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1 <br /> ORD-2026-008 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 7, 2026 <br /> Action Agenda <br /> Item No. 8-k <br /> SUBJECT: Resolution Authorizing Loan to Orange Grove Fire District for Fire Station <br /> Improvements as Part of FY 2025-26 Spring Financing and Approval of Budget <br /> Amendment #8-A <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Gary Donaldson, 919-245-2453 <br /> Promissory Note Bob Jessup, 919-933-9891 <br /> Bond Request Revision Letter <br /> Year-To-Date Budget Summary <br /> PURPOSE: To approve a resolution authorizing a loan to the Orange Grove Fire District in the <br /> amount of $1.7 million for capital improvements to Fire Station #2 and approve Budget <br /> Amendment #8-A. The County will in turn include the loan amount in its FY 2025-26 Spring <br /> Financing amount. <br /> BACKGROUND: Orange Grove Fire District, Inc. (OGFD) has requested financial assistance to <br /> support renovations and upgrades to Rocky Ridge Fire Station #2 within the Orange Grove Fire <br /> District. The project will convert the existing facility from a garage structure into a fully functioning <br /> fire station with living quarters, office space, and kitchen facilities to support long-term emergency <br /> service delivery in the district. The estimated project cost is approximately $1.7 million. <br /> To facilitate the project, staff proposes that Orange County provide a loan in the amount of <br /> $1,700,000 to OGFD. The loan will be evidenced by a promissory note and repaid through annual <br /> payments of principal and interest due each January 15 beginning in 2027, with final maturity no <br /> later than January 15, 2047. <br /> Schedule I of the Promissory Note references the OGFD debt service schedule through final <br /> maturity. It is important to note that the debt service schedule uses a planning rate of 5%. (Note: <br /> The 5% planning rate is subject to the final bond pricing rate. The final interest rate will be updated <br /> in the signed Promissory Note.) <br /> OGFD Annual Tax Levy <br /> The Fire District has adjusted its tax rate from 5.81 cents to 7.00 cents per $100 of assessed <br /> valuation beginning in FY 2025-26 to ensure sufficient revenues to cover operating costs and the <br /> required annual debt service payments to the County. <br />