HomeMy WebLinkAboutAgenda 05-06-25; 5-a - Public Hearing on the Financing of Various Capital Investment Plan Projects 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 6, 2025
Action Agenda
Item No. 5-a
SUBJECT: Public Hearing on the Financing of Various Capital Investment Plan Projects
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1 . Copy of Public Hearing Gary Donaldson, (919) 245-2453
Notice Kirk Vaughn, (919) 245-2153
Attachment 2. Resolution Robert Jessup, (919) 933-9891
Attachment 3. PowerPoint
PURPOSE: To conduct a public hearing on a financing contract for up to $78.0 million to pay for
capital investment projects and equipment for Fiscal Year 2024-25, and to approve a related
resolution supporting the County's application to the Local Government Commission (LGC) for its
approval of the financing arrangements. The financing and transaction costs will be included in
the loan amount.
BACKGROUND: This public hearing and adoption of the attached resolution marks the first
formal steps in the Board's approval of the County's annual financing for capital investment
projects and equipment, for both County and school purposes. County staff estimates that the
total amount to be financed this year will be approximately $78.0 million. It should be noted that
all of the projects and improvements to be funded were previously approved by the Board and are
already moving forward in development.
The law requires that the County conduct a public hearing on the proposed financing. A copy of
the published hearing notice is provided at Attachment 1. The notice of public hearing was
advertised in the News of Orange on April 16, 2025.
After conducting the public hearing and receiving public input, the Board is asked to consider
adoption of a resolution (Attachment 2). This resolution formally requests the required LGC
approval, makes certain "findings of fact" as required under the LGC's guidelines, and authorizes
County staff to continue the process. County staff has been in contact with the LGC staff, and
staff expects no issues in receiving LGC approval.
If the Board adopts the attached resolution, staff proposes to present a resolution to the Board
giving final approval of the financing plans at its Business meeting on May 20, 2025. County staff
expects to close the financing by the end of June.
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COLLATERAL: In this type of County installment financing, the County secures its obligations to
the bondholders by a mortgage-type interest in some or all the property being acquired or
improved through the financing. The County plans to secure this 2025 financing through a pledge
of several County and school properties. County facilities expected to be included in the collateral
package include the Whitted Building, the Orange County Library in Hillsborough and Blackwood
Farm Park.
County staff is working with both school boards to finalize the list of schools to be used as
collateral. The following schools are under consideration: Ephesus Elementary, Culbreth Middle
(from Chapel Hill — Carrboro City schools), and (from the Orange County schools) Orange Middle,
New Hope, Pathways, and Orange High. The County has flexibility to release schools individually
from the financing lien if that becomes appropriate in the future.
Bondholders generally require that the County offer collateral equal to at least 50% of the loan
amount (for example, at least $5 million of collateral for a $10 million loan). The County expects
to offer collateral with a value equal to at least 100% of the loan amount. The prospective collateral
package has an approximate value of$160.0 million.
TARIFF ISSUE
The municipal bond market has experienced volatility due to rising concerns over new tariffs and
international trade tensions. These tariffs are causing uncertainty in the broader economy and
leading a few investors to re-evaluate their investment strategies. This has resulted in short-term
fluctuations in bond yields (interest rates). Staff is working with the County's financial advisors to
ensure the County remains well positioned for a successful June 2025 bond issuance. The
financing team will closely monitor this situation and will update accordingly if borrowing costs
become a material concern. Recent North Carolina bond financings appear to indicate a return to
stability.
FINANCIAL IMPACT: There is no financial impact related to this action. However, there will be
a financial impact in proceeding with the financing. A preliminary estimate of maximum debt
service applicable to this financing would require the highest debt service payment of
approximately $8.63 million in FY 2027 (based on market interest rate estimates and the $78.0
million estimated financing amount). The tax rate equivalent for the estimated highest Series 2025
debt service payment based on the new value of a penny ($3,299,538) is approximately 2.62
cents.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 1: ENVIRONMENTAL PROTECTION AND CLIMATE ACTION
• GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY
• GOAL 6: DIVERSE AND VIBRANT ECONOMY
RECOMMENDATION(S): The Manager recommends that the Board:
1) Conduct the public hearing;
2) Close the public hearing; and
3) Adopt the resolution supporting the application to the Local Government Commission for
approval of the financing.
