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