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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 10, 2015
Action Agenda
Item No. 1
SUBJECT: Additional Discussion Regarding a November 2016 Bond Referendum
DEPARTMENT: County Manager, Finance and PUBLIC HEARING: (Y/N) No
Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
A. Proposed Bond Schedule for a
November 2016 Bond Bonnie Hammersley, 919-245-2300
Referendum Paul Laughton, 919-245-2152
B. Debt Profile, Debt Capacity and
Affordability Information from
Davenport and Company
PURPOSE: To continue discussion regarding a November 2016 Bond Referendum.
BACKGROUND: In several meetings during the past year, the Board of Commissioners has
discussed the scheduling of a General Obligation Bond Referendum. A large part of the
incentive for moving forward with a bond referendum is the repair, renovation, and upgrading of
existing older school facilities. Both school systems completed facilities assessments reflecting
needs totaling approximately $330 million. The scope of study for Chapel Hill-Carrboro City
Schools included schools constructed prior to 1990, while the Orange County Schools study
included all district buildings.
At the Board of Commissioners January 30, 2015 Retreat, the Board directed staff to develop
materials for Board consideration regarding the Board formally expressing its intent to schedule
a November 2016 Bond Referendum (See Attachment A, Proposed Bond Schedule for a
November 2016 Referendum), including a total bond package amount of approximately $125
million. The Board also directed staff to move forward with the development of a process for a
November 2016 Bond Referendum similar to the process utilized during the County's 2001
Bond Referendum.
At the March 3, 2015 Regular meeting, the Board discussed its intent to schedule a November
2016 Bond Referendum to address County and School capital needs; discussed the proposed
creation of, structure, and charge for a proposed Capital Needs Advisory Task Force; and
discussed the potential need for the services of a qualified facilitator for the Task Force. The
Board subsequently requested additional information from staff and the two school systems for
continued discussion at a future meeting.
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The Board further discussed this item at its April 21, 2015 meeting, and approved the
scheduling of a November 2016 Bond Referendum to address School Capital needs. The
Board also approved its intent for a bond package totaling approximately $125 million, and
supported the concept of a Bond Education Committee. This Committee's composition,
appointment process, and public outreach responsibilities will be discussed and decided on at
a future meeting.
Future debt capacity for a potential general obligation bond referendum can increase or
decrease due to the following circumstances:
• Future increases or decreases in interest rates
• Future changes or modifications to the capital investment plans of the County and/or
both School Districts
At tonight's meeting, representatives from Davenport and Company, the County's Financial
Advisors, will provide the following information, as it relates to the County's Debt Capacity and
Debt Affordability: (See Attachment B, Debt Profile, Debt Capacity and Affordability
Information)
• Peer Comparatives and Key Debt Ratios
• Review of the County's existing Debt Profile.
• Evaluate the impact of the County's current FY 2015-20 Capital Investment Plan (CIP)
debt issuances.
• Evaluate the impact of a $125 million General Obligation Bond Referendum, as well as
the impact of$130 million and $135 million case scenarios.
FINANCIAL IMPACT: There is no immediate financial impact related to the discussion of a
November 2016 Bond Referendum.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this agenda item:
• GOAL: ENABLE FULL CIVIC PARTICIPATION
Ensure that Orange County residents are able to engage government through voting and
volunteering by eliminating disparities in participation and barriers to participation.
RECOMMENDATION(S): The Manager recommends that the Board continue its discussion of
a November 2016 Bond Referendum, and provide direction to staff, as appropriate.
t A
a ford ols ouser Attachmen 3
www.Sanfordholshouserlaw.com
Memorandum
To: Orange County Officials
Date: September 2, 2015
Regarding Required Procedures and Possible Schedule for
General Obligation Bond Referendum
From: Sanford Holshouser LLP
-- Robert M. Jessup Jr.
This memorandum describes the steps required for Orange County to
conduct a general obligation bond referendum on November 8, 2016, and sets out a
proposed schedule. Here are the required steps and suggested dates for action:
1. Determine tentative plan for bond purposes and
amounts. Although Step 5 provides for the first formal Board action to determine
what will be presented to the voters, the bond program needs to be substantially
worked out before we begin the formal process. In addition, the plan for what
projects are to be included in the bond package is something that LGC
representatives will want to discuss in detail with County representatives as part of
the meeting described in the next step.
