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2 <br /> County Library in Hillsborough and other County property. The school boards will convey the <br /> selected schools to the County for the financing term, so that the County can use them as <br /> collateral (and the County will lease the schools back for their continued use as schools). The <br /> attached resolution authorizes County staff to complete the process and documentation for <br /> transferring schools to the County. <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 with a value equal to many multiples of the loan amount, <br /> but transferring schools to the County now will facilitate future school improvements and <br /> financings over the next several years. The County has flexibility to release schools individually <br /> from the financing lien if that 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 $1.75 million in FY 2025 (based on the interest rates provided by TD Bank and the <br /> $14.5 million not-to-exceed financing amount). The tax rate equivalent for the estimated highest <br /> debt service payment based on the current (FY 2023) value of a penny of $2,212,097 is <br /> approximately $0.0079 (0.79 cents). <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 approve the final financing <br /> resolution authorizing the steps to proceed with the financing of the stated capital projects. <br />