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HomeMy WebLinkAbout2025-11-17 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 721 ASSEMBLY The New Hanover County Board of Commissioners met for a Joint Special Meeting with the New Hanover County Board of Education on Monday, November 17, 2025, at 3:00 p.m. at the New Hanover County Government Center,Conference Rooms 137-139, 230 Government Center Drive,Wilmington, North Carolina. New Hanover County Board of Commissioners members present: Chair Bill Rivenbark; Vice Chair LeAnn Pierce; Commissioner Dane Scalise;Commissioner Stephanie A.C.Walker; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; Clerk to the Board Kymberleigh G. Crowell; and County Attorney K.Jordan Smith. New Hanover County Board of Education members present:Chair Melissa Mason;Vice Chair Josie Barnhart; and Board Members: Pat Bradford; Judy Justice; Dr. Tim Merrick; and David Perry. Member Absent: Peter C. Wildeboer. New Hanover County Schools (NHCS) staff present: Superintendent Dr. Chris Barnes; Assistant Superintendent — Operation Dr. Rob Morgan; Chief Financial Officer Ashley Sutton; and Administrative Assistant Crystal Buie. Chair Rivenbark and Chair Mason called their respective Boards to order for the Joint Special Meeting, reporting that the purpose of the meeting is to discuss capital needs and potential funding strategies related to a proposed school bond. DISCUSSION ON CAPITAL NEEDS AND POTENTIAL FUNDING STRATEGIES RELATED TO A PROPOSED SCHOOL BOND Chief Financial Officer Eric Credle presented the following information relating to the proposed school bond: • School General Obligation (GO) bonds: • New Hanover County(NHC)—Types of Debt: • Limited Obligation Bonds(LOBs)/bank debt: • Subject to annual appropriation in the county budget • Bondholders have limited rights in the event of default • Not voter approved • General Obligation Bonds: • Backed by full faith, credit, and taxing power of the county • NHC is required to assess a tax rate that provides for the full repayment • Requires voter referendum • Must be issued within seven (7)years of voter approval; can be extended by three years with Local Government Commission (LGC) approval • LOBs generally carry a one notch lower bond rating, and the interest rate is generally 20-25 basis points higher versus GO Bonds • Current Status versus Debt Policy: • Policy limit=$2,200 per capita • Total debt capacity based on $2,200 per capita =$541,360,600 5600,000,000 $541,3W,600=Total Debt Capacity 5500,000,000 availat?4e Remaining tkb:capad-f° 5400,000,000 - 5300,000,000 Existing Debt outstarc ng- 5200,000,000 S411AW9451_672 per capita $lW,000,000 50 - ■Existing Debt Outstanding ■Remaining Capa.itp Based on population of 246,073 at 6130125-Source demograph.osbm.nc.gov • Principal paydowns by year—existing debt outstanding: ►es,ma na: sn •nn o-s sa xi7 YS ..sea.aw • Debt per capital peers(as of FY 2025): NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 722 °�i �`i °`i °a G° oa oa oa oa oa a° oa oa oa d' aJ oa oa [ *< r ti a�$ �coae o`4�` �a,'a • Recent NC school GO bond referendums—all passed: AmountDate County ... 3/3/2020 Iredell County 115,500,000 66.53% 11/3/2020 Guilford County 300,000,000 72.52% 11/3/2020 Carteret County 42,000,000 72.01% 11/3/2020 Camden County 33,000,000 73.05% 5/17/2022 Guilford County 1,700,000,000 60.68% 11/8/2022 Durham County 423,505,000 83.27% 11/8/2022 Johnston County 177,000,000 64.82% 11/8/2022 Pender County 178,000,000 53.08% 11/8/2022 Union County 134,405,000 62.06% 11/8/2022 Wake County 530,700,000 71.13% 11/7/2023 Mecklenburg County 2,500,000,000 63.11% 11/5/2024 Johnston County 120,000,000 56.75% 11/5/2024 Orange County 300,000,000 67.49% 11/5/2024 lunion County 39,425.000 55.32% • Recent history of NHCS/CFCC GO bond issuances: Amount outstanding Year Approved Approved Balance at Major projem 6/30/25 Hanover County 5choads 2005 123,000,000 iS,835,000 as TA ayne ntery, o y e ter a oo, g en