Each separate general purpose for bonds has to he the subject of a separate
ballot question. The statutes assume that each question put to voters will propose a
dollar amount for a separate generic purpose, such as paying "capital costs of
school facilities. " Although the statutes allow the purpose to he stated with more
specificity, it is highly recommended that the purpose in the ballot question he left
as general as possible. The more specific plans underlying the planning for the
bond issue do not legally hind the County to a particular future plan of action in
the issuance of the bonds or construction of specified facilities.
2. Meet with LGC staff. The County should arrange a meeting with
LGC staff about the proposed referendum as soon as convenient after the Board
has settled informally on a referendum plan.
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Sanford IIolshouser
Bond Election memo for Orange County
Page 2
3. Give informal notice to the County Board of Elections. Because
the Board of Elections will need to coordinate its own procedures for the bond
referendum, it would help the Board of Elections to receive a phone call to inform
the Board of the County's plans, even if the plans are still subject to change. We
want to be sure that our schedule works with the Board's schedule -- not only in
terms of legal requirements but also in terms of practical matters such as ballot
printing deadlines, especially now that absentee balloting begins in September.
4. Obtain School Board Resolutions. If any of the bonds will be
proposed for school purposes, the statutes contemplate that the affected school
boards should provide a formal referendum request to the Commissioners. This
request usually proposes a maximum amount of bonds to be considered at the
referendum. This schedule assumes that each school board could adopt an
appropriate resolution by the end of March.
5. Adopt "Findings" Resolution. As part of the application
process, the LGC wants to see a statement describing why the proposed projects
and bonds are necessary and desirable. This resolution will also state an estimated
tax rate impact of the borrowing. This resolution could be adopted at a County
Board meeting in April. This resolution will also authorize the publication of the
"Notice of Intent" described in Step 6.
6. Publish Notice of Intent To File Application. The County must
publish a notice of its intent to file an application for the LGC's approval of the
proposed bonds. The notice must be published at least 10 days before filing the
application. The notice needs to be published as soon as possible after the Board
adopts the findings resolution described in Step 5.
The own words resolution and the Notice of Intent establish the maximum
amount of bonds that can be proposed at the referendum for each of the specified
purposes. From this point, we can decrease the amount of bonds or eliminate
purposes, but we can increase an amount or add a purpose only by re-starting the
authorization process.
7. Make Legislative Committee 45-day filing. If the bond program will
include purposes beyond schools, the law requires that the County file a notice of
the proposed borrowing with a legislative committee at least 45 days before the
LGC considers your application. We can make this filing promptly after the action
in Step 5. There's no requirement for this Committee to approve anything or take
any other action; there's simply a requirement to file a notice.
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Sanford IIolshouser
Bond Election memo for Orange County
Page 3
8. Prepare statement of debt and statement of estimated interest.
The debt statement sets out details of the County's outstanding debt. This
document will be similar, not quite identical, to a debt statement that appears in the
LGC application. The statement of estimated interest states the County's good-
faith, non-binding calculation of the total amount of interest to be paid on the
bonds, if issued, over the term of the bonds. These statements will be prepared as
we are preparing the LGC application and the Bond Order documents. Information
from these statements will be included in some of the public notices related to the
bond referendum.
9. File LGC Application. As stated above, this cannot happen until
at least 10 days have elapsed since the publication of the notice of intent. The
application needs to be filed and formally accepted by the LGC before we have the
County Board take its next steps as described in Step 10.
Although we have to submit the LGC application as part of the referendum
process, it is not necessary to receive LGC approval until we are ready to proceed
with the actual sale of bonds, which of course will he after the referendum. The
LGC may or may not act on the application prior to the referendum, although the
current LGC practice is in fact to consider applications as they are received
(instead of waiting for the time of a bond issuance).
10. Introduce Bond Orders; Set public hearing. After the County
files its application, the Board needs to introduce the "Bond Orders" and set a date
for the required public hearing. We can take these actions at any time after the
LGC accepts the application (even the same day). Our schedule shows these steps
occurring at a Board meeting in May.
