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42 <br /> Slide #6 <br /> Debt Metrics <br /> Ten Year Payout Ratio <br /> Measures the praportion of total outstanding principal will be paid off in the next ten(1 D)years <br /> - Prevents backloading principal payments <br /> - Positive adjustment if 10 year payout ratio is 65%or more <br /> - Current ratio is 67.1% <br /> ORANGE COUNTY <br /> NC7RtrH C;ARC3"NA <br /> 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 /> - Measuresthe amount of debt service due annuallyto projected general fund revenues <br /> - Another measure of abilityto pay debt service except on an annual basis <br /> - Debt service isthe first obligation in budgeting <br /> - Ifdebt service isgrowing fasterthan general fund revenue, lessfunding is availablefor everything else <br /> - County policy establishesa targetof 15%ofgeneral fund revenues dedicatedtc debt service annually <br /> - Current ratio is 13.6% <br /> ORANGE COUNTY <br /> 7 NC}RTH C:ARC311NA <br />