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4 <br /> 1 • Register of Deeds Automation — removed $400,000 for the software system purchase <br /> 2 as there are current funds within the Automation and Enhancement Preservation Fund <br /> 3 to <br /> 4 cover this expense. <br /> 5 • Mil!house Road Park— moved $300,000 from Year 2 to Year 4, and moved $6,400,000 <br /> 6 from Year 3 to Year 5. <br /> 7 • Northeast District Park— moved $350,000 from Year 3 to Year 5, and moved <br /> 8 7,650,000 from Year 4 to Years 6-10. <br /> 9 <br /> 10 The County's financial advisor, Davenport and Company, will present additional information <br /> 11 (See Attachment 3) regarding the following possible options to consider as it relates to <br /> 12 exceeding the policy and/or addressing cash flow shortfalls: (1) Consider alternative debt <br /> 13 restructuring flexibility from the Local Government Commission (LGC), in order to fund the <br /> 14 scheduled CIP projects within the policy threshold, and reduce cash flow shortfalls; (2) <br /> 15 Implement tax rate adjustments to minimize or eliminate cash flow shortfalls. <br /> 16 <br /> 17 FINANCIAL IMPACT: <br /> 18 There is no immediate financial impact associated with discussion and prioritization of the FY <br /> 19 2017-22 Capital Investment Plan. It is a long-range financial planning tool with a financial <br /> 20 impact in FY 2017-18, if the first year of the CIP is approved by the Board of County <br /> 21 Commissioners with the adoption of the Annual Budget. <br /> 22 <br /> 23 Ted Cole, Davenport and Company Senior Vice President, made the following <br /> 24 PowerPoint presentation: <br /> 25 <br /> 26 County Tax Supported CIP Discussion Materials <br /> 27 Oranqe County, North Carolina <br /> 28 <br /> 29 Credit Ratinq Overview and Peer Comparatives- qraph <br /> 30 Peer Comparative Introduction <br /> 31 • The County is currently rated AAA by Moody's Investors Service (May 2015), AAA by <br /> 32 Standard and Poor's (June 2015), and AAA by Fitch (June 2015). <br /> 33 • The following pages contain peer comparatives based on the Moody's AAA peer <br /> 34 counties listed below. <br /> 35 — National AAA Counties — 93 Credits <br /> 36 — North Carolina AAA Counties - 9 Credits <br /> 37 o Buncombe, Durham, Forsyth, Guilford, Mecklenburg, New Hanover, <br /> 38 Orange, Union, Wake <br /> 39 <br /> 40 Historical Credit Spreads <br /> 41 • The County's credit rating has a direct impact on the cost of borrowing, which in turn <br /> 42 affects the County's debt capacity. <br /> 43 — The credit spread is the premium an issuer pays to the purchaser of their <br /> 44 bonds (i.e. higher interest rate) as compensation for increased credit risk. <br /> 45 — Since the financial downturn in September 2008, credit quality of issuers has <br /> 46 taken on a renewed importance to investors. <br /> 47 — The average spread for an A rated borrower has increased from 0.33% from <br /> 48 Nov 2004 — Dec 2008 to 0.70% since Dec 2008. <br /> 49 <br /> 50 Ratinq Agency Methodology Updates - qraph <br />