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8 <br /> Gary Donaldson said the planning interest rate is estimated at between 4.5% and 5.5%, and that <br /> market conditions are more stable than the previous year, when tariff volatility impacted the municipal <br /> bond market. He said there have been no canceled municipal bond sales, and that the Orange County <br /> credit, along with North Carolina credits under LGC oversight, is well-received in the marketplace. He said <br /> the actual debt service sources for the Sportsplex and Solid Waste projects will come from their respective <br /> user fees, while property taxes will fund the county and Orange Grove Fire levy portions. He said the <br /> county's debt service as a percentage of general fund revenues and debt to assessed value remain within <br /> policy limits. He noted that Fitch has recently changed its methodology for rating municipal issuers and <br /> that the ratings will be shared with the Board once all three credit presentations are complete. He said the <br /> county's general obligation bonds carry a double-A rating and that the expectation for the limited <br /> obligation bonds is AA-plus from Fitch and AA1 from Moody's. <br /> Slide#5 <br /> Limited Obligation Bonds Collateral Overview <br /> Security Pledge- County assets serve as collateral, with payments subject to <br /> annual County appropriations <br /> Lenders generally require that the value of the collateral be equal to at least <br /> 50% of the financing amount (for example, at least $10 million of collateral <br /> for a $20 million loan) <br /> 9 The collateral for the Series 2025A&B Bonds will include the County's <br /> Northern and Southern Campuses, the County Justice Facility, and the new <br /> Crisis Diversion Facility.The value of this collateral will comfortably exceed <br /> lender requirements <br /> 9 Pursuant to the County's financing document, the County can continue to <br /> borrow money against this same collateral pool as long as a meaningful <br /> portion of the amount financed is used to improve property in the collateral <br /> pool <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br />