Cabarrus County Rating Book 4 06 09 Final Ls

Cabarrus County, North Carolina

April 2009

2

Presentation TopicsIntroduction……………………………………………...……………..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


Tab

3

Introduction


4

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


Southwest Securities

Joe Niggel, Managing Director

Cabarrus Regional Chamber of Commerce

John Cox,

CEO

Ryan McDanielsVice President

55

Governing Board


H. Jay White Sr. (Chairman)Grace M. Mynatt (Vice Chairman)

Robert W. "Bob" CarruthElizabeth "Liz" Poole

Coy C. Privette

http://www.cabarruscounty.us/Commissioners/

http://www.cabarruscounty.us/Commissioners/

66

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


77

Board of Commissioners – Strategic Focus

Goals

1. 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.

2. Achieve community-wide preparedness to protect public safety, respond to routine and catastrophic events, and maintain and restore the well-being of all residents.

3. Use resources wisely and responsibly by protecting assets, minimizing risk, creating partnerships, and investments, expenditures, and services.

4. A fully engaged community with a shared understanding of its issues and challenges and working together to achieve its goals.

5. 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


http://www.cabarruscounty.us/Commissioners/docs/BOC_StrategicPlanning_Goals.pdf

88

Sustainable Community Initiative


•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

http://www.cefsfarmtofork.com/

99

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


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

1010

School Construction Initiatives

The County intends to fund the following projects with the Series 2009 COPs:


Cabarrus County Schools Hickory Ridge Middle School $29,050,000 Boger Elementary School Addition $2,200,000 Lower Rocky River Elementary School $17,739,265 AT Allen Replacement $18,661,265 Northwest Area Middle School $34,353,000Kannapolis City Schools AL Brown Vocational Renovation & Wing Addition $12,680,944Total $114,684,474 *

*Construction Bids due April 10, 2009 – amount likely to decrease

11

A Balanced, Diverse Economy

53.7 % of County residents work in the County


12

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


1313

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.


Scientist Carol Cheatham (Nutrition Research Institute) researches the effect of omega-3 fatty acids in children's diets on brain development.

http://nri.unc.edu/default.asp

1414


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.


Dr. Jeremy Pattison (left) of the N.C. State University Plants for Human Health Institute researches strawberry breeding and genetics.

http://www.ncsu.edu/fvsi/phhi/index.html

1515


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


http://www.ncresearchcampus.net/dhmri/index.html

1616



The M.U.R.D.O.C.K. Study: “A Framingham Study for the Molecular Age”The Measurement to Understand Reclassification of Disease Of Cabarrus/Kannapolis 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.”

https://www.murdock-study.com/

1717

Economic Diversity: Agriculture


Total Acres in County: 231,524 2007 Census Data

o Number of Farms-611o Total Land in Present Use Value Taxation, Acres-153,990 or 66%o Average Farm Size, Acres-109o Harvested Cropland, Acres-27,912o Average Age of Farmers-57.4o Average Value of Farm & Building-$614,341o Average Market Value of Machinery & Equipment-$56,510o Average Total Farm Production Expense-$74,008o Number of Farms in Voluntary Agricultural District-132o Number of Acres enrolled in Voluntary Agricultural District-11,120

Cash Receipts: 2007o Livestock, Dairy, and Poultry-$24,877,000

o State Rank-44o Crops-$4,948,000

o State Rank-88o Government Payments-$394,000

o State Rank-82o Total-$30,219,000

State Rank- 68 / 100

18

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


http://www.saddlecrk.com/

http://www.ihcaffey.com/

http://www.sysco.com/

http://www.shoeshow.com/

http://www.minkagroup.net/

http://www.stanleyworks.com/

19

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


http://www.lowesmotorspeedway.com/

http://www.embassysuitesconcord.com/

http://www.cabarrusarena.com/

20

Economic Diversity: Entertainment & Hospitality (continued)


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

http://www.greatwolf.com/concord/waterpark

21

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


http://www.carolinashealthcare.org/

http://www.jeffgordonchildrenshospital.org/

http://www.cmc-northeast.org/body.cfm?id=50

http://www.cmc-northeast.org/body.cfm?id=51

http://www.cmc-northeast.org/

22

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


http://www.lowesmotorspeedway.com/

http://www.nascar.com/2008/news/features/05/20/inside.research.development.center/index.html

http://www.worldracinggroup.com/corp/

http://www.lowesmotorspeedway.com/the_dirt_track/

http://www.concordmotorsportpark.com/

http://www.hendrickmotorsports.com/Default.asp?bhcp=1

http://www.roushracing.com/

http://www.earnhardtganassi.com/

http://www.stewarthaasracing.com/

http://www.woodbrothersracing.com/

http://www.windshearinc.com/

23

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


http://www.concordmills.com/



http://www.centurionpartners.net/portfolio.html

http://www.harrisburgtowncenter.com/

http://www.mosscreekvillage.com/future.php

http://www.aftonvillage.com/

24

Economic Diversity: Airport

Concord Regional Airport/ Airport Business Park

4th 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.


