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28 <br /> Slide#8 <br /> FY 2026-27 Operating Budget Options <br /> Debt Service and Pay-Go Options <br /> Debt Se Price increase _$7 8 million <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 NL7RTH C'_AR[7LiNA <br /> Travis Myren said debt service increases are locked in and not adjustable for the current year, <br /> and that meaningfully changing the trajectory of debt service growth would require significant <br /> reductions to the capital investment plan over the next five to seven years. He said Pay-Go of$3 million <br /> for school bond soft costs could theoretically be borrowed, but doing so within the $300 million cap on <br /> total school borrowing would reduce funds available for construction. <br /> Commissioner McKee asked whether converting Pay-Go to borrowing would save money, noting <br /> that either way, $3 million is expended. <br /> Travis Myren confirmed that if the $3 million were borrowed on top of the $300 million rather <br /> than within it,the cost would increase due to interest payments with no net gain. <br /> Commissioner Bedford asked how much is included in the current year for Pay-Go. <br /> Travis Myren said the Board approved $5 million. <br />