HomeMy WebLinkAboutRES-2024-018-Preliminary Resolution Stating an Intent to Proceed with a November 2024 referendum on 300 million general obligation school bonds RES -2024- 018 ` (Dj 6 � 41 g l aq Attachment 1
Resolution Stating Intent To Proceed with a Referendum
On $ 300 , 000 , 000 General Obligation School Bonds
Introduction - -
Orange County has studied the need for capital improvements for public
schools . The Board of Commissioners has received requests from the Chapel Hill -
Carrboro and the Orange County School Boards to proceed with a referendum on the
issuance of County general obligation bonds to provide funds for construction and
improvement of school facilities . After considering the need for improvements and
the alternative means of financing the required costs , the Board has made a
preliminary determination to finance at least some of the costs by issuing general
obligation bonds .
The issuance of these bonds is subject to the approval of the County' s voters at
a bond referendum . This resolution is the Board ' s first formal step toward placing
these bonds before the voters .
BE IT THEREFORE RESOLVED by the Board of Commissioners of Orange
County, North Carolina, that the Board makes an initial determination to proceed
with a referendum on November 5 , 2024, for County general obligation school bonds
in the maximum amount of $ 300 , 000 , 000 .
BE IT FURTHER RESOLVED that Board makes the following findings of fact in
support of its determination .
( 1 ) The proposed capital projects are necessary and expedient for the County.
( 2 ) The amount of bonds proposed is adequate and not excessive for the
proposed purpose . The precise amount of bonds issued, and the projects eventually
funded with bond proceeds , will depend on final project plans and costs and the
evolving needs within the County.
( 3 ) The County' s debt management and budgetary and fiscal management
policies have been carried out consistently in accordance with the law.
( 4) The Board projects that repaying the bonds and related interest will
require a property tax increase of approximately 3 . 41 cents per $ 100 of valuation
over the next three County fiscal years . The Board finds that the expected tax rate
impact is reasonable under the circumstances .
The actual tax effect will depend on the final amount financed, the stages in
which the bonds are issued, the length of the repayment period, the actual interest
rates on the bonds when sold and the growth in the County' s tax base over time . The
County will work to minimize the tax rate impact in a manner consistent with moving
ahead with school projects and addressing other County needs .
BE IT FURTHER RESOLVED, as follows :
( a) The Board directs the County Manager and the Finance Officer to
proceed with the authorization of the referendum, including proceeding with an
application to the LGC for its approval of the proposed bonds . The Board appoints the
Finance Officer as the County' s authorized representative with respect to the LGC
application process .
(b ) The Board directs the County Manager, in collaboration with the Board
Clerk, to publish a notice of the County' s intent to apply to the LGC for approval of the
bonds . This notice must be in the form prescribed by statute and consistent with this
resolution .
( c) The Board authorizes all County representatives to take all further
action as they may consider desirable for accomplishing the purposes and intentions
of this resolution . The Board ratifies all prior actions of County representatives in this
regard . This resolution takes effect immediately.
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