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1 <br /> ORANGE COUNTY <br /> NORTI I CAROLINA <br /> FINANCE and ADMIMSTRATIVE SERVICES <br /> Gary Donaldson,CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181,Hillsborough,NC 272781 919.245.2453 <br /> INFORMATION ITEM <br /> To: Board of County Commissioners <br /> From: Gary Donaldson, Chief Financial Officer <br /> Date: March 17, 2026 <br /> Re: Proposed Limited Obligation Bond Financing- Orange Grove Fire District <br /> This memorandum provides a briefing on a proposed borrowing to support capital improvements for the Orange <br /> Grove Fire District (OGFD). <br /> Background <br /> The OGFD has formally requested inclusion in the County's upcoming Spring bond issuance to finance renovations <br /> and upgrades to its Rocky Ridge Fire Station #2. The project will convert the existing facility from a garage structure <br /> into a fully functioning fire station with living quarters, office space, and kitchen facilities. The renovation is intended <br /> to support long-term service delivery within the district. The estimated project cost is approximately $1.5 million, <br /> and the Fire Department has demonstrated its ability to incorporate annual debt service payments into its operating <br /> budget. The County's bond counsel, Sanford Holshouser PLLC has confirmed that the County can include OGFD in <br /> our upcoming Series 2026 A Spring Financing pursuant to North Carolina General Statute N.C.G.S 153A-448. <br /> Proposed Financing Structure <br /> Staff proposes to include this project in the County's upcoming Limited Obligation Bond (LOB) issuance (Series 2026 <br /> A). Under the current planning scenario: <br /> • Total par amount: $1,515,000 <br /> • Assumed interest rate: 5.00% (planning rate) <br /> • Final maturity: June 30, 2047 <br /> • Total projected debt service: $2,363,547.92 <br /> Debt Service Requirement <br /> Annual debt service is structured to decline over time, beginning at approximately $155,750 in FY 2027-28 and <br /> stepping down gradually to approximately $78,750 in the final year. The first payment (FY 2026-27) reflects interest <br /> only, estimated at $59,547.92. These estimates are preliminary and subject to change based on market conditions at <br /> the time of bond pricing. <br />