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022718pra Agenda Package updated
Member NYSE|FINRA|SIPC Discussion Materials Harnett County, North Carolina February 27, 2018 Contents / Agenda 3 Credit Rating Overview and Peer Comparatives 9 General Fund Operations and Fund Balance 13 Existing Tax Supported Debt Profile 19 Capital Funding Analysis A Appendix A: Existing Tax Supported Debt B Appendix B: Department of Public Utilities Debt Profile C Appendix C: Solid Waste Debt Profile D Appendix D: Financial Policies E Appendix E: Rating Reports February 27, 2018 1Harnett County, NC Credit Rating Overview and Peer Comparatives Introduction. General Fund Operations and Fund Balance Existing Tax Supported Debt Profile. –Key Financial Ratios and Financial Policies. –Peer Comparatives. –Debt Affordability. Capital Funding Analysis. –Key Financial Ratios and Financial Policies. –Peer Comparatives. –Debt Affordability. Topics for Discussion February 27, 2018 2Harnett County, NC Credit Rating Overview and Peer Comparatives February 27, 2018 Harnett County, NC 3 Peer Comparative Introduction The County is currently rated Aa2 by Moody’s Investors Service (March 2017) and AA-by Standard and Poor’s (March 2017). The following pages contain peer comparatives based on the below Moody’s rating categories. –Regional Peers –Chatham County (Aa1) –Johnston County (Aa1) –Lee County (Aa2) –Sampson County (Aa3) –North Carolina County Medians –Aaa 9 Credits –Buncombe, Durham, Forsyth, Guilford, Mecklenburg, New Hanover, Orange, Union, Wake –Aa 49 Credits –Alamance, Beaufort, Bertie, Bladen, Brunswick, Burke, Cabarrus, Caldwell, Carteret, Catawba, Columbus, Craven, Cumberland, Currituck, Dare, Davidson, Davie, Franklin, Gaston, Granville, Harnett, Haywood, Henderson, Hoke, Iredell, Johnston, Lee, Lenoir, Lincoln, Moore, Nash, Onslow, Pender, Pitt, Randolph, Richmond, Rockingham, Rowan, Rutherford, Sampson, Stanly, Surry, Transylvania, Vance, Warren, Watauga, Wayne, Wilkes, Wilson –A 9 Credits –Caswell, Clay, Duplin, Edgecombe, Hertford, Martin, Robeson, Scotland, Swain Peer Comparatives February 27, 2018 4Harnett County, NC Note: The data shown in the peer comparatives is from Moody’s Municipal Financial Ratio Analysis database. The figures shown are derived from the most recent financial statement available as of December 27, 2017 (FY 2017 figures in most cases). Moody's Investors Service Standard & Poor's Fitch Ratings Aaa AAA AAA Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A+ A2 A A A3 A- A- Baa1 BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB- Non Investment Grade Credit Strengths –Sizable tax base with favorable location poised for further growth –Healthy reserves and cash levels –Low pension cost Credit Challenges –Below average wealth levels –Elevated debt compared to national trends Factors that Could Lead to an Upgrade –Decreased debt burden –Increase in reserve and liquidity levels –Significant economic expansion and diversification Factors that Could Lead to a Downgrade –Multi-year trend of structural budget imbalance –Reduction of General Fund balance and other available reserves –Deterioration of the county's tax base February 27, 2018 Harnett County, NC 5 Rating Agency Commentary –Moody’s (3/23/2017) The 'AA-' rating reflects S&P’s opinion of the County’s: –Weak economy, with market value per capita of $63,487 and projected per capita effective buying income at 72.8% of the national level; –Strong management, with "good" financial policies and practices under our Financial Management Assessment methodology; –Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016; –Very strong budgetary flexibility, with an available fund balance in fiscal 2016 of 23% of operating expenditures; –Very strong