The "Bond Order" is the basic authorization for bonds approved by the
County Board. The statutes provide for the format and most of the text of a bond
order; the bond order is a short, general statement of the Board's determination to
proceed. Each of the separate generic purposes for which bonds are to he
proposed will he the subject of a separate bond order: The details of an actual bond
issue are further approved by the Board at the time of a bond issue.
11. Publish Notice of Public Hearing. We need to publish notice of
the required public hearing at least six days prior to the hearing.
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Sanford IIolshouser
Bond Election memo for Orange County
Page 4
12. Hold Public Hearing; Adopt Bond Order; Set Ballot Question and
Referendum Date. After holding a public hearing, the Board needs to adopt the
Bond Orders and adopt a resolution that formally sets the ballot questions and the
date for the referendum. Our schedule shows these steps occurring at a County
Board meeting in June (or across multiple June meetings, if the Board wanted to
separate the public hearings from final Board action across more than one
meeting). The Board Clerk must then send a copy of the resolution setting the date
and the ballot question to the County Board of Elections within three days after the
Board meeting.
The adoption of the bond orders establishes the final amount of bonds that
will go hefore the voters for each of the stated purposes.
13. Publish Bond Order as Adopted. This should be done as soon as
possible after the Bond Order is adopted. There is no particular deadline for
publishing this notice, but the notice starts a 30-day period for court challenges to
the authorization process that must lapse before any bonds can be issued.
14. Publish Notice of Bond Referendum. This notice must be
published twice, once not less than 14 days and once not less than 7 days before
the close of voter registration. State law permits registration until the 25th day prior
to the election date. That puts the date registration closes at October 14 for a
referendum on November 8. The first publication, then, needs to be at least 14 days
earlier, or on or before September 23, and the second publication no more than one
week later (by September 30). I would certainly encourage you, however, to plan
to publish at least a week before the final legal date, in order to leave time to re-
publish in case of any problems with publication.
I have attached a schedule in table form for a referendum in November
2016. This table summarizes the steps that have been described in more detail
above.
Issuing bonds after the referendum. Once the voters have approved the
bonds, you have a minimum of 90 to 120 days to get through the process to
actually issue bonds. The County Board must adopt a resolution to formally
approve the election results, and the County must publish a notice of the results
that triggers a 30-day period during which people can bring legal challenges to the
bond referendum process. Then, to approve the issuance of bonds takes only one
more County Board resolution, with no other required public hearings or published
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Sanford IIolshouser
Bond Election memo for Orange County
Page 5
notices.
The real timing issue in proceeding with a bond issue centers around the
progress of the projects that are going to be financed. In general, the LGC wants to
see that you are close to construction with well-developed estimates and at least
some bids in hand before closing on a bond issue — the LGC wants to be sure you
don't borrow too much money, or too little money, or borrow it earlier than you
need it. We can coordinate the construction and the bond processes so as not to
delay the County's projects.
The County has seven years from a successful referendum date to issue
voter-approved bonds. The LGC can extend this period to ten years, and over the
last several years the LGC has routinely granted extensions. There is never any
obligation for the County in fact to issue any or all of the bonds approved at a
referendum.
Related purposes and ballot questions. Each separate general purpose for
bonds has to be the subject of its own Bond Order and its own separate ballot
question. Purposes for which bonds are to be issued have to be related to be
included in a single question, and unrelated purposes cannot be combined. For
example, a bond purpose of "public safety" could cover improvements to police
and fire facilities. On the other hand, "fire facilities" and "park improvements"
could not be combined on a single ballot question.
Determining which purposes will be put before the voters, and how much in
bonds will be proposed for each purpose, is the essential nature of developing the
bond plan as described in Step 1. We would recommend that the questions put to
voters propose a dollar amount of bonds for broad categories, as appropriate — for
example, a dollar amount for "streets and sidewalk improvements" or for "public
safety improvements." Although the statutes allow the purposes to be stated with
more specificity, it is highly recommended that the purposes be left in more
generalized categories so that the County Board retains flexibility within the
categories that voters approve to meet conditions that may change over time.
Please let me know if you have any questions about this information, or if I
can be of any other assistance.
