Agenda - 08-30-2001- - Laserfiche WebLink

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2 Schools district and one new middle school in the Orange County Schools district. The Board has not yet decided how much of the $47 million in school bonds will be allocated to these three new school construction projects. As the Board conducts its final deliberations regarding the projects for inclusion in the November 2001 bond referendum, it will be helpful to remember that the Board will have some flexibility to address a number of capital needs nat included`in the bond through other debt financing mechanisms. From the outset of the Capital Needs Advisory. Task Force process in March 2001, the BOCC has repeatedly indicated that there are more capital needs than can be addressed solely through general obligation bonds. By limiting the total bond referendum to $75 million, the Board has preserved additional debt capacity (through private placement loans, Certificates of Participation (COPs), etc:) of roughly $5 - $7 million per year for the next four years (based on assumptions of three annual bond sales of $25 million)., Additional debfi financing at those levels will still allow the County to stay within the Board's policy of maintaining annual debt service payments at 15 percent qr less of General Fund expenditures. During the third agenda item on this August 30 work session, fihe BOCC will have the opportunity to discuss in more detail those prajects that may be considered for alternafiive debt financing. FINANCIAL IMPACT: The issuance aver a period of several years of $75 million in new general obligation bonds, if approved by,the voters; will have an estimated cumulative maximum flax rate impact of 7.1 to 7.5 cents per $100 assessed valuation in order to retire the debt. RECOMMENDATION(S): The Manager recommends that the Board decide fihe amount of each band order to be adopted at the September 4 regular meeting, and provide any other appropriate direction to staff.