Orange County NC Website
Browse       Search
15 <br /> rate to fund growing debt service. The table below illustrates an incremental approach to <br /> funding the Plan based on the recommended project sequencing and timing. <br /> 2026-27 1.78 <br /> 2027-28 1.77 <br /> 2028-29 2.91 <br /> 2029-30 1.59 <br /> 2030-31 0.19 <br /> 2031-32 <br /> 2032-33 1.04 <br /> 2033-34 0.73 <br /> 2034-35 <br /> Total 10.01 <br /> Other tax rate approaches could be used. For example, the Board could choose an up- <br /> front increase that generates the revenue necessary to fund the growth in debt service <br /> through FY2034-35. That increase would be 7.68 cents if implemented in FY2026-27. <br /> Alternatively, the Board could choose an incremental tranche-based approach where <br /> fewer but larger increments are used. For example, a 4-cent increase in FY2026-27, an <br /> additional 4 cents in FY2029-30, and a final 1.40 cents in FY2032-33 would also finance <br /> the growth in debt service. <br /> • Debt Capacity Target <br /> County policy has established a debt service capacity target of 15% of general fund <br /> revenues. Based on prior borrowing approved by the Board, this target is achieved in <br /> FY2025-26 at 11.19%. However, as money is borrowed for new school and County <br /> projects, the debt to general fund revenue ratio exceeds 15% starting in FY2028-29 and <br /> may reach as high as 19.13% in FY2033-34 based on the incremental tax increase <br /> approach detailed above. <br /> Fiscal Year DS to GIF Revenue % <br /> 2026-27 12.86% <br /> 2027-28 14.05% <br /> 2028-29 16.44% <br /> 2029-30 17.77% <br /> 2030-31 17.86% <br /> 2031-32 17.75% <br /> 2032-33 18.63% <br /> 2033-34 19.13% <br /> 2034-35 18.13% <br /> Page 113 <br />