Orange County NC Website
Browse       Search
6 <br /> 1 <br /> 2 Existing Tax Supported Debt - graph - page 11 <br /> 3 <br /> 4 Tax Supported Debt Service - graph <br /> 5 Par Outstanding — Estimated as of 6/30/2016 <br /> 6 Tax Supported Debt Service <br /> 7 <br /> 8 Key Debt Ratio: Tax Supported Payout Ratio - page 12 <br /> 9 • Rating Considerations: <br /> 10 — Moody's: Moody's rating criteria for General Obligation credits allows for a <br /> 11 scorecard adjustment if an issuer has unusually slow or rapid amortization of <br /> 12 debt principal. <br /> 13 — S&P: A payout ratio greater than 65% results in a one point positive <br /> 14 qualitative adjustment to the Debt & Contingent Liabilities section of S&P's <br /> 15 General Obligation rating methodology. <br /> 16 • Existing 10-year Payout Ratio <br /> 17 — FY 2017: 89.7% <br /> 18 • The 10-Year Payout Ratio measures the amount of principal to be retired in the next 10 <br /> 19 years. <br /> 20 • This ratio is an important metric that indicates whether or not a locality is back-loading <br /> 21 its debt. <br /> 22 • The County does not have a Financial Policy setting a minimum 10-Year Payout Ratio. <br /> 23 <br /> 24 Key Debt Ratio: Tax Supported Debt to Assessed Value <br /> 25 TS Debt to Assessed Value Peer Comparative (Lower is Better) - page 13 <br /> 26 • Rating Considerations: <br /> 27 — Moody's: Criteria for General Obligation Credits defines categories of Debt to <br /> 28 Assessed Values as: <br /> 29 o Very Strong (Aaa): < 0.75% <br /> 30 o Strong (Aa): 0.75% - 1.75% <br /> 31 o Moderate (A): 1.75% -4.00% <br /> 32 o Weak—Very Poor (Baa and below): > 4.00% <br /> 33 — S&P: A positive qualitative adjustment is made to the Debt and Contingent <br /> 34 Liabilities score for a debt to market value ratio below 3.00%, while a <br /> 35 negative adjustment is made for a ratio above 10.00%. <br /> 36 • Existing Tax Supported Debt to Assessed Value <br /> 37 — FY 2017: 1.01% <br /> 38 • Assumed Future Growth Rates <br /> 39 — 2016 Assessed Value: $16,778,182,392 <br /> 40 — 2017 Budgeted A.V.: $16,942,732,752 <br /> 41 — 2018 & Beyond: 1.70% <br /> 42 • The County has a Financial Policy setting a maximum Tax Supported Debt to Assessed <br /> 43 Value of 3.0%. <br /> 44 <br /> 45 Key Debt Ratio: Tax Supported Debt Service vs. Governmental Expenditures <br /> 46 TS Debt Service vs. Gov't Expenditures Peer Comparative (Lower is Better) <br /> 47 • Rating Considerations: <br /> 48 — Moody's: Moody's criteria allows for a scorecard adjustment if an issuer has <br /> 49 very high or low debt service relative to its budget Percent. <br />