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27 <br /> 1 Slide#38 <br /> Options to Smooth the FY2028-29 Increase in Debt Service <br /> 1. Delay Authorized Projects <br /> - County Manager can delay projects that have been authorized in prior Capital Investment Plans <br /> - Examples include: Vehicle Replacements <br /> Facility Improvement Projects <br /> - Carrboro Elementary and the new 4CS Elementary projects have already incurred planning and design expenses <br /> in connection with planned construction <br /> • If those design funds are not financed with the construction;the county would have to use pay-go funds for <br /> those soft costs <br /> ORANGE COUNTY <br /> 38 NORTH CAROLINA <br /> 2 <br /> 3 Travis Myren transitioned to a discussion of options for smoothing the projected tax rate increase <br /> 4 of over 4.5 cents in FY 2028-29 associated with debt service. He explained that delaying borrowing for year <br /> 5 one projects is largely not feasible because design funds for the two elementary school projects are already <br /> 6 spent or obligated and canceling those projects would require the county to find cash to cover <br /> 7 approximately$11 million in design costs. <br /> 8 <br /> 9 Slide#39 <br /> Options to Smooth the FY2028-29 Increase in Debt Service <br /> 2. Delay$123.7 million in Major Projects from Year 2 <br /> to Year 3 <br /> - Estes Hills Elementary $59.5 million Fiscal Year Current CIP Delay Major <br /> - ES Headquarters $48.4 million Projects <br /> - Viper Phase 1 $11.3 million 2026-27 2.01 2.01 <br /> - Historic Courthouse $4.5 million 2027.28 1.09 1.09 <br /> 2028-29 4.58 3.27 <br /> — Impact of Delaying Projects 2029-30 1.61 0.85 <br /> • Adds-3%inflation to project budgets 2030.31 1.78 <br /> • Delays projects contingent on ES Headquarters 2031.32 0.33 <br /> - Cedar Grove Storage 2032.33 1.48 1.58 <br /> - 510 Meadowlands Retrofit <br /> • Cumulative tax impact increases from 10.77 cents per Total 10.77 10.91 <br /> $100 of value to 10.91 cents <br /> ORANGE COUNTY <br /> 39 NORTH CAROLINA <br /> 10 <br />