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13 <br /> 1 financing would require the highest debt service payment of $894,084 in FY 2016-17. The tax <br /> 2 rate equivalent for the estimated highest debt service payment is approximately 1/2 cent. A <br /> 3 portion of this debt financing is related to projects where the debt service payments will be paid <br /> 4 from Solid Waste Enterprise funds. <br /> 5 <br /> 6 Based on current resources and the retirement of existing debt, no adjustment to the tax rate is <br /> 7 anticipated with this financing during the period noted. <br /> 8 <br /> 9 Commissioner Price asked if using Grady Brown as collateral is a normal process; and if <br /> 10 the County has a surplus, why is it not being used for these projects, instead of increasing debt. <br /> 11 Gary Donaldson said there is a Capital Investment Plan (CIP), and there is a mix of <br /> 12 sources of income. He said these projects were deemed for financing, and the useful life of a <br /> 13 project is also considered. <br /> 14 Gary Donaldson said under state statue for installment financing, there must be <br /> 15 collateral that is comparable in value to that which is being financed. <br /> 16 Commissioner Jacobs asked if special authorization is given for the University of North <br /> 17 Carolina to borrow multi millions over 100 years. <br /> 18 Bob Jessup said UNC Board of Governors has asked for some legislation for 100 year <br /> 19 borrowing, which is currently capped at 30 years. He said there is currently no statutory limit for <br /> 20 installment financing, but the Local Government Commission wants the payment schedule to be <br /> 21 about the length of the useful life of the asset. He said it would take additional state legislation <br /> 22 to authorize that type of long-term financing. <br /> 23 Commissioner Jacobs asked if there is any place in the United States where this type of <br /> 24 borrowing is used. <br /> 25 Bob Jessup said the District of Columbia or Washington Metro transit borrowed 100- <br /> 26 year money to finance a wide range of long lasting improvements. He said others, such as for <br /> 27 profit organizations and some public universities, have used it. <br /> 28 <br /> 29 A motion was made by Commissioner Burroughs, seconded by Commissioner Pelissier <br /> 30 for the Board to approve the final financing resolution authorizing the issuance of approximately <br /> 31 $8,150,000 in installment financing to finance capital investment projects and equipment for <br /> 32 fiscal year 2015-16, including amounts to pay transaction costs. <br /> 33 <br /> 34 VOTE: UNANIMOUS <br /> 35 <br /> 36 b. Establishment of a Policy to Provide the Board of Equalization and Review <br /> 37 Guidance on the Imposition of Penalties <br /> 38 The Board considered adopting a policy to provide assistance to the Board of <br /> 39 Equalization and Review in determining how and when to compromise tax penalties. <br /> 40 <br /> 41 BACKGROUND: <br /> 42 The Board of County Commissioners indicated the need to have a standardized policy for the <br /> 43 compromise of tax penalties in Orange County in order to avoid any appearance of unfairness <br /> 44 to Orange County taxpayers. Currently the Board of Equalization and Review has no guidance <br /> 45 in this area. A standardized approach to the compromise of tax penalties will benefit both the <br /> 46 Board of Equalization and Review (E&R) and the taxpayers of Orange County. <br /> 47 <br /> 48 John Roberts said the BOCC encountered this issue, and directed him to bring back a <br /> 49 policy to provide guidelines to the E&R Board, for when tax penalties can be compromised. He <br /> 13 <br />