liquidity, with total government available cash at 66.8% of total governmental fund expenditures and 4.9x governmental debt service, and access to external liquidity we consider strong; –Strong debt and contingent liability profile, with debt service carrying charges at 13.6% of expenditures and net direct debt that is 134.2% of total governmental fund revenue, as well as low overall net debt at less than 3% of market value and rapid amortization, with 68.4% of debt scheduled to be retired in 10 years; and –Very strong institutional framework score. Outlook –The stable outlook reflects our opinion that Harnett will continue to maintain strong financial performance and very strong reserves. Rating stability is also provided by the county's good financial policies and practices. Therefore, we do not expect to change the rating within the two-year outlook period February 27, 2018 Harnett County, NC 6 Rating Agency Commentary –S&P (3/24/2017) Moody’s S&P Rating Agency Methodology Updates On January 15, 2014, Moody’s updated its US Local Governments General Obligation Debt methodology and assumptions. Under the new methodology, an initial indicative rating is calculated from a weighted average of four key factors: Up to a one-notch adjustment can be made from the indicative rating based on other qualitative factors. On September 12, 2013, Standard & Poor’s updated its US Local Governments General Obligation Ratings methodology and assumptions. Under the new methodology, an initial indicative rating is calculated from a weighted average of seven key factors: Up to a one-notch adjustment can be made from the indicative rating based on other qualitative factors. February 27, 2018 Harnett County, NC 7 US Local Governments General Obligation Debt Methodology 1. Economy / Tax Base 30% Tax Base Size (Full Value)10% Full Value Per Capita 10% Wealth (Median Family Income)10% 2. Finances 30% Fund Balance (% of Revenues)10% Fund Balance Trend (5-Year Change)5% Cash Balance (% of Revenues)10% Cash Balance Trend (5-Year Change)5% 3. Management 20% Institutional Framework 10% Operating History 10% 4. Debt / Pensions 20% Debt to Full Value 5% Debt to Revenue 5% Moody's Adjusted Net Pension Liability (3-Year Average) to Full Value 5% Moody's Adjusted Net Pension Liability (3-Year Average) to Revenue 5% US Local Governments General Obligation Ratings Methodology 1. Institutional Framework 10% Legal and practical environment in which the local gov't operates 2. Economy 30% Total Market Value Per Capita Projected per capita effective buying income as a % of US projected effective buying income 3. Management 20% Impact of management conditions on the likelihood of repayment 4. Budgetary Flexibility 10% Available Fund Balance as a % of Expenditures 5. Budgetary Performance 10% Total Government Funds Net Result (%) General Fund Net Revenue 6. Liquidity 10% Total Gov't Available Cash as a % of Total Gov't Funds Debt Service Total Gov't Cash as a % of Total Gov't Funds Expenditures 7. Debt and Contingent Liabilities 10% Net Direct Debt as a % of Total Governmental Funds Revenue Total Governmental Funds Debt Service as a % of Total Governmental Funds Expenditures February 27, 2018 The County’s credit rating has a direct impact on the cost of borrowing, which in turn effects the County’s debt capacity. –The credit spread is the premium an issuer pays to the purchaser of their bonds (i.e. higher interest rate) as compensation for increased credit risk. –Since the financial downturn in September 2008, credit quality of issuers has taken on a renewed importance to investors. –The average spread for an A rated borrower has increased from 0.33% from Nov 2004–Dec 2008 to 0.69% since Dec 2008. Historical Credit Spreads 8Harnett County, NC Credit Spreads (%) vs the 30-yr AAA MMD Nov 2004 - Dec 2008 Rating Min Max Average AA 0.04 0.19 0.10 A 0.15 1.26 0.33 BBB 0.30 2.52 0.60 Dec 2008 - Feb 2018 Rating Min Max Average AA 0.09 0.53 0.23 A 0.46 1.11 0.69 BBB 0.69 2.58 1.29 Note: credit spreads compared to the 'AAA' equivalent 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Percent (%)30-Year MMD AAA AA A BBB General Fund Operations and Fund Balance February 27, 2018 Harnett County, NC 9 February 27, 2018 Harnett County, NC 10 General Fund Operations Source: County CAFRs 2013 Audited 2014 Audited 2015 Audited 2016 Audited 2017 Audited 1 Revenues 2 Ad valorem taxes 54,273,480 58,191,905 59,642,848 61,273,129 62,973,475 3 Other taxes and licenses 15,248,742 15,922,217 17,811,304 20,500,307 21,778,254 4 Unrestricted intergovernmental 45,956 38,861 67,514 41,665 120,415 5 Restricted Intergovernmental 20,307,112 19,454,443 19,142,217 21,310,568 21,695,126 6 Permits and fees 3,091,250 2,818,638 2,516,068 2,255,896 2,338,308 7 Sales and services 9,188,221 7,303,303 7,360,368 8,788,752 7,525,480 8 Investment earnings 10,752 2,602 9,027 97,737 248,007 9 Other general revenues 3,158,796 3,637,804 3,938,417 3,463,903 3,639,506 10 Total revenues 105,324,309 107,369,773 110,487,763 117,731,957 120,318,571 11 12 Expenditures 13 General Government 11,107,798 10,902,022 11,693,037 11,980,641 12,827,389 14 Public Safety 25,652,884 25,654,860 26,861,581 27,337,721 29,886,464 15 Transportation 368,313 369,745 418,731 392,951 436,495 16 Environmental protection 123,598 128,133 165,801 182,736 181,452 17 Economic and physical development 5,313,064 3,388,742 3,858,593 2,971,303 3,763,405 18 Human services 25,481,920 25,287,199 26,243,188 28,000,704 29,235,907 19 Cultural and recreation 1,367,760 1,391,118 1,495,843 1,498,127 2,131,641 20 Education 20,950,818 21,476,411 22,477,167 22,612,667 23,716,169 21 Debt Service 22 Principal 6,424,014 8,240,495 9,719,273 12,282,700 13,660,527 23 Interest 5,062,698 6,491,804 5,575,501 5,013,153 3,849,231 24 Total expenditures 101,852,867 103,330,529 108,508,715 112,272,703 119,688,680 25 26 Revenues over (under) expenditures 3,471,442 4,039,244 1,979,048 5,459,254 629,891 27 28 Other Sources (Uses) 29 Long-term debt issued - - 29,094,839 37,018,000 - 30 Transfer to other funds (528,881) (1,903,876) (64,701) (283,334) (161,234) 31 Transfer from other funds 1,577,116 488,337 336,513 7,500 1,682,565 32 Long-term debt refunded - - - - - 33 Payment to escrow agents - - (28,970,662) (36,177,890) - 34 Capital lease issued - 830,155 - - - 35 Total other sources (uses)1,048,235 (585,384) 395,989 564,276 1,521,331 36 37 Change in Fund Balance 4,519,677 3,453,860 2,375,037 6,023,530 2,151,222 38 39 Fund Balance Beginning 23,324,502 27,844,179 31,298,039 33,673,076 39,696,606 40 Fund Balance Ending 27,844,179 31,298,039 33,673,076 39,696,606 41,847,828 General Fund Balance General Fund Balance February 27, 2018 Harnett County, NC 11 Source: County CAFRs The County has adopted the following Fund Balance Policy: –The County will maintain a minimum Unassigned Fund Balance, as defined by the Governmental Accounting Standards Board, at the close of each fiscal year equal to 15% of General Fund Expenditures with a targeted Unassigned Fund Balance equal to 20% of General Fund Expenditures. –In the event that funds are available over and beyond the 20% targeted amount, those funds may be transferred to a capital reserve fund, a capital projects fund, to pay-down debt or to fund other one-time uses. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2013 2014 2015 2016 2017 General Fund Balance as a % of Revenues Unassigned Rating Agency Available Total 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2013 2014 2015 2016 2017 General Fund Balance as a % of Expenditures Unassigned Rating Agency Available Total Policy Floor (Unassigned) Policy Target (Unassigned) 2013 2014 2015 2016 2017 1 General Fund Budget 2 Revenues 105,324,309 107,369,773 110,487,763 117,731,957 120,318,571 3 Expenditures 101,852,867 103,330,529 108,508,715 112,272,703 119,688,680 4 5 General Fund Balance 6 Nonspendable 451,088 111,181 159,625 1,418,606 232,245 7 Restricted - Other - - - - - 8 Restricted - Stabilization by State Statute 9,433,149 9,260,952 11,496,063 11,966,027 9,068,575 9 Committed - - - - - 10 Assigned - 3,193,811 2,600,000 - - 11 Unassigned 17,959,942 18,732,095 19,417,388 26,311,973 32,547,008 12 Total 27,844,179 31,298,039 33,673,076 39,696,606 41,847,828 13 14 Rating Agency Available1 27,393,091 31,186,858 33,513,451 38,278,000 41,615,583 15 16 General Fund Balance Ratios 17 Unassigned as a % of Revenues 17.1%17.4%17.6%22.3%27.1% 18 Unassigned as a % of Expenditures 17.6%18.1%17.9%23.4%27.2% 19 Rating Agency Available as a % of Revenues 26.0%29.0%30.3%32.5%34.6% 20 Rating Agency Available as a % of Expenditures 26.9%30.2%30.9%34.1%34.8% 21 Total General Fund Balance as a % of Revenues 26.4%29.1%30.5%33.7%34.8% 22 Total General Fund Balance as a % of Expenditures 27.3%30.3%31.0%35.4%35.0% 1 Includes Stabilization by State Statue, Committed, Assigned, and Unassigned Fund Balances. 0 10 20 30 40 50 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Dollars ($) Millions Total Unassigned General Fund Balance 0 10 20 30 40 50 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Dollars ($) Millions Total Rating Agency Available General Fund Balance 0 10 20 30 40 50 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Dollars ($) Millions Total General Fund Balance 33.8% $66.2 Million February 27, 2018 Harnett County, NC 12 General Fund Balance –Peer Comparatives Source: County CAFRs and Moody’s MFRA 1 1 1 includes Stabilization by State Statute, Committed, Assigned, and Unassigned Fund Balances. $146.1 Million $142.1Million $60.4 Million $66.2 Million 37.9% 0.0 10.0 20.0 30.0 40.0 50.0 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Percent Total General Fund Balance as a % of Revenues 0.0 10.0 20.0 30.0 40.0 50.0 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Percent Rating Agency Available Fund Balance as a % of Revenues 0.0 10.0 20.0 30.0 40.0 50.0 NC 'A' NC 'Aa' NC 'Aaa' Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2017) Percent Unassigned Fund Balance as a % of Revenues Existing Tax Supported Debt Profile February 27, 2018 13Harnett County, NC February 27, 2018 Tax Supported Debt Service Par Outstanding –Estimated as of 6/30/2017 Existing Tax Supported Debt Type Par Amount % of Total School Debt $119,613,450 72.42% County Debt $26,469,374 16.03% Community College Lease $19,072,599 11.55% Total $165,155,423 100.00% Source: LGC Bond Ledger, County Staff, and 2017 CAFR Tax Supported Debt Service Note: -2004 and 2005 QZABs are shown net of balance fund transfer. 2012B QSCBs are shown gross of federal subsidy and net of sinking fund earnings. -Includes 2017 Software Lease. 14Harnett County, NC FY Principal Interest Total 10-yr Payout Total 165,155,423 48,891,457 214,046,880 2018 14,396,069 4,601,186 18,997,255 70.4% 2019 14,325,215 4,406,979 18,732,194 73.4% 2020 12,946,361 4,103,896 17,050,257 75.1% 2021 11,837,457 3,814,443 15,651,901 76.0% 2022 11,730,249 3,527,795 15,258,044 77.4% 2023 11,563,316 3,244,112 14,807,428 79.1% 2024 11,427,414 2,963,964 14,391,378 81.3% 2025 9,842,644 2,710,282 12,552,926 84.2% 2026 9,260,725 2,482,529 11,743,254 88.3% 2027 8,921,292 2,268,732 11,190,023 93.5% 2028 8,792,706 2,057,751 10,850,456 97.7% 2029 6,082,680 1,895,807 7,978,488 100.0% 2030 4,404,858 1,785,421 6,190,279 100.0% 2031 4,388,840 1,735,610 6,124,450 