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3 <br /> Potential Orange County Credit & Cash Flow / Budget Implications ORANGE COUNTY <br /> NORTH CAROLINA <br /> • Credit Implications. <br /> — All financings will be secured by Light Rail assets and will be subject to annual appropriations from GoTriangle. <br /> — Beyond the revenues identified on the prior pages, there are no additional GoTriangle revenues available to fund this project. <br /> — Between the TIFIA loan and market based financing, no other credit details have been developed or disseminated to the working group. <br /> — In their review, the Rating Agencies may view Orange County as having a contingent liability to the GoTriangle financial plan, regardless of <br /> whether or not there is an explicit guarantee provided by Orange County. <br /> — Davenport would anticipate that the rating agencies will review Orange County's credit with and without a liability for GoTriangle. <br /> — The soundness of the business plan at the time of the review will help the Rating Agencies determine the level, if any, of the potential <br /> contingent liability. <br /> • Cash Flow/ Budget Implications. <br /> — As discussed previously, there are a number of key assumptions included in the GoTriangle financial plan. <br /> — Changes, positive or negative, to these assumptions will impact Orange County's cash flow requirements under this plan. <br /> — If there is a significant shortfall, Orange County may be required or decide to contribute additional revenue in order to maintain the viability of <br /> the project, regardless of whether there is a contractual requirement to do so. <br /> • As the Plan of Finance continues to develop and key decision points are reached, more information about the potential credit and financial <br /> impacts will be available. <br /> DAVENPORT&COMPANY <br /> April 4,2017 Orange County, NC 10 <br />