Orange County NC Website
16 <br /> from publishing the notice of public hearing. By law, the Board of County Commissioners serves <br /> as the District's governing body. The District would contract with OWASA to manage the <br /> provision of water and sewer services within the District. The Town of Carrboro would need to <br /> consent through resolution to including any portion of the District lying within Carrboro town <br /> limits as part of the District. <br /> Financing <br /> Debt financing would be used to extend service to the District's residents. District construction <br /> costs would be funded by either a) the District borrowing from private sources or b) the three <br /> governments advancing funds to the District from borrowed funds or cash on hand. <br /> • Legally available methods for the District to borrow money on its own would include <br /> general obligation bonds (after approval by voters within the District),revenue bonds and <br /> installment financing. Because of the limited asset base and cash-flow of the District, <br /> however, Chapel Hill, Carrboro, and Orange County (in some combination) would likely <br /> be asked to commit to a "moral obligation" to provide funds to bridge any gaps in debt <br /> service payments. <br /> • If the three governments and/or OWASA advance funds to the District, the funding <br /> partners would either a) pay cash into a central fund upfront for construction costs, b)pay <br /> OWASA as requested, or c) a combination of the two. Any partner could borrow its <br /> contribution, and the District's repayment obligation to the partner could bear interest. <br /> The District would use some combination of several available revenue streams to repay the debt, <br /> whether to a third-party lender or back to the funding partners. The District could use its net <br /> operating revenues as the primary source of repayment. The capital charges could be levied, such <br /> as development fees for currently open space. The District would have its own taxing authority <br /> (via a separate rate set by the County Commissioners should they choose to levy an additional <br /> tax) and could levy special assessments. <br /> The Managers' will present this recommendation to their respective Boards independently for <br /> feedback and consideration in October at a regularly scheduled meeting. If you have any <br /> questions in the meantime, please do not hesitate to contact us. <br />