-- RMJ
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Sanford IIolshouser
Bond Election memo for Orange County
Page 6
Orange County -- Proposed Timetable for November '16 Bond Referendum
Event Date
1. Determine referendum plan — As soon as possible
tentative amounts and purposes,
and target election date
2. Give informal notice to County Board As soon as possible after informal
of Elections decision to proceed with a November
referendum
3. Meet with LGC staff As soon as convenient after informal
decision on referendum plan—prior to
Event 5
4. Obtain school board resolutions Prior to Event 5 — school boards to act by
end of March 2016
5. Board adopts preliminary resolution BOCC meeting in April
explaining purpose for referendum,
stating purposes and maximum
amounts of bonds to be considered,
and authorizing publication of notice
of intent to file LGC application
6. Publish notice of intent to file As soon as possible after Event 5
application
7. Make legislative committee 45-day As soon as possible after Event 5
filing
8- Prepare statement of debt and In connection with preparing LGC
statement of estimated interest application
9. File LGC application Must be at least 10 days after Event 6 and
prior to Event 9
10. Board introduces bond orders and BOCC meeting in May
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Sanford IIolshouser
Bond Election memo for Orange County
Page 7
schedules public hearing
11. Publish notice of public hearing After Event 10 and at least six days prior
to Event 12
12. Hold public hearing; adopt bond BOCC meeting in June (or could separate
orders; formally set ballot questions public hearings and final action between
and referendum date two different June meetings)
13. Publish bond order as adopted As soon as possible after Event 12
14. Absentee ballots to be available By September 19
15. Publish notice of referendum (twice) By 9/23; then by 9/30
16. Referendum occurs 11/8/2016
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Attachment B
Discussion Materials
Orange County, North Carolina
ORANGE COUNTY
NORTH CAROLINA
September 10, 2015
DAVENPORT & COMPANY
Member NYSE I FINRAISIPC
Goals and Objectives ORANGE COUNTY
NORTH CAROLINA
• Review the County's existing Debt Profile.
• Evaluate the impact of the County's proposed CIP Debt Issuances and potential General Obligation Bond Referendum:
— Analyze a series of Key Financial Ratios to evaluate the County's Debt Capacity.
— Measure the Debt Affordability of the proposed projects.
DAVENPORT&COMPANY
September 10,2015 Orange County, NC 1
ORANGE COUNTY
NORTH CAROLINA
Peer Comparatives Overview
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September 10,2015 Orange County, NC 2
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Peer Comparatives ORANGE COUNTY
NORTH CAROLINA.
Peer Comparative Introduction Moody's Investors Standard & Poor's Fitch Ratings
• The County is currently rated Aaa by Moody's Investors Service (May Service
2015),AAA by Standard and Poor's (June 2015), and AAA by Fitch
(June 2015). Aaa AAA AAA
Aa 1 AA+ AA+
• The following pages contain peer comparatives based on the Moody's Aa2 AA AA
Aaa peer counties listed below. Aaa AA- AA-
A1 A+ A+
A2 A A
— National Aaa Counties - 80 Credits A3 A- A-
Baa1 BBB+ BBB+
— North Carolina Aaa Counties - 7 Credits Baa2 BBB BBB
— Durham Baa3 BBB- BBB-
- Forsyth Non Investment Grade
— Guilford
— Mecklenburg
— New Hanover
— Orange
— Wake
Note: The data shown in the peer comparatives is from Moody's Municipal Financial
Ratio Analysis database. The figures shown are derived from the most recent financial
statement available as of August 25, 2015 (FY 2014 figures in most cases).
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September 10,2015 Orange County, NC 3
ORANGE COUNTY
NORTH CAROLINA
Existing Tax Supported Debt Profile
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September 10,2015 Orange County, NC 4
Existing Tax Supported Debt ORANGE COUNTY
NORTH CAROLINA.
