ORD-2026-008-Resolution Authorizing Loan to Orange Grove Fire District for fire station improvements as part of FY 2026-26

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OGFD Annual Tax Levy The Fire District has adjusted its tax rate from 5 . 81 cents to 7 . 00 cents per $ 100 of assessed valuation beginning in FY 2025 -26 to ensure sufficient revenues to cover operating costs and the required annual debt service payments to the County . Under the proposed structure , the Fire District will reimburse the County annually for the full amount of debt service . If the Fire Department fails to make the required payment , the County will have the authority to offset overdue amounts from district tax distributions or other funds payable to the department , and per the promissory note can impose a 5 % penalty on the amount due . County Recourse for Annual OGFD Repayment The County provides annual property tax revenues to OGFD in four equal quarterly payments each fiscal year based on their district tax levy . The OGFD debt service repayment date will be set for January 15 every fiscal year which coincides with peak tax collections for OGFD . If debt service payment is not received by January 15 , the County will deduct and apply , through a right of set-off, an amount from the fourth quarter ( March ) property tax distribution to OGFD sufficient to satisfy the annual debt service requirement . The OGFD repayment will be recorded in the County ' s Debt Service Fund , FINANCIAL IMPACT . Because the Fire District will provide annual payments equal to the debt service obligation , the borrowing will not create a net General Fund tax burden for the County . The OGFD FY 2025 -26 annual tax levy is projected to generate $ 1 , 133 , 337 for operating and maintenance expenses and the proposed debt service requirement ( See draft debt service schedule ) . Budget Amendment #9-A increases authorization in the County Capital Fund by $ 1 , 700 , 000 and creates the following project ordinance : Orange Grove Fire Station #2 ($ 1, 700, 000) - Project # 17200 Revenues for this project : Current FY 2025-26 FY 2025-26 FY 2025-26 Amendment Revised Alternative Financing $ 0 $ 1 , 700 , 000 $ 1 , 700 , 000 Total Project Funding $ 0 $ 1 ,700 , 000 $ 1 , 700 , 000 Appropriated for this project : Current FY 2025 -26 FY 2025 -26 FY 2025 -26 Amendment Revised Project Expenditures $ 0 $ 1 , 700 , 000 $ 117001000 Total Costs $ 0 $ 1 ,700 ,000 $ 1y700 , 000 ALIGNMENT WITH STRATEGIC PLAN : This item supports : • GOAL 6 : DIVERSE AND VIBRANT ECONOMY RECOMMENDATION ( S ) R. The Manager recommends that the Board adopt the attached resolution authorizing Orange County to make a $ 1 , 700 , 000 loan to Orange Grove Fire District , approve the Promissory Note and Budget Amendment #9 -A in substantially the form presented , and authorize the County Manager and Chief Financial Officer to take all actions necessary to implement the loan .