Cabarrus County Rating Book 4 06 09   Final Ls
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Cabarrus County Rating Book 4 06 09 Presentation to Bond Rating Board

Cabarrus County Rating Book 4 06 09 Presentation to Bond Rating Board

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    Cabarrus County Rating Book 4 06 09   Final Ls Cabarrus County Rating Book 4 06 09 Final Ls Presentation Transcript

    • Cabarrus County, North Carolina April 2009
    • Presentation Topics Introduction……………………………………………...……………..1 Economic Diversity…………………………………...………………..2 County Finances………………………………………….…………….3 Economic Outlook & Fiscal Adjustments…………………..………….4 Historical, Current & Future Debt Profile……………………..……….5 Funding the Capital Plan……………..…………………………………6 App A: Economic Outlook Data ……….……………...…………………………………….A App B: Regional Commuting Patterns …………...….……………………………..…….…B App C: Cabarrus County Economic Development Strategy………………………………...C App D: Companies in NC Research Campus and County Motorsports Directory …………D App E: Tour Map and Philip Morris Marketing Brochure…………………………………..E Cabarrus County, North Carolina Tab
    • Introduction Cabarrus County, North Carolina
    • Presentation Participants
      • Cabarrus County
      • Jay White, Chairman, Board of Commissioners
      • John Day, County Manager
      • Pamela S. Dubois, Deputy County Manager for Administration & Finance Director
      • Mike Downs, Deputy County Manager for Operations
      • Susan Fearrington, Assistant Finance Director
      • Brent Weisner, Tax Administrator
      Cabarrus County, North Carolina
      • Southwest Securities
      • Joe Niggel, Managing Director
      • Cabarrus Regional Chamber of Commerce
      • John Cox, CEO
      • Ryan McDaniels
      • Vice President
    • Governing Board Cabarrus County, North Carolina H. Jay White Sr. (Chairman) Grace M. Mynatt (Vice Chairman) Robert W. "Bob" Carruth Elizabeth "Liz" Poole Coy C. Privette http://www.cabarruscounty.us/Commissioners/
    • Board of Commissioners – Strategic Focus
      • Mission
        • Through visionary leadership and good stewardship, we will ensure public safety, administer state requirements, determine county needs and provide services to continually enhance quality of life.
      • Vision
        • Cabarrus is a county where our children learn, our citizens participate, our dreams matter, our families and neighbors thrive and our community prospers.
      • Core Values
        • Accountable & Responsible : Our decisions will be based on facts and a full understanding of the matters before us, including the implications for individuals, businesses and the community as a whole.
        • Collaborative : As individuals, we will engage each other during the decision making process. Collectively, we will cooperatively engage other governing bodies, the community and stakeholders in the decisions that affect the county’s citizens through opportunities to participate with input, education and feedback .
        • Integrity : We understand and accept our duty to do the public’s business in an open, honest and transparent manner.
        • Respect : Healthy debate and diversity of opinion is expected and encouraged, requiring a high level of civil decorum in all our discussions
      Cabarrus County, North Carolina
    • Board of Commissioners – Strategic Focus
      • Goals
      • Preserve and enhance the quality of life by addressing growth with sound public policies that sustain resources, provide high quality services, and fund infrastructure needs.
      • Achieve community-wide preparedness to protect public safety, respond to routine and catastrophic events, and maintain and restore the well-being of all residents.
      • Use resources wisely and responsibly by protecting assets, minimizing risk, creating partnerships, and investments, expenditures, and services.
      • A fully engaged community with a shared understanding of its issues and challenges and working together to achieve its goals.
      • Ensure that all citizens have equal opportunity and access to education, health care, and economic prosperity and encourage citizens to fulfill their potential and contribute to their community.
      • For each of the five goals, specific outcomes are identified for achievement over the next five years. The Board of Commissioners reviews progress and amends the desired outcomes at least annually. http://www.cabarruscounty.us/Commissioners/docs/BOC_StrategicPlanning_Goals.pdf
      Cabarrus County, North Carolina
    • Sustainable Community Initiative Cabarrus County, North Carolina
      • Development of a viable local food system
        • Achieves positive economic, nutritional and environmental impacts
        • Incubator farm operating – 9 new farmers participating
        • Planning & design stage of constructing harvest facility at local family-owned meat processing business for slaughter, processing and packaging of locally grown livestock (grant funded)
        • Community food assessment will be performed by UNCC on behalf of Cabarrus and Mecklenburg counties
        • Food policy council will be formed
        • Coordinated with similar statewide effort ( http://www.cefsfarmtofork.com/ )
      • Land use regulations for sustainable development
        • Designed to direct development to municipalities where infrastructure already exists and preserve farmlands and rural areas
        • 15-year contract with Concord defines development densities and prohibits utility extensions (a growth boundary) in central-eastern area of county. Innovative initiative – only one in state
        • Harrisburg Town Council agreed to join with the county on a similar effort. Intent is to partner with each municipality in the county.
