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2 <br />Orange County Schools has indicated the need for a new Elementary #8. That project is not <br />scheduled until FY 2021 -2022, but could be a potential project for inclusion in a potential bond <br />referendum. <br />Additionally, in order to afford additional debt, the County would potentially have to increase the <br />property tax rate 2.82 cents for the new debt service. This projected tax increase would not <br />include 1) any future other operating expenditure increases or 2) any future operating <br />expenditure increases related directly to the new facilities and schools being built. <br />Based on current projects included in the County's Capital Investment Plan and future debt <br />service, the County could afford additional debt of the following after FY2018 — 19: <br />Fiscal Year <br />Capacity <br />2019 <br />$ <br />9,068,407 <br />2020 <br />$ <br />9,562,078 <br />2021 <br />$ <br />10,796,372 <br />2022 <br />$ <br />46,790,237 <br />2023 <br />$ <br />43,627,691 <br />Total <br />$ <br />119,844,785 <br />The Board of County Commissioners will need to finalize its decisions regarding <br />outstanding issues such as the need for a future jail and school, and any other potential <br />projects that would be financed with an approved bond referendum. <br />Furthermore, the decision to start an educational campaign and appoint <br />a Capital Needs Advisory Task Force will need to be completed as soon as possible. <br />FINANCIAL IMPACT: There is not a financial impact with the information being provided. <br />There will be a financial impact in future years as decisions are made to proceed with a bond <br />referendum and issuing debt for future County and School projects. All projects that are being <br />considered are currently in the County's Capital Investment Plan. <br />It is currently expected that projects totaling $100 million will be financed with the issuance of <br />general obligation or limited obligation bonds over a period not to exceed 20 years. At current <br />municipal bond interest rates, the total combined debt service is estimated to be $6.7 million <br />annually. This would represent 4.18 cents on the current property tax rate. <br />RECOMMENDATION(S): The Interim Manager recommends that the Board receive the <br />information and provide feedback and direction to staff. <br />