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28 <br /> 1 recommended by the County Manager to reduce the tax impact of increasing debt service while <br /> 2 investing in both School and County capital needs. <br /> 3 <br /> 4 Reduce the Tax Impact of Debt Service <br /> 5 The FY 2022-33 Capital Investment Plan and the Long Range Financial Model both anticipate <br /> 6 the need to raise the property tax rate by one (1) cent in FY 2023-24 to fund an increase in debt <br /> 7 service that persists over the next three years. This amendment would transfer$6,000,000 of the <br /> 8 FY 2021-22 excess fund balance to a new Debt Service Fund to negate the need for a one (1) <br /> 9 cent tax increase in FY 2023-24. These funds will be appropriated over the next three fiscal years <br /> 10 to fund the scheduled spike in debt service during that time. The Capital Investment Plan currently <br /> 11 includes the first tranche of borrowing for a general obligation bond to occur in FY 2026-27 when <br /> 12 a tax rate increase may be required to fund related debt service. <br /> 13 <br /> 14 School Capital Reserve Fund <br /> 15 The School Capital Needs Work Group has identified the need to diversify funding for School <br /> 16 Capital. This amendment transfers $3,500,000 of the excess fund balance to the School Capital <br /> 17 Reserve Fund to provide additional pay-as-you-go(cash)funding to the school districts. The funds <br /> 18 will be used to pay for the upcoming School Capital Needs consultant, and the remainder will be <br /> 19 allocated between the school districts based on FY 2022-23 Average Daily Membership. <br /> 20 <br /> 21 County Capital Reserve Fund <br /> 22 This amendment allocates the remaining $2,500,000 to a County Capital Reserve Fund to provide <br /> 23 additional pay-as-you-go (cash)funding for one-time or capital needs. The first use will be funding <br /> 24 the upcoming Strategic Plan consultant. The remaining funds will be identified on future budget <br /> 25 amendments to support other capital or one time spending needs. <br /> 26 <br /> 27 Travis Myren gave the following PowerPoint presentation: <br /> 28 <br /> 29 Slide #1 <br /> Agenda Item S.a. <br /> ORANGE OUNTY <br /> NORTH CAROLINA <br /> Approval of an Allocation Framework for the <br /> FY2021 -22 Financial Results <br /> Board of Orange County Commissioners <br /> January 17, 2023 <br /> 30 <br />