25

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


26

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


27

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


28

Corporate Headquarters Located in County


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

29

Education: Colleges and Universities


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

30

Education: Community Colleges


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

31

Education: K-12


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 AssessmentsEnd-of-Course AssessmentsComputer Skills AssessmentsGraduation RateSAT Scores

32

County Finances


33

General FundRevenues Expenditures and Changes in Fund Balance


2005 2006 2007 2008 2009 (Budget)

RevenuesAd valorem taxes 75,011,032$ 92,563,866$ 97,598,930$ 103,618,367$ 131,512,236$ Other Taxes 28,691,643 31,315,151 36,948,302 38,441,644 34,398,497 Intergovernmental revenues 16,695,896 17,987,352 17,531,822 19,294,946 20,537,809 Permits & Fees 5,419,105 7,418,787 6,949,299 6,356,383 2,987,342 Sales & Services 9,445,296 9,842,865 9,595,669 10,165,675 10,028,588 Investment Earnings 887,758 2,202,410 3,462,874 3,634,657 2,000,000 Miscellaneous Revenues 819,210 497,842 877,147 528,326 281,990

TOTAL REVENUES 136,969,940$ 161,828,273$ 172,964,043$ 182,039,998$ 201,746,462$

ExpendituresGeneral Government 12,604,769$ 13,496,824$ 16,216,971$ 18,690,490$ 22,223,262$ Public Safety 18,039,815 20,332,816 21,820,915 23,727,501 26,854,534 Environment Protection 194,450 200,993 203,049 226,232 273,823 Economic & Physical Development 6,072,153 5,004,539 1,771,929 2,884,527 2,631,425 Human Services 36,075,777 39,715,425 39,594,030 41,665,829 45,512,751 Cultural & Recreation 3,240,476 3,606,235 3,746,663 4,010,498 4,570,729 Education 34,404,796 38,556,381 43,828,192 50,580,814 56,299,887 Debt Service:Principal 13,897,112 15,259,056 14,113,550 17,539,176 20,067,617 Interest 7,799,042 9,651,423 10,489,591 13,282,514 15,024,420

TOTAL EXPENDITURE 132,328,390$ 145,823,692$ 151,784,890$ 172,597,581$ 193,458,448$

Operating Transfers In 427,050$ 561,664$ 740,012$ 2,793,897$ 1,690,665$ Operating Transfers Out (2,696,048) (7,754,099) (19,802,850) (15,305,130) (11,356,832) Capital Lease Obligation Issued - - 689,546 - -Proceeds from Refunding Bonds - - - - -Disbursements for Refunding Bonds - - - - -Disbursements to Escrow Agent - - - - -Fund Balance Appropriated 1,378,153 TOTAL OTHER FINANCING SOURCES (USES) (2,268,998)$ (7,192,435)$ (18,373,292)$ (12,511,233)$ (8,288,014)$

2,372,552$ 16,004,581$ 2,805,861$ (3,068,816)$

Fund BalanceBeginning of Year 36,720,936$ 39,093,488$ 47,905,634$ 50,711,495$ End of Year 39,093,488$ 47,905,634$ 50,711,495$ 47,642,679$

REVENUES OVER (UNDER) EXPENDITURES & OTHER USES

34


Revenues & Expenditures

35

Cabarrus County Assessed Valuation

$0

$5

$10

$15

$20

$25

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

$’s in Billions

*As of January 31, 2009

1993 4,538,978,021 1994 4,818,592,143 1995 5,128,291,178 1996 5,561,489,701 1997 5,945,120,111 1998 6,702,091,632 1999 7,789,924,278 2000 9,680,147,971 2001 10,346,947,641 2002 11,054,876,455 2003 11,488,422,245 2004 11,689,948,568 2005 13,994,645,443 2006 14,737,845,840 2007 15,334,805,970 2008 16,268,259,277 2009* 20,465,356,044

Assessed Valuation


36

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%.


1999 100% $5,385,947,414 $2,205,354,395 $198,622,469 $7,789,924,278 $0.70

2000 100 6,862,227,976 2,609,618,395 208,301,600 9,680,147,971 0.59

2001 100 7,408,393,734 2,717,488,677 221,065,230 10,346,947,641 0.56

2002 100 7,913,235,212 2,898,237,139 243,404,104 11,054,876,455 0.56

2003 100 8,290,673,831 2,960,367,957 237,380,457 11,488,422,245 0.56

2004 100 8,660,862,061 2,813,292,526 215,793,981 11,689,948,568 0.56

2005 100 10,969,232,437 2,788,181,358 237,231,648 13,994,645,443 0.53

2006 100 11,554,183,728 2,946,103,615 237,558,497 14,737,845,840 0.63

2007 100 12,162,097,563 2,912,297,937 260,410,470 15,334,805,970 0.6289

2008 100 12,931,725,951 3,074,778,582 261,754,744 16,268,259,277 0.63Source: Cabarrus County

(1) Increase due to revaluation. Cabrrus County typically reassessed property every four years

(2) Public service companies valuations are provided to the county by the North Carolina Department of Revenue These amounts included both real and personal property.

