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Cabarrus County, located 18 miles northeast of Charlotte in the Piedmont region of North Carolina, has experienced rapid population growth over the past two decades and continued diversification and expansion of its economy. The county's population grew by a high 32% in the 1990s and is estimated to have risen over 30% since the 2000 census, nearly double the state's 16% escalation. Aided by close proximity to Charlotte, the county's economy has shifted somewhat from its traditional emphasis on farming and manufacturing and now includes retail, warehousing /distribution, healthcare, life sciences and tourism. The ongoing development of the North Carolina Research Campus, a 350 acre campus for biotechnology and nutrition research highlights the county's continuing economic development. The first components, including two research institutes and the Center for Agricultural Genetics opened in 2008 while other facilities are under construction with expected openings in the next two years. The county is also home to the 1.4 million square foot Concord Mills Mall as well as the Charlotte Motor Speedway which hosts three NASCAR events each year. The economy has faced some level of disruption highlighted by the closure of the Phillip Morris plant over the past few years, which had previously served as the county's top taxpayer and one of the top employers. Although the unemployment rate has increased in recent years due to the economic downturn, it declined to 9.8% in March 2011 from 12.4% a year prior. Sound financial management is reflected in the county's prudent fiscal policies, generally stable operating results, and ample reserve levels. Fiscal 2010 closed with a substantial $14.3 million increase in fund balance, marking the fifth year of the past six audited years that the county has added to reserve levels. The surplus brought the unreserved fund balance to $54.8 million, equal to nearly 30% of spending. Including the reservation for state statute, which includes most county receivables, reserves equaled 34% of spending in fiscal 2010. Unaudited fiscal 2011 results show an additional surplus adding roughly $3 million to reserves while the proposed fiscal 2012 budget is balanced with no use of fund balance. Fitch favorably notes that voters recently approved a one - fourth cent sales tax for education - related capital projects, which is expected to generate roughly $3 million to $4.6 million annually. The county plans to remain in compliance with its policy of maintaining an unreserved/undesignated reserve equal to 15 of general fund expenditures. Debt levels are moderate and are expected to remain manageable following the recent decrease in the county's stated capital needs. The fiscal 2012 - 2016 capital improvement plan (CIP) totals $31.7 million and is significantly smaller than the $493 million fiscal 2009 - 2013 CIP of which over 70% was for schools. The county attributes the rapid decrease in plans mainly to the completion of major projects causing a decline in future needs. Education funding is down due to a slowing enrollment rate coupled with the recent opening of four new schools. General fund pay -go accounts for a sound 18% of funding while anticipated debt accounts for nearly 60%. However, no additional debt is planned for the next three fiscal years. Contact: Primary Analyst Jaissy Lorenzo Analyst +1- 212 - 908 -9167 Fitch, Inc. One State Street Plaza New York, NY 10004 Secondary Analyst Barbara Rosenberg Director +1- 212 - 908 -0731 Committee Chairperson Attachment number 1 1 -1 Page 348