program is designed to help issuers recapture negative arbitrage through the liquidation of existing State and Local Government series (SLGS) securities and the purchase of new, higher yielding (cheaper) replacement investments. Ms. Dubois stated there is a potential to recoup up to $1 million from the escrow account with- accounting and legal fees of approximately $200,000.00. The County's financial adviser has recommended IMAGE (Investment Management Advisory Group, Inc.), should the County decide to proceed with the refunding. However, another company, Springsted, has also expressed an interest in providing this service. Ms. Dubois further reported that Mecklenburg County has been successful in recovering funds from their escrow accounts. Finally, she stated that changes to the investment of SLGS will be announced on September 30, 2004, and the window of opportunity may be narrowing for the County to recoup any of these funds. There was brief discussion regarding the proposed escrow restructuring, including the contingency fee contracts with the companies providing the service. Board members requested additional information, including a comparison of fees charged by the two companies, the firm used by Mecklenburg County and possible referrals from the North Carolina Association of County Commissioners. UPON MOTION of Commissioner Privette, seconded by Commissioner Carpenter and unanimously carried, the Board tabled Item G-3 until the August 25, 2004, meeting for further discussion and information from staff. Amendment One= Self Financing Bonds Pam Dubois, Deputy County Manager, presented information regarding Amendment One: Self Financing Bonds that will be on the November 2nd ballot in North Carolina. She explained that a self-financing bond is an economic development tool that is used by communities to attract jobs and revitalize communities and neighborhoods. The bonds can be used to pay for public improvements that spur private development. The North Caroling Association of County Commissioners, the League of Municipalities and the North Carolina Citizens for Business and Industry, among others, have endorsed Amendment One. UPON MOTION of Commissioner Privette, seconded by Commissioner Carpenter and unanimously approved, the Board adopted the following resolution of support for Amendment One: Resolution No. 2004-28 RESOLUTION IN SUPPORT OF AMENDMENT ONE: SELF-FINANCING BONDS: A LOCAL ECONOMIC DEVELOPMENT TOOL TO CREATE QUALITY JOBS, REVITALIZE COMMUNITIES AND ATTRACT NEW ECONOMIC OPPORTUNITIES IN NORTH CAROLINA WHEREAS, Cabarrus County has a need to attract more jobs and economic development; and WHEREAS, self-financing development bonds will have a direct impact on creating new jobs, new investment, and strengthening the tax base in our state; and WHEREAS, communities across the nation have used these bonds successfully to promote economic development; and WHEREAS, the use of these bonds will make a difference for every community - urban, suburban and rural; and WHEREAS, these bonds will give local governments flexibility to pursue multiple types of economic development projects including industrial site development, redevelopment of existing industrial and Brownfield sites, affordable housing and community revitalization; and WHEREAS, these bonds allow North Carolina's local governments to use a new mechanism to invest in public improvements designed to attract private sector investment; and WHEREAS, North Carolina is only one of two states in the nation that do not have this economic development tool; and