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24 <br /> 1 Commissioner Carter gave an example of the impact of revaluation on tax increases for <br /> 2 residents, just at the revenue neutral rate. She said that the cumulative impact is a lot for <br /> 3 homeowners without a lot of resources. She gave examples of areas in the budget where she <br /> 4 would like to explore reductions. <br /> 5 Chair Bedford said in previous recessions or economically difficult times, schools were <br /> 6 able to use fund balances to reduce the impacts of reductions. She gave examples of areas <br /> 7 where services might need to be reduced as the Board prioritizes needs. <br /> 8 Commissioner McKee said that July is too late to reduce the tax rate. He said he wants <br /> 9 to plan for federal cuts now and create something that residents can live with. <br /> 10 <br /> 11 5. Public Hearings <br /> 12 a. Public Hearing on the Financing of Various Capital Investment Plan Projects <br /> 13 The Board will conduct a public hearing on a financing contract for up to $78.0 million to pay for <br /> 14 capital investment projects and equipment for Fiscal Year 2024-25, and to approve a related <br /> 15 resolution supporting the County's application to the Local Government Commission (LGC)for its <br /> 16 approval of the financing arrangements. <br /> 17 <br /> 18 BACKGROUND: This public hearing and adoption of the attached resolution marks the first <br /> 19 formal steps in the Board's approval of the County's annual financing for capital investment <br /> 20 projects and equipment, for both County and school purposes. County staff estimates that the <br /> 21 total amount to be financed this year will be approximately $78.0 million. It should be noted that <br /> 22 all of the projects and improvements to be funded were previously approved by the Board and <br /> 23 are already moving forward in development. <br /> 24 <br /> 25 The law requires that the County conduct a public hearing on the proposed financing. A copy of <br /> 26 the published hearing notice is provided at Attachment 1. The notice of public hearing was <br /> 27 advertised in the News of Orange on April 16, 2025. <br /> 28 <br /> 29 After conducting the public hearing and receiving public input, the Board is asked to consider <br /> 30 adoption of a resolution (Attachment 2). This resolution formally requests the required LGC <br /> 31 approval, makes certain "findings of fact" as required under the LGC's guidelines, and authorizes <br /> 32 County staff to continue the process. County staff has been in contact with the LGC staff, and <br /> 33 staff expects no issues in receiving LGC approval. <br /> 34 <br /> 35 If the Board adopts the attached resolution, staff proposes to present a resolution to the Board <br /> 36 giving final approval of the financing plans at its Business meeting on May 20, 2025. County staff <br /> 37 expects to close the financing by the end of June. <br /> 38 <br /> 39 COLLATERAL: In this type of County installment financing, the County secures its obligations to <br /> 40 the bondholders by a mortgage-type interest in some or all the property being acquired or <br /> 41 improved through the financing. The County plans to secure this 2025 financing through a pledge <br /> 42 of several County and school properties. County facilities expected to be included in the collateral <br /> 43 package include the Whitted Building, the Orange County Library in Hillsborough and Blackwood <br /> 44 Farm Park. <br /> 45 <br /> 46 County staff is working with both school boards to finalize the list of schools to be used as <br /> 47 collateral. The following schools are under consideration: Ephesus Elementary, Culbreth Middle <br /> 48 (from Chapel Hill—Carrboro City schools), and (from the Orange County schools)Orange Middle, <br /> 49 New Hope, Pathways, and Orange High. The County has flexibility to release schools individually <br /> 50 from the financing lien if that becomes appropriate in the future. <br /> 51 <br />