Tax Supported Debt Service Tax Supported Debt Service
30.0
o FY Principal Interest Total 10-yr Payout
25.0 t Total 183,961,204 41,938,697 225,899,901
20.0 - 2016 19,602,998 6,647,689 26,250,687 88.4%
2017 18,913,536 6,229,681 25,143,217 90.4%
15.0 - - - — 2018 19,499,870 5,654,364 25,154,234 93.9%
2019 18,831,190 5,018,410 23,849,600 94.7%
10.0 - - - - - - - - -� — 2020 18,164,819 4,330,176 22,494,995 95.6%
2021 17,784,274 3,642,414 21,426,688 96.4%
5.0 - - - - - - - - - - - - 2022 17,711,652 2,952,042 20,663,694 97.0%
0.0 2023 13,919,570 2,204,246 16,123,816 98.0%
0 1 �b O O ti 3 N h 0 '� O O ti 3 2024 10,469,848 1,630,435 12,100,283 100.0%
Oti Oti Oti Oy O1' 00 00' 00' O1' 00 00' 00' Off' 00' O0 0
0 0 0 0 0 0 0 0 2025 7,708,798 1,171,194 8,879,992 100.0%
2026 5,599,894 865,415 6,465,309 100.0%
J Principal NJ Interest 2027 6,866,417 549,063 7,415,481 100.0%
Par Outstanding - Estimated as of 6/30/2015 2028 2,174,056 350,018 2,524,075 100.0%
2029 1,967,056 269,751 2,236,807 100.0%
2030 1,513,056 193,364 1,706,420 100.0%
Type Par Amount 2031 1,078,056 128,019 1,206,075 100.0%
2032 1,078,056 76,812 1,154,868 100.0%
General Obligation Bonds $68,355,000 2033 1,078,056 25,604 1,103,660 100.0%
IPCs/ COPS / LOBS $115,606,204
Total $183,961,204
Note: 2010 and 2011 QSCBs are shown gross of Federal
Subsidy. Excludes Sportsplex, Solid Waste, and Water &
Sewer Debt supported by the Article 46 Sales Tax.
DAVENPORT&COMPANY Source: LGC Bond Ledgerand 2014 CAFR
September 10,2015 Orange County, NC 5
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Key Debt Ratios ORANGE COUNTY
NORTH CAROLINA.
10 Year Payout Ratio Debt to Assessed Value Debt Service to Expenditures
Orange County(MFRA) Orange County(MFRA) Orange County(MFRA)
Orange County(2016) Orange County(2016) . Orange County(2016)
National'Aaa'Median National'Aaa'Median National'Aaa'Median
NC'Aaa'Median NC'Aaa'Median NC'Aaa'Median
Durham County,NC Mecklenburg County,NC Durham County,NC
Wake County,NC New Hanover County,NC Guilford County,NC
Mecklenburg County,NC Wake County,NC Mecklenburg County,NC
New Hanover County,NC Guilford County,NC Forsyth County,NC
Guilford County,NC Forsyth County,NC New Hanover County,NC
Forsyth County,NC Durham County,NC Wake County,NC
0 20 40 60 80 100 0.0 0.5 1.0 1.5 2.0 2.5 0 5 10 15 20 25
Percent Percent Percent
• Orange County (MFRA): 84.8% ■ Orange County (MFRA): 1.2% ■ Orange County (MFRA): 13.6%
• Orange County (2016): 88.4% ■ Orange County (2016): 1.1% ■ Orange County (2016)1: 12.7%
• North Carolina Aaa Counties: ■ North Carolina Aaa Counties: ■ North Carolina Aaa Counties:
— Minimum 73.6% — Minimum 1.2% — Minimum 13.6%
— Median 84.8% — Median 1.5% — Median 16.8%
— Maximum 93.6% — Maximum 1.6% — Maximum 23.8%
• National Aaa Counties: ■ National Aaa Counties: ■ National Aaa Counties:
— Minimum 23.8% — Minimum 0.0% — Minimum 0.0%
— Median 74.3% — Median 0.6% — Median 8.8%
— Maximum 100% — Maximum 3.5% — Maximum 23.8%
DAVENPORT&COMPANY Source:Moody's MFRA 'Note:The County has a maximum Debt Service to General Fund Revenues Policy of 15%.