(3) Per $100 of value

Total Assessed Value ($)

Fiscal YearTotal Direct Tax Rate (3)

Public Service Companies (2)

Assessment RatioReal Property Assessed

Value ($)Personal Property Assessed Value ($)

37

Building Permit Activity

The County’s number and value of building permits


YearNumber of

UnitsValue

Number of Units

ValueNumber of

UnitsValue Total

2003 389 $107,101,346 1868 $214,503,991 86 $8,768,460 $330,373,797

2004 300 126,093,569 2078 259,246,204 37 4,622,345 389,962,118

2005 317 213,666,145 2703 334,383,478 62 1,146,287 549,195,910

2006 352 270,446,124 2636 336,396,018 0 0 606,842,142

2007 387 226,543,450 2143 320,330,390 3 250,000 547,123,840

2008 533 274,055,671 979 159,646,760 179 23,368,826 457,071,256

2009 (Est) 213 109,622,268 391 63,858,704 71 9,347,530 183,828,502

Note: Mobile homes are excluded from figuresSource: County Building Inspection Department. Data compiled by the Cabarrus County Planning Department

RESIDENTIALSingle Multi-Family

COMMERICAL

38

Tax Collections


*2009 Data is as of February 28, 2009

Approximately 70% Residential and 30% Commercial/Industrial

1999 52,849,250 $12,407,481 (1,405,398) $63,851,333 $62,312,665 97.59% $1,492,716 $63,805,381 99.93%

2000 57,785,131 595,612 (522,167) 57,858,576 56,048,119 96.87% 1,749,570 57,797,689 99.89%

2001 57,220,552 2,298,721 (1,058,244) 58,461,029 55,770,386 95.40% 2,634,016 58,404,402 99.90%

2002 62,084,785 1,069,164 (386,548) 62,767,401 61,184,935 97.48% 1,500,684 62,685,619 99.87%

2003 64,433,348 2,331,839 (1,546,291) 65,218,896 63,501,156 97.37% 1,531,908 65,033,064 99.72%

2004 66,077,761 1,185,407 (803,896) 66,459,272 64,155,827 96.53% 1,537,892 65,693,719 98.85%

2005 74,893,721 724,786 (898,376) 74,720,131 73,001,727 97.70% 1,500,180 74,501,907 99.71%

2006 92,892,138 762,582 (849,390) 92,805,330 90,824,656 97.87% 1,394,826 92,219,482 99.37%

2007 97,095,301 1,250,243 (855,526) 97,490,018 95,699,309 98.16% 1,356,899 97,056,208 99.56%

2008 102,936,378 929,435 (605,617) 103,260,196 101,560,468 98.35% $1,066,006 101,560,468 98.35%

2009* 130,090,770 1,940,495 (1,212,956) 130,818,309 123,878,828 94.70% - 123,878,828 94.70%

Source: Cabarrus County Finance Department

Total Adjusted Levy

Collections in Subsequent

Years AmountFiscal Year

Taxed Levied for the Fiscal

Year (Original Levy) Discoveries Abatements

Percentage of Adjusted LevyAmount

Collected within the Fiscal Year of the Levy

Percentage of Original Levy

Total Collections to Date

39

Ten Largest County TaxpayersJune 30, 2008


Name of Taxpayer Type of Business FY 2008 Assessed ValuationPercentage of Total Assessed

