Minutes 10-06-2015 - Laserfiche WebLink

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projects. The CIP is reviewed and adopted by the BOCC on an annual basis with appropriated funds for the current year only. Including funding in the CIP has the advantage of limiting the overall bond referendum amount and provides additional flexibility to fund projects as they mature to the stage of needing to be financed as well as determining annual tax rate impacts. The difference between the two funding sources is the type of financing that is used to borrow the funds. The bond referendum allows the County to issue general obligation (GO) bonds, backed by the full faith and credit of the County, while the CIP would be funded with other types of borrowing, typically limited obligation bonds (LOB) or installments financing. Using the bond to finance all of the purposes typically has the advantage of being able to access lower interest rates. General obligation bonds almost always carry a slightly lower interest rate than limited obligation financing. In either case, the Davenport analysis indicates that the County can support a total financing package of up to $135 million without violating the County's debt policy for affordability or exceeding its capacity to issue debt compared to its peers. Although financing projects through the CIP will have higher interest rates, the Finance Department does not believe that those rates would be different enough to have a material impact on the overall costs to the County with respect to the tax rate, affordability and capacity benchmarks. If you have questions, please do not hesitate to contact me. Thank you. Commissioner Dorosin asked if it is cheaper to borrow through the bond or through the CIP. Bonnie Hammersley said borrowing through the bond is cheaper, because the general obligations bonds are backed by the full faith and credit of the County. She added that as Orange County has a AAA bond rating, a favorable interest rate would be received. She said limited obligation bonds would probably receive a good interest rate as well. Commissioner Dorosin asked if a vote is taken tonight determining certain amounts for certain purposes, then moving forward the Commissioners could only reduce or eliminate funds, and no additional funds or purposes could be added. Bob Jessup said yes. Chair McKee said he would like to go to public comment on this item. PUBLIC COMMENT: Allan Rosen, the Project Manager for the Interfaith Council for Social Service, thanked the BOCC for its on going support for affordable housing. He said he supports bond funding for both schools and affordable housing, as good homes plus good schools equals great communities. He asked the BOCC to lead the development of a strategic plan for affordable housing and to assign at least $10 million bond funds to allow for the execution of such a plan. He said such funding could provide 500 housing units. Natalie Britt, Vice President for Rental Development at DHIC, said she supports bond funding for affordable rental housing in Orange County. Burnis Hackney said he supports bond funding for both schools and affordable housing. He said the two needs go hand-in-hand. He said he is also speaking on behalf of Saint Paul's Church which is committed to developing affordable housing. Marty Smith said he is from Tennons Woods Community in Efland, and he supports funding for affordable housing and the schools.