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Attachment ]
Orange County, North Carolina -- Notice of Public Hearing
2025 Installment Financing for Various Projects
The Board of Commissioners of Orange County, North Carolina, will hold a
public hearing on May 6, 2025, at 7:00 p.m. (or as soon thereafter as the matter may
be heard). The purpose of the hearing is to take public comment concerning a
proposed financing contract, under which the County would borrow an amount
expected as approximately $78,000,000 to pay for the various public improvements
and acquisitions shown below, and to pay financing costs:
Project Est. Amount ($)
School capital projects 57,077,708
Public building improvements, incl safety, 6,519,528
accessibility and sustainability improvements
Emergency services projects 4,306,018
Vehicles 3,157,906
Sportsplex improvements 2,456,000
IT infrastructure improvements 1,665,255
Parks and recreation projects 1,247,982
Affordable housing development 250,000
Project Totals 76,680,397
Financing Costs and Contingencies - approx. 1,319,603
TOTAL 78,000,000
The hearing will be held in the Board's usual meeting room in the County's
Whitted Building, 300 West Tryon Street, Hillsborough, North Carolina.
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The proposed financing would be secured by a lien on some or all of the
property purchased or improved through the financing as well as the County's
promise to repay the financing, but there would be no recourse against the County or
its property (other than the pledged property) if there were a default on the financing.
The County expects that the County's Whitted Building and several schools will serve
as the primary collateral.
All interested persons will be heard. The County's plans are subject to change
based on the comments received at the public hearing and the Board's subsequent
discussion and consideration. The County's entering into the financing is subject to
obtaining approval from the North Carolina Local Government Commission.
Persons wishing to make written comments in advance of the hearing or
wishing more information concerning the subject of the hearing may contact Gary
Donaldson, Orange County Chief Financial Officer, Post Office Box 8181, Hillsborough,
NC 27278 (telephone 919/245-2453, email gdonaldson@orangecountync.gov).
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RES-2025-019 Attachment 2
Resolution supporting an application to the Local Government
Commission for its approval of a County Financing Agreement
- 2025 Multiple Proiect Installment Financing
Introduction --
The Orange County Board of Commissioners has previously determined to
carry out various public improvements and acquisitions, as identified in the County's
capital improvement plan and as described in Exhibit A.
The Board has made a preliminary determination to finance project costs
through an installment financing, as authorized under Section 160A-20 of the North
Carolina General Statutes. In an installment financing, the County's repayment
obligation is secured by a mortgage-type interest in all or part of the property being
acquired or improved, but not by any pledge of the County's taxing power or any
specific revenue stream. In this case, the County expects that some or all of the
facilities listed on Exhibit B will serve as the primary collateral.
State law requires that the County's financing be approved by the North
Carolina Local Government Commission (the "LGC"), a division of the North Carolina
State Treasurer's office. Under the LGC's guidelines, this governing body must make
certain findings of fact to support the County's application for the LGC's approval.
1. The Orange County Board of Commissioners RESOLVES, as follows:
(a) The County makes a preliminary determination to finance
approximately $78,000,000 to pay capital costs of public improvements and
acquisitions, and in particular those described in Exhibit A,and to pay financing costs.
(b) The Board will determine the final amount to be financed by a later
resolution.The final amount financed may be higher or lower than$78,000,000.Some
of the financing proceeds may represent reimbursement to the County for prior
expenditures on project costs,and the County will use some proceeds to pay financing
costs.
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2. The Board makes the following findings of fact to support the
County's application to the LGC:
(a) The proposed projects are necessary and appropriate for the County
under all the circumstances.
(b) The proposed installment financing is preferable to a bond issue for the
same purposes.
The County has no meaningful ability to issue non-voted general obligation
bonds for these projects. It is appropriate for the County to balance its capital
program between various types of financings, and the County has made extensive use
of voter-approved and two-thirds general obligation bonds. These projects will not
produce sufficient revenues to support a self-liquidating financing. The County
expects that in the current interest rate environment for municipal securities there
would be no material difference in the overall financing costs between general
obligation bonds and installment financings for these projects.
(c) The estimated sums to fall due under the proposed financing contract
are adequate and not excessive for the proposed purpose. The County will closely
review proposed financing rates against market rates with guidance from the LGC and
the County's financial adviser. All amounts financed will reflect either approved
contracts, previous actual expenditures, or professional estimates.
(d) As confirmed by the County's Finance Officer, (i) the County's debt
management procedures and policies are sound and in compliance with law, and (ii)
the County is not in default under any of its debt service obligations.
