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I~ <br />~ ~ Marion Count~ <br />OREGON <br />BUSINESS SERVICES <br />DEPARTMENT <br />October 27, 2000 <br />BOARD OF <br />COMMISSIONERS <br />Patti Milne <br />Mike Ryan <br />Randall Franke <br />COUNTY <br />ADMINISTRATOR <br />Melinda Carlton <br />DIRECTOR OF <br />BUSINESS <br />SERVICES <br />David M. Hartwig <br />Telephone: <br />(503)589-3295 <br />Fax: <br />(503)588-5495 <br />(503)588-7951 <br />DIVISIONS: <br />Financial Services <br />Facilities <br />Human Resources <br />Information Systems <br />Risk Management <br />MEMORANDUM <br />TO: <br />FROM: <br />David Hartwig <br />Fred Kowell <br />SUBJECT: Certificates of Participation for Courthouse Square <br />There has been considerable discussion surrounding the various <br />options for the use of funds remaining from the construction of <br />Courthouse Square. Here are some as follows: <br />Let me first preface the reader by saying there are two remaining <br />sources of funding to pay for existing construction costs and any future <br />debt reduction. They are the $1.3 million held with the Treasurer <br />(represents sale of land to transit district) and the $2 million held in <br />Trust (remaining bond proceeds) for construction expenditures. <br />The first option would be to leave the funds held in Trust untouched <br />and draw down the remaining $1.3 million held with the Treasurer <br />(General Fund) for the remaining construction expenditures relating to <br />the months of August through October. This would leave <br />approximately $2 million with the Trustee of the Certificates of <br />Participation (COP's). The Trustee would then enforce the covenants <br />of the COP's which allows the governing body to use the remaining $2 <br />million held in Trust to call (payoff immediately) the specific series <br />(specific years) of debt. The attached schedule depicts the principal <br />payments and interest rates for each series of debt. <br />The second option would be to use the remaining $2 million held in <br />Trust to pay the construction expenditures for the months August <br />through October. This would result in a smaller balance held in Trust <br />which would require the COP's to be called as in Option 1 above. <br />However, this would allow the $1.3 million held with the Treasurer to <br />be reserved through a board resolution to pay off any series of debt <br />~ Printed on Recycled Paper <br />Reduce Reuse Recycle Recover P.O. Box 14500 • 97309 • 555 Court Street SE • Salem, Oregon 97301 www.open.org/marion <br />