Commissioners Court - Regular Session

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25.

Meeting Date:	07/21/2015
Resolution for Refunding Bonds for Newark Higher Education Fincance Corp (Orenda Education)
Submitted For:	Julie Kiley	Submitted By:	Julie Kiley, County Auditor
Department:	County Auditor
Agenda Category:	Regular Agenda Items

Information

Agenda Item

Discuss, consider and take any appropriate action regarding Resolution Approving Newark Higher Education Finance Corporation Education Revenue Refunding Bonds Series 2015A (Orenda Education) and Newark Higher Education Finance Corporation Education Revenue Refunding Bonds Taxable Series 2015B (Orenda Education) for the Benefit of Orenda Education in compliance with Section 147(f) of the Internal Revenue Code (Note: Bonds previously authorized and issued in 2013 and the proposed resolution approving refunding does not create any liability for Williamson County).

Background

The refunding is for savings as Orenda is now eligible for and will be issuing bonds guaranteed by the Permanent School Fund to refund existing bonds that don’t have the Permanent School Fund guaranty.

Section 147(f) of the Internal Revenue Code provides that a private activity bond (which is what the Bonds for Orenda Education are considered) shall not be issued unless they have been approved by:

(1) the governmental unit which issued such bond, or on behalf of which such bond was issued (which is the Newark Higher Education Finance Corporation and Orenda Education), and
(2) generally, each governmental unit having jurisdiction over the area in which the facility financed by the proceeds of such bond is located.

Item (2) is where Williamson County comes into this since Orenda Education is located in Georgetown.

Further, the approval must include a public hearing following reasonable public notice of the bond issuance. This requirement is commonly known as the “TEFRA requirement” because it was originally added to the Code by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Documentation supporting the notice and public hearing is attached. The bonds are not a liability of Williamson County.

Representation from Orenda Education will be available to answer questions.

Fiscal Impact

From/To	Acct No.	Description	Amount

Attachments
Orenda Education Resolution for Refunding Bonds
Orenda Education Refunding Bonds Certificate of Hearing
Orenda Educaiton Refunding Bonds Publishers Affidavit

Form Review

Inbox	Reviewed By	Date
County Judge Exec Asst.	Wendy Coco	07/16/2015 10:17 AM
Form Started By: Julie Kiley		Started On: 07/16/2015 09:31 AM
Final Approval Date: 07/16/2015