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• Orange County Schools Additional Debt Service County Can Issue Between 2009-10 and 2013-14 • Based on County's Debt Management Policy — 15% of Total General Fund — Assumes annual General Fund growth at 7% • Reference Appendix B-2 in 2008-18 CIP • Additional face value debt of$190-195 Million • With anticipated new annual debt service of$16.5 Million by fiscal year 2013-14 if all debt capacity used • Cumulative impact on tax rate between 10 and 12 cents on tax rate for debt service only • Does not include additional cost for operations of new capital facilities Cost Comparison of$3 Million Project Debt Funded Compared to Pay-As-You-Go (graph) Laura Blackmon asked the Board to think about this before the February 7th budget work session. Commissioner Nelson thanked the staff for laying these options out. He said that he looks at these politically and how to get people to support them. He said that the realtors are going to be coming out against the options. He wants to couch this to the voters as money for the schools from the local revenue option because it is a clearer argument. He said that if it passes, then the money will go to the schools and free up money for the County. He said that this needs to be crystallized for the public. He wants to keep the conversation very straightforward. Donna Coffey said that tonight the staff wanted to make sure the Board of County Commissioners understood the options as they go out to educate the public. Commissioner Gordon made reference to Appendix A (unfunded capital needs) and the senior center expansions on page 1. She wants to flag these items (#2, 5, 6, 7) for future funding because the senior population is expanding rapidly, and we need to plan ahead for future senior facilities, just as we do for schools. She would also like to flag for funding #31 Twin Creeks Park. #39 Carrboro High School additions, #42 Culbreth Middle School science labs and #43 Elementary School #11. Laura Blackmon said that even though there are some unfunded projects, there will be discussion about bonding. Commissioner Gordon asked clarifying questions about debt capacity, which were answered by Donna Coffey. Commissioner Gordon made reference to the strategy for local revenue options and said that you almost need to treat it like a bond referendum in the sense that you explain what you are going to do with the money. The projects need to be identified for the public. Laura Blackmon said that this would mean that the County would have to continually identify projects for the money, unless it is identified that the money will only be used for school operating, school capital, or others.