Agenda 05-07-24; 6-a - Introduction of Bond Order Authorizing $300 Million General Obligation School Bonds, Subject to Voter Approval (First Reading), and Scheduling of a Related Public Hearing

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 7, 2024 Action Agenda Item No. 6-a SUBJECT: Introduction of Bond Order Authorizing $300 Million General Obligation School Bonds, Subject to Voter Approval (First Reading), and Scheduling of a Related Public Hearing DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Bond Order and Resolution Gary Donaldson, (919) 245-2453 Attachment 2. Presentation Chaz Offenburg, (919) 245-2071 Robert Jessup, (919) 933-9891 PURPOSE: To consider the introduction of a Bond Order authorizing $300 Million General Obligation School Bonds, subject to voter approval and subsequent Board approval, and the scheduling of a related public hearing. The Bond Order is the basic Board proceeding that authorizes general obligation bonds, subject to voter approval. The Bond Order must come before the Board twice, once for the "introduction" (this meeting), and then later for adoption (scheduled for June 18, 2024). The Board must hold a public hearing before final adoption of the Bond Order. BACKGROUND: Since the presentation of the Woolpert School Facility Study in December 2023, the Board has considered at several meetings plans to respond to the funding needs described in the study and how to balance school capital needs, other County capital needs and the resources available. At the January 19, 2024 Board Retreat, the Board made the determination to start the bond authorization process based on a referendum amount of$300 million in County general obligation school bonds for both school districts. Based on revisions as noted in the Manager's Recommended FY 2024-34 Capital Investment Plan (CIP), the County's assumptions for repaying the $300 million in proposed County general obligation school bonds and related interest is estimated to have a tax rate equivalent impact of 3.41 cents per $100 of valuation, with all of that increase scheduled for the County's 2025-26 Fiscal Year. At the Board's April 2, 2024 Business meeting, the Board adopted a preliminary resolution stating its intent to apply to the North Carolina Local Government Commission (LGC) for the approval of the bonds (the LGC is a division of the State Treasurer's office that must approve substantially all local government borrowing). The County has published a notice of this intent as required by law, and the LGC has accepted the County's application.