Agenda - 01-22-2015 - 6a - Laserfiche WebLink

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13 1 approach for 2016. He said it is important to use this opportunity to sit down with their 2 neighbors to determine what should be funded. 3 Clarence Grier said the Board is in discussion about a general obligation bond 4 referendum to be held in 2016. He read through the following information from the abstract: 5 6 BACKGROUND: In recent meetings over the past fiscal year, the Board of County 7 Commissioners has discussed the need for a future bond referendum to fund some County and 8 School long -range capital needs. Due to recent changes enacted by the North Carolina General 9 Assembly related to the dates in which a general obligation bond referendum can be held, a 10 general obligation bond referendum can only occur during even numbered years. Therefore, 11 there are only two possible dates for the Board of County Commissioners conduct a voter 12 approved general obligation bond referendum — May 2016 and November 2016. If not held at 13 one of these 2016 dates, a potential general obligation bond referendum would be delayed until 14 May 2018 or November 2018. Bob Jessup, Orange County Bond Counsel, and Orange County 15 staff has provided a schedule provided the Board with a brief timeline comparison related to 16 both dates (Attachment A). 17 The most recent time that Orange County held a general obligation bond referendum was in 18 November 2001. That bond referendum totaled $75 million and the items included on the 19 referendum were as follows: 20 • School related projects totaling $47 million. 21 • Parks and Recreation projects totaling $20 million 22 • Senior Center projects totaling $4 million 23 • Low and moderate income projects (Affordable Housing) totaling $4 million 24 25 He said all of the individual items on the bond referendum passed on the November 2001 bond 26 referendum. The total bond referendum passed with an average approval rate of approximately 27 55 percent. Additionally, some of the steps included in the process to prepare for the general 28 obligation bonds referendum were as follows: 29 30 1. The Board of County Commissioners decided to proceed with a general obligation bond 31 referendum. 32 2. The Board of County Commissioners formed and appointed members to a Capital Needs 33 Advisory Task Force to make a recommendation as to the needs and components of the bond 34 referendum (See Attachment B). 35 3. Once the components of the general obligation bond referendum were decided, the 36 Board of County Commissioners appointed a Bond Education Committee to inform the public of 37 the purpose of and the components of the general obligation bond referendum (Attachment C). 38 Currently, the County and both School Districts (Chapel — Carrboro City Schools and Orange 39 County Schools) have capital projects that are proposed for inclusion as part of the general 40 obligation bond referendum. Moreover, both school districts have older facility needs totaling 41 approximately $330 million that could potentially be addressed in part with a general obligation 42 bond referendum. 43 44 At the September 11, 2014 Board of County Commissioners Work Session, the recommended 45 sizing of the potential general obligation bond referendum was discussed at a range between 46 $100 and $125 million over a period of 20 years. At current AAA municipal bond interest rates, 47 the total combined debt service for a $100 million general obligation bond issuance is estimated 48 to be $6.5 million annually. This would represent the property tax rate equivalent of 4.00 cents 49 on the current property tax rate. At current AAA municipal bond interest rates, the total 50 combined debt service for $125 million general obligation bond issuance is estimated to be $8.1