ementary ui ing Replacement Forest Hills Renovations,Gregory Elementary Renovations Porten Neck Elementary,College Park Elementary-Building Replacement,Blair New Hanover County Schools 2014 160,000,000 96,770,000 Elementary-School Replacement,Laney Additions/Renovations,Hoggard Additions/Renovations Total 283,000,000 112,605.000 27%Portion of All Debt outstanding CFCC 2008 164,000,000 61,210,000 New Buildings 155E Portion of All Debt Outstanding Total NHCS/CFCC 447,000,000 173.815.004 42%Portion of All Debt outstanding 2014 Approval was Issued in 4 tranches—2015($47m),2017($34m),2018($66m),2020($4m) • History: • November 2024: First Finance Capital Bond Committee meeting • June 18, 2025: Finance Capital Bond Committee—Project Prioritization Survey • August 14, 2025:Staff presentation to Board of Commissioners regarding GO bond scenarios: • Financial modeling included the following scenarios: • $137 million: New Hanover High School—renovate only • $233 million: New Hanover High School—hybrid solution only • $300 million • $400 million • $500 million • August 27, 2025:Same presentation to Finance Capital Bond Committee: • Consensus reached of bond amount of approximately$300 million, projects discussed • September 18, 2025:top five (5) projects+$20 million for district wide technology and safety projects equate to$300.5 million • Adjusted upwards to $320.5 million (additional $20 million for building systems/infrastructure) • October 7, 2025—Board of Education approves request of$320.5 million • Board of Education—Building Projects: New Hanover High Sc Phase 1 of the proposed NH HS master plan would:Secure the perimeter of the 159._7 12 )Phase 1) campus.as well as the Catwalk;add a new dining hall,new classrooms.a new secure courtyard on the southside of campus,and a new a bus drop zone. Trask Middle School A new 1.000 student middy school to replace the existing Trask Middles School-The S94,75L362 INew Building) new middle schoolwntl be built on the SEA-Tech campus,off Sudbury Roa4 The existing population at Trask would Ile relocated to the new building and provide ctassr©cim space for expansion. The existing TMS building would become part of the Laney High School campus. This will help alleviate traffic concerns and provido additional high school capacity. Rrvertights Elementary A new 650 student elementary school to be built within the Rivertlghts development. SILALU s (Now School) This protect would take the ppace of rencwatinglrebudding MC Williams help maximize capacity in this region of the county. Pine Valley Elementary A new 650 student elementary school to be buitt on the existing campus to replace $56,33T,V0 I Reptacement) the current school.This project is needed to address the safety issues of the existing building,such as the pod conhguratron and exterior circulation.This protect will also project needed cote facilities such as art and music classroom,multi• purpose room,small group rooms,additional office space,and a larger cafeteria. Porters Neck Elementary An 8•ctassroorn addition to provide additional classroom space for the grow ng S7,62S-M (Addition) population of students in this region of the county. Distrlct•wrlde Building Systems/infrastructure,Safety Improvements.and Technology $40•000•000 I m pf o*w�nna nt s Cuitd+ng Vniiect Prograrn Manag mo--nt and Prottam Contingency S8.170.527 Total aulldin`Project Cost S320.S21.419 • New Hanover High School hybrid solution (Phase 1): NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 723 HYBRID SOLUTION(PNn--r„ t.Srturetheparrrncta•Exr4w-a IiL_ _.2.Cr6K A 1111 Ytepbtf bulling y(II ItK 1 1-e 1.OQ 8f.vw ..n w. Lp ..._.-� { 3.1'rrv+r.i-;,•S.1#ety-oduC aCWM1nI DI�R 6Grt%'1 4.. — "-�. .. $60 M It OrAL"AACT) r . A, i 3STORY ADDITiON SECURE PERIMETER (DINING,CLASSROOMS+C T E 1 i mw C 60" caa.un rKeeaPprgrrC�d per.t3Mr!waa�an•S4+yMr - CMAPVC0+rrut+a ftds.s w'm~son Dom l � 1— l M1Yil RRJ11NINt11 1 CAMPUSMAPLEGENO t , 1 7,GUli9' �nTwc�frv.rt�tr[irr crw�.