Minutes 09-10-2015 - Laserfiche WebLink

Browse Search

8 1 • North Carolina AAA Counties: 2 — Minimum 1.2% 3 — Median 1.5% 4 — Maximum 1.6% 5 • National AAA Counties: 6 — Minimum 0.0% 7 — Median 0.6% 8 — Maximum 3.5% 9 10 Debt Service to Expenditures 11 • Orange County (MFRA): 13.6% 12 • Orange County (2016)1: 12.7% 13 • North Carolina AAA Counties: 14 — Minimum 13.6% 15 — Median 16.8% 16 — Maximum 23.8% 17 • National AAA Counties: 18 — Minimum 0.0% 19 — Median 8.8% 20 — Maximum 23.8% 21 22 Ted Cole said the County does have a maximum Debt Service to General Fund 23 Revenue policy of debt policy of 15 percent. 24 Ted Cole said the County has been managed well, as related to debt, and there is some 25 room to take on some additional debt. He said the County has debt capacity. 26 Ted Cole referred to page 7 which reviewed the Decline in Tax Supported Debt Service. 27 He said this relates to affordability. He reviewed two tables which are incorporated here by 28 reference. He said the County is retiring its debt rapidly. 29 Ted Cole said the decline in the annual debt service should be captured in order to 30 finance new debt. 31 Ted Cole referred to pages 9 and 10 which give a Case Overview of the Capital 32 Improvement Plan: 33 34 • As part of the annual CIP process, the County identifies Capital Projects for potential 35 debt funding. In addition to the potential debt issuances in the CIP the County is 36 considering voting a General Obligation Bond Referendum in November 2016. 37 38 • Future debt is assumed to be funded under the following assumptions: 39 —Issuance Date: As indicated 40 —First Interest: Fiscal Year Following Issuance 41 —First Principal: Fiscal Year Following Issuance 42 —Interest Rate: 3.75% -4.50% 43 —Term: 20 Years 44 —Non-GO Amortization: Level Principal 45 —GO Amortization: Level Principal 46 47 Key Debt Ratio Growth Assumptions: 48 —Assessed Value - Natural Growth: 2017: 1.50%, 2018 & Beyond: 2.00%