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28 <br /> 1 Slide#8 <br /> FY 2026-27 Operating Budget Options <br /> • Debt Service and Pay-Go Options <br /> Debt Service increase $7.8 <br /> • Equivalent to 2.0 cents per$100 of value <br /> • Exceeds all General Fund Revenue Growth($5.9 million) <br /> • Strategies to reduce future debt service pending staff analysis <br /> — Pay-Go- $3.0 million <br /> Equivalent to 0.9 cents,per$100 of value <br /> Adjust school bond program without pay-go <br /> ORANGE COUNTY <br /> S NC)RTH CAROLINA <br /> 2 <br /> 3 Travis Myren said debt service increases are locked in and not adjustable for the current year, <br /> 4 and that meaningfully changing the trajectory of debt service growth would require significant <br /> 5 reductions to the capital investment plan over the next five to seven years. He said Pay-Go of$3 million <br /> 6 for school bond soft costs could theoretically be borrowed, but doing so within the $300 million cap on <br /> 7 total school borrowing would reduce funds available for construction. <br /> 8 Commissioner McKee asked whether converting Pay-Go to borrowing would save money, noting <br /> 9 that either way, $3 million is expended. <br /> 10 Travis Myren confirmed that if the $3 million were borrowed on top of the $300 million rather <br /> 11 than within it,the cost would increase due to interest payments with no net gain. <br /> 12 Commissioner Bedford asked how much is included in the current year for Pay-Go. <br /> 13 Travis Myren said the Board approved $5 million. <br /> 14 <br /> 15 <br />