(e) The County expects there will be tax increases associated with the
County's overall capital improvement program. Given the County's need for the
projects, the Board believes that the overall effect on the County's budget and the tax
rate from repaying the borrowed money will be reasonable under all the
circumstances. The County will manage the projects and its borrowing plans so as to
minimize the tax impact while still allowing projects to proceed and addressing the
County's full range of needs.
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(f) The County Attorney is of the opinion that the proposed projects are
authorized by law and are purposes for which public funds of the County may be
expended pursuant to the Constitution and laws of North Carolina.
3. Additionally, the Board resolves as follows:
(a) The County intends that the adoption of this resolution will be a
declaration of the County's official intent to reimburse project expenditures from
financing proceeds. The County intends that funds that have been advanced for
project costs, or which may be so advanced, from the County's general fund, or any
other County fund, may be reimbursed from the financing proceeds.
(b) The Board directs the County Manager and the Finance Officer to take
all appropriate steps toward the completion of the financing, including completing an
application to the LGC for its approval of the proposed financing. The Board ratifies
all prior actions of County representatives in this regard.
(c) This resolution takes effect immediately.
* * * * * * * * * * * * * * * * *
I certify as follows: that the foregoing resolution (which includes the attached
Exhibits A and B) was properly adopted at a meeting of the Board of Commissioners
of Orange County, North Carolina; that this meeting was properly called and held on
May 6, 2025; that a quorum was present and acting throughout this meeting; and that
this resolution has not been modified or amended, and remains in full effect as of
today.
Dated this day of May, 2025.
[SEAL]
Laura Jensen
Clerk, Board of Commissioners
Orange County, North Carolina
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Exhibit A -- Current Proposed Project
Project Est. Amount ($)
School capital projects 57,077,708
Public building improvements, incl safety, 6,519,528
accessibility and sustainability improvements
Emergency services projects 4,306,018
Vehicles 3,157,906
Sportsplex improvements 2,456,000
IT infrastructure improvements 1,665,255
Parks and recreation projects 1,247,982
Affordable housing development 250,000
Project Totals 76,680,397
Financing Costs and Contingencies - approx. 1,319,603
TOTAL 78,000,000
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Exhibit B - Potential Collateral Facilities
Orange County Library in Hillsborough,Whitted Building, and Blackwood Farm
Park
Also from Orange County Schools: Orange Middle, New Hope Elementary,
Pathways Elementary and Orange High
Also Ephesus Elementary School and Culbreth Middle School from the Chapel
Hill - Carrboro City Schools
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OR- -A-NGE COUNTY
NORTH CAROLINA
Series 2025 Limited Obligation Bonds
Spring Financing Resolution and Public Hearing
Gary Donaldson, Chief Financial Officer
May 6, 2025
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Purpose
➢ Conduct Public Hearing for Limited Obligation Bonds pursuant to NC Statute Section 160A-20
➢ Close Public Hearing
➢ Obtain Board Approval of Resolution to Proceed with Filing Local Government Commission Application for
Series 2025 Limited Obligation Bonds
➢ Funds our FY 2024-25 Capital Investment Plan through this Series 2025 Limited Obligation Bonds are
secured by a Deed of Trust, with a security interest in various County and School facilities.
