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