Orange County NC Website
1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />45 <br />46 <br />47 <br />48 <br />49 <br />50 <br />3 <br />50% of the actual annual debt service cost. The County could potentially benefit from <br />participating with the Town of Chapel Hill from increased property and sales tax revenues. <br />The budget impacts for the County would be committing an average of $385,612 over 18 years <br />for a total of $6,941,017 for the project (Attachment C). This also takes in account the possible <br />impact of adding approximately 450 new students in the Ephesus Fordham area of the Chapel <br />Hill — Carrboro City Schools District (CHCCS) over an 18 -year period that could increase the <br />need for a new elementary and /or move up the timeline for Elementary #12 and Middle School <br />#5 for CHCCS. <br />Additionally, if a new high school and /or major additions have to be made to one of the existing <br />CHCCS high schools to accommodate the projected increase in students, the additional debt <br />service would reduce the net amount of property taxes received as result of the planned project <br />improvements. <br />Clarence Grier noted that the County has two school systems that are funded at 48.1 <br />percent of the general fund revenue, and these were not taken into account. <br />He noted that additional information has been included in attachment A, which shows <br />the total cost of these improvements is $10.0 million ($8.8 million for traffic improvements and <br />$1.2 million for stormwater). <br />Michael Talbert said Chapel Hill has approved the re- zoning of these parcels. <br />Chair Jacobs asked for more explanation of what is being asked of them and the time <br />frame in which it is asked. <br />Ken Pennoyer, Business Management Director for the Town of Chapel Hill, discussed <br />the following financing and Repayment plan, as outlined in attachment A: <br />Financing Plan <br />The Town is planning on financing the Town Hall Renovation project and other CIP projects <br />with debt. By combining the financing of these projects using two common forms of debt that <br />the Town has used numerous times, the total cost of financing all of these projects will be <br />reduced and can be completed on the timetable established for the Ephesus Fordham Project. <br />The Projects <br />Town Hall Repair & Renovation $ 900,000 <br />High Priority CIP Projects 800,000 <br />Ephesus Fordham: <br />Traffic Improvements 8,800,000 <br />Stormwater Capital 1,200,000 <br />Total Ef Project 10,000,000 <br />Total All Projects $ 11,700,000 <br />The Debt <br />Two - thirds General Obligation Bonds $ 1,700,000 <br />Installment Financing 10,000,000 <br />Total Planned Debt issuance $ 1137003000 <br />Repayment Plan <br />Debt Management Fund: The portion of debt used for Town Hall and CIP will be repaid <br />through the Debt Management Fund. The Debt Fund was established in 2009 with a dedicated <br />property tax to provide a source of funds to pay off Town debt obligations. <br />