�wo+nAwr iMr►s #= 4 Oft"DOF i!MAGI ••_ i 1 C0"Huw,"aeI"I%Iryt0 A. Pm"o It000 C Qtri�10" NHHS Master Plan Re~Presentation Proposed Phase 1 JL\ !k l i a.` '"v e E LL 5 p a luly�,2425 r • GO bond issuance modeling assumptions: • Total voter approved GO debt=$320.5 million • Assumed issuances as follows: $320.5 Million Issuance Spring 2027 $150 Spring 2029 $100 Spring 2032 $70.5 Spring 203E -- Total S??0.5 • 20 year bonds • Interest rate—5.34%(LGC required rate) • Assumes NHC has separate debt issuances for scheduled/earmarked projects • NHC capital projects requiring debt-$455 million through FY39: - Fa RV l 2 FO M n FM n FM gas FT FIG P39 80 AO 1,100100 4,050E 5,110M --"Spat fi 367,0 Z740M 9,417,0 W,000 3,407,E 2,500,000 9XIIE 7.6M)M �?1 Z500,000 2,500,000 [[ "EY 25,000000 Jeu Ii 5,0X1X 10,000,000 10,000,000 10,O-M,000 i0,0OUDO 10,000,000 10,000,000 111,000,000 10,G00,000 10,000,000 26,294.129 16.747,932 10.100,000 3004,Op0 aD00t0a0 10,000,000 250,000,000 I0,000,000 10,4100,000 10,000,000 10,000;000 10,000,000 • $320,521,418 new GO bond issuance: Existire Plus Projected orbt 013ttt7Tlfliti! Deb3 Per Capra $2,64.3 700,000.00c 32.200 4----- capira sm.aaa,laov 54 OW.000 4co,aaa,cw 3cnAQD,rxw 140000,GPO mom . . 2026 2027 202E 2029 2030 203: 2032 1013 2ou :735 2036 2037 2035 2039 €wainR Drbt Proposes Cwruy Dcbl sm ProA6=eR Sheol Debt i5320%40omi —Debt Per Cao+ta PoacY(52.20o1 • Property tax rate impact: • Referendum will require specific language of impact on the property tax rate: Additional property taxes may be levied on property located in the County of New Hanover County in an amount sufficient to pay the principal of and interest on bonds if approved by the following ballot question.51 ALLthe order authorizing S[ ]of bonds plus interest to provide funds to pay the capital costs of[constructing,improving,and renovating school facilities,including,but net limited to,the construction and renovation of classroom facilities,the acquisition and installation of furnishings and equipment,the acquisition of land,rights-of-way and easements in land required therefor,and related public infrastructure development],and providing that additional taxes may be levied in an amount sufficient to pay the principal of and interest on the bonds be approved, in light of the following: (a) The estimated cumulative cost over the life of the bonds,using the highest interest rate charged for similar debt over the last 20 years,would be S[ (consisting of S[ ]principal amount of the bonds plus$[ESTIMATED INTEREST]of interest). (2) The estimated amount of property tax liability increase for each one hundred thousand dollars($100,000)of property tax value to service the cumulative cost over the life of the bond provided above would be S[]per year,"; Yes O No O • Debt Service in terms of property tax rate-$320.5 million new issuance only: • Additional property tax rate=approximately 1.75 cents for 10 years: • Varies if tranche size/timing is different from baseline 0 Must be approved by LGC NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 724 • Based on average home value of$581,000=$102 annually • The 1.75 cent impact incorporates,and is lowered by,existing school bond payments that are included in the current tax rate(approximately 2.50 cents): Spring 2L`- S 150 Spring,2029 S'< Spring 2032 S-1C Spring 203E Total 3 2 C • GO bond calendar(detailed calendar in appendix) June 30,2025 BOE receives New Hanover High School Facilities Study&Recommends Course of Action October 31,2025 General Obligation Bond Project Scope Determined January 31,2026 Estimated Costs for Projects Finalized April-October 2026 County Carries Out Requirements of Bond Referendum Requirements(First Board Action on April 6,2026) November 3,2026 Voter Bond Referendum February 2027 Final Approval by Local Government Commission Spring 2027- Bonds Issued as Projects become Finalized&Ready for Construction/Renovation Assistant Superintendent—Operation Dr. Rob Morgan continued the presentation