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26 <br /> 1 Commissioner Greene asked for clarification on the use of pay-go and how it increases <br /> 2 general fund revenues. <br /> 3 Gary Donaldson said it provides a top line of revenue that are being used to cash finance <br /> 4 and the general fund revenues are growing. He said if the revenue base is expanded then the <br /> 5 debt service gets reduced. He said this is similar to growing commercial tax base revenue to help <br /> 6 residents. <br /> 7 Commissioner Carter said it seems like a happy circumstance to have additional funds in <br /> 8 capital because of unspent funds. She asked the source. <br /> 9 Gary Donaldson said that was unspent money from the 2016 General Obligation Bond. <br /> 10 Chair Bedford said the funds are incorporated into the plan and the dollars that are left <br /> 11 from the 2016 Bond are allocated. <br /> 12 Commissioner Carter said there was a reference to the tariff issue in the packet. She <br /> 13 asked under what conditions would the county need to reconsider the timing of the bonds. <br /> 14 Gary Donaldson said they feel comfortable that the county is safe and there is no level of <br /> 15 exposure. He said the LGC has to approve bond financing in NC, and they have not halted the <br /> 16 application process for local governments moving forward. <br /> 17 Chair Bedford said her husband worked in Baltimore and in 1987, the night before the <br /> 18 major crash, he was working on a bond for a hospital and that project had to go belly-up. She said <br /> 19 that sometimes it comes to a halt but that has not been seen in NC because of the LGC. <br /> 20 Gary Donaldson said six weeks ago there were a lot of concerns, but it seems to have <br /> 21 calmed. <br /> 22 Chair Bedford asked if commissioners are allowed to buy these bonds or hold them in <br /> 23 trusts. <br /> 24 Bob Jessup, Orange County's Bond Counsel, said the commissioners have no <br /> 25 prohibitions around buying or selling the bonds however they are prohibited from using non-public <br /> 26 information to decide if they will buy or sell. <br /> 27 Commissioner Portie-Ascott asked what happened to the amounts for 2026 and 2027. <br /> 28 Chair Bedford said this is related to previous borrowing and not future. <br /> 29 Gary Donaldson said this has already been approved and the borrowing is embedded in <br /> 30 the CIP and the operating budget. He said that the interest only portion is $2.7 million budgeted <br /> 31 in the 2026 budget from this borrowing. <br /> 32 Commissioner Carter asked if the slide depicts any tax implications from future borrowing. <br /> 33 Gary Donaldson said this is in the CIP and it is to fund that program. <br /> 34 Chair Bedford said that pay-go is tax dollars. She said every time they go out to borrow, <br /> 35 this chart gets updated. <br /> 36 Commissioner Carter asked if after they finalize the plans moving forward, if the numbers <br /> 37 might move a little bit. <br /> 38 Gary Donaldson said absolutely. <br /> 39 Commissioner Fowler pointed out that the $1.9 million in the CIP is related to pay-go and <br /> 40 not debt. <br /> 41 <br /> 42 A motion was made by Commissioner Carter, seconded by Vice-Chair Hamilton, to <br /> 43 approve the final financing resolution, which authorizes the steps to complete the financing of the <br /> 44 stated capital projects and equipment, in the form presented. <br /> 45 <br /> 46 VOTE: UNANIMOUS <br /> 47 <br /> 48 7. Reports <br /> 49 None. <br /> 50 <br /> 51 <br />