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<br /> predictable and stable.Counties have moderate revenue-raising ability,given the cap; however,all rated counties maintain ample
<br /> headroom under this cap. Expenditures,which are largely for personnel,are highly predictable and stable and counties have a high
<br /> ability to reduce expenditures given modest fixed cost burdens and no collective bargaining units.
<br /> Sector Trends- North Carolina Counties
<br /> North Carolina counties will continue to benefit from a growing state economy and strong management,supported by the Local
<br /> Government Commission,despite economic disruption due to the coronavirus.Sales tax collections will be impacted by the pandemic,
<br /> but will rebound over the medium term,and an improving housing market will provide stability in property tax revenues. Strong reserve
<br /> levels and low fixed costs will provide financial flexibility. Pensions are typically well funded,whereas debt burdens are slightly high
<br /> because counties are responsible for school and technical college infrastructure needs.
<br /> EXHIBIT 1
<br /> Key Indicators 4 5 Lee County
<br /> 2016 2017 2018 2019 2020 US Median Credit Trend
<br /> Economy/Tax Base
<br /> Total Full Value $5,084M $5,182M $5,292M $5,540M $5,963M $8,266M Improved
<br /> Full Value Per Capita $85,402 $86,655 $88,021 $91,607 $98,603 $88,050 Improved
<br /> Median Family Income(%of US 84% 83% 79% 77% 77% 93% Weakened
<br /> Median)
<br /> Finances
<br /> Available Fund Balance as%of 26.0% 28.3% 29.5% 31.6% 34.2% 34.3% Improved
<br /> Operating Revenues
<br /> Net Cash Balance as%of Operating 21.2% 22.8% 23.7% 25.5% 27.8% 39.5% Improved
<br /> Revenues
<br /> Debt/Pensions
<br /> Net Direct Debt/Full Value 1.1% 1.4% 1.8% 1.6% 1.5% 0.5% Stable
<br /> Net Direct Debt/Operating Revenues 0.85x 1.02x 1.37x 1.18x 1.12x 0.56x Stable
<br /> Moody's-adjusted Net Pension Liability o 0 0
<br /> (3-yr average)to Full Value 0.4/0 0.5% 0.610 0.60 0.6% 1.2!o Stable
<br /> Moody's-adjusted Net Pension Liability 0.29x 0.36x 0.43x 0.45x 0.43x 1.39x Stable
<br /> (3-yr average)to Operating Revenues
<br /> 2016 2017 2018 2019 2020 US Median
<br /> Debt and Financial Data
<br /> Population 59,540 59,805 60,125 60,481 60,481 N/A
<br /> Available Fund Balance($000s) $17,731 $19,616 $20,325 $23,013 $26,666 $26,112
<br /> Net Cash Balance($000s) $14,412 $15,812 $16,340 $18,561 $21,673 $30,464
<br /> Operating Revenues($000s) $68,119 $69,374 $68,804 $72,912 $77,881 $72,972
<br /> Net Direct Debt($000s) $58,073 $70,465 $93,960 $86,341 $87,049 $40,647
<br /> Moody's Adjusted Net Pension
<br /> $19,524 $25,304 $29,929 $33,036 $33,725 $97,433
<br /> Liability(3-yr average)($000s)
<br /> Source:Moody's Investors Service
<br /> This publication does not announce a credit rating action.For any credit ratings referenced in this publication,please see the ratings tab on the issuer/entity page on
<br /> www.moodys.com for the most updated credit rating action information and rating history.
<br /> 2 28 May 2021 Lee County,NC:Annual Comment on Lee County
<br /> 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
<br /> authorized under a contract with Moody's or otherwise authorized in writing by Moody's.
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