Agenda 05-19-2026; 6-a - Adoption of the Final Financing Resolution Authorizing the Issuance of 2026A Installment Purchase Financing for Various Capital Investment Plan Projects

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2 The Board will be asked to give final approval of the 2026B issuance at the July 9, 2026, Business meeting. That issuance will primarily fund construction costs for the Crisis Diversion Facility. Notes regarding certain projects: - The Blackwood Farm Park project pertains to re-graveling and drainage work. There is no financing associated with this item for the proposed disc golf course. - The Affordable Housing project pertains to Habitat East Village (funding for site infrastructure and development for East Village at Meadowlands 76 new units (2, 3, and 4- bedroom) of which 64 will be affordable Habitat homes for first-time homebuyers earning between 30% and 80% of area median income (AMI). The remaining 12 units (15%) in East Village will be market-rate homes. Pee Wee Homes pertains to construction of three(3) new affordable rental homes ("tiny homes") at 106 Hill Street in Carrboro. - The 510 Meadowlands Phase 2 project pertains to remediation costs. COLLATERAL: In this type of County installment financing, the County secures its obligations to the bondholders by a mortgage-type interest in some or all the property being acquired or improved through the financing. The County plans to secure this 2026A financing through a pledge of several County facilities, including the Justice Center, North Campus, Southern Campus, and the Emergency Operations Center on Meadowlands Drive in Hillsborough, as well as the Crisis Diversion Facility site. The County has flexibility to release individual portions of the collateral from financing liens when the release will advance other County priorities. No schools are being used as collateral for the 2026 financings, although schools remain as collateral for other County financings. As part of this financing process, the County will release Ephesus Elementary from all financing liens to simplify the Chapel Hill Carrboro City Schools Board's evaluation of the future of that school. Bondholders generally require that the County offer collateral equal to at least 50% of the loan amount (for example, at least $5 million of collateral for a $10 million loan). The prospective collateral package has an approximate value of $90.0 million. The current issue will take the total amount secured by this collateral package to approximately $122.3 million, providing a collateral ratio of approximately 73.4%. FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be a financial impact in proceeding with the financing. A preliminary estimate of maximum debt service applicable to this phase of the financing would require the highest debt service payment of approximately $3,535,000 in FY 2028. The tax rate equivalent for the estimated highest debt service payment based on the current (FY 2026) value of a penny of$3,299,538 is approximately $0.0107 (1.07 cents). These amounts are consistent with those shown previously in County capital and operating budget plans. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT — Orange County is a visionary leader in providing governmental services valued by our community, beyond those required by law, in an equitable, sustainable, innovative and efficient way. RECOMMENDATION(S): The Manager recommends that the Board approve the final 2026A financing resolution, which authorizes the steps to complete the financing of the stated capital projects and equipment, in the form presented.