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18 <br /> Travis Myren said it reduced some flexibility. He said if they are generating more <br /> revenue than it compensates for that. He said from a practical perspective, it is important to <br /> know what the number is and work to get back to the target. He said there will be times when <br /> the policy is exceeded, but there should be a plan to get the percentage down. <br /> Commissioner McKee said that property tax increases are borne by residential <br /> homeowners more than commercial because of decisions made by previous Boards of <br /> Commissioners. <br /> Vice-Chair Hamilton said that they previously had extensive conversations about the <br /> levels of debt service as they went through the school bond referendum and decisions. She said <br /> that she feels comfortable with this given the conversations that they had and what they know. <br /> She said they look at if they are making an investment that ultimately helps and saves residents <br /> in the long-term. She said that should be the key question. She said they can always make <br /> changes, but the policy makes them use the resources in a way that makes sense. <br /> Commissioner Portie-Ascott asked if lower collection rates would affect the debt service <br /> percentage. <br /> Travis Myren said that the collection rate has historically been consistent. <br /> Commissioner Portie-Ascott said that it could be a different environment this year. <br /> Slide #15 <br /> FY2025-35 Recommended Capital Investment Plan <br /> Funding the Plan <br /> • Pay-Go—1.98 cent tax increase in FY 26, estimated 1.09 cent in FY 27. <br /> • Debt—No tax increase required in FY 26. <br /> • County has options for how to fund future debt increases: <br /> Fiscal Year Incremental Tax Upfront Tax Tranche <br /> 2026 <br /> 2027 1.78 7.68 4.00 <br /> 2028 1.77 <br /> 2029 2.91 <br /> 2030 1.59 4.00 <br /> 2031 0.19 <br /> 2032 <br /> 2033 1.04 1.40 <br /> 2034 0.73 <br /> Total 10.01 7.68 9.401 <br /> ORANGE COUNTY <br /> 15 NORTH CAROLINA <br /> Commissioner McKee clarified that the increases in slide #15 are only related to capital. <br /> He said that these numbers assume that the county will not do anything else related to <br /> operating. He said he could not support an upfront tax of 7.68 cents. <br /> Chair Bedford asked if the upfront tax used to be lower in previous presentations. <br /> Travis Myren said the value of a penny increased. <br /> Vice-Chair Hamilton said that things can change, and they have to pay close attention to <br /> things that go in or out of their favor. She said that she prefers incremental increases in taxes <br /> because it is easier for households to absorb. <br />