      • Organizational Efforts
        • Sustainability Manager hired December 2008
        • Several conservation , waste reduction and air quality improvement measures already in place
        • Transitioning to “green” cleaning products and sustainable grounds maintenance practices
        • Triple bottom line approach
    • Financial and Budgetary Policies
      • Objectives
      • - To link long-term financial planning with short term daily operations;
      • - To maintain the County’s stable financial position;
      • - To ensure that Commissioner's adopted policies are implemented in an efficient and effective manner;
      • - To secure the highest possible credit and bond ratings by meeting or exceeding the requirements of bond rating agencies through sound, conservative financial decision making; and
      • - To comply with North Carolina Budget and Fiscal Control Policies.
      • Comprehensive set of Board-adopted policies including:
      • - Operating Budget - Accounting/Financial Reporting - Cash Management
      • - Revenue - Capital Improvement - Contract Administration
      • - Expenditure - Personnel Management - Budget Adoption Process
      • - Reserve - Debt Management - Investment
      Cabarrus County, North Carolina
      • Maintain competitive County property tax rate (current ranking: 46/100 at $0.63)
      • Effectively manage General Fund debt service as % of non-capital expenditures
      • - Stabilized % of debt service to total expenditures: - 14.86% in FY 2008 - 17.27% in FY 2009
      • Total capital program for the past year plus the next five years of $601.4 million - 20.37% pay-go funded
      • Maintain undesignated General Fund Balance at or above 15%
      • Continue to maintain/improve Financials and Diversified Employment Base
    • School Construction Initiatives
      • The County intends to fund the following projects with the Series 2009 COPs:
      Cabarrus County, North Carolina *Construction Bids due April 10, 2009 – amount likely to decrease
    • A Balanced, Diverse Economy 53.7 % of County residents work in the County Cabarrus County, North Carolina
    • Economic Diversity: Life Sciences
      • North Carolina Research Campus
      • - Multi-purpose campus on 350 acres (site of former Pillowtex)
      • - Designed for biotechnology and nutrition research
      • - State of the art research equipment/space
      • - Expected to become home to over 100 biotechnology companies
      • - Collaboration between public and private sector
      • - Initially announced by David Murdock and UNC in 2005.
      • - Will include retail, hotel, commercial, residential and civic space
      • Universities and Colleges : Businesses:
      • - University of North Carolina Chapel Hill - Dole Nutrition Institute - LabCorp
      • - North Carolina State University - Angiogen - Lovelace
      • - University of North Carolina at Charlotte - Anatomics - PPD
      • - University of North Carolina Greensboro - Bio-Marker Group - Sensory Spectrum
      • - Duke University - Red Hat - Zeiss Imaging
      • - North Carolina A&T University - Carolinas Healthcare Systems - IMAF
      • - Appalachian State University - Pepsico
      • - North Carolina Central University
      • - Rowan-Cabarrus Community College
      • Public funding through issuance of TIF Bonds - $168 million
      • Approximate $1.5 billion total planned investment
      Cabarrus County, North Carolina
    • Economic Diversity: Life Sciences (continued)
      • UNC Nutrition Research Institute http://nri.unc.edu/default.asp
        • Focuses on using cutting-edge genomic and metabolomic biotechnology to develop innovative approaches to understanding why we are individually different in our metabolism and nutrition needs.
      Cabarrus County, North Carolina Scientist Carol Cheatham (Nutrition Research Institute) researches the effect of omega-3 fatty acids in children's diets on brain development.
    • Economic Diversity: Life Sciences (continued)
      • The NC State Plants for Human Health Institute http://www.ncsu.edu/fvsi/phhi/index.html
        • Performs integrated research in metabolomics, biochemistry, pharmacogenomics, breeding and postharvest attributes aimed at developing mainstream fruit and vegetable produce with enhanced health benefits.
