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2 <br /> Following the public hearing, the Board will be asked to take final action to adopt the Bond Order <br /> at the Board's June 18, 2024 Business meeting. The Board will also then be asked to consider a <br /> required resolution to set formally the details of the referendum. <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. At this point, the Board can reduce the bond amount, but the Board <br /> cannot increase the amount unless the process re-started. <br /> SECURITY FOR BOND REPAYMENT: A general obligation bond, as proposed, is not secured <br /> by any physical collateral. Instead, the County promises to levy property taxes in whatever amount <br /> is necessary to provide for repaying the bonds, including the interest on the money borrowed <br /> through the bonds. <br /> FINANCIAL IMPACT: If the voters approve, the bonds will provide funds for priority public school <br /> projects that would otherwise need to be paid for out of recurring revenues or borrowed through <br /> more expensive and less flexible means. <br /> County staff has worked closely with the County's financial advisers to estimate the effect on the <br /> County's tax rate that repaying the bonds is likely to have. The estimates are based on a variety <br /> of assumptions, including assumptions about when the bonds would be issued, the interest rates <br /> that the bonds will carry, the repayment period, and growth in the County's tax base over time. <br /> The estimated tax impact is likely to be different from the actual impact. <br /> Based on the County's assumptions, repaying the bonds and related interest is estimated to have <br /> a tax rate equivalent impact of 3.41 cents per $100 of valuation, with all that increase scheduled <br /> for the County's 2025-26 Fiscal Year. The County will work to minimize the tax rate impact, in a <br /> manner consistent with moving ahead with the projects and addressing other County needs. <br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br /> this item: <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 /> impact is 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 sources; and 4) minimize waste stream <br /> impacts on the environment. <br /> RECOMMENDATION(S): The Manager recommends that the Board conduct the public hearing <br /> and provide any further desired direction to staff. No Board action other than conducting the public <br /> hearing is required at this time. <br />