Minutes 09-11-2014 - Laserfiche WebLink

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total a combined $73.2 million dollars, and both projects are included in the current County Capital Investment Plan for the fiscal years 2015 - 2020. It is not anticipated that the new jail project will be included in a potential general obligation bond referendum, but would be financed with alternative financing. Orange County Schools has indicated the need for a new Elementary #8. That project is not scheduled until FY 2021-2022, but could be a potential project for inclusion in a potential bond referendum. Additionally, as previously mentioned, both school districts have older facility needs totaling approximately $330 million that could potentially be addressed in part with a general obligation bond referendum. Additionally, in order to afford additional debt, the County would potentially have to increase the property tax rate 2.82 cents for the new debt service. This projected tax increase would not include 1) any future other operating expenditure increases or 2) any future operating expenditure increases related directly to the new facilities and schools being built. Based on current projects included in the County's Capital Investment Plan and future debt service, the County could afford additional debt of the following after FY2018 — 19: Fiscal Year Capacity 2016 $34,762,073 2017 21,359,811 2018 29,089,027 2019 11,405,556 2020 17,808,611 Total $114,425,078 The Board of County Commissioners will need to finalize its decisions regarding outstanding issues such as the need for a future jail and school, and any other potential projects that would be financed with alternative financing and an approved bond referendum. Furthermore, the decision to start an educational campaign and appoint a Capital Needs Advisory Task Force will need to be completed as soon as possible. Clarence Grier said there is not a financial impact with the information being provided. There will be a financial impact in future years as decisions are made to proceed with a bond referendum and issuing debt for future County and School projects. All projects that are being considered are currently in the County's Capital Investment Plan. It is currently expected that projects totaling $100 million will be financed with the issuance of general obligation or limited obligation bonds over a period not to exceed 20 years. At current municipal bond interest rates, the total combined debt service is estimated to be $6.1.million annually. This would represent 4.00 cents on the current property tax rate. Based the County current budget and budgeted revenues, the County could afford an additional $25,000,000 of additional general obligation debt capacity for a potential bond referendum if General Fund revenues remain consistent. At current municipal bond interest rates, the total combined debt service for $125 million is estimated to $7.6 million annually. This would represent 4.67 cents on the current property tax rate. Clarence Grier said as a result of the budget being $200 million staff wanted to look at debt capacity again to see how much additional could be afforded on a bond referendum. He said $10 million was appropriated, so the revenue was $100 million to pay for debt service on the bond. He said the revenues for the 2013/14 fiscal year were approximately $196 million. He said there was a property tax increase of 2 cents, which will add an additional $3.2 million, so the total expected revenue is approximately $197 to $199 million.