Agenda - 11-19-2014 - 4 - Laserfiche WebLink

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All of the individual items on the bond referendum passed on the November 2001 bond referendum. The total bond referendum passed with an average approval rate of approximately 55 percent. Additionally, some of the steps included in the process to prepare for the general obligation bonds referendum were as follows: 1. The Board of County Commissioners decided to proceed with a general obligation bond referendum. 2. The Board of County Commissioners formed and appointed members to a Capital Needs Advisory Task Force to make a recommendation as to the needs and components of the bond referendum (See Attachment B). 3. Once the components of the general obligation bond referendum were decided, the Board of County Commissioners appointed a Bond Education Committee to inform the public of the purpose of and the components of the general obligation bond referendum (Attachment C). Currently, the County and both School Districts (Chapel — Carrboro City Schools and Orange County Schools) have capital projects that are proposed for inclusion as part of the general obligation bond referendum. Moreover, both school districts have older facility needs totaling approximately $330 million that could potentially be addressed in part with a general obligation bond referendum. At the September 11, 2014 Board of County Commissioners Work Session, the recommended sizing of the potential general obligation bond referendum was discussed at a range between $100 and $125 million over a period of 20 years. At current AAA municipal bond interest rates, the total combined debt service for a $100 million general obligation bond issuance is estimated to be $6.5 million annually. This would represent the property tax rate equivalent of 4.00 cents on the current property tax rate. At current AAA municipal bond interest rates, the total combined debt service for $125 million general obligation bond issuance is estimated to be $8.1 million annually. This would represent property tax rate equivalent of 4.89 cents on the current property tax rate. Future debt capacity for a potential general obligation bond referendum can increase or decrease due to the following circumstances: • Future increases or decreases in interest rates • Future changes or modifications to the capital investment plans of the County and or both School Districts (individually or collectively) • Future changes of a legislative or regulatory nature FINANCIAL IMPACT: There is no direct financial impact associated with the attached report and calendar. RECOMMENDATION(S): The County Manager recommends that the Boards receive the information and discuss as necessary. The Board of Commissioners will be further discussing the possible bond referendum at future BOCC meetings.