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32 <br /> Slide #7 <br /> Questions/Comments <br /> ORANGE COUNTY <br /> raorcn c uuoLma <br /> Commissioner Dorosin referred to the list of spring financing projects, and asked if the <br /> list could be more clearly defined. <br /> Gary Donaldson said the projects on the list are firm amounts, with bids in hand. He <br /> said, for example, the bids are coming late on the Blackwood Farm project, and there may need <br /> to be adjustments. He said bonds will not be issued without firm estimates. <br /> Commissioner Dorosin asked if there is a firm date for cutoff. <br /> Gary Donaldson said doing the issuing in May gives the County time to put a good list <br /> together to go to the Local Government Commission. <br /> Commissioner Dorosin asked if the County can only borrow once a year. <br /> Gary Donaldson said the County can borrow any time of the year, but it has become <br /> Orange County's practice to borrow once a year. <br /> Commissioner Fowler asked if the County still has the highest bond rating. <br /> Gary Donaldson said by going out for financing in spring, the rating agencies get used <br /> to seeing the County. He said the County has a triple A rating from all three rating agencies. <br /> He said the County has a strong credit story throughout the pandemic, and all the credit <br /> characteristic are very strong for the County. He said the long term planning model has served <br /> the County well. <br /> Commissioner Fowler said the estimated interest rates are 2-3%, and asked if staff has <br /> worked with a worst-case scenario model. <br /> Gary Donaldson said 4% is built into the model. <br /> Commissioner Fowler said it is conceivable that numbers could come in less than that. <br /> Gary Donaldson said yes. <br /> Commissioner McKee asked if there an estimated timeline for the Blackwood Farm bids. <br /> Gary Donaldson said May 26, 2021. <br /> Commissioner McKee asked if there is a plan if the bid comes in higher than expected. <br /> Gary Donaldson said staff would go to the market to determine a financial solution to not <br /> impede the project. <br /> Commissioner McKee asked if it would be better to delay the project. <br /> Donaldson said there would need to be a discussion. He said the project might be <br /> removed from the financing, and this is a preliminary financing plan. <br /> Commissioner McKee said material and labor costs have escalated. <br /> Commissioner Hamilton asked if a project were to be delayed would the debt service <br /> estimates change. <br /> Gary Donaldson yes, there would be a reduction in the interest only payments. <br />