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