      Cabarrus County, North Carolina Dr. Jeremy Pattison (left) of the N.C. State University Plants for Human Health Institute researches strawberry breeding and genetics.
    • Economic Diversity: Life Sciences (continued)
      • David H. Murdock Research Institute http://www.ncresearchcampus.net/dhmri/index.html
        • Offers research capabilities ranging from next-generation DNA sequencing to cutting-edge confocal imaging and the world’s first actively-shielded 950 MHz NMR
      Cabarrus County, North Carolina
    • Economic Diversity: Life Sciences (continued) Cabarrus County, North Carolina The M.U.R.D.O.C.K. Study: “A Framingham Study for the Molecular Age” The M easurement to U nderstand R eclassification of D isease O f C abarrus/ K annapolis Study https://www.murdock-study.com/ Duke leaders, including Drs. Rob Califf, John McHutchison, and Geoff Ginsburg, are providing scientific oversight to the MURDOCK Study. “ Ultimately, this unprecedented research opportunity will help to re-write the textbook of medicine by applying modern-day technologies to identify genomic linkages within and across major chronic diseases and disorders that are some of today's leading causes of illness and death.  These connections will initiate disease reclassification by identifying novel patterns and characteristics that may predict risk or response to therapy and reveal underlying pathways with therapeutic potential.”
    • Economic Diversity: Agriculture Cabarrus County, North Carolina
      • Total Acres in County: 231,524
      •  
      • 2007 Census Data
        • Number of Farms-611
        • Total Land in Present Use Value Taxation, Acres-153,990 or 66%
        • Average Farm Size, Acres-109
        • Harvested Cropland, Acres-27,912
        • Average Age of Farmers-57.4
        • Average Value of Farm & Building-$614,341
        • Average Market Value of Machinery & Equipment-$56,510
        • Average Total Farm Production Expense-$74,008
        • Number of Farms in Voluntary Agricultural District-132
        • Number of Acres enrolled in Voluntary Agricultural District-11,120
      • Cash Receipts: 2007
        • Livestock, Dairy, and Poultry-$24,877,000
          • State Rank-44
        • Crops-$4,948,000
          • State Rank-88
        • Government Payments-$394,000
          • State Rank-82
        • Total-$30,219,000
      • State Rank- 68 / 100
    • Economic Diversity: Warehouse & Distribution
      • The distribution, warehousing, and shipping industry is another growing sector of the County’s Economy
      • - County is rapidly becoming a cost effective alternative for Charlotte area distributors
      • - Close proximity to I-85 and airports (Seven interchanges off I-85 in County)
      • - In excess of 5.2 million sqft of occupied distribution center space
      • - Norfolk Southern railway, Aberdeen Carolina & Western railroad in County
      • Distribution Centers in County
      • - Saddle Creek 300,000 sq ft, 300,000 addn opens in 09
      • - Caffey Distributing 130,000 sq ft
      • - Sysco Foods 387,000 sq ft
      • - Shoe Show 785,000 sq ft
      • - Minka Lighting 365,000 sq ft
      • - Stanley Works 925,000 sq ft
      Cabarrus County, North Carolina
    • Economic Diversity: Entertainment & Hospitality
      • Lowes Motor Speedway (LMS)
      • - Major sports and recreational facility
      • - Hosts 9 primary events each year
      • - 3 NASCAR racing events with 167,000 people
      • - Each covers 10 day period
      • - Provides approximately $309M economic support to region annually
      • - Recently opened Z-Max - a $60 million NHRA drag strip facility on LMS property
      • Concord Convention/Conference Center
      • - Embassy Suites Hotel Management
      • - Located between LMS and Concord Mills Mall
      • - Project has been so successful, second hotel tower was recently announced
      • Cabarrus Arena & Events Center
        • Newly constructed 5,000 Seat Arena on 11 acres
        • 150,000 sqft of event space
        • Flexible floor plan and state of the art facilities
      Cabarrus County, North Carolina
    • Economic Diversity: Entertainment & Hospitality (continued) Cabarrus County, North Carolina
      • Area Hotels
      • County currently has 1,948 area hotel rooms
      • 51% Average Annual Occupancy Rate of Area Hotels.
