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11 <br /> Slide #11 <br /> Capital Budget Amendments <br /> Amendmen Sponsor CIP Budget Page Department Amendment Year 1 Impact 10 Year CIP <br /> t# impact <br /> Enable a 1.79 cent reduction in the FY <br /> 5-26 tax increase by amending School <br /> apital Pay-Go Phase-in to $500k in <br /> Carter,Portie- ear 1,$6M in year 2,$10M in year 3. <br /> CIP-1314 Ascott,Hamilton, 131-154 Schools Planning for Major Projects fully funded -$500,000 -$9,900,000 <br /> McKee y accelerating bond spending in year 1 <br /> nd year 2.Reduces 10 year Pay-Go <br /> Funding for School Major Projects by <br /> 9.9 M. <br /> ORANGE COUNTY <br /> 11 NORTH CAROIANA <br /> Commissioner Carter reviewed amendment CIP-B14, which she co-sponsored. She said <br /> the objective was to see if there was a way to minimize tax increases, considering feedback from <br /> the community and economic uncertainty. She said residential property owners will pay more in <br /> taxes due to the increase in valuation of their properties. She said voters approved a bond <br /> referendum in Fall 2024 for schools. She said that the Board is looking for a balance between the <br /> two approaches. She said that the Board was presented several options by staff in May, and this <br /> amendment was part of"Framework 2." She reviewed the changes in funding as listed on slide <br /> #9. <br /> Commissioner McKee said that the impact of the change will reduce the 2025-26 to be <br /> much closer to the revenue neutral rate. He said that this amendment would make the rate 63.0 <br /> and that is only 1.19 cents higher than revenue neutral rates. He said this does not account for <br /> the CHCCS special district tax,fire district tax, or municipalities. He said it might make a difference <br /> for someone living paycheck to paycheck. <br /> Commissioner Portie-Ascott said that while this amendment reduces the total available in <br /> the pay-go bond plan, it is an opportunity to blunt some of the impact of the multi-level tax impacts <br /> they are seeing this year. She said another upside is that it smooths out the revaluation. She said <br /> that it is worth noting that the bond referendum did not mention the pay-go amounts. She said the <br /> Board has made it clear that the intent of the pay-go was to provide flexibility and due to the <br /> unique moment, this flexibility is needed. <br /> Commissioner McKee said support for this amendment would be very much appreciated <br /> by many residents that are on fixed incomes or working lower paying jobs. <br /> Vice-Chair Hamilton said her colleagues did a great job on the amendment. She said that <br /> everyone must make adjustments considering the budget situation. She said they must think of <br /> those who don't have much and that even small reductions could make a difference. <br /> Commissioner Fowler said she respects the concerns, but she would rather support what <br /> was recommended by the County Manager because the tax rates will need to be raised in future <br /> years. She said they have reviewed the debt model in detail. She said even with the current plan <br /> it gets them only about 1/3 of the need. <br />