Valuation

Philip Morris, Inc. Cigarette Manufacture $1,087,680,959 6.5800%

Concord Mills LTD Partnership Shopping Center 205,428,518 1.2400%

Charlotte Motor Speedway, Inc. Auto Racing 174,267,442 1.0500%

Corning, Inc. Fiber Optics Manufacturer 86,543,120 0.5200%

Duke Energy Corp. Public Service Company 86,347,430 0.5200%

Windstream Public Service Company 84,489,695 0.5100%

Pass & Seymour/ Legrand Electronics 72,240,705 0.4400%

Public Service of North Carolina Public Services Company 47,928,930 0.2900%

Citicorp North America, Inc. Leasing Company 47,376,829 0.2900%

S&D Coffee Coffee Manufacturer 46,534,419 0.2800%

Total $1,938,838,047 11.72%

Source: Department of Cabarrus County Assessor

40

Largest Employers and Diversified Economy


Company DescriptionNumber of Full-Time Permanent

EmployeesCarolinas Medical Center-NorthEast Healthcare 4,300

Cabarrus County Schools Schools 3,398Philip Morris USA Cigarette Mfg 1,384

Connextions Customer Service 950City of Concord Government 925

Kannapolis City Schools Schools 900Cabarrus County Government Government 828

Shoe Show Distribution 650S&D Coffee Inc. Manufacturing/Distribution 500

Hendrick Motorsports Auto Racing 500North Carolina Government Government 500

Perdue Products Inc. Food Processing 480Pass & Seymour Inc. Electronics 475

Mortorsports Authentics Distribution 400Roush Fenway Racing Auto Racing 400

Rowan Cabarrus Community College Education 350First Assembly Religious Organization 350

Wayne Brothers Inc. Construction 350Sysco Food Services Distribution 300

Stanley Works Tool Warehouse 300City of Kannapolis Government 300

Cabarrus Family Medicine Healthcare 250Wood Brothers Racing/JTG Auto Racing 225

41

(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.

Retail Sales


2008 2009Gross Retail Sales Gross Retail Sales

July 151,937,119 170,352,609August 128,901,997 153,014,501September 164,199,481 151,585,003October 123,990,078 155,964,717November 148,329,019 140,414,749December 168,250,409 139,971,272January 178,961,060 205,717,114

1,064,569,163 1,117,019,965

42

(1) First Year for Article 44(2) 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.

County Sale Tax Revenue


Fiscal Yr Fiscal Yr2008 2009

July 3,192,855 3,233,473August 2,780,998 2,809,445September 3,456,101 3,110,830October 2,239,698 3,118,881November 3,260,699 2,161,985December 3,080,564 2,402,798January 3,423,622 3,314,253

21,434,537 20,151,664

43

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2003 2004 2005 2006 2008 2009*

County State US

Unemployment Figures


* FY2009 First Quarter Results Only

44

Undesignated Fund Balance as Percentage of Expenditures

Source: Cabarrus County Finance Department.


15.70%

18.28%19.27%

16.62%15.26%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2004 2005 2006 2007 2008

45

Economic Outlookand

Fiscal Adjustment

Financially Strong Bottom Line


46

2009 & 2010 Fiscal Challenges


Revenue Amended Projected Available ProjectedFY 2009 Budget Reductions FY 2009 Revenues Revenues Revenues

January 2009 for FY2009 (1) Revenues for FY 2010 (2) FY 2010 FY2010 Ad Valorem Taxes and fees 132,040,058 (1,600,000) 130,440,058 130,440,058 129,559,226 Sales Taxes 33,720,274 (600,000) 33,120,274 (6,856,252) 26,264,022 27,217,069 Other Taxes and Penalties 914,900 914,900 914,900 1,248,174 Intergovernmental Revenues 20,063,198 32,800 20,095,998 20,095,998 19,012,206 Register of Deeds Fees 2,907,000 (1,480,000) 1,427,000 (402,500) 1,024,500 1,126,520 Building Inspections 3,720,000 (2,360,000) 1,360,000 (500,000) 860,000 860,000 Other Permits and Fees 404,450 (204,000) 200,450 200,450 171,175 Sales and Services 9,753,069 130,000 9,883,069 9,883,069 10,698,985 Investment Earnings 2,000,000 2,000,000 (1,000,000) 1,000,000 1,000,000 One Time revenues 3,789,310 3,789,310 (3,789,310) - 1,272,816 Total 209,312,259 (6,081,200) 203,231,059 (12,548,062) 190,682,997 192,166,171

(1) Revenue reductions for FY 2009 results from declining market conditions.

(2) Projected revenues for FY 2010 : decline in sales tax as a result of medicaid reform (loss of Article 44 taxes and Cities Hold harmless) and 2% decline due to market conditions, reduction of Building Inspection/Register of deeds Fees based on market conditions, reduction in interest on investments due to the decling interest rates, and the removal of all one time revenues from budget FY 2009.

Primary reduction of Sales Taxes caused by Medicaid Reform for FY 2010:Revenue reductions Expenditure Reduction

City Hold Harmless due to loss of Article 44 1,774,225 Loss of Article 44 in lieu of State Fully Funding Medicaid 3,546,985 Economic Conditions 581,995 Medicaid Expenditures 3,371,013

5,903,205$ 3,371,013$

47

2009 & 2010 Fiscal Challenges (Continued)


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

Employees1. Commerce 152. 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.