        • Compares to: 44.6% NC, 49.9% Mecklenburg NC and 51.5% Cary/S Raleigh
      • Approximately 1,000 new Hotel rooms
        • Great Wolf Lodge - 408 Rooms / opening Spring 2009
        • Residence Inn – 130 Rooms / opening Fall 2009
        • Courtyard Marriott – 123 Rooms / opening Fall 2009
        • Hilton Garden Inn – 149 Rooms / opening Spring 2010
        • Hyatt Place – 306 Rooms / opening Spring 2010
        • Embassy Suites – Addition of Second Tower / planned Fall 2010
      • Need generated by increased demand from area businesses and entertainment
    • Economic Diversity: Healthcare
      • Carolinas HealthCare System has large hospital presence in County
      • 457 Bed, Not for Profit
      • Employs 4,300
      • Planned 8-Story Tower will add approximately 425,000 sqft
      • Home to:
        • Jeff Gordon Children’s Hospital
        • Batte Cancer Center
        • Cannon Heart Center
      Cabarrus County, North Carolina
    • Economic Diversity: Motor Sports
      • County home to:
      • - Lowes Motor Speedway
      • - NASCAR Research and Development
      • - World Racing Group
      • - The DIRT Track at LMS
      • - Concord Speedway
      • - Four driving schools
      • - Hendrick Motorsports
      • - Roush Racing
      • - Earnhardt-Ganassi Racing
      • - Stewart-Haas Racing
      • - ST/ Wood Motorsports
      • - 200+ other motorsports related businesses
      • Windshear, Inc . recently constructed a new research wind tunnel
      • - $40 million investment
      • - Full Scale testing of race cars at 180 mph
      • - Only publicly available wind tunnel in North America
      • Fastest growing sport in America
      Cabarrus County, North Carolina
    • Economic Diversity: Retail
      • Concord Mills Mall www. concordmills .com/
      • - 165 acres complex opened September 1999
      • - 1.4 million sq. ft. costing $240 million
      • - 200+ stores
      • - $300+ million annually in retail sales
      • - Mall is North Carolina’s largest tourism draw – 17.5m visitors each year
      • - Complex continues to draw additional retail to area
      • Other Retail
      • - Northlite Center - Afton Ridge Center
      • - Located off I-85 - 400,000+ sq ft or retail - Located off I-85
      • - Super Wal-Mart, Sam’s Club, Kohl’s, Hobby Lobby - Super Target, Marshalls, Best Buy, Dick’s Sporting Goods
      • - Harrisburg Town Center - Moss Creek
      • - 100 acre mixed use - 500 acre complex
      • - Residential units - 1,400 Housing Units
      • - 500,000 sq ft office/retail - Elementary and Middle School
      • - Afton Village
      • -Mixed use development: residential, office,
      • commercial, civic
      Cabarrus County, North Carolina
    • Economic Diversity: Airport
      • Concord Regional Airport / Airport Business Park
      • 4 th Busiest Airport in North Carolina
      • - General aviation reliever airport on 850 acres
      • - 7,200 foot runway – fully instrumented
      • - Corporate and commuter aircraft
      • - Approximately 170 aircraft based with estimated value of $100 million
      • - Full-time air traffic control tower
      • - Airport Business Park
      • - Recently completed 120,000 sq ft mixed use facility
      • - Roush Racing World Headquarters located here
      • - Other Industries
      • - Other facilities at airport:
      • - Full Aircraft Maintenance Facility
      • - Three flight schools & Four aircraft charter services
      • - Full time Medical Officer
      • - Aircraft detailing
      • - Four airfreight providers
      • - Helicopter radio platform service.
