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Cabarrus County's Outstanding Debt
<br />All Debt Funding Sources
<br />Figure 5
<br />Governmental
<br /> Activities
<br /> 2009 2008
<br />General obligation bonds $ 119,835,000 $ 126,895,000
<br />Capital lease obligations 3,458,315 331,964
<br />Certificates of participation 220,885,000 173,165,000
<br />Installment financing 14,367,714 15,990,284
<br />Total $ 358,546,029 $ 316,382,248
<br />As mentioned in the financial highlights section of this document, Cabarrus County maintained for the 9th
<br />consecutive year, its Aa2 bond rating from Moody's Investor Service and AA bond rating from Fitch and
<br />the 1st year of an upgrade to AA+ from Standard and Poor's, after 8 consecutive years of a AA bond
<br />rating. These bond rating is a clear indication of the sound financial condition of Cabarrus County.
<br />The State of North Carolina limits the amount of general obligation debt that a unit of government can
<br />issue to 8 percent of the total assessed value of taxable property located within that government's
<br />boundaries. The legal debt margin for Cabarrus County is $1,311,211,509. Additional information
<br />regarding Cabarrus County's long-term obligations can be found beginning in note 3 section J of this
<br />report.
<br />Economic Factors and Next Year's Budgets and Rates
<br />Cabarrus County is a part of the Charlotte Metropolitan Statistical Area (MSA), which in the past before
<br />the current economic downturn, has proved beneficial in that the County has continued to experience
<br />economic growth during national and state economic downturns. As a direct result from current economic
<br />conditions, FY 2009 and FY 2010 have created fiscal challenges. Overall, the County has a fiscally
<br />strong bottom line, with a balanced diverse economy, and commitment to conservatism and strategic
<br />focus in its approach to evaluating both revenue and expenditures for fiscal solutions. The following key
<br />economic indicators reflect the current dynamics facing the County.
<br />Indicator Cabarrus Count
<br />Po ulation, 2008 167,035
<br />Po ulation, 2000 Census 131,063
<br />Po ulation Chan a 2000 - 2008 28.7%
<br />Unem to ment, A ril 2009 11.3%
<br />Per Ca ita Personal Income, 2008 $28,001
<br />Povert , 2008 7.1
<br />Source: U.S. Census Bureau, N.C. Department of Commerce
<br />Budget Highlights for the Upcoming Fiscal Year Ending June 30, 2010
<br />Governmental Activities: Ad Valorem tax is the largest single revenue item. It is based on a tax rate of
<br />$0.63 per $100 of assessed valuation, the same rate in effect for fiscal year 2009. The total budgeted
<br />amount of $122,409,805 represents an increase of 1.85% from the amended fiscal year 2009 budget.
<br />Motor vehicle taxes have been budgeted at $7,532,629 or 3.05% increase from fiscal year 2009.
<br />Budgeted sales tax revenues are $27.9 million, a 17.62% decrease above fiscal year 2009 due to current
<br />economic conditions.
<br />22 Attachment number 3
<br />G-8 Page 294
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