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