      Cabarrus County, North Carolina
    • Economic Diversity: Industrial & Business Parks
      • The variety of business parks in County provides additional focus for economic development
      • County has:
        • 79 available sites ranging from 0.5 acres to 2,100 acres
        • 41 Industrial buildings ranging from 1,200 sq ft to 3 million sq ft
        • 54 office/flex buildings ranging from 600 sq ft to 300,000 sq ft
        • 3 NC Department of Commerce Certified sites
        • 1 site included in Duke Energy’s site readiness program
      • Sites provide economical alternatives to sites in Charlotte
      • - International Business Park (home to 2 NC Certified sites)
      • - Concrescere Corporate Park (NC certified site)
      • - Kannapolis Gateway Park
      • - West Winds Industrial Park
      • - Z-Max Industrial Park
      • - Concord Regional Airport
      Cabarrus County, North Carolina
    • Economic Diversity: Industrial & Business Parks (continued)
      • Philip Morris USA Site :
        • 3.5 Million Square Feet of Industrial Space
          • 2.3 Million Sqft Manufacturing
          • 1.2 Million Sqft Warehouse
        • All major utilities on site with significant capacity
        • 2 Norfolk Southern Railroad spurs on site
        • Less than 1 mile from I-85 and adjacent to future
        • Liles Pkwy - direct access
        • Uptown Charlotte skyline is visible from site
        • Built in 1982 with additions in 1995 and 1997
        • Described by site selection consultants
        • as best in Southeast
      Cabarrus County, North Carolina
    • Growing the Economy - Cabarrus Economic Development
      • EDC’s three strategic target industries: Life Sciences, Automotive/Motorsports, and Distribution/Logistics
        • The County is marketed globally thru collaboration with the NC Dept of Commerce and the Charlotte Regional Partnership
        • EDC maintains database of available properties for relocating companies and existing businesses
        • Cabarrus EDC is one of only 24 accredited economic development organizations in the world
      • Small business & Entrepreneurship is also a key focal point of the EDC
        • 2,600 Small Businesses in County with under 20 employees
        • “ Cabarrus Roots” program: Comprehensive program that focuses on existing and start up businesses
        • Innovator Magnet: provides event calendar, relevant news articles, resource links (both local & regional), links to angel funds and other sources of capital and additional resources for small business and entrepreneurs .
        • Recent Relocations & Expansions:
        • - ACN - Great Wolf Lodge - Heritage House Fabrics
      • - Connextions - Saddle Creek Corp - Tasca Racing
      • - PreGel America - Fly Right - PPD
      Cabarrus County, North Carolina
    • Corporate Headquarters Located in County Cabarrus County, North Carolina
      • Corporate Headquarter Companies
      • - Speedway Motorsports (Fortune 500 company)
      • - ACN Inc.
      • - Bonitz Inc.
      • - Earnhardt-Ganassi Racing
      • - Crown Lift Trucks
      • - Stewart – Haas Racing
      • - IH Caffey Co Inc.
      • - Motorsports Authentics LLC
      • - Oiles America Corp
      • - Richard Petty Driving Experience
      • - S&D Coffee Inc.
      • - Tuscarora Yarns Inc.
      • - Wayne Brothers Inc.
      • - World Racing Group
    • Education: Colleges and Universities Cabarrus County, North Carolina
      • County is in close proximity to in excess of 18 nationally known Colleges and Universities
      • This strong mix of accredited institutions helps attract a diversity of employers and industry to the County
    • Education: Community Colleges Cabarrus County, North Carolina
      • The County also has convenient access to a strong Community College and Technical College system
      • This diverse mix of institutions provides excellent support for both continuing education and employee training
    • Education: K-12 Cabarrus County, North Carolina
      • The County has two public school systems: the Cabarrus County Administrative Unit serving 84.5% of the students and the Kannapolis City Administrative Unit serving the remaining 15.5%.
      • The Cabarrus serves 27,694 students and Kannapolis serves 5,087 (System wide data – includes Rowan County’s portion)
      • Cabarrus County Schools’ students exceed state averages in the following areas:
      • End-of-Grade Assessments
      • End-of-Course Assessments
      • Computer Skills Assessments
      • Graduation Rate
      • SAT Scores
    • County Finances Cabarrus County, North Carolina
    • General Fund Revenues Expenditures and Changes in Fund Balance Cabarrus County, North Carolina
    • Cabarrus County, North Carolina Revenues & Expenditures
    • Cabarrus County Assessed Valuation $’s in Billions *As of January 31, 2009 Assessed Valuation Cabarrus County, North Carolina
    • Taxable AV & Tax Collection Average annual growth of real property AV from 1999-2008 of 10.55%. Average annual growth in personal property AV from 1999-2008 of 3.94% Average annual growth in total AV from 1999-2008 of 8.76%. Cabarrus County, North Carolina
    • Building Permit Activity
      • The County’s number and value of building permits
      Cabarrus County, North Carolina
    • Tax Collections Cabarrus County, North Carolina *2009 Data is as of February 28, 2009
      • Approximately 70% Residential and 30% Commercial/Industrial
    • Ten Largest County Taxpayers June 30, 2008 Cabarrus County, North Carolina
    • Largest Employers and Diversified Economy Cabarrus County, North Carolina
    • Retail Sales Cabarrus County, North Carolina (1) The data for the Fiscal Years 1998-2008 in the chart above sets forth gross retail sales. Beginning July 1, 2005, the North Carolina Department of Revenue began to compile information only for taxable retail sales in compliance with the Streamlined Sales Tax Agreement. In North Carolina, certain sales (for example, qualifying food items) are not subject to sales tax. Due to the changes in the State's method of compiling retail sales information described above, there is no comparable data for taxable retail sales available for previous fiscal years.
