Orange County NC Website
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reduction in annual payments each year and said this is how the County can begin to afford new <br /> debt for new projects moving forward. <br /> Page 6 - Key Debt Ratio: Tax Supported Payout Ratio— He noted that the County is <br /> amortizing debt quickly. <br /> Commissioner Gordon asked for the definition of back loading debt. <br /> Ted Cole said this is when principal is pushed to the back end of the loan. <br /> Page 7 - Debt Per Capita— He said the County is at$1400 per person, and this ratio will <br /> come down as years pass. <br /> Page 8— Key Debt Ratio: Debt to Assessed Value— He said this is the amount of debt <br /> outstanding, as it relates to the County's tax base. He said the County has a policy in place to <br /> cap this ratio at 3 percent, and the current ratio is well below that number. He said the ratio on <br /> the top left of this page illustrates where there is a capacity to take on additional debt. <br /> Page 9 - Debt Service vs. Expenditures—This illustrates how much county money is <br /> going toward debt. This number is capped at 15 percent. He said Orange County is much <br /> closer to that policy at 14 percent. He said this is a ratio where there is less capacity as it <br /> relates to taking on new or additional debt. <br /> Page 10- Decline in Tax Supported Debt Service— He said this shows the decline in <br /> debt service is tied into the 10 year debt payout ratio. <br /> Page 11 — Debt Affordability Analysis— He said the county has budgeted for pay as you <br /> go capital. He said column f shows total debt service going forward. He said column g <br /> assumes that same $25 million per year in appropriation, and column h assumes $4.3 million <br /> per year in pay-as-you-go cash. <br /> Page 13— Capital Improvement Program (Years 1-5) — He said the funds usage is <br /> addressed at the top of the chart in lines 5-7 and totals $129 million. He said the rest of the <br /> table outlines where the dollars come from. <br /> He said the green bar shows $94 million in debt to be issued to satisfy a portion of the <br /> County capital needs. He said there is an expectation that some of this will be paid with cash. <br /> Page 14—Existing and Proposed Tax Supported Debt— He noted this is a 20 year term <br /> with a 5% interest rate, and he said these are debt issuance assumptions. <br /> Pages 15-16 - Key Debt Ratios— He said the County will maintain stated policies. He <br /> said the take-away is that the capital program is doable over the next 5 years with the listed <br /> assumptions. <br /> Page 17 - Debt Affordability Analysis— He said this looks at how the County pays for <br /> their debt. He said column b is the debt that is on the books today; column c is the projected <br /> new debt service for the capital program; and column d is pay as you go capital. <br /> He said column f would become the new debt schedule if the County were to implement <br /> the entire capital plan. <br /> He said the affordability depends on the equivalent of a 2.81 cent incremental tax effect, <br /> as shown in column o. <br />