with the following NHCS information on the matter: • NHCS 2026 bond: • Board of Education (BOE)approved building projects: New Hanover High School 1,326 1920 10 1,678 Phase 1 of the proposed NHHS master plan would_secure the perimeter of 559.786.27tr (Phase 1) the campus,as well as the Catwalk;add a new dining hall,new classrooms,a new secure courtyard on the southside of campus,and a new bus drop zone. Trask Middle School 622 '79 1,000 A new 1,000 student middle school to replace the existing Trask Middle 594.751.362 (New Building) School-The new middle school will be built on the Sidbury RoadiSEA- TECH site.The existing population at Trask would be relocated to the new building and provide classroom space for expansion.. The existing TMS building would become part of the Laney High School Existing building 1976 .30 707 campus-This will help alleviate traffic Concerns and provide additional high school capacity- Riverlights Elementary — — 15 650 A replacement school with 650 student capacity to be built within the $53,855.851 (Replacement) Riverlights development.This project would take the place of renovatingirebuilding MC Williams help maximize capacity in this region of MC WiNams 1976 18.9 431 the county-New School will be PreK compatible.This project is needed to address the safety issues of the existing building,such as the pod configuration and exterior circulation. Pine Valley Elementary 421 1969 15 650 A new 650 student elementary school to be built on the existing campus to 556.332.402 (Replacement) replace the current school.This project is needed to address the safety issues of the existing building,such as the exterior circulation.This project will also provide needed core facilities such as art and music classroom, Existing building 15 528 multi-purpose room,small group rooms,additional office space,and a larger cafeteria-Replacement building will be PreK compatible- Porters Neck Elementary 694 2017 5-4 743 An 8-classroom addition to provide additional classroom space for the 57.625.000 (Addition) growing population of students in this region of the county- Existing building 589 District-wide Systems To address critical building infrastructure needs by modernizing and replacing aging Upgrades HVAC systems across campuses,ensuring safe,efficient,and sustainable learning environments.Funds will target the greatest needs,improve energy efficiency,and extend facility lifespans in alignment with long-term capital goals. District-wide Technology Technology Improvements:Complete the deployment of devices for all teachers Slo,000,o00 and students in elementary schools.Additionally,we will initiate a systematic refresh of devices that have reached the end of their warranty period. District-wide Safety& Safety Improvements to include security vestibule projects for 20 of our schools,at a $10,000,000 Security Improvements rate of two schools per year,over a ten-year period.The costs associated with each project include:the construction of a secure vestibule,to control and monitor entry points;the installation of security bollards,to enhance perimeter safety;and the installation of drop-down shades for every office and classroom space in the school. Project costs will vary by school based on the configuration of entryways and the scope of renovations required, Building Project To provide comprehensive project management and contingency funding for all $8,170,527 Management& bond-funded construction projects.These funds will ensure effective oversight, Contingency Costs timely delivery,and risk mitigation throughout planning and execution,covering unforeseen costs and maintaining project quality within established timelines and budgets. Total Building Project Cost $320,521,418 • New Hanover High School (Phase 1): • Project costs (additions and renovations): • Construction: • New construction 537,822,008 • Demolition $332,865 • Subtotal 538,154,873 ■ Contingency & Esc. $6,139,872 ■ Construction Total 544,294,745 • Design: $3,543,580 • Soft costs (vendors and furniture,fixtures, and equipment [FF&E]): $5,529,259 • Phase 2 design:$6,418,692 • Total project budget: $59,786,276 Master Plan HYBRID SOLUTION(PHASE 1)3 YEARS 1.Se ure The perlmeteF•bridge _ 2-Create high impact building sol ul ions=67,500 sf C.cane.j 3.Prioritiaesafety•educ.ational outcomes - 0 $60M[TEITALPROItCT]• A A, 3 STORYADDITION `a SECURE PERIMETER {DINING,CLASSROOMS+CYC •Atli - i Costs L kde dton i ._ • .