|
Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Year Ended June 30, 2012
<br />On April 14, 2011 the Cabarrus County Development Corporation issued $14,635,000 (2011A) certificates of
<br />Participation (COPS) contracts to fund the rehabilitating, repairing and equipping of approximately eighteen
<br />Cabarrus County and six Kannapolis City school facilities. These 15 year COPS are financed under 2 bullets
<br />using Qualified School Construction Bonds. The first bullet in the amount of, $7,200,000, will mature in 2023,
<br />with an interest rate of 5.10 and the second bullet for $7,435,000 will mature in 2026 with an interest rate of
<br />5.50%. The Federal subsidy rate was 5.43%. The second bullet will have a net interest cost to the County of
<br />.07% while the County will have no interest cost in the first bullet. The principal on this debt is deferred for five
<br />years with the first principal payment due on 4/1/2016. The principal payments will be held in an interest bearing
<br />sinking fund until the bullet payments are due. Debt Service is financed by Cabarrus County property tax
<br />revenues. Annual payments of principal and interest range from approximately $748,098 to $2,106,225. Total
<br />principal and interest over a 15-year period will be $25,147,248 less the federal subsidy of $10,434,369, with the
<br />net cost to the County of $14,712,880. Total principal balance due at June 30, 2012 was $14,635,000.
<br />On August 31, 2011 the Cabarrus County Development Corporation issued $11,735,000 (2011B) Limited
<br />Obligation Bonds (LOBS) contracts to refund $11,970,000 of the 2002 COPS issued for the construction and
<br />equipping of the Cabarrus County Schools Administration Building, five school gymnasiums, and the County
<br />owned Cabarrus Arena & Events Center. These 11 year LOBS have interest rates ranging from 2.0% to 5.0%.
<br />Debt Service is financed by Cabarrus County property tax revenues. Annual payments of principal and interest
<br />range from approximately $202,256 to $1,861,200. Total principal and interest over a 11-year period will be
<br />$14,988,756. Total principal balance due at June 30, 2012 was $11,735,000.
<br />On August 31, 2011 the Cabarrus County Development Corporation issued $21,780,000 (2011C) Limited
<br />Obligation Bonds (LOBS) contracts to refund $22,425,000 of the 2003 COPS issued for the cost of acquiring
<br />real property, construction and equipping of two elementary schools, one middle school, expansion of two
<br />existing elementary school facilities and various real and personal property improvements. These 13 year
<br />LOBS have interest rates ranging from 2.0% to 5.0%. Debt Service is financed by Cabarrus County property tax
<br />revenues. Annual payments of principal and interest range from approximately $480,934 to $3,059,475. Total
<br />principal and interest over a 13-year period will be $29,779,084. Total principal balance due at June 30, 2012
<br />was $21,750,000.
<br />For Cabarrus County, the annual debt service payments to maturity as of June 30, 2012 for the County’s
<br />Certificates of Participation/Limited Obligation Bonds are as follows:
<br />Year Ending, June 30 PrincipalInterest
<br />2013 $ 18,820,000$ 12,787,836
<br />2014 18,700,00012,012,985
<br />2015 18,630,00011,223,398
<br />2016 19,895,00010,432,660
<br />2017 19,835,0009,615,098
<br />2018 19,755,0008,784,985
<br />2019 19,685,0007,931,722
<br />2020 18,225,0007,042,522
<br />2021 18,185,0006,247,735
<br />2022 16,385,0005,430,129
<br />Next 5 Years 68,455,00015,268,236
<br />To maturity 17,985,0001,271,494
<br />Total $274,555,000$108,048,800
<br />3. Installment Financing
<br />On April 12, 2005, Cabarrus County executed an installment financing contract with RBC Centura. The contract is
<br />for $4.4 million for the construction of the County owned Rowan-Cabarrus Community College (RCCC) business
<br />center and the construction of a parking lot and design cost of Building 3000 which is owned by RCCC. The terms
<br />of the contract stipulate semi-annual payments of principal and interest from approximately $388,000 to $317,000
<br />for seven years with the first payment due on October 12, 2005 and the final payment due on April 12, 2012. The
<br />annual interest rate is fixed at 3.54%. The principal balance due at June 30, 2012 was $0.
<br />60
<br />
|