4-5-21 BOC Regular Meeting - Laserfiche WebLink

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determine how it will impact debt policies and cash flow. The County has about $87.18 million of outstanding debt through fiscal year 2038. There will be an additional $20 million in interest paid over the 18 years. During the first 10 years over 75% of the outstanding debt of$87.18 will be repaid. The County has a policy that there will be a minimum payout ratio of 50% over the first 10 years. To calculate debt to assessed value you take the $87.18 million divide by overall tax base of about $5.9 billion assessed which is just over 1.5% debt to assessed value. The County's policy is not to exceed 2%. Moody's looks at the debt to assessed value and anything in the .75% to 1.75% range is in their strong category. Annual Debt Service is divided by the overall governmental operating fund, which is a measure of the debt burden and budgetary flexibility. In FY 21 the County has a 14.4% debt service with a policy not to exceed 15%. S & P's calculation states that anything in the 8-15% is in the second highest category of strong so based upon the debt ratios the County currently has debt capacity. The County is looking at funding three projects. In Spring 2022 financing would be issued to fund the County Library and Lee Early College/Library Facility. The County library is expected to cost approximately $14 million and the community college library is expected to cost $12 million and is expected to be funded at the same time. The second project is the multi sports complex which would be funded through General Obligation bonds in the amount of $25 million projected in spring 2024. A summary of different scenarios of the debt issuance for these projects was provided. At this time, Mrs. Minter asked for a timeline on how the Board would prefer to move ahead with these projects based on the concepts of the cases that were presented. Case 3b would take a penny to lower the debt service and would speed up the debt service payments. Mrs. Minter recommended allocating one cent over to debt service. Sales tax has grown at 14% recently. There is a lot of development coming that will help push sales tax for the next few years but eventually it will go down. Dr. Crumpton recommended direction from the Board to begin the planning process. It takes 8 -10 months to get the plans together before going out to bid. Commissioner Carver asked whether there was an appetite to delay doing some of the projects. Dr. Crumpton said that these cases should be considered as the Board navigates through the budget process. Lee County NC - Discussion Materials 3.29.21.pdf Motion: Motion to direct staff to move ahead with Case 1 as presented in the summary from Davenport. Mover: Robert Reives For: 7 - Arianna Lavallee, Dr. Andre Knecht, Robert Reives, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick Motion Result: Passed 5