•••u W�'fe &t9a+cres.7}s West`afeLRre�g96yr,� CAtTRproaonsbud—fi-erlow ffl oosls 3 Fe up MASTER PLANNING PRIORITIES CAMPUS&WtEGENO .a rxrcdntlluctlnR �.w 1.[PYGTIOMFIOmti1M! —� •' t4.1lM! - ?- ptegtnlar wsRATIaFFac°ra.An 1.COMIMYRIT ASSFR.Rl S[AYl.P IFRTiNG Buv6iV65 - II 6n u0GlRwr� - c GF nxGF'/•f5• NH}l5 Master Plan Review PresentaTion Proposed Phase 1 r July g,202S � �"`"` "�'3'°'1fll� ® l�S I) "" i r NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 725 • Trask Middle School (new building): • New school for 1,000 students,to be constructed on Sidbury Rd/SEA-Tech site • Projected costs: • Construction: • New construction $77,665,050 • Demolition N/A • Subtotal $77,665,050 • Contingency $2,329,952 • Construction Total 579,995,002 • Design: $6,213,204 • Various vendors:$3,106,602 • FF&E: $5,436,554 • Total project budget: $94,751,362 ------- Trask `` w Middle School _ 0 3 LJ5P Conceptual Site Plan Sidbury Road ool C•u.rtr lia,Re.,cr..rli ca>„ • Riverlights Elementary(replacement): • Replacement school for 650 students • Projected costs: • Construction: • New construction $43,644,140 • Demolition (MCW) $500,000 • Subtotal $44,144,140 • Contingency $1,324,324 • Construction Total $45,468,464 • Design: $3,531,531 • Various vendors:$1,765,766 • FF&E: $3,090,090 • Total project budget: $53,855,851 Rj erLights Elerrrentar tvo - _C.ance�pt�fi�ife Plan �--- _ ao © Oall ; 0 ° . 0 -- ©o0 ,,��� ICIIII]lli�lll Illl _ 16lllllllllflllill :�.. ��' ;0 0 0 C) U2M LEM PLAN LOWER LEVEL PLAN uraeucusswars s srfnur.wx rim I , 4NG . gNUERC OEH WtiG r zn fwur 1 F,r:yx Slxt[SS •wear Y+ClS� ■i,,Nx.prGtS r CN[xrE SpxCET r O4rt5nCf5 yyr• '..aSelIMVG t914aNf l[SWP[F[us�swwas I t� ■i[SgxIR4WAOONB ■ S xt W ♦SNP 1y- r Ili 1AeMWttIAIR r � �.•. �, EHILDr..arsfm5u: •Gwi rMllligW YNlai l N r SruSNF4WLNfNT$ I -'fti #_; � O ivw roaoesis � ttit tl4 :.wad srrur pv Iyy }hti ��--.: ? Y-ja �'" u minnn zlw.rtaunma � �: swerrwmwrurmeaa tY _ _ ■sr�r,ef ,..�,., .. �''" 11Rl 1V it II1 ■ �-�-• �,�.• t:�' rw..,uoN uuwiiv Pua • Pine Valley Elementary(replacement): • Replacement school for 650 students,to be constructed on existing campus • Projected costs: • Construction: • New construction $45,674,100 • [demolition $500,000 • Subtotal $46,174,100 • Contingency $1,385,223 • Construction Total $47,559,323 • Design: $3,693,928 • Various vendors:$1,846,964 • FF&E: $3,232,187 0 Total project budget: $56,332,402 NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 726 Pine Valley Elementary School Conceptual Site Plan 4 ldm. -77 Pine Valley Elementary School First Floor Plan Pine Valley Elementary School Second Floor Plan ._wa.a.r. - k+apvcponal Space Collahorat re Space L � L_. o„ce�.�eam��scare • Porters Neck Elementary(addition): • Eight classroom additions • Projected costs: • Construction: M Addition $4,500,000 Renovation $750,000 • On-site Improvements $1,000,000 • Subtotal $6,250,000 • Contingency $187,500 • Construction Total 6 437 500 • Design: $500,000 • Various vendors:$250,000 • FF&E: $437,500 • Total project budget: $7,625,000 • Districtwide systems upgrades: Project Title Snipes Academy Replace Cooling Towers 1 and 2 $738,400 Laney HS Replace Cooling Tower and All Water Source Heat Pumps $2.061,600 Gregory ES Split System Replacements $529,100 Freeman ES Chiller Replacements $821,600 Carolina Beach ES Replace HVAC rooftop units and DOAS system $916,500 Ogden ES Replace chiller,boilers.and DOHS system $900,000 Roland Grise MS Replace 3 steam boilers $425,000 Holly Tree ES Replace boiler and