➢ The Series 2025 Limited Obligation Bonds will fund various County projects including:
2025 L013s Projects - Total by Category 2025 L013s Projects - Total by Amortization
1 Orange County Schools 26,250,952 10 5-year Level DS 1,665,255
2 CH-C City Schools 30,826,756 11 7-year Level DS 2,745,083
3 Total Schools 57,077,708 12 8-year Level DS 7,010,570
4 County TS (Non-Vehicle) 13,988,782 13 10-year Level DS 2,099,165
5 County TS Vehicles (Fleet Services) 2,590,164 14 12-year Level DS 587,742
6 Total County Tax Supported 16,578,946 15 15-year Level Prin 3,831,842
7 Sportsplex 2,455,813 16 20-year Level Prin 58,760,553
8 Solid Waste 587,742 17 Total 76,700,209
9 Grand Total 76,700,209
ORANGE COUNTY
NORTH CAROLINA
FY 2025 Projects ( 1/3 ) 12
Project Amount Debt Amortization
A B C
1 Orange County Schools
2 Prior Year and FY 2025 Project Requests Spent/Encumbered to Date
3 51009- RECURRING CAPITAL 2,519,760 8-year Level DS
4 51010- ROOFING PROJECTS 979,724 20-year Level Prin
5 51029- MECHANICAL SYSTEMS 447,101 20-year Level Prin
6 51030- PAVING/PARKING 548,677 20-year Level Prin
7 51034-SCHOOL SAFETY/SECURITY 159,137 20-year Level Prin
8 51045- DEFERRED MAINTENANCE 6,596,553 20-year Level Prin
9 Subtotal 11,250,952
.0 FY 25 Projects under Evaluation 15,000,000 20-year Level Prin
.1 Total $26,250,952
.2 CH-C City Schools
.3 53023- DOORS, HARWARE, CANOPIE 115,203 20-year Level Prin
4 53025 -CLASSROOM IMPROVEMENT 60,152 20-year Level Prin
5 53026- ELECTRICAL SYSTEMS 343,770 20-year Level Prin
6 54000-ADA REQUIREMENTS 143,906 20-year Level Prin
.7 54001-ABATEMENT PROJECTS 564,433 20-year Level Prin
.8 54003- ENERGY EFFICIENCY 211,792 20-year Level Prin
9 54004- FIRE/SAFETY/SECURITY 922,000 20-year Level Prin
0 54005- INDOOR AIR QUALITY 265,282 20-year Level Prin
1 54006- MECHANICAL SYSTEMS 1,004,245 20-year Level Prin
2 54008- PARKING/PARKING 172,040 20-year Level Prin
3 54010- RECURRING CAPITAL 3,540,240 8-year Level DS
4 54012- ROOFING PROJECTS 1,108,701 20-year Level Prin
5 54013-TECHNOLOGY 2,511,798 20-year Level Prin
16 54020-STORMWATER MANAGEMEN 129,001 20-year Level Prin
7 54021-SUSTAINABILITY INVESTMEN 77,195 20-year Level Prin
'8 54022- DEFERRED MAINTENANCE 19,657,000 20-year Level Prin ORANGE COUNTY
9 Total $30,826,756
NORTH CAROLINA
FY 2025 Projects ( 2/3 ) 13
Project Amount Debt Amortization
D E F
30 County Tax Supported (Non-Vehicle)
31 Depatartment of Envornment,Agriculture,Parks and Recreation
32 Blackwood Farm Park 389,683 20-year Level Prin
33 Fairview Park Phase 2 675,993 20-year Level Prin
34 Perry Hills Mini Park 182,306 20-year Level Prin
35 Neuse(Falls Lake)Rules Nutrients 137.807 20-year Level Prin
36 Subtotal 1,385,789
37
38 Asset Management Services
39 Cedar Grove Comm.Center Flooring 163,000 20-year Level Prin
40 Fleet Services Shop 120,000 15-year Level Prin
41 Courtroom Audio Visual Upgrades 154,919 8-year Level DS
42 Efland Cheeks Community Center 161,221 20-year Level Prin
43 Electrical Upgrades 250,573 20-year Level Prin
44 Facades 807,394 20-year Level Prin
45 Building Safety 1,166,158 20-year Level Prin
46 Facility Accessibility/Safety 343,886 20-year Level Prin
47 Fire Alarm Replacements 751,869 15-year Level Prin
48 Fuel Station 53,240 20-year Level Prin
49 Generator Projects 506,749 15-year Level Prin
50 HVAC Projects 1,547,140 15-year Level Prin
51 Interior Finish Replacements 153,940 20-year Level Prin
52 Parking Lot Improvements 22,273 20-year Level Prin
53 Plumbing Repairs 49,643 20-year Level Prin
54 Roofin 79.446 20-year Level Prin
55 Subtotal 6,331,449
56
57 Emergency Services
58 Bi-Directional Antenna(BDA)Upgrade 761,983 8-year Level DS
59 Emergency Services Renewal Fund 950,570 10-year Level DS
60 Public Safety Software Enhancement! 2,099,165 8-year Level DS
