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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Year Ended June 30, 2011
<br />On February 22, 2007, the Cabarrus County Development Corporation issued $33,595,000 in Certificates of
<br />Participation (COPS) Installment contracts to finance the construction of a County owned sheriff administration
<br />facility. These 20 -year COPS have interest rates ranging from 4.0% to 5.625 %. Debt Service is financed by
<br />Cabarrus County property tax revenues. Annual payments of principal and interest range from approximately
<br />$3,092,576 to $1,744,093. Total principal and interest over a 20 -year period will be $49,537,033. Total principal
<br />balance due at June 30, 2011 was $26,875,000.
<br />On January 25, 2008, the Cabarrus County Development Corporation issued $46,920,000 (2008A) Certificates
<br />of Participation (COPS) Installment contracts to finance the construction of a new high school. These 20 year
<br />COPS have interest rates ranging from 3.25% to 5.0 %. Debt Service is financed by Cabarrus County property
<br />tax revenues. Annual payments of principal and interest range from approximately $4,400,704 to $2,447,594.
<br />Total principal and interest over a 20 -year period will be $68,856,864. Total principal balance due at June 30,
<br />2011 was $39,875,000
<br />On January 25, 2008, the Cabarrus County Development Corporation issued $18,745,000 (2008B) Certificates
<br />of Participation (COPS) Installment contracts to refund the 1999 Installment Payment Revenue Bonds issued for
<br />the construction of JIM Robinson High School. These 11 year COPS have interest rates ranging from 3.0% to
<br />5.0 %. Debt Service is financed by Cabarrus County property tax revenues. Annual payments of principal and
<br />interest range from approximately $2,263,225 to $1,485,750. Total principal and interest over an 11 -year period
<br />will be $20,655,550. Total principal balance due at June 30, 2011 was $12,090,000.
<br />On December 1, 2008, The Cabarrus County Development Corporation issued $58,810,000 (2008C)
<br />Certificates of Participation (COPS) Installment contracts to provide funds to (a) pay the costs of construction of
<br />a residential tower to house County inmates and related improvements and (b) pay certain expenses incurred in
<br />connection with the execution and delivery of the 2008C Certificates. These 20 year COPS have interest rates
<br />ranging from 4.00% to 5.25 %. Debt service is financed by Cabarrus County property tax revenues. Annual
<br />payments of principal and interest range from approximately $5,941,494 to $1,404,961. Total principal and
<br />interest over a 20 year period will be $90,944,756. Total principal balance due at June 30, 2011 was
<br />$55,710,000.
<br />On July 16, 2009, The Cabarrus County Development Corporation issued $85,170,000 (2009) Certificates of
<br />Participation (COPS) Installment contracts to provide funds (a) to pay a portion of the costs of (i) acquiring real
<br />property, (ii) constructing new public school facilities and expanding and renovating existing public school
<br />facilities, equipping the Facilities, and (iv) a portion of the interest to accrue under the Contract during the
<br />construction periods for the foregoing and thereafter, through January 1, 2012 and (b) pay certain expenses
<br />incurred in the connection and delivery of the 2009 Certificates. Annual payments of principal and interest range
<br />from approximately $8,702,669 to $1,818,515. Total principal and interest over a 20 year period will be
<br />$129,871,859. Total principal balance due at June 30, 2011 was $85,170,000.
<br />On September 22, 2010 the Cabarrus County Development Corporation issued $18,920,000 (2010A)
<br />Certificates of Participation (COPS) contracts to refund the 2001 COPS issued for the construction and
<br />equipping of two middle schools and one elementary school. These 11 year COPS have interest rates ranging
<br />from 2.0% to 5.0 %. Debt Service is financed by Cabarrus County property tax revenues. Annual payments of
<br />principal and interest range from approximately $2,809,100 to $518,150. Total principal and interest over a 11-
<br />year period will be $23,761,150. Total principal balance due at June 30, 2011 was $18,825,000.
<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 on the deal was a 5.43 %. The second bullet will have a net interest cost to the
<br />County of .07% while the County will have no interest cost in the first bullet. The principal on this debt is
<br />deferred for five years with the first principal payment due on 4/1/2016. The principal payments will be held in an
<br />interest bearing sinking fund until the bullet payments are due. Debt Service is financed by Cabarrus County
<br />property tax revenues. Annual payments of principal and interest range from approximately $748,098 to
<br />$2,106,225. Total principal and interest over a 15 -year period will be $25,147,248 less the federal subsidy of
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