10-3-22 BOC Regular Meeting - Laserfiche WebLink

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MOODY'S INVESTORS SERVICE U.S.PUBLIC FINANCE The county has achieved operating surpluses in the past four years and expect another year of favorable results in fiscal 2018 despite a budgeted$1.9 million appropriation. Exhibit 4 Growing reserves and cash bolster financial flexibility 5-year growth in cash and fund balance over 5% 30% • Fund Balance as a % of Revenues Cash Balance as a % of Revenues 25% 20% 15% 10% 5% 0% 2013 2014 2015 2016 2017 Source:Lee County,NC Prudently the county has a policy of only using reserves to finance capital and other one time expenditures.Additional financial policies include maintaining an unreserved General Fund balance at least 14%of the General Fund budget,with the goal of maintaining 18%of the General Fund budget. LIQUIDITY County liquidity remains sound growing to$15.8 million in fiscal 2017,or 22.8%of revenues. Manageable debt position The county debt position is expected to remain modest,despite additional borrowing plans,given expected tax base expansion and rapid amortization of principal(92%of tax supported debt within 10 years).On a direct basis,the debt burden is a slightly above average at 1.4%of full value inclusive of lease appropriation debt.Medium term capital plans(5 year CIP) include approximately$45.3 million with 77%funded with additional debt.The county maintains a policy of limiting debt service expenditure to 15%of total expenditures. DEBT STRUCTURE All debt is fixed rated. DEBT-RELATED DERIVATIVES The county is not party to any swap agreements. Lee(County of)NC:Update to credit analysis 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.