    • County Sale Tax Revenue Cabarrus County, North Carolina
      • First Year for Article 44
      • Due to the State taking over Medicaid payments, this year will include 3 full months of Article 44 and 9 months of ½ funding for Article 44. This year will have a deduction for 8 months in Article 39 due to the Medicaid hold harmless payments made to the municipalities located in the County.
    • Unemployment Figures Cabarrus County, North Carolina * FY2009 First Quarter Results Only
    • Undesignated Fund Balance as Percentage of Expenditures Source: Cabarrus County Finance Department. Cabarrus County, North Carolina
    • Economic Outlook and Fiscal Adjustment Financially Strong Bottom Line Cabarrus County, North Carolina
    • 2009 & 2010 Fiscal Challenges Cabarrus County, North Carolina
    • 2009 & 2010 Fiscal Challenges (Continued) Cabarrus County, North Carolina
      • One Time Revenue Used*
        • $1,378,153 Fund Balance from previous years’ projects that were reappropriated
        • $1,116,815 Contributions from Capital Reserve Fund for one-time expenditures
        • $1,294,342 One Time Grants Funds
        • $3,789,310
        • *Equal Amount of expenditures were also eliminated
      • County Areas Most Affected
      • Employees
      • 1. Commerce 15
      • 2. Register of Deeds 2
        • No employees were eliminated
        • Employees were retrained and moved to other areas.
        • 17 staff members were redirected and /or retrained due to the economic turndown.
    • Sales Ratio – Assessed Value/Sales Price Cabarrus County, North Carolina
    • County 5-Year Plan – Conservative Likely Scenario Cabarrus County, North Carolina
      • Assumptions through FY 2014 using County’s customary conservative planning:
        • Real Property
        • - 2.14% average New Annual Growth over next 5 years
        • - 11% Increase in Assessed Value for the FY 2013 Revaluation (typically approx 29.3% increase in AV)
        • Personal Property
        • - Loss of All Philip Morris assets
        • - (6.8)% average per year loss of asset value
        • Motor Vehicles
        • - Negative growth FY10 through FY11 (approximately (4.0)%/year), increasing thereafter
        • - (0.05)% average annual growth
        • Public Service Companies
        • - (0.8)% average annual growth
        • 9 cent tax increase from FY 2011 to FY 2014 (assumes no reductions in expenditures, employee levels, etc., which obviously would be explored by the County)
    • Fiscal Solutions FY 2010 through FY 2014 Cabarrus County, North Carolina
    • County Revenue Stress Test – Highly Unlikely Worst Case Scenario Cabarrus County, North Carolina
      • Assumptions through FY 2014:
        • Real Property
        • - No New Growth over next 5 years
        • - 0% Increase in Assessed Value for the FY 2013 Revaluation (effectively 29.3% reduction in AV)
        • Personal Property
        • - Loss of All Philip Morris assets
        • - 15% per year loss of asset value
        • Motor Vehicles
        • - No new vehicles purchased FY10 through FY14
        • - 15% annual depreciation rate
        • Public Service Companies
        • - 10% per year loss of value
        • 13 cent additional tax increase over Base Case from FY 2011 to FY 2014 (assumes no reductions in expenditures, employee levels, etc., which obviously would be explored by the County)
    • Fiscal Solutions FY 2010 through FY 2014 (Continued) Cabarrus County, North Carolina
    • Philip Morris Closure Cabarrus County, North Carolina
      • Closing Concord plant by end of 2010
      • - 350 developed acres on a 2,100 acre site off US 29
      • - 2.4 million square feet of manufacturing space
      • - 988,000 sq ft of warehouse space
      • - 12 buildings on site
      • Estimated sale price $534 million (site + buildings only)
      • County and City pursuing development as “jobs magnet” industrial site
      • Represents 6.58% of County’s Total Assessed Valuation
      • - Approximately half of taxes were for site’s equipment
      • - Equipment will be moved out of County by end of 2010
      • - Dropped from 9.0% to 6.58% over past 5 years
      • New road project directly connects site to I-85 and to North Carolina Research Campus
    • Philip Morris Closure Cabarrus County, North Carolina
      • Worst case Scenario #1
      • - No Property Sale & Philip Morris pays taxes on property value ($534 million)
      • - No Property Development
    • Philip Morris Closure Cabarrus County, North Carolina
      • Worst case Scenario #2
      • - With or without Property Sale and a 35% Reduction in Total Value ($324 million)
      • - No Property Development
    • Historical, Current, & Future Debt Profile Cabarrus County, North Carolina
    • Current/ Projected Principal Amortization Rates Current
      • County’s rate of COPs and GO payout prior to issuance of Series 2009 COPs is exceptionally rapid
      Projected
      • After issuance of Series 2009 COPs, County’s payout rates remain well above industry standards.