DOHS units $525.000 Castle Hayne ES Replace boilers and chiller $675,000 Veterans Park Replace 3 hot water boilers and pumps S900,000 Holly Shelter MS Replace chillers and boilers with associated pumps $1,300,000 Sunset Park ES Replace All Bard units $838,500 Codington ES Replace All R-22 systems $450,000 Eaton ES Replace All R-22 systems $450,000 Williston MS Replace building Afan coil units $715,000 Winter Park ES Replace chiller and boiler $630,000 Forest Hills ES Replace chiller and boilers $650,000 Mosley PLC Remove window units.Install In-classroom Bard heat pumps $600,000 DC Virgo Replace HVAC rooftop units $470,600 Hoggard HS Replace All R-22 systems $275,000 NHHS Brogden Hall Replace 14 fan coil units in offices&rooms $617„500 Wrightsville ES New HVAC Upgrades(VRF Type Systems) $1,300,000 Wrightsboro ES DDC HVAC Controls Full Upgrade $550,000 JC Roe Replace All Thru-Wall Bard Equipment $490,000 Gregory ES DDC HVAC Controls Full Upgrade $580,000 Anderson ES DDC HVAC Controls Full Upgrade $575,000 Roland Grise MS DDC HVAC Installation In Elective Building $300,000 Admin.Bldg. Roof Top Equipment Replacement $295,000 CBRC Technology Main Server Room AC Equipment Replacement $250.000 Total $19,828,800 • Districtwide technology: • Technology device five year sustainability plan: Year 1:3-5 Laptop cart for every 2 homerooms $3,267,937.00 Year 2:K-2-11 iPads per homeroom,New Hanover,Laney $5,470,689.00 Year 3: Remaining H S and Central office $5,477,591.00 Year 4: Middle Schools $3,853,669.00 Year 5: No device replacements needed $0.00 Total $18,069,886.00 • Technology device 19 year sustainability plan: NEW HANOVER COUNTY BOARD OfCOMMISSIONERS BOOK 36 NOVEPN8ER17,2O2S SPECIAL MEETING pAGE727 Year 1: 3-5 Laptops 5930,228.00 ~�" 3-5 Laptops 59=,82=00 ~.~ ""`pto~ 5980,25=0 °~'° °"La*op^^,`~~^ ,��== ��5. k-".~m. $988,32=" ��6: °"Lap=° m�0,000-00 "~,. =,Lapto~ ,1,030,95".00 ~~'" ,""La*~ps ;1,0=,00== ~=". "`.~m. v1,028,=2= ~"10: �iPa��"a=���^ "�� m��== ,=.``. °`,�ptops $1,000,000.00 ^~12: 9-12 Lap"~ �05,944,00 "~'`". 9"2 Laptops ,1,000,000.0o "~14: 9-12 Laptops $9=�4.00 ~~�`~ ����~16: 6-8 Laptops ow��=, Yea1,106,465.00 "~17: =Lap°~ ����-5.0° "~'18: =Law~ '1,091,579.00 "~'19: =Lapto~ 5458,=3.00 ~°' p18,479,455 0 Districtvvide safety and security improvements: SCHOOL YEAR COST Roland=rise'Laney ,"", $`.=^=" Ash'ey,"��rd 2028 s1,=0,000 Alderman,Mosley 2029 s1,000,=" Forest Hills/M~~~ 2030 s1,=0,000 Bradley=re~w°~^'etPark 2031 $1,000,=" Bel la~~/Cod-mon 2032 $p00,=0 Noble,=rigubo. """ $1,000,00" Ogden/Myrtle Grove "= $,=,00 =""=C'".x,Tree """ s1,000,00" Holly Shelter'Eaton 2036 �000,000 Total v10,000,000 0 Building project management and contingency costs: 0 Total cost: $8'170'527 A discussion ensued about the presentations. In response to questions, Mr. Cred|e explained how interest earnings,fund balance allocations,and market assumptions affect the property tax increase estimate and noted the timeline necessary to meet LGC deadlines. He also explained the assumptions used in the model, the difference between general fund support and restricted capital funding lines, and the tax rate pressure created by rising construction costs and broader county capital obligations. He reiterated that the LGC will determine the referendum's final language and tax impact statement. County Manager Coudrist added that the proposed bond must be evaluated within the context of the count/s long-term capital plan, which also includes public safety facilities, county building needs, and other infrastructure commitments. He stated that the $320.5 million amount represents the upper limit of what the county can responsibly support while still fulfilling its other obligations. He emphasized that the county would remain in alignment with other triple-A rated counties, but that approving one large bond limits the ability to propose another referendum for 10-12 years. He also explained that property values remain fixed for each four-year revaluation