September 10,2015 Orange County, NC 6
Decline in Tax Supported Debt Service ORANGE COUNTY
NORTH CAROLINA
Existing Tax Supported Debt Service Decline Existing Tax Supported Debt Service Decline
30.0 — FY Existing Cumulative
0
25.0 -% ■ ■ F Debt Service Decline
Total 225,899,901
20.0 - - - - - - - - - - - - - 2016 26,250,687 -
15.0 - - - - - - - - - - - - - - - - - 2017 25,143,217 1,107,470
2018 25,154,234 1,096,453
10.0 - - - - - - - - - 2019 23,849,600 2,401,088
2020 22,494,995 3,755,692
2021 21,426,688 4,823,999
cfl ti ao rn o N m co ti ao rn o N m 2022 20,663,694 5,586,994
0000000000000000000 2023 16,123,816 10,126,871
N N N N N N N N N N N N N N N N N N N
Existing Debt Service JCumulative Decline 2024 12,100,283 14,150,405
2025 8,879,992 17,370,696
2026 6,465,309 19,785,379
2027 7,415,481 18,835,207
2028 2,524,075 23,726,613
2029 2,236,807 24,013,880
2030 1,706,420 24,544,267
2031 1,206,075 25,044,612
2032 1,154,868 25,095,820
2033 1,103,660 25,147,027
2034 - 26,250,687
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September 10,2015 Orange County, NC 7
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ORANGE COUNTY
NORTH CAROLINA.
Debt Capacity and Debt Affordability
Analysis
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September 10,2015 Orange County, NC 8
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Capital Improvement Plan — Case Overview ORANGE COUNTY
NORTH CAROLINA.
• As part of the annual CIP process, the County identifies Capital Projects for potential debt funding. In addition to the potential
debt issuances in the CIP, the County is considering voting a General Obligation Bond Referendum in November 2016.
• Future debt is assumed to be funded under the following assumptions:
— Issuance Date: As indicated
— First Interest: Fiscal Year Following Issuance
— First Principal: Fiscal Year Following Issuance
— Interest Rate: 3.75% - 4.50%
— Term: 20 Years
— Non-GO Amortization: Level Principal
— GO Amortization: Level Principal
• Key Debt Ratio Growth Assumptions:
— Assessed Value - Natural Growth: 2017: 1.50%, 2018 & Beyond: 2.00%
— General Fund Revenues - Natural Growth: 2017: 1.50%, 2018 & Beyond: 2.00% plus revenue derived from
projected tax increases associated with capital
• Cases Analyzed:
— Existing Debt Only
— Case 1: Existing Debt and $103 million of CIP Debt (FY 2016-2021) (Total: $103,845,296)
— Case 2: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $125 Million GO Referendum (Total: $228,845,296)
— Case 3: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $130 Million GO Referendum (Total: $233,845,296)
— Case 4: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $135 Million GO Referendum (Total: $238,845,296)
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September 10,2015 Orange County, NC 9
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Future Debt Financings — Case Summary ORANGE COUNTY
NORTH CAROLINA
Fiscal Year 2016 2017 2018 2019 2020 2021 Total
Interest Rate 3.75% 3.75% 4.00% 4.25% 4.50% 4.50%
1 County
2 General Fund Projects' $ 5,247,175 $ 23,985,200 $ 28,563,031 $ 3,967,500 $ 6,659,245 $ 20,908,360 $ 89,330,511
3 School Projects 1,228,000 - - - 1,258,300 12,028,485 14,514,785
4 Total Case 1 $ 6,475,175 $ 23,985,200 $ 28,563,031 $ 3,967,500 $ 7,917,545 $ 32,936,845 $ 103,845,296
5
6
7 Case 2: County CIP and $125 Million GO Referendum
a Total Case 1' $ 6,475,175 $ 23,985,200 $ 28,563,031 $ 3,967,500 $ 7,917,545 $ 32,936,845 $ 103,845,296
9 $125 Million Referendum - 41,666,667 - 41,666,667 - 41,666,667 125,000,000
10 Total Case 2 $ 6,475,175 $ 65,651,867 $ 28,563,031 $ 45,634,167 $ 7,917,545 $ 74,603,512 $ 228,845,296
11
12
13 Case 3: County CIP and 1 Million GO Referendum
14 Total Case 1' $ 6,475,175 $ 23,985,200 $ 28,563,031 $ 3,967,500 $ 7,917,545 $ 32,936,845 $ 103,845,296
15 $130 Million Referendum - 43,333,333 - 43,333,333 - 43,333,333 130,000,000
16 Total Case 3 $ 6,475,175 $ 67,318,533 $ 28,563,031 $ 47,300,833 $ 7,917,545 $ 76,270,178 $ 233,845,296
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19 Case ' : County CIP and $135 Million GO Referendum
20 Total Case 1' $ 6,475,175 $ 23,985,200 $ 28,563,031 $ 3,967,500 $ 7,917,545 $ 32,936,845 $ 103,845,296
21 $135 Million Referendum - 45,000,000 - 45,000,000 - 45,000,000 135,000,000
22 Total Case 4 $ 6,475,175 $ 68,985,200 $ 28,563,031 $ 48,967,500 $ 7,917,545 $ 77,936,845 $ 238,845,296
1 Does not include Enterprise Debt (Sportsplex, Solid Waste, and Water&Sewer Debt supported by the Article 46 Sales Tax). The CIP amounts shown reflect only those
projects funded through debt financing.
