10-3-22 BOC Regular Meeting - Laserfiche WebLink

Home Browse Search

U.S.PUBLIC FINANCE MOODYS INVESTORS ISSUER COMMENT Lee County, NC 28 May 2021 Annual Comment on Lee County RATING General Obligation(or GO Related)t Issuer Profile Aa2 No Outlook Lee County is located in the geographic center of North Carolina.The county seat of Sanford is approximately 40 miles southwest of the Raleigh-Durham metro area.The county has a — population of 60,481 and a moderate population density of 235 people per square mile.The Contacts county's median family income is$59,667(4th quartile)and the March 2021 unemployment Katie Townsend +1.212.553.3761 rate was 5% (3rd quartile)2.The largest industry sectors that drive the local economy are Associate LeadAnalyst manufacturing,retail trade,and health services. katie.townsend@moodys.com We regard the coronavirus outbreak as a social risk under our environmental,social and Gregory W.Lipitz +1.212.553.7782 VP-Sr Credit Officer/Manager governance framework,given the substantial implications for public health and safety and gregory.tipitz@moodys.com the economy.We do not see any material immediate credit risks for Lee County. However, the situation surrounding coronavirus is rapidly evolving and the longer term impact will CLIENT SERVICES depend on both the severity and duration of the crisis. If our view of the credit quality of Lee Americas 1-212-553-1653 County changes,we will update our opinion at that time. Asia Pacific 852-3551-3077 Credit Overview Japan 81-3-S408-4100 Lee County has a very high quality credit position.Its Aa2 rating is equivalent to the median EMEA 44-20-7772-5454 rating of Aa2 for counties nationwide. Key credit factors include a robust financial position, manageable pension liability and small debt burden.The rating also reflects a considerable tax base and moderate wealth and income profile. Finances:The financial position of the county is very strong and is relatively favorable when compared to the assigned rating of Aa2.Cash balance as a percent of operating revenues (27.8%) is slightly beneath the US median but grew between 2016 and 2020.Fund balance as a percent of operating revenues(34.2%) is consistent with the US median. Debt and Pensions:The pension liability of the county is affordable and is a modest credit strength relative to its Aa2 rating position.The Moody's-adjusted net pension liability to operating revenues(0.43x)favorably is materially lower than the US median.Lee County has a light debt burden which is reflected in the assigned rating of Aa2.Net direct debt to full value(1.5%) is slightly higher than the US median. Economy and Tax Base:The economy and tax base of the county are solid but some aspects are weak when compared to its Aa2 rating.Total full value($6 billion) is below the US median but increased from 2016 to 2020.Full value per capita($98,603)is stronger than the US median and median family income equals only 77.2%of the US level. Management and Governance:North Carolina counties have an institutional framework score'-of"Aaa,"or very strong.Property taxes,counties'main revenue source,are highly ........ ....... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... ............... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... .. ....... ....... This document has been prepared for the use of Mitch Brigulio and is protected by law.It may not be copied,transferred or disseminated unless authorized under a contract with Moody's or otherwise authorized in writing by Moody's.