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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 4, 2024 <br /> Action Agenda <br /> Item No. 5-a <br /> SUBJECT: Public Hearing on a Proposed Bond Order Authorizing $300 Million in County <br /> General Obligation School Bonds, Subject to Voter Approval <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Attachment 1. PowerPoint Gary Donaldson, (919) 245-2453 <br /> Chaz Offenburg, (919) 245-2071 <br /> Robert Jessup, (919) 933-9891 <br /> PURPOSE: To conduct a public hearing on a proposed Bond order authorizing $300 Million in <br /> County General Obligation School Bonds, subject to subsequent Board approval and voter <br /> approval. <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 are 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. <br /> At its April 2, 2024 Business meeting, the Board adopted a preliminary resolution stating its intent <br /> to apply to the North Carolina Local Government Commission (LGC) for the LGC's 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. At its May 7, 2024 Business meeting, the <br /> Board introduced the Bond Order (similar to the required first reading that is sometimes required <br /> for an ordinance) and called for tonight's public hearing. The Notice of the Public Hearing was <br /> published on May 22, 2024, in both The Herald Sun and the News of Orange County newspapers <br /> as required by law and consistent with the County's usual procedures. <br />