48

Sales Ratio – Assessed Value/Sales Price


49

County 5-Year Plan – Conservative Likely Scenario


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)

50

Fiscal Solutions FY 2010 through FY 2014


Five Year Financial Plan - A

GENERAL FUND Reval

Budgeted Revenues for: 2010 2011 2012 2013 2014Estimated operating revenues from previous fiscal year 198,051,341 192,166,171 204,027,475 217,119,160 236,518,729 Growth due to Revaluation (11% for Real Property) - - 14,615,721 Annual Growth in Property Taxes for New Construction (368,332) (587,890) 1,009,382 3,578,669 - 5,605,370 Increase in Property Tax (5.25, 3.75) - 10,644,018 7,684,838 - Growth/Decrease in Register of Deeds Fees (302,980) - 50,000 - - Growth in Other Revenues 664,347 750,000 750,000 750,000 750,000 Growth in Building Inspection Revenues (500,000) - 50,000 - - Growth in Ambulance Revenues 525,000 150,000 150,000 150,000 - 150,000 Growth/Decrease in Sales taxes (1% inc FY12 to FY 14) (581,995) - 227,927 230,206 232,508 --------Addition of 1/4 cent sales tax for education cost - 2,211,684 3,202,519 108,284 Reduction in Taxes - Article 39 and Article 44 (Medicaid) (5,321,210) (1,306,508) (32,981) (33,311) - (33,644)

Total Revenues 192,166,171 204,027,475 217,119,160 236,518,729 243,222,963

Budgeted Expenditures for:Estimated operating expenditures from previous fiscal year 188,866,429 190,131,982 203,632,873 216,909,922 223,620,421 RCCC Current Expense Funding - 92,611 97,241 102,103 107,208 School Current Expense Funding: Current Operations 95,254 500,000 2,000,000 2,300,000 2,600,000 Building and Grounds Maintenance 300,250 350,000 350,000 350,000 350,000 Opening New Schools - 2,700,000 - - - New Debt Service (estimated) Housing Unit for Detention Center 2,841,494 3,100,000 (154,250) (124,000) (124,000) School Debt Issue - Future Projects 2,506,964 1,852,974 5,175,000 (207,000) (207,000) Parking Deck - - 733,205 214,300 - Retirement of Debt Service (178,872) (563,763) (641,115) (1,204,275) (555,002) Fulfilled/Added Econ Dev Incentive Grants 424,770 500,969 (162,000) (764,000) (249,000) Maximum County Contribution for NC Research Campus 662,794 812,956 300,126 540,222 1,020,777 Salaries and Benefits: COLA, Merits, and Health Insurance Increases - 500,000 2,500,000 2,700,000 2,900,000 Avg Growth in New Positions inclusive of all benefits 526,000 500,000 500,000 500,000 500,000 New Positions inclusive of all benefits - EMS Shift - 300,000 - - - New Positions inclusive of all benefits - Detention Unit - 1,719,189 1,716,189 1,543,259 Increase in operational cost for the Housing Unit - 600,000 119,900 - - Increase in Contingency 650,000 Misc. Increases in Operational Expenditures (2,853,438) 300,000 500,000 510,000 520,000 Vehicles New & Replacements - General Govt (338,650) - - - - Building Maintenance Repairs 100,000 100,000 100,000 100,000 Decrease in Medicaid (3,371,013) - - - - Additional Cabarrus Health Alliance contribution due to population growth - 135,955 142,753 149,890 - 157,385

Total Operating Expenditures 190,131,982 203,632,873 216,909,922 223,620,421 230,740,789

Funding for Capital Projects:Capital Improvement Plan 2,034,189 Contribution to Capital Reserve Fund

Total Expenditures 192,166,171 203,632,873 216,909,922 223,620,421 230,740,789

Revenues over (under) Expenditures - 394,602 209,238 12,898,308 12,482,174

Estimated Unreserved Fund Balance 36,636,176 37,030,778 37,240,016 50,138,323 62,620,497 as a % of Current Budget 19% 19% 17% 23% 27%

Property Tax Rate .63 / 100 .6825 / 100 .72 / 100 .72 / 100 .72 / 100

Total Debt Service Payments 40,244,123 44,633,334 49,746,174 48,425,199 47,539,197 as a % of Current Budget 20.94% 21.92% 22.93% 21.66% 20.60%

51

County Revenue Stress Test – Highly Unlikely Worst Case Scenario


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)

52

Fiscal Solutions FY 2010 through FY 2014 (Continued)


Five Year Financial Plan - A (Revised)