      Cabarrus County, North Carolina
    • Debt Statistics Cabarrus County, North Carolina
    • Legal Debt Limitations
      • Statutory Debt Limit – 8% of Assessed Value
      • County has excellent additional capacity to meet future needs
      Cabarrus County, North Carolina
    • Bonded Debt to Taxable Property Assessed Valuation Source: Cabarrus County Finance Department. Cabarrus County, North Carolina
    • Cabarrus County General Fund Source: Cabarrus County Finance Department.
      • Expenditures by Function (% of Total Expenditures)
      Cabarrus County, North Carolina
    • Funding the Capital Plan Cabarrus County, North Carolina
    • The Future of Cabarrus County
      • The County has adopted five year capital improvement programs since 2004
      • CIP is reviewed annually to ensure projects are prioritized appropriately based on current needs and circumstances
      • School adopted a 15 year CIP.
      • Funding for Entire CIP
      • - School CIP
      • - Sources of Pay-As-You-Go Funding
      • - APFO fees – Adequate Public Facility Fees
      • - ADM Money
      • - Lottery Proceeds
      • - Capital Reserve Fund
      • - County CIP
      • - Debt
      • - Pay-as-you-go for balance of projects
      Cabarrus County, North Carolina
    • Capital Funding Plan
      • Goals:
      • Complete funding of $117 million school projects in June 2009
      • County and the Schools are currently reevaluating the timing of future school construction needs.
      • All Repair/ Renovation work is in the FY 2010 5-year plan
      • County intends to fund a new Elementary School on a Pay-Go basis to open in FY 2012
      • Based on current economic conditions, the County plans no new debt issuances in the FY 2010 5-year plan.
      Cabarrus County, North Carolina
    • Capital Funding Plan (continued)
      • Fund the following projects with Series 2009 COPS:
      • - Hickory Ridge Middle School
      • - Boger Elementary School Addition
      • - Lower Rocky River Elementary School
      • - AT Allen Replacement
      • - Northwest Area Middle School
      • - AL Brown Vocational Renovation & Wing Addition
      • Continue aggressive pay-as-you-go capital funding
      • - Annual pay-go % (All Projects)
      Cabarrus County, North Carolina
    • Cabarrus County, North Carolina Series 2009, Certificates of Participation Purpose: School Project Needs – New Money (Possible Refunding) Size: $120 million (Up to $180 million w/ Refunding) Security: Appropriation Credit First Initial Interest Payment: January 1, 2010 First Principal Payment: January 1, 2012 Structure: Level Principal Cabarrus County, North Carolina
    • Cabarrus County, North Carolina Financing Schedule Debt Rating/ Insurance: April 30, 2009 POS Mailing: May 6, 2009 Pricing: May 20/21, 2009 Closing: June 4, 2009 Cabarrus County, North Carolina
    • Appendix A Cabarrus County Economic Outlook Data Cabarrus County, North Carolina
    • Appendix B Regional Commuting Patterns Cabarrus County, North Carolina
    • Appendix C Cabarrus County Economic Development Vision, Mission and Strategy Cabarrus County, North Carolina
    • Appendix D NC Research Campus Company Descriptions And County Motorsports Directory Cabarrus County, North Carolina
    • Appendix E County Tour Map And Philip Morris Marketing Brochure Cabarrus County, North Carolina