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September 10,2015 Orange County, NC 10
Summary of Results ORANGE COUNTY
NORTH CAROLINA
Existing Debt Only
Assumptions
1 Interest Rate N/A 3.75%-4.50% 3.75%-4.50% 3.75%-4.50% 3.75%-4.50%
2 Term N/A 20 Years 20 Years 20 Years 20 Years
3 GO Amortization N/A Level Principal Level Principal Level Principal Level Principal
4 Non-GO Debt Amortization N/A Level Principal Level Principal Level Principal Level Principal
5
6 Debtlssued
7 FY 2016 N/A $ 6,475,175 $ 6,475,175 $ 6,475,175 $ 6,475,175
8 FY 2017 N/A 23,985,200 65,651,867 67,318,533 68,985,200
9 FY 2018 N/A 28,563,031 28,563,031 28,563,031 28,563,031
10 FY 2019 N/A 3,967,500 45,634,167 47,300,833 48,967,500
11 FY 2020 N/A 7,917,545 7,917,545 7,917,545 7,917,545
12 FY 2021 N/A 32,936,845 74,603,512 76,270,178 77,936,845
13 Total Debt Issued N/A $ 103,845,296 $ 228,845,296 $ 233,845,296 $ 238,845,296
14
15 Total New Debt Service N/A $ 148,909,738 $ 328,597,238 $ 335,784,738 $ 342,972,238
16
17 Debt Ratios Policy
18 10 Year Payout(Worst Shown) N/A 88.4% 73.6% 65.1% 64.9% 64.7%
19 Debt to Assessed Value(Worst Shown) 3.00% 1.1% 1.2% 1.6% 1.7% 1.7%
20 Debt Service to GF Revenues(2016-2023) 15.00%
21 FY 2016 12.7% 12.7% 12.7% 12.7% 12.7%
22 FY 2017 12.0% 12.2% 12.2% 12.2% 12.2%
23 FY 2018 11.3% 12.9% 14.4% 14.4% 14.5%
24 FY 2019 10.5% 13.1% 14.5% 14.5% 14.6%
25 FY 2020 9.7% 12.4% 15.2% 15.3% 15.4%
26 FY 2021 9.1% 11.9% 14.7% 14.8% 14.9%
27 FY 2022 8.6% 12.7% 16.6% 16.7% 16.9%
28 FY 2023 6.6% 10.4% 14.2% 14.4% 14.5%
29
30 Tax Equivalent Impact
31 FY 2016 - - - - -
32 FY 2017 - - - -
33 FY 2018 0.65 2.78 2.86 2.95
34 FY 2019 0.99 0.90 0.90 0.89
35 FY 2020 - 1.45 1.53 1.61
36 FY 2021 - - -
37 FY 2022 2.35 2.4U 2.48
38 Total 0.001 1.641 7.47 7.701 7.931
39
40 One Time FY 2018 Tax Equivalent Impact N/A 1.221 4.92 5.081 5.241
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Municipal Advisor Disclosure ORANGE COUNTY
NORTH CAROLINA
The U.S.Securities and Exchange Commission(the"SEC")has clarified that a broker,dealer or municipal securities dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of
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