GENERAL FUND Reval

Budgeted Revenues for: 2010 2011 2012 2013 2014Estimated operating revenues from previous fiscal year 198,051,341 192,166,171 204,049,722 217,553,261 224,499,462 Growth due to Revaluation (No increase/decrease) - - - - Annual Decline in Property Taxes for New Construction (368,332) (5,528,497) (3,311,786) (1,813,150) - (1,629,612) Increase in Property Tax (8, 6.5, 4, 4 ) - 15,606,872 12,417,860 7,554,172 7,475,024 Growth/Decrease in Register of Deeds Fees (302,980) - 50,000 - - Growth in Other Revenues 664,347 750,000 750,000 750,000 750,000 Growth in Building Inspection Revenues (500,000) - 50,000 - - Growth in Ambulance Revenues 525,000 150,000 150,000 150,000 - 150,000 Growth/Decrease in Sales taxes (1% inc FY12 to FY 14) (581,995) - 227,927 230,206 232,508 Addition of 1/4 cent sales tax for education cost - 2,211,684 3,202,519 108,284 Reduction in Taxes - Article 39 and Article 44 (Medicaid) (5,321,210) (1,306,508) (32,981) (33,311) - (33,644)

Total Revenues 192,166,171 204,049,722 217,553,261 224,499,462 231,443,738

Budgeted Expenditures for:Estimated operating expenditures from previous fiscal year 188,866,429 190,131,982 203,632,873 216,909,922 223,620,421 RCCC Current Expense Funding - 92,611 97,241 102,103 107,208 School Current Expense Funding: Current Operations 95,254 500,000 2,000,000 2,300,000 2,600,000 Building and Grounds Maintenance 300,250 350,000 350,000 350,000 350,000 Opening New Schools - 2,700,000 - - - New Debt Service (estimated) Housing Unit for Detention Center 2,841,494 3,100,000 (154,250) (124,000) (124,000) School Debt Issue - Future Projects 2,506,964 1,852,974 5,175,000 (207,000) (207,000) Parking Deck - - 733,205 214,300 - Retirement of Debt Service (178,872) (563,763) (641,115) (1,204,275) (555,002) Fulfilled/Added Econ Dev Incentive Grants 424,770 500,969 (162,000) (764,000) (249,000) Maximum County Contribution for NC Research Campus 662,794 812,956 300,126 540,222 1,020,777 Salaries and Benefits: COLA, Merits, and Health Insurance Increases - 500,000 2,500,000 2,700,000 2,900,000 Avg Growth in New Positions inclusive of all benefits 526,000 500,000 500,000 500,000 500,000 New Positions inclusive of all benefits - EMS Shift - 300,000 - - - New Positions inclusive of all benefits - Detention Unit - 1,719,189 1,716,189 1,543,259 Increase in operational cost for the Housing Unit - 600,000 119,900 - - Increase in Contingency 650,000 Misc. Increases in Operational Expenditures (2,853,438) 300,000 500,000 510,000 520,000 Vehicles New & Replacements - General Govt (338,650) - - - - Building Maintenance Repairs 100,000 100,000 100,000 100,000 Decrease in Medicaid (3,371,013) - - - - Additional Cabarrus Health Alliance contribution due to population growth - 135,955 142,753 149,890 - 157,385

Total Operating Expenditures 190,131,982 203,632,873 216,909,922 223,620,421 230,740,789

Funding for Capital Projects:Capital Improvement Plan 2,034,189 - Contribution to Capital Reserve Fund

Total Expenditures 192,166,171 203,632,873 216,909,922 223,620,421 230,740,789

Revenues over (under) Expenditures - 416,849 643,339 879,041 702,949

Estimated Unreserved Fund Balance 36,636,176 37,053,025 37,696,364 38,575,405 39,278,354 as a % of Current Budget 19% 19% 17% 18% 17%

Property Tax Rate .63 / 100 .71 / 100 .775 / 100 .815 / 100 .85 / 100

Total Debt Service Payments 40,244,123 44,633,334 49,746,174 48,425,199 47,539,197 as a % of Current Budget 20.94% 21.92% 22.93% 21.66% 20.60%

53

Philip Morris Closure


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

54



Worst case Scenario #1

- No Property Sale & Philip Morris pays taxes on property value ($534 million)

- No Property Development

Additional

Pennies on the Year Real Personal Total Difference Tax Rate Impact Tax Rate (1) Cummulative

FY09 $533,954,160 $555,997,719 $1,089,951,879FY10 $533,954,160 $389,198,419 $923,152,579 (166,799,300) 0.0063 (1,050,836) 0.52 FY11 $533,954,160 $194,599,210 $728,553,370 (194,599,210) 0.0063 (1,225,975) 0.61 1.13 FY12 $533,954,160 $0 $533,954,160 (194,599,210) 0.0063 (1,225,975) 0.60 1.73 FY13 $323,651,420 $0 $323,651,420 Reval (210,302,740) 0.0063 (1,324,907) 0.64 2.37 FY14 $323,651,420 $0 $323,651,420 -

3,620,047 SF$60 Per SF

$217,202,820 BLD Value$106,448,600 Land Value$323,651,420 Total Value

(1) Assuming the tax rate remains constant at .63 per $100 in assessed valuation

55



Worst case Scenario #2

- With or without Property Sale and a 35% Reduction in Total Value ($324 million)

