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12 <br />All of the individual items on the bond referendum passed in the November 2001 bond <br />referendum. The total bond referendum passed with an average approval rate of approximately <br />55 percent. <br />Additionally, some of the steps included in the process to prepare for the general obligation <br />bonds referendum were as follows: <br />1. The Board of County Commissioners decided to proceed with a general obligation <br />bond referendum. <br />2. The Board of County Commissioners formed and appointed members to a Capital <br />Needs Task Force to make a recommendation as to the needs and components of the <br />bond referendum (See Attachment b). <br />3. Once the components of the general obligation bond referendum were decided, the <br />Board of County Commissioners appointed a Bond Education Committee to inform the <br />public of the purpose of and the components of the general obligation bond <br />referendum (Attachment c). <br />Currently, the County and both School Districts (Chapel — Carrboro City Schools and Orange <br />County Schools) have capital projects that would be included as part of the general obligation <br />bond referendum. Moreover, both school districts have older facility needs totaling <br />approximately $330 million that could potentially be addressed in part with a general obligation <br />bond referendum. <br />At the September 11, 2014 Board of County Commissioners Work Session, the recommended <br />sizing of the potential general obligation bond referendum was discussed at a range between <br />$100 and $125 million over a period of 20 years. At current AAA municipal bond interest rates, <br />the total combined debt service for $100 million is estimated to be $6.1.million annually. This <br />would represent 4.00 cents on the current property tax rate. At current AAA municipal bond <br />interest rates, the total combined debt service for $125 million is estimated to be $7.6 million <br />annually. This would represent 4.67 cents on the current property tax rate. <br />Future debt capacity for a potential general obligation bond referendum can increase or <br />decrease due to the following circumstances: <br />• Future increases or decreases in interest rates <br />• Future changes or modifications to the capital investment plans of the County and or <br />both School Districts (individually or collectively) <br />• Future changes of a legislative or regulatory nature <br />FINANCIAL IMPACT: There is no direct financial impact associated with the attached report <br />and calendar. <br />RECOMMENDATION(S): The Manager recommends that the Board receive the report and <br />calendar. The Board may choose to discuss the possible bond referendum at a future meeting. <br />