100.0% 2032 4,374,562 1,683,819 6,058,381 100.0% 2033 4,358,547 1,631,890 5,990,437 100.0% 2034 4,339,378 1,581,663 5,921,041 100.0% 2035 4,329,876 1,531,293 5,861,169 100.0% 2036 4,099,029 796,335 4,895,365 100.0% 2037 2,591,433 61,228 2,652,661 100.0% 2038 1,142,771 6,723 1,149,494 100.0% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 201820192020202120222023202420252026202720282029203020312032203320342035203620372038MillionsSchool Debt County Debt Community College Lease 10 -Year Payout Ratio 10 -year Payout Ratio Peer Comparative Key Debt Ratio: Tax Supported Payout Ratio Existing 10-year Payout Ratio –FY 2018:70.4% The 10-Year Payout Ratio measures the amount of principal to be retired in the next 10 years. This ratio is an important metric that indicates whether or not a locality is back-loading its debt. The County has a policy establishing a minimum 10 Year Payout Ratio of 50.00%. February 27, 2018 Source: LGC Bond Ledger, County Staff, 2017 CAFR, and Moody’s Investors Service Rating Considerations: –Moody’s: Moody’s rating criteria for General Obligation credits allows for a scorecard adjustment if an issuer has unusually slow or rapid amortization of debt principal. –S&P: A payout ratio greater than 65% results in a one point positive qualitative adjustment to the Debt & Contingent Liabilities section of S&P’s General Obligation rating methodology. Note: Lee County 10-Year Payouts calculated by Davenport. 15Harnett County, NC 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%20182019202020212022202320242025202620272028202920302031203220332034203520362037203810-yr Payout Policy 0 20 40 60 80 100 NC 'A' Median NC 'Aa' Median NC 'Aaa' Median Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2018) Percent Debt to Assessed Value Debt to Assessed Value Peer Comparative Key Debt Ratio: Debt to Assessed Value Existing Debt to Assessed Value –FY 2017:2.02% Assumed Future Growth Rates –2017 Assessed Value:$8,148,043,819 –2018 Budgeted Assessed Value:$8,172,170,841 –2019 & Beyond:0.00% The County has a policy establishing a maximum Debt to Assessed Value ratio of 2.50%. February 27, 2018 Source: LGC Bond Ledger, County Staff, 2017 CAFR, County Budget Documents, and Moody’s Investors Service Rating Considerations: –Moody’s: Criteria for General Obligation Credits defines categories of Debt to Assessed Values as: –Very Strong (Aaa):< 0.75% –Strong (Aa):0.75% -1.75% –Moderate (A):1.75% -4.00% –Weak –Very Poor (Baa and below):> 4.00% –S&P: A positive qualitative adjustment is made to the Debt and Contingent Liabilities score for a debt to market value ratio below 3.00%, while a negative adjustment is made for a ratio above 10.00%. 16Harnett County, NC 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%201820192020202120222023202420252026202720282029203020312032203320342035203620372038Existing Policy 0.0 0.5 1.0 1.5 2.0 2.5 3.0 NC 'A' Median NC 'Aa' Median NC 'Aaa' Median Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2018) Percent Debt Service vs. Governmental Expenditures Debt Service vs. Expenditures Peer Comparative Key Debt Ratio: Debt Service vs. Expenditures Existing Debt Service vs. Expenditures –FY 2018:14.30% Assumed Future Growth Rates –2017 Adjusted Expenditures:$113,853,814 –2018 & Beyond 0.00% The County has a policy establishing a maximum Debt Service to Expenditures Value ratio of 15.00%. February 27, 2018 Note: Governmental Expenditures represent the ongoing operating expenditures of the County. In this analysis, debt service and capital outlay expenditures are excluded. Source: LGC Bond Ledger, County Staff, 2017 CAFR, County Budget Documents, and Moody’s Investors Service Rating Considerations: –Moody’s: Moody’s criteria allows for a scorecard adjustment if an issuer has very