- No Property Development

Additional

Pennies on the Year Real Personal Total Difference Tax Rate Impact Tax Rate (1) Cummulative

FY09 $533,954,160 $555,997,719 $1,089,951,879FY10 $533,954,160 $389,198,419 $923,152,579 (166,799,300) 0.0063 (1,050,836) 0.53 FY11 $533,954,160 $97,299,605 $631,253,765 (291,898,814) 0.0063 (1,838,963) 0.95 1.48 FY12 $323,651,420 $0 $323,651,420 (307,602,345) 0.0063 (1,937,895) 1.02 2.50 FY13 $215,050,010 $0 $215,050,010 Reval (108,601,410) 0.0063 (684,189) 0.37 2.87 FY14 $215,050,010 $0 $215,050,010 -

3,620,047 SF$30 Per SF

$108,601,410 BLD Value$106,448,600 Land Value$215,050,010 Total Value

(1) Assuming the tax rate remains constant at .63 per $100 in assessed valuation

56

Historical, Current, & Future Debt Profile


57

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.


Period Ending

Current COP Principal

Current GO Principal

Total Debt Service

Period Ending

Current COP Principal

Current GO Principal

Projected 2009 COP Principal

Total Debt Service

6/30/2008 7,060,000 7,085,000 14,145,000 6/30/2008 7,060,000 7,085,000 14,145,0006/30/2009 7,050,000 7,060,000 14,110,000 6/30/2009 7,050,000 7,060,000 14,110,0006/30/2010 7,055,000 7,270,000 14,325,000 6/30/2010 7,055,000 7,270,000 14,325,0006/30/2011 10,145,000 6,905,000 17,050,000 6/30/2011 10,145,000 6,905,000 17,050,0006/30/2012 10,150,000 6,965,000 17,115,000 5-years 24.8% 6/30/2012 10,150,000 6,965,000 5,175,000 22,290,000 5-years 20.4%6/30/2013 10,150,000 6,965,000 17,115,000 6/30/2013 10,150,000 6,965,000 5,175,000 22,290,0006/30/2014 10,150,000 7,655,000 17,805,000 6/30/2014 10,150,000 7,655,000 5,175,000 22,980,0006/30/2015 10,150,000 7,640,000 17,790,000 6/30/2015 10,150,000 7,640,000 5,175,000 22,965,0006/30/2016 10,145,000 7,630,000 17,775,000 6/30/2016 10,145,000 7,630,000 5,175,000 22,950,0006/30/2017 10,145,000 7,610,000 17,755,000 10-years 53.4% 6/30/2017 10,145,000 7,610,000 5,175,000 22,930,000 10-years 48.7%6/30/2018 10,145,000 7,495,000 17,640,000 6/30/2018 10,145,000 7,495,000 5,175,000 22,815,0006/30/2019 10,145,000 6,800,000 16,945,000 6/30/2019 10,145,000 6,800,000 5,175,000 22,120,0006/30/2020 10,145,000 6,800,000 16,945,000 6/30/2020 10,145,000 6,800,000 5,175,000 22,120,0006/30/2021 10,145,000 6,800,000 16,945,000 6/30/2021 10,145,000 6,800,000 5,175,000 22,120,0006/30/2022 8,140,000 6,800,000 14,940,000 15-years 80.4% 6/30/2022 8,140,000 6,800,000 5,175,000 20,115,000 15-years 75.9%6/30/2023 6,810,000 6,800,000 13,610,000 6/30/2023 6,810,000 6,800,000 5,175,000 18,785,0006/30/2024 6,810,000 6,800,000 13,610,000 6/30/2024 6,810,000 6,800,000 5,175,000 18,785,0006/30/2025 4,770,000 6,500,000 11,270,000 6/30/2025 4,770,000 6,500,000 5,175,000 16,445,0006/30/2026 4,775,000 3,400,000 8,175,000 6/30/2026 4,775,000 3,400,000 5,175,000 13,350,0006/30/2027 4,765,000 3,000,000 7,765,000 20-years 98.0% 6/30/2027 4,765,000 3,000,000 5,175,000 12,940,000 20-years 95.9%6/30/2028 3,090,000 3,090,000 6/30/2028 3,090,000 5,175,000 8,265,0006/30/2029 3,090,000 3,090,000 6/30/2029 3,090,000 5,175,000 8,265,000

175,030,000$ 133,980,000$ 309,010,000$ 175,030,000$ 133,980,000$ 93,150,000$ 402,160,000$

Total Principal Payout

Total Principal Payout

58

Debt Statistics


Fiscal Year

General Obligation

Bonds

Certificates of

Participation

Installment Payment Revenue

BondsInstallment Financing

Capital Leases

Total Primary Government

Per Capita (1)

Percentage of Personal

Income (1)

