Agenda - 06-18-2024; 6-c - Proposed Bond Order Authorizing $300 Million in County General Obligation School Bonds, Subject to Voter Approval, and Approve the Details of the Referendum

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 18, 2024 Action Agenda Item No. 6-c SUBJECT: Proposed Bond Order Authorizing $300 Million in County General Obligation School Bonds, Subject to Voter Approval, and Approve the Details of the Referendum DEPARTMENT: Finance and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Bond Order Gary Donaldson, (919) 245-2453 Attachment 2. Resolution Approving Chaz Offenburg, (919) 245-2071 Referendum Details Robert Jessup, (919) 933-9891 Attachment 3. Presentation PURPOSE: To take final action approving the proposed Bond Order authorizing $300 Million in County General Obligation School Bonds, subject to voter approval, and to approve a resolution with the details of the referendum proposed for November 2024. 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, 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 impact of 3.41 cents per $100 of valuation, with all 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 LGC's 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 published a notice of this intent as required by law, and the LGC has accepted the County's application. At its May 7, 2024 Business meeting, the Board introduced the Bond Order (similar to the required first reading that is sometimes required for an ordinance) and called for the required public hearing. The Board held that public hearing at the June 4, 2024 Business meeting.