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2 <br /> With this item, the Board is asked to take final action to adopt the Bond Order. The Board is then <br /> asked to consider approval of a resolution to set formally the details of the referendum. These are <br /> the final actions required of the Board to place the question of the school bonds before the voters <br /> in November 2024. <br /> One item covered by the resolution approving the referendum details is the approval of the specific <br /> question that will be on the ballot for the voters. As has been discussed with the Board, most of <br /> the form of the ballot question is set by law, and there is no meaningful leeway to simplify or <br /> shorten the question. The resolution also directs staff to complete certain remaining newspaper <br /> publications the law requires. <br /> The Board must complete its formal authorization process before early August to allow the County <br /> Board of Elections adequate time for ballot printing and other organizational matters for the <br /> referendum. At this point, the Board can reduce the bond amount, but the Board cannot increase <br /> the amount unless the process is 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 have 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 impact of 3.41 cents per $100 of valuation, with all that increase scheduled for the <br /> County's 2025-26 Fiscal Year. The County will work to minimize the tax rate impact, in a manner <br /> 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 />