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7 <br />CABARRUS COUNTY <br />BOARD OF COMMISSIONERS <br />REGULAR MEETING <br />MARCH 21, 2011 <br />6:30 P.M. <br />AGENDA CATEGORY: <br />New Business <br />SUBJECT: <br />Finance - Qualified School Construction Bonds (QSCB) - Additional <br />Financing Options <br />BRIEF SUMMARY: <br />On September 20, 2010, the Board approved the financing of the <br />Cabarrus County and Kannapolis City Schools QSBC projects, based <br />upon discussion at the September work session concerning a 5 -year <br />principal deferment and zero net interest payments for the term of the <br />debt. Shortly thereafter, staff switched from a private placement to a <br />public offering to obtain the 5 -year deferred principal because all attempts <br />to secure the funding based on the Board's criteria were unsuccessful. <br />The private placement closing costs were originally estimated not -to- <br />exceed $75,000. The closing costs for a public placement are now <br />estimated at $183,680 - a difference of $108,680. The following <br />spreadsheet outlines various financing options (debt terms and interest <br />payments) available for the Board's consideration, should it wish to <br />proceed with the QSCB. <br />REQUESTED ACTION: <br />Receive information and provide direction to staff. <br />EXPECTED LENGTH OF PRESENTATION: <br />10 Minutes <br />SUBMITTED BY: <br />Pamela S. Dubois, Deputy County Manager <br />D <br />it <br />G -9 Page 311 <br />