cycle except for permitted improvements. He reiterated that the 1.75' cent model assumes a fixed rate for lOyears,though future revaluations could change the dollar impact totaxpayers depending on overall assessed values.County Manager Coudristalso added that 2.5-396annual population growth assumption supports future debt capacity but could temporarily push the county above its$2'200 per capita limit in FY 2034' FY 2035'and FY2036i which may require a policy waiver. He noted that staff stands ready to implement the bond if the voters approved it but stressed the need for transparency with the community about tax impacts and long-term constraints. In response to questions about broader county capital needs, Mr. Cred|e stated that long-term financial models already account for major upcoming projects, including the Senior Resource Center, Cooperative Extension, and potential jail expansion. He explained that carefully sequencing these projects is essential to managing borrowing costs and maintaining stable interest obligations. In discussion of the proposed projects,Superintendent Dr.Barnes and Assistant Superintendent Dr.Morgan responded to questions regarding site conditions, safety improvements, enrollment projections, operational impacts, and how Phase | at New Hanover High School supports future phases. They also clarified that Phase | addresses the most urgent needs of the security perimeter, classroom wings, and critical support spaces while also providing the design foundation for subsequent phases. In discussion about advocacy,County Attorney Jordan Smith reviewed the legal requirements for placing a school bond referendum on the ballot. He explained that state statute dictates the ballot language and that only the Board of Commissioners may initiate the referendum through a formal resolution submitted to the LGC. He clarified that the BOE may adopt a resolution expressing support for the proposed projects, but it does not place the matter on the ballot. He stated that both boards may provide factual,educational information about the bond package and the needs it addresses, but neither may advocate for passage or use public funds to encourage voters to support or oppose the referendum. In general discussion about the proposed bond' BOE members commented that the proposed $320.5 million package reflects the school district's most immediate and critical needs. Some BOE members noted that aging facilities, uneven conditions across campuses, rising maintenance demands, and capacity pressures require significant investment. BOE members also noted that delaying these projects would increase costs and prolong challenges in impacted schools.Appreciation was also expressed for the count/s collaboration,and it was reiterated that the proposal includes the highest-priority instructional, safety, and infrastructure needs identified through facility assessments. The Commissioners expressed support for advancing the $320.5 million package and emphasized the importance of clear, accessible information for taxpayers regarding project purposes, cost drivers, NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 36 NOVEMBER 17,2025 SPECIAL MEETING PAGE 728 timelines,and expected outcomes.The Commissioners also discussed the need to ensure taxpayers understand why certain schools were selected and how the projects align with broader facility planning.The discussion included long- term maintenance responsibilities, construction sequencing,the rationale for selecting replacement schools rather than renovations, potential student displacement during construction, adjustments to student assignments once new facilities open,and operational impacts such as transportation. In response to questions about financial impacts, Mr.Credle explained that current modeling indicates the proposed $320.5 million school bond can be absorbed within the existing property tax rate. He noted that future capital needs, especially those anticipated between 