Board approves resolution to pursue up to $60.8 million in financing for capital projects

The Orange County Board of Commissioners held a public hearing on May 5, 2026, on proposed financings to borrow up to approximately $60.8 million for capital projects and equipment. Staff explained the plan to divide debt into two series — one closing in June 2026 (Series A) to replenish advanced project funds and a second in July/August 2026 (Series B) to finance the crisis diversion center and related construction costs.

County Chief Finance Officer Gary Donaldson told the Board that rating agencies take comfort in the county’s financial modeling and policies. Staff intends to pledge a mix of county facilities (but no school facilities for the 2026 financings) as collateral, and documents will allow individual properties to be released from the lien if needed. Donaldson said pledged collateral is expected to exceed 100% of existing and proposed loan amounts.

After receiving public comment, the Board voted unanimously to approve a preliminary resolution supporting the application to the North Carolina Local Government Commission (LGC). The Board will be asked to adopt final approval for the Phase I financing at its May 19 meeting and to consider Phase II authorization on July 9, 2026.

Public comment during the hearing included concerns about budget priorities and avoiding redundant services; one commenter urged greater investment in schools and targeted infrastructure upgrades.

Next steps: staff will return with final Series A financing documents and a recommended resolution on May 19, and will present Series B details in July once construction contract amounts for the crisis diversion center are finalized.