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24 <br /> 6. Regular Agenda <br /> a. Preliminary Resolution Stating an Intent to Proceed with a November 2024 Referendum <br /> on $300 Million General Obligation School Bonds <br /> The Board approved a preliminary resolution expressing the County's intent to proceed with a <br /> voter referendum on November 5, 2024, to authorize up to $300 million of County general <br /> obligation school bonds. The resolution states the County's preliminary intent to proceed, directs <br /> County staff to proceed with an application for approval from the North Carolina Local Government <br /> Commission (LGC), and makes certain "findings of fact" requested by the LGC staff, including the <br /> need for the bonds and the expected tax rate impact. <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. The attached resolution represents the first formal step in <br /> calling for a November 5, 2024 bond referendum. <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 that increase scheduled for the County's 2025-26 Fiscal <br /> Year. The attached presentation delineates the additional CIP tax rate impacts separate from the <br /> general obligation bonds tax rate impacts. <br /> If the Board adopts the attached preliminary resolution, the Board will be asked to take additional <br /> action at subsequent meetings, currently scheduled as follows: <br /> Consider the authorizing bond order on May 7, 2024 <br /> first reading and call for a required public <br /> hearing <br /> Hold public hearing June 4, 2024 <br /> Take final action on bond order on second June 18, 2024 <br /> reading <br /> In any event, the Board must complete its formal authorization process before the summer break <br /> to allow the County Board of Elections adequate time for ballot printing and other organizational <br /> matters for the referendum. <br /> If the Board adopts the preliminary resolution for $300 million in School bonds, the Board can <br /> later in the process reduce the bond amount, but the Board cannot increase the amount beyond <br /> whatever amount is included in the attached resolution (unless the process was re-started). <br /> Both the Orange County Schools and Chapel Hill — Carrboro City School Boards of Education <br /> have adopted resolutions in support of the bond referendum process. <br /> SECURITY FOR BOND REPAYMENT. A general obligation bond, as proposed, is not secured by <br /> any physical collateral. Instead, the County promises to levy property taxes in whatever amount <br />