high or low debt service relative to its budget Percent. –S&P: The Debt and Contingent Liabilities section defines categories of Net Direct Debt as a % of Total Governmental Funds Expenditures as follows: –Very Strong: <8% –Strong: 8% to 15% –Adequate: 15% -25% –Weak: 25% -35% –Very Weak: > 35% 17Harnett County, NC 0% 2% 4% 6% 8% 10% 12% 14% 16%201820192020202120222023202420252026202720282029203020312032203320342035203620372038Existing Policy 0 5 10 15 20 NC 'A' Median NC 'Aa' Median NC 'Aaa' Median Sampson County (Aa3) Lee County (Aa2) Johnston County (Aa1) Chatham County (Aa1) Harnett County (2018) Percent February 27, 2018 Debt Affordability Analysis Existing Debt FY 2018 Value of a Penny7:$811,333 Assumed Growth Rate:0.00% 7 Source: FY 2018 Budget Note: Additional future changes in operating impacts have not been included. 18Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) - (1,752,398) - - 1,031,491 2020 3,444,485 12,764,596 841,177 - - - 17,050,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (13,502) - (13,502) - - 1,017,989 2021 2,477,062 12,318,941 855,897 - - - 15,651,901 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 1,442,383 - - 1,442,383 - 2,460,372 2022 2,398,894 11,988,274 870,875 - - - 15,258,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 1,894,343 - - 1,894,343 - 4,354,714 2023 2,319,235 11,602,077 886,116 - - - 14,807,428 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 2,403,643 - - 2,403,643 - 6,758,358 2024 2,240,269 11,249,486 901,623 - - - 14,391,378 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 2,878,965 - - 2,878,965 - 9,637,323 2025 2,154,014 9,481,510 917,401 - - - 12,552,926 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 4,777,281 - - 4,777,281 - 14,414,604 2026 1,599,463 9,210,336 933,456 - - - 11,743,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 5,647,415 - - 5,647,415 - 20,062,019 2027 1,525,295 8,714,937 949,791 - - - 11,190,023 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 6,261,714 - - 6,261,714 - 26,323,733 2028 1,450,454 8,433,590 966,412 - - - 10,850,456 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 6,662,959 - - 6,662,959 - 32,986,693 2029 - 6,995,163 983,325 - - - 7,978,488 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 9,597,223 - - 9,597,223 - 42,583,915 2030 - 5,189,746 1,000,533 - - - 6,190,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 11,448,349 - - 11,448,349 - 54,032,264 2031 - 5,106,408 1,018,042 - - - 6,124,450 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 11,577,725 - - 11,577,725 - 65,609,990 2032 - 5,022,523 1,035,858 - - - 6,058,381 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 11,707,977 - - 11,707,977 - 77,317,967 2033 - 4,936,451 1,053,985 - - - 5,990,437 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 11,840,745 - - 11,840,745 - 89,158,712 2034 - 4,848,611 1,072,430 - - - 5,921,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 11,975,614 - - 11,975,614 - 101,134,325 2035 - 4,769,972 1,091,198 - - - 5,861,169 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 12,101,613 - - 12,101,613 - 113,235,938 2036 - 3,785,071 1,110,294 - - - 4,895,365 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 12,552,744 - - 12,552,744 - 125,788,682 2037 - 1,522,938 1,129,724 - - - 2,652,661 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 14,281,442 - - 14,281,442 - 140,070,124 2038 - - 1,149,494 - - - 1,149,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 15,852,740 - - 15,852,740 - 155,922,864 2039 - - - - - - - 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 17,071,047 - - 17,071,047 - 172,993,911 2040 - - - - - - - 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 17,140,547 - - 17,140,547 - 190,134,458 2041 - - - - - - - 