61 Viper Radio Tower Construction 494.300 20-year Level Prin
62 Subtotal 4,306,018
63
64 Other Departments .dow- _
65 Information Technologies-IT Infrastrt 1,665,255 5-year Level DS
66 Affordable Housing Development 250,000 20-year Level Prin ORANGE COUNTY
67 County Manager's Office-Sustainabil 50,272 15-year Level Prin NORTH CAROLINA
68
69 Total 13,988,782
FY 2025 Projects ( 3/3 ) 14
Project Amount Debt Amortization
G H 1
70 County Tax Supported Vehicles (Fleet Services)
71 Animal Services 67,298 10-year Level DS
72 Asset Management Services 148,099 10-year Level DS
73 Transportation - Car Share 35,390 10-year Level DS
74 Criminal Justice Resource Departmen 39,835 10-year Level DS
75 Dept. of Social Services 79,670 10-year Level DS
76 Emergency Services 1,930,828 10-year Level DS
77 Health 52,335 10-year Level DS
78 Library 39,835 10-year Level DS
79 Planning 110,418 10-year Level DS
80 DEAPR 86,456 10-year Level DS
81 Total 2,590,164
82
83 Sportsplex
84 Sportsplex- Fire Systems 241,813 15-year Level Prin
85 Sportsplex Ice Rink 1,600,000 20-year Level Prin
86 Sportsplex Pool HVAC 614,000 15-year Level Prin
87 Sportsplex Total 2,455,813
88
89 Solid Waste
90 Vehicle/Equipment Replacements 587,742 12-year Level DS
91 Total $ 587,742
ORANGE COUNTY
NORTH CAROLINA
FY 2025 Projects (Total ) 15
Project Amount Debt Amortization Project Amount Debt Amortization Project Amount Debt Amortization
A B C D E F G H I
1 Orange County Schools 30 County Tax Supported(Non-Vehicle) 70 County Tax Supported Vehicles(Fleet Services)
2 Prior Year and FY 2025 Project Requests Spent/Encumbered to Date 31 Depatartment of Envornment,Agriculture,Parks and Recreation 71 Animal Services 67,298 10-year Level DS
3 51009-RECURRING CAPITAL 2,519,760 8-year Level DS 32 Blackwood Farm Park 389,683 20-year Level Prin 72 Asset Management Services 148,099 10-year Level DS
4 51010-ROOFING PROJECTS 979,724 20-year Level Prin 33 Fairview Park Phase 2 675,993 20-year Level Prin 73 Transportation-Car Share 35,390 10-year Level DS
5 51029-MECHANICAL SYSTEMS 447,101 20-year Level Prin 34 Perry Hills Mini Park 182,306 20-year Level Prin 74 Criminal Justice Resource Departmen 39,835 10-year Level DS
6 51030-PAVING/PARKING 548,677 20-year Level Prin 35 Neuse(Falls Lake)Rules Nutrients 137.807 20-year Level Prin 75 Dept.of Social Services 79,670 10-year Level DS
7 51034-SCHOOL SAFETY/SECURITY 159,137 20-year Level Prin 36 Subtotal 1,385,789 76 Emergency Services 1,930,828 10-year Level DS
8 51045-DEFERRED MAINTENANCE 6,596,553 20-year Level Prin 37 77 Health 52,335 10-year Level DS
9 Subtotal 11,250,952 38 Asset Management Services 78 Library 39,835 10-year Level DS
10 FY 25 Projects under Evaluation 15,000,000 20-year Level Prin 39 Cedar Grove Comm.Center Flooring 163,000 20-year Level Prin 79 Planning 110,418 10-year Level DS
11 Total $26,250,952 40 Fleet Services Shop 120,000 15-year Level Prin 80 DEAPR 86,456 10-year Level DS
41 Courtroom Audio Visual Upgrades 154,919 8-year Level DS 81 Total 2,590,164
12 CH-C City Schools 42 Efland Cheeks Community Center 161,221 20-year Level Prin 82
13 53023-DOORS,HARWARE,CANOPIE 115,203 20-year Level Prin 43 Electrical Upgrades 250,573 20-year Level Prin 83 Sportsplex
14 53025-CLASSROOM IMPROVEMENT 60,152 20-year Level Prin 44 Facades 807,394 20-year Level Prin 84 Sportsplex-Fire Systems 241,813 15-year Level Prin
15 53026-ELECTRICAL SYSTEMS 343,770 20-year Level Prin 45 Building Safety 1,166,158 20-year Level Prin 85 Sportsplex Ice Rink 1,600,000 20-year Level Prin
16 54000-ADA REQUIREMENTS 143,906 20-year Level Prin 46 Facility Accessibility/Safety 343,886 20-year Level Prin 86 Sportsplex Pool HVAC 614,000 15-year Level Prin
17 54001-ABATEMENT PROJECTS 564,433 20-year Level Prin 47 Fire Alarm Replacements 751,869 15-year Level Prin 87 Sportsplex Total 2,455,813
