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Cabarrus County Development Corp., North Carolina Cabarrus County fiscal 2007 general fund budget totals $168 million, which is a 6.5% increase over the amended fiscal 2006 budget), and includes an essentially level property tax rate. Cabarrus County's management practices are considered strong under Sandard & Poor's Financial Management Assessment (FMA). An FMA of strong indicates that practices are strong, well embedded, and likely sustainable. Among the county's formal financial practices area 15%undesignated general fund balance policy, afive-year financial forecast, and afive-year capital improvement progam (C]P). Additionally, i[ is the county's policy to formally crag the budget so that recurring operating revenues match recurring expenditures, and any fund balance in excess of the I S% requvement will be transferred to the capital reserve fund for pay-as- you-go capital projects. Cabarms County's estimated overall debt burden is moderate on a per capita basis at $1,905 and ]ow as a shaze of market value at 2.1 %. However, the fiscal 2006 debt service carrying charge is high at 16% of general fund expenditures. Amortisation of the county's debt is above average, as roughly 56% of new and existing debt will be retved in 10 years and 100% by 2027. The county's five-year, $347 million CIP is largely composed of school and public safety projects, and debt comprises approximately 83% of the estimated CIP funding sources. (For further information on the county's general credit characteristics, please refer to the most recent analysis on the Cabarrus County GO debt rating, published on RatingsDirect.) Outlook The stable outlook reflects Cabarrus County's expanding local economy, rapidly increasing tax base, improved financial performance, and healthy reserve position. However, the county's rapid population and school enrollment growth has created significant capital pressures: The county's overall debt burden is presently considered to be moderate, although debt service as a share of operating expenditures is high. Given these capital pressures, Standard & Poor's Ratings Services expects that the county's overall debt burden will continue to increase as anticipated new debt is issued in the near future. Accordingly, Standard & Poor's expects the county to pmdendy manage these anticipated long-term capital needs while also maintaining strong and stable general fund reserves. r r tr Cabarrus Cnty GO ~MBIA) Unenhanced Rating AAISPURI/Stable Affirmed Cabarrus Cnty Dev Corp, North Carolina Cabarrus Cnty, North Carolina Cabarrus Cnty Oev Corp (Cabarrus Cntyl certs of part (Cabarrus Cntyl ser 2007 due 02/01/2027 Long Term Rating AA-/Stable New Rating Many issues are enhanced by bond insurance. wwws[andardandpoors.com ~~