2027 and 2032, may require a tax-rate adjustment depending on economic conditions, interest rates,and the timing of other major county capital obligations. He confirmed that long-term financial models already incorporate projected needs at the Senior Resource Center, Cooperative Extension facilities,and the jail. He emphasized that the county must strategically sequence projects to manage debt capacity and interest costs. County Manager Coudriet added that the county must weigh school facility needs alongside its broader capital obligations, including upcoming requirements in public safety, detention facilities, library services, and other core infrastructure. He emphasized that the county manages a much larger capital portfolio than the school system alone,and that it must carefully balance all the demands.He stated that responsible project timing and sequencing are essential to avoid unnecessary debt-service pressures and to maintain long-term financial stability. In response to questions, Superintendent Dr. Barnes and Assistant Superintendent Dr. Morgan explained that several school buildings require full replacement because structural limitations,end-of-life mechanical systems, outdated electrical and plumbing infrastructure, and instructional layout constraints cannot be addressed through renovation. Both noted that replacement schools help limit the extent of student displacement during construction, although some temporary relocation may still be necessary at certain sites. Assistant Superintendent Dr. Morgan outlined documented facility deficiencies across the district, including HVAC failures, roof deterioration, electrical capacity limitations, accessibility needs, safety and security upgrades, and classroom configurations that no longer meet modern instructional requirements. Also, student assignment adjustments will be needed once new facilities are completed,and it is confirmed that transportation routes will be reviewed and updated to minimize disruption. In further discussion about third-party advocacy,Wilmington Chamber of Commerce (Chamber) President and CEO Natalie English addressed questions from both boards. She explained that she served on the School Bond/Finance Committee at Committee Chair Bradford's invitation and drew on her experience with capital bonds for the Charlotte-Mecklenburg Schools and other bond related matters. She noted that she gained a strong understanding of NHCS facility needs through the committee's work and has shared that information with the Chamber board.Ms.English reported that the Chamber's research,including recent surveys,indicates broad support within the business community and among voters for advancing the proposed bond.She clarified that the Chamber board has not voted on the matter to date and will be considering it during its meeting on Thursday. If approved, the Chamber would follow the lead of the County and the Board of Education, as it always would with any bond on the ballot. During the discussion on next steps, County Manager Coudriet asked both boards to confirm whether the $320.5 million project list represented the scope they wished to advance so staff could begin preparing the necessary referendum materials, scheduling, and public facing information. Both boards affirmed their support for moving forward with the$320.5 million package. Members of both boards thanked County staff,school leadership,and the financial team for their analysis. They agreed to continue working collaboratively to finalize the project scope, prepare accurate and neutral educational materials, and complete the steps required to place the school bond referendum on the 2026 ballot. ADJOURNMENT Hearing no further discussion,Chair Rivenbark and Chair Mason adjourned the meeting at 4:42 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim record of the Special Meeting of the New Hanover County Board of Commissioners. The entire proceedings are available online at www.nhcgov.com.