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35 <br /> 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 M/year. <br /> Impact: Less funding available total.Worse debt metrics. <br /> �1 <br /> 32 ORoRrH GE COUNTY <br /> Slide #33 <br /> Recommended School Capital Funding <br /> • Current Output of Debt Model based on Recommended CIP <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 DS to GF Debt Tax Rate Pay Go Tax Rate <br /> Revenues Equivalent Equivalent <br /> 2026 1.24% 11.20% - 1.94� <br /> 2027 1.50% 13.10% 2.42 1.074 <br /> 2028 1.77% 14.16% 1.42� - <br /> 2029 1.78% 16.50% 2.844 <br /> 2030 1.61% 17.78% 1.55� <br /> 2031 1.62% 17.87% 0.180 <br /> 2032 1.81% 17.75% - <br /> 2033 1.69% 18.61% 0.99� <br /> 2034 1.46% 19.16% 0.8N <br /> 2035 1.35% 18.00% - <br /> Total Impact 10.190 3.0U <br /> ORANGE COUNTY <br /> 33 NORTH CAROLINA <br /> Kirk Vaughn said the debt service chart in slide #33 shows the potential pressure on the <br /> General Fund. <br /> Chair Bedford noted that the Pay Go Tax Rate Equivalent chart shows a 3.01 cents total <br /> increase, and that will fund $10 million each year. <br />