1999 73,810,000 0 30,000,000 0 17,596,987 121,406,987 982 3.67%

2000 69,140,000 0 28,500,000 0 14,756,923 112,396,923 876 3.17%

2001 64,700,000 40,000,000 27,000,000 0 11,938,050 143,638,050 1,087 3.71%

2002 60,400,000 38,000,000 25,500,000 0 9,136,744 133,036,744 976 3.30%

2003 56,145,000 61,340,000 24,000,000 0 6,344,560 147,829,560 1,057 3.59%

2004 52,495,000 98,765,000 22,500,000 0 4,123,595 177,883,595 1,242 4.24%

2005 97,805,000 93,380,000 21,000,000 4,358,000 1,801,493 218,344,483 1,495 4.92%

2006 91,845,000 88,005,000 19,500,000 3,735,427 0 203,085,427 1,354 4.27%

2007 133,980,000 116,220,000 18,000,000 17,612,855 443,568 286,256,423 1,825 5.55%

2008 126,895,000 173,165,000 0 15,990,284 331,964 316,382,248 1,925 *

*Information not yet available.Note: Details regarding the county's outstanding debt can be found in the notes of the financial statements.(1) See Table 12 for personal income and poputlation data. These rations are calculated using personal income and poputional for the prior calendar year. Calendar 2007 personal income not available to calculate fiscal year 2008.

GOVERNMENTAL ACTIVITIES

59

Legal Debt Limitations

Statutory Debt Limit – 8% of Assessed Value

County has excellent additional capacity to meet future needs


Fiscal Year Legal Debt Limit Total Applicable Debt Percentage Debt Limit

1999 501,786,955 121,406,987 19.48%

2000 662,014,915 112,396,923 14.51%

2001 684,117,761 143,638,050 17.35%

2002 751,353,511 133,036,605 15.04%

2003 771,244,220 147,829,560 16.08%

2004 757,312,290 177,883,595 19.02%

2005 901,227,152 218,344,483 19.50%

2006 975,942,240 203,085,427 17.22%

2007 940,528,055 286,256,423 23.33%

2008 985,078,494 316,382,248 24.31%

60

1.52% 1.56%

1.37%

1.86%1.96%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2004 2005 2006 2007 2008

Bonded Debt to Taxable Property Assessed Valuation



61

Cabarrus County General Fund


Expenditures by Function(% of Total Expenditures)


Fiscal Year 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 6/30/2008

General Government 8.43% 7.16% 7.42% 6.66% 6.23% 7.02%

Public Safety 10.46% 11.39% 12.15% 11.29% 9.72% 10.66%

Environmental & Physical Development 7.48% 4.43% 4.66% 3.39% 1.43% 2.09%

Environmental Protection 0.13% 0.12% 0.12% 0.10% 0.08% 0.08%

Human Services 21.09% 21.17% 21.64% 19.93% 16.27% 17.03%

Cultural & Recreational 3.96% 4.49% 3.36% 2.72% 2.69% 2.74%

Education 28.37% 37.47% 34.32% 39.36% 42.60% 33.96%

Capital Outlay 6.92% 1.66% 3.30% 4.05% 10.81% 13.59%

Debt Service 13.15% 12.11% 13.03% 12.50% 10.26% 12.84%

Actual

62

Funding the Capital Plan


63

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


64

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.


65

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)


2008 2009 2010 2011 2012 2013 2014

CIP Total 62,515,384 209,689,862 18,035,520 24,304,463 69,085,351 217,797,929 601,428,509

Paid by Debt 47,765,000 176,134,474 - 5,000,000 50,000,000 200,000,000 478,899,474

Paid by Cash 14,750,384 33,555,388 18,035,520 19,304,463 19,085,351 17,797,929 122,529,035

Subtotal 62,515,384 209,689,862 18,035,520 24,304,463 69,085,351 217,797,929 601,428,509

% paid by cash 23.59% 16.00% 100.00% 79.43% 27.63% 8.17% 20.37%

*Pay as you go Percentage from 2008 till 2013 based on 2009 adopted budget.

66

Cabarrus County, North CarolinaSeries 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


67

Cabarrus County, North CarolinaFinancing Schedule

Debt Rating/ Insurance: April 30, 2009

POS Mailing: May 6, 2009

Pricing: May 20/21, 2009

Closing: June 4, 2009


68

Appendix A

Cabarrus County Economic Outlook Data


69

Appendix B

Regional Commuting Patterns


70

Appendix C

Cabarrus County Economic Development Vision, Mission and Strategy


71

Appendix D

NC Research Campus Company Descriptions

And

County Motorsports Directory


72

Appendix E

County Tour Map

And

Philip Morris Marketing Brochure


Cabarrus County Rating Book 4 06 09 Final Ls

Economy & Finance

Transcript of Cabarrus County Rating Book 4 06 09 Final Ls