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Pam Dubois <br /> <br />From: <br />Sent: <br />To: <br />Subject: <br /> <br />Niggel, Joe [Joe. Niggel@ubs.com] <br />Friday, June 27, 2003 1:42 PM <br />'psd u bo is@ co. ca ba rrus. n c. us' <br />FW: Draft of writeup for Cabarrus Cnty, N.C. COPs <br /> <br />Pam <br /> <br />S&P ratings -all's fine <br /> <br />Joe <br />..... Original Message ..... <br />From: McIntyre, Joshua [mailto:Joshua_McIntyre@standardandpoors.com] <br />Sent: Friday, June 27, 2003 11:05 AM <br />To: Niggel, Joe <br />Subject: Draft of writeup for Cabarrus Cnty, N.C. COPs <br /> <br />RATIONkLE <br /> <br />The 'AA-' rating on Cabarrus County, N.C.'s COPs reflects: <br />* The general creditworthiness of Cabarrus County ('AA') as lessee; <br />* Sound financial operations characterized by strong fund balances; <br />* The county's experience with COPs as an integral part of funding its <br />capital needs; and <br /> <br />* The oversight of the North Carolina Local Government Commission. <br /> <br />The funds from the issue of $40 million in COPs will be used for the <br />construction of three new schools and additions to two existing schools. <br /> <br />Cabarrus County has experienced strong growth in recent years. Its <br />population, now estimated at 140,000, has grown nearly 39% since 1990. Only <br />18 miles from Charlotte, the county has benefited from its access to major <br />interstate highways and a regional airport as more diversified companies <br />have entered the area. Once reliant on agriculture and textiles, the county <br />now features high-tech employers such as Corning Inc. and distribution <br />facilities for many companies serving retailers such as Wal-Mart. Philip <br />Morris, the cigarette manufacturer, also has a large production facility in <br />the county that serves overseas markets. <br /> <br />Unemployment rates in the county have historically remained below state and <br />national levels. In 2002, the county's unemployment rate was 5.4% compared <br />with 6.8% for the state and 5.8% for the nation. Residents of the county <br />have wealth and income levels at the national average, but above the state <br />average. Assessed valuation for 2003 of $11.5 billion has risen from $7.8 <br />billion at the end of fiscal 1999. The county's financial operations have <br />been strong as reflected by the fiscal 2002 year-end general fund balance of <br />$41.7 m/ilion, a strong 33% of expenditures_. The unreserved fund balance of <br />$32.2 m/ilion represents 25.4% of expenditures. Overall net debt per capita <br />(including GO and lease debt) is a manageable $1,397 and only 1.7% of market <br />value. The county expects to issue $25 million of debt within the next year <br />for the construction of a new ja~l and may also issue GO refunding bonds. <br />Under the terms of the lease agreement, the county holds title to the <br />project subject to a lien and security interest. The installment lease <br /> <br /> 1 <br /> <br /> <br />