18 54003-ENERGY EFFICIENCY 211,792 20-year Level Prin 48 Fuel Station 53,240 20-year Level Prin 88
19 54004-FIRE/SAFETY/SECURITY 922,000 20-year Level Prin 49 Generator Projects 506,749 15-year Level Prin 89 Solid Waste
20 54005-INDOOR AIR QUALITY 265,282 20-year Level Prin 50 HVAC Projects 1,547,140 15-year Level Prin 90 Vehicle/Equipment Replacements 587,742 12-year Level DS
21 54006-MECHANICAL SYSTEMS 1,004,245 20-year Level Prin 51 Interior Finish Replacements 153,940 20-year Level Prin 91 Total $ 587,742
22 54008-PARKING/PARKING 172,040 20-year Level Prin 52 Parking Lot Improvements 22,273 20-year Level Prin
23 54010-RECURRING CAPITAL 3,540,240 8-year Level DS 53 Plumbing Repairs 49,643 20-year Level Prin
24 54012-ROOFING PROJECTS 1,108,701 20-year Level Prin 54 Roofin 79.446 20-year Level Prin
25 54013-TECHNOLOGY 2,511,798 20-year Level Prin 55 Subtotal 6,331,449
26 54020-STORMWATER MANAGEMEN 129,001 20-year Level Prin 56
27 54021-SUSTAINABILITY INVESTMEN 77,195 20-year Level Prin 57 Emergency Services
28 54022-DEFERRED MAINTENANCE 19,657,000 20-year Level Prin 58 Bi-Directional Antenna(BDA)Upgrade 761,983 8-year Level DS
29 Total $30,826,756 59 Emergency Services Renewal Fund 950,570 10-year Level DS
60 Public Safety Software Enhancement: 2,099,165 8-year Level DS
61 Viper Radio Tower Construction 494.300 20-year Level Prin
62 Subtotal 4,306,018
63
64 Other Departments
65 Information Technologies-IT Infrastn 1,665,255 5-year Level DS
66 Affordable Housing Development 250,000 20-year Level Prin
67 County Manager's Office-Sustainabil 50,272 15-year Level Prin
68
69 Total 13,988,782
ORANGE COUNTY
NORTH CAROLINA
Key Financing Terms 16
➢ Security Pledge- County Assets serve as Collateral and subject to Annual County Appropriations
➢ Maturity Term- 5- 20 Year maturities matches the useful life of the assets
➢ May 1 and November 1 Repayment Dates to Bank Trustee; First Interest Payment on November 1, 2025 and
First Principal Payment on November 1, 2026, consistent with the Debt Model
➢ Estimated Interest Rates- Between 4.5% - 5.5% subject to market conditions
➢ Series 2025 Limited Obligation Bonds Maximum Annual Debt Service estimated to be $8.63 million in FY 2027
➢ Source of Repayment- Property Taxes, Solid Waste Fees and Sportsplex Fees
➢ Limited Obligation Bonds are Subordinate Lien to AAA General Obligation Bonds
➢ Current Limited Obligation Bonds- Aa1/AA+/AA+ from Moody's, Standard & Poor's and Fitch Ratings
ORANGE COUNTY
NORTH CAROLINA
LOB Collateral Overview 17
➢ Security Pledge- County Assets serve as Collateral and subject to Annual
County Appropriations
➢ Lenders generally require that the value of the collateral be equal to at
least 50% of the financing amount (for example, at least $5 million of
collateral for a $10 million loan .)
➢ The Whitted Building, Orange County Library in Hillsborough and a
variety of schools serves as the collateral which far exceeds the lender's
requirements.
➢ Pursuant to the County's financing document, the County can continue
to borrow money against this same collateral pool as longs as a
meaningful portion of the amount financed is used to improve property
in the collateral pool.
ORANGE COUNTY
NORTH CAROLINA
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Debt Service Model Metrics
A11 CI P Projects (Tax-Supported Debt)
Debt Ratios 10-year Payout Debt to AV DS to GF Revenues
2025 64.81% 1.49% 11.82%
2026 62.70% 1.30% 10.56%
2027 60.31% 1.56% 12.86%
2028 58.91% 1.84% 14.19%
2029 61.35% 1.84% 16.92%
2030 63.28% 1.67% 18.49%
2031 64.13% 1.67% 18.60%
2032 62.20% 1.86% 18.45%
2033 64.79% 1.74% 19.51%
2034 67.15% 1.51% 20.20%
2035 99.68% 1.38% 18.93%
ORANGE COUNTY
NORTH CAROLINA
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Questions
ORANGE COUNTY
NORTH CAROLINA