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 17,210,742 - - 17,210,742 - 207,345,200 2042 - - - - - - - 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 17,281,640 - - 17,281,640 - 224,626,840 2043 - - - - - - - 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 17,353,246 - - 17,353,246 - 241,980,086 2044 - - - - - - - 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 17,425,569 - - 17,425,569 - 259,405,655 2045 - - - - - - - 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 17,498,614 - - 17,498,614 - 276,904,269 Total Tax Effect 0.00¢ Total 29,335,128 164,304,922 20,406,830 - - - 214,046,880 Total (3,842,244) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. Capital Funding Analysis February 27, 2018 19Harnett County, NC Potential Projects (Tier I)Financing Assumptions Potential Capital Funding Needs and Financing Assumptions Replacement for Erwin Elementary School: –Amount:$22,400,000 –Timing:Fall 2018 (FY 2019) –Financing Assumption:GO Bonds1 Renovations for Early College at Benhaven: –Amount:$8,600,000 –Timing:Fall 2018 (FY 2019) –Financing Assumption:GO Bonds1 Government Building: –Amount:$20,000,000 –Timing:Spring 2019 (FY 2019) –Financing Assumption:Installment / LOBs Northwest Harnett Elementary School2: –Amount:$21,900,000 –Timing:Fall 2020 (FY 2021) –Financing Assumption:GO Bonds1 New South Harnett Middle School: –Amount:$32,000,000 –Timing:Fall 2022 (FY 2023) –Financing Assumption:GO Bonds1 / Installment / LOBs New South Harnett High School: –Amount:$63,000,000 –Timing:Fall 2024 (FY 2025) –Financing Assumption:Installment / LOBs Total Schools:$147,900,000 Total County:$20,000,000 Grant Total:$167,900,000 GO Bonds1: –Amortization:Level Principal –Term:20 Years –Interest Rate:5.00% Installment / LOBs: –Amortization:Level Principal –Term:20 Years –Interest Rate:5.00% Debt service payments are assumed to begin as shown below: –First Interest:FY Following Issuance –First Principal:FY Following Issuance The following two funding cases have been analyzed: –Case 1:FY 2019 Projects Only –Case 2:Fund All Potential Projects February 27, 2018 Harnett County, NC 20 1 $100 Million of GO Bonds were authorized by the County in November 2014. $29.5 million have been issued since. The GO authorization has an initial expiration date of November 2021 that can be extended to November 2024 with LGC and County Board approval. 2 The County / Schools are considering either a new Northwest Harnett Elementary School ($21.9 million) or an addition to Lafayette Elementary School ($16.4 million). February 27, 2018 Harnett County, NC 21 Case Summary A B C D Case Case 1 Case 2 1 Debt Issued 2 Erwin Elementary School (FY 2019)$22,400,000 $22,400,000 3 Early College at Benhaven (FY 2019)$8,600,000 $8,600,000 4 Government Building (FY 2019)$20,000,000 $20,000,000 5 NW Harnett Elementary School (FY 2021)$0 $21,900,000 6 New South Harnett Middle School (FY 2023)$0 $32,000,000 7 New South Harnett High School (FY 2025)$0 $63,000,000 8 Total Debt Issued $51,000,000 $167,900,000 9 10 Total Debt Service $77,775,000 $256,047,500 11 12 Debt Ratios (Worst Shown)Policy 13 10-Year Payout 50.00%66.22%64.07% 14 Years Out of Compliance 0 0 15 Debt to Assessed Value 2.50%2.47%2.78% 16 Years Out of Compliance 0 2 17 Debt Service to Expenditures 15.00%16.29%19.39% 18 Years Out of Compliance 3 11 19 20 Tax Equivalent Impact Natural Tax Impact 5 ¢ in FY 2019 21 2019 --5.00¢ 22 2020 5.03¢5.03¢- 23 2021 --- 24 2022 -0.62¢- 25 2023 --- 26 2024 -2.79¢- 27 2025 --0.77¢ 28 2026 -1.39¢6.55¢ 29 2027 -1.22¢- 30 Total 5.03¢11.05¢12.32¢ 31 32 FY 2019 Upfront Tax Equivalent 3.26¢6.92¢ 33 34 Additional Revenues / Reserves $14,587,677 $68,007,675 $39,611,015 Note: The estimated impacts are associated with the capital funding only. No operating impacts