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42 <br /> 1 Slide #6 <br /> Debt Metrics <br /> Ten Year Payout Ratio <br /> Measures the proportion of total outstanding principal will be paid off in the next ten(10)years <br /> Prevents backloading principal payments <br /> Positive adjustment it 10 year payout ratio is 65%or more <br /> Current ratio is 67.1% <br /> ORANGE COUNTY <br /> NOR'I-H C/kRL7LiNA <br /> 2 <br /> 3 <br /> 4 Slide #7 <br /> !Debt Metrics <br /> • Debt to Assessed Value Ratio <br /> Measures total tax supported debt as a percentage of total assessed value <br /> One measure of ability to pay debt service <br /> — As assessed value increases,the same tax rate generates more revenue <br /> County policy to keep total outstanding debt service at or below 3%of total assessed value <br /> — Current ratio is 1.28° <br /> All of the financing scenarios maintain a debt to assessed value ratio of 3%or less <br /> Debt Service to General Fund Revenue Ratio <br /> - Measures the amount of debt service due annually to projected general fund revenues <br /> — Another measure of ability to pay debt service except on an annual basis <br /> — Debt service is the first obligation in budgeting <br /> — If debt service is growing faster than general Fund revenue, less funding is available for everything else <br /> — County policy establishesa target of 15%of general fund revenues dedicated to debt service annually <br /> — Current ratio is 13.6" <br /> GRANGE COUNTY <br /> 7 NC)WYH CAR€3"r1JA <br /> 5 <br /> 6 <br /> 7 <br /> 8 <br />