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27 <br /> BACKGROUND: This item marks the first formal steps in the Board's approval of the County's annual <br /> financing for capital investment projects and equipment for County purposes. County staff estimates that <br /> the total amount to be financed this year will be approximately$60.8 million. <br /> This year County staff recommends dividing the total financing package into two (2) parts, with one <br /> financing closing in June 2026 and the other closing in late July or early August 2026.This division into two <br /> (2) separate bond issues will allow the County to both replenish funds advanced for project costs before <br /> the end of the County's fiscal year, and then allow the County to borrow the required funds for the crisis <br /> diversion center without having to advance funds for a full year. <br /> The law requires that the County conduct a public hearing on the proposed financings. A copy of the <br /> published hearing notice is provided at Attachment 1. The notice of public hearing was advertised in the <br /> News of Orange. <br /> After conducting the public hearing and receiving public input, staff requests that the Board consider the <br /> adoption of a resolution (Attachment 2). This resolution formally requests the required LGC approval, <br /> makes certain "finding of fact" as required under the LGC's guidelines, and authorizes County staff to <br /> continue the process. County staff has been in contact with the LGC staff, and staff expects no issues in <br /> receiving LGC approval for either phase of the financing.This public hearing and adoption of the attached <br /> preliminary resolution will fulfill those particular legal requirements for both financings. <br /> If the Board adopts the attached resolution, the Board will be asked to consider a resolution giving final <br /> approval to the Phase I financing plans at its Business meeting on May 19, 2026. <br /> The Board will be asked to consider a resolution for the Phase II financing at the July 9, 2026 Business <br /> meeting. The primary use of the Phase II proceeds will be for construction costs of the crisis diversion <br /> center, and so that borrowing amount can be set after the final construction contract amounts are <br /> established. Any changes to the plans for the Phase II financing will not have any material adverse effect <br /> on the Phase I financing. <br /> County staff does not expect to use any of the 2026 financing proceeds to fund capital projects for public <br /> schools. For projects through the current fiscal year, the County has identified other funds in hand <br /> sufficient to fund school projects. Staff expects the County will finance school project costs in the coming <br /> fiscal year through the issuance of some of the voter-approved general obligation bonds or otherwise. <br /> Notes regarding certain projects: <br /> - The Blackwood Farm Park project pertains to re-graveling and drainage work.There is no financing <br /> associated with this item for the proposed disc golf course. <br /> The Affordable Housing project pertains to Habitat East Village (funding for site infrastructure and <br /> development for East Village at Meadowlands 76 new units (2, 3,and 4-bedroom)of which 64 will <br /> be affordable Habitat homes for first-time homebuyers earning between 30% and 80% of area <br /> median income(AMI).The remaining 12 units(15%) in East Village will be market-rate homes. Pee <br /> Wee Homes pertains to construction of three new affordable rental homes ("tiny homes") at 106 <br /> Hill Street in Carrboro. <br /> - The 510 Meadowlands Phase 2 project pertains to remediation costs. <br /> COLLATERAL: In this type of County installment financing,the County secures its obligations to the lender <br /> by a mortgage-type interest in some or all the property being acquired or improved through the financing. <br /> The County plans to secure the 2026 financing with a variety of County facilities previously pledged to <br />