Agenda - 05-02-2023; 5-a - Public Hearing on the Financing of Various Capital Investment Plan Projects

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2 school properties. County staff is discussing with both school boards the particular schools to be used. The school boards will convey the selected schools to the County for the financing term so that the County can utilize them as collateral. The Board will be asked to approve the transfer of the particular schools as part of a May 16, 2023 Business meeting agenda item. Lenders generally require that the County offer collateral equal to at least 50% of the loan amount. The County expects to offer collateral well in excess of the loan amount, but transferring schools to the County now will facilitate future school improvements and financings over the next several years. The County has flexibility to release schools individually from the financing lien if that becomes appropriate. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact in proceeding with the financing. A preliminary estimate of maximum debt service applicable to this financing would require the highest debt service payment of approximately $2.01 million in FY 2025 (based on the lowest interest rates provided by potential bank lenders and the $16.5 million Not-to-Exceed financing amount). The tax rate equivalent for the estimated highest debt service payment based on the current (FY 2023) tax value of one cent ($2,212,097) is approximately $0.0091 (0.91 cents). These debt service amounts are well within the County's debt model parameters. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this item: • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND INEQUITY The fair treatment and meaningful involvement of all people regardless of race or color; religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic background; age; military service; disability; and familial, residential or economic status. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. • GOAL: ENABLE FULL CIVIC PARTICIPATION Ensure that Orange County residents are able to engage government through voting and volunteering by eliminating disparities in participation and barriers to participation. ENVIRONMENTAL IMPACT: The following Orange County Environmental Responsibility Goal impacts are applicable to this item: • ENERGY EFFICIENCY AND WASTE REDUCTION Initiate policies and programs that: 1) conserve energy; 2) reduce resource consumption; 3) increase the use of recycled and renewable resources; and 4) minimize waste stream impacts on the environment. • RESULTANT IMPACT ON NATURAL RESOURCES AND AIR QUALITY Assess and where possible mitigate adverse impacts created to the natural resources of the site and adjoining area. Minimize production of greenhouse gases. RECOMMENDATION(S): The Manager recommends that the Board: 1) Conduct the public hearing; 2) Close the public hearing; and 3) Adopt the resolution supporting the application to the Local Government Commission for approval of the financing.