Orange County NC Website
Browse       Search
35 <br /> 1 Slide #32 <br /> Recommended School Capital Funding <br /> Four possible adjustment frameworks: <br /> 1, Reduce Pay-Go in early years, reallocate funds for additional Pay-Go in <br /> backend to maintain $100 M over 10 years. <br /> - Impact: Less funding available to Major Projects, increased funding for later High Priority <br /> Needs. <br /> 2, Reduce Pay-Go in early years, do not reallocate funds to future years. <br /> - Impact: Less funding available to Major Projects. <br /> 3. Delay district projects by a year, requiring later pay-go introduction. <br /> Impact: Increased Major Project costs due to inflation, less time to complete projects. <br /> 4. Reduce Pay-Go allocation across ten-year plan. No longer target $10 Mlyear. <br /> - Impact: Less funding available total. Worse debt metrics. <br /> ORANGE COUNTY <br /> 32 NA)x'I'1 i CAROLINA <br /> 2 <br /> 3 <br /> 4 Slide #33 <br /> Recommended School Capital Funding <br /> • Current Output of Debt Model based on Recommended GIP <br /> Updated to reflect new value of a penny, FY 25-26 Recommended General Fund revenues, <br /> final 2025 borrowing size. <br /> Anticipating a 3.49 cent tax increase in FY 26-27 between Pay-Go and Debt. <br /> Year Debt to AV D5 to GF Debt Tax Rate Pay Go Tax Rate <br /> Revenues Equivalent Equivalent <br /> 2026 1.24% 11.20% - 1.944 <br /> 2027 1.54% 13.10% 2.424 1.074 <br /> 2028 1.77% 14A6% 1.42E - <br /> 2029 1.78% 16.50% 2-84.4 <br /> 2030 1.61% 17.78% 1.554 <br /> 2031 1.621/o 17.87% 0.184 <br /> 2032 1.81%a 17.75% - <br /> 2033 1.69%u 18.61% 0.994 <br /> 2034 1.46`t6 19-16% 0.804 <br /> 2035 1.35% 18.00% - - <br /> TotaG Impact 10.194 3.014 <br /> 33 ORAN� CGE <br /> ROLINA5 <br /> 6 Kirk Vaughn said the debt service chart in slide #33 shows the potential pressure on the <br /> 7 General Fund. <br /> 8 Chair Bedford noted that the Pay Go Tax Rate Equivalent chart shows a 3.01 cents total <br /> 9 increase, and that will fund $10 million each year. <br />