have been considered. Case 1 Fund FY 2019 Projects Only February 27, 2018 22Harnett County, NC February 27, 2018 Proposed Debt Service Proposed Principal Financing Summary Case 1: Proposed Debt Service Financing Assumptions: –Amortization:Level Principal –Term:20 Years –Interest Rate:5.00% Debt Issued: –Erwin Elementary School (FY 2019):$22,400,000 –Early College at Benhaven (FY 2019): $8,600,000 –Government Building (FY 2019):$20,000,000 –NW Harnett Elementary School (FY 2021): $0 –New South Harnett Middle School (FY 2023): $0 –New South Harnett High School (FY 2025):$0 –Total $51,000,000 Debt Service: –Erwin Elementary School (FY 2019):$34,160,000 –Early College at Benhaven (FY 2019): $13,115,000 –Government Building (FY 2019):$30,500,000 –NW Harnett Elementary School (FY 2021): $0 –New South Harnett Middle School (FY 2023): $0 –New South Harnett High School (FY 2025):$0 –Total $77,775,000 Level Principal Amortization 23Harnett County, NC - 5.0 10.0 15.0 20.0 25.0 2018201920202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsExisting 2019 - 5.0 10.0 15.0 20.0 25.0 2018201920202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsExisting 2019 February 27, 2018 Harnett County, NC 24 10 -Year Payout Debt Service to Expenditures Debt to Assessed Value Case 1: Key Debt Ratios Growth Assumptions: –Assessed Value:0.00% –Expenditures:0.00% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18%2018201920202021202220232024202520262027202820292030203120322033203420352036203720382039Existing Proposed Debt Policy 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%201820192020202120222023202420252026202720282029203020312032203320342035203620372038203910-yr Payout Policy 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00%2018201920202021202220232024202520262027202820292030203120322033203420352036203720382039Existing Proposed Debt Policy February 27, 2018 Case 1: Debt Affordability Analysis Existing & Proposed Debt –Natural Tax Impact FY 2018 Value of a Penny7:$811,333 Assumed Growth Rate:0.00% 7 Source: FY 2018 Budget Notes: –The County could utilize $14,587,677 of revenues or other reserves to offset the need for a future tax adjustment. –Additional future changes in operating impacts have not been included. 25Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) - (1,752,398) - - 1,031,491 2020 3,444,485 12,764,596 841,177 3,100,000 2,000,000 - 22,150,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (5,113,502) - (1,031,491) (4,082,011)5.03¢ - 2021 2,477,062 12,318,941 855,897 3,022,500 1,950,000 - 20,624,401 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 (3,530,117) 4,082,011 - 551,894 - 551,894 2022 2,398,894 11,988,274 870,875 2,945,000 1,900,000 - 20,103,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 (2,950,657) 4,082,011 - 1,131,354 - 1,683,247 2023 2,319,235 11,602,077 886,116 2,867,500 1,850,000 - 19,524,928 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 (2,313,857) 4,082,011 - 1,768,154 - 3,451,402 2024 2,240,269 11,249,486 901,623 2,790,000 1,800,000 - 18,981,378 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 (1,711,035) 4,082,011 - 2,370,976 - 5,822,377 2025 2,154,014 9,481,510 917,401 2,712,500 1,750,000 - 17,015,426 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 314,781 4,082,011 - 4,396,792 - 10,219,170 2026 1,599,463 9,210,336 933,456 2,635,000 1,700,000 - 16,078,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 1,312,415 4,082,011 - 5,394,426 - 15,613,596 2027 1,525,295 8,714,937 949,791 2,557,500 1,650,000 - 15,397,523 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 2,054,214 4,082,011 - 6,136,225 - 21,749,821 2028 1,450,454 8,433,590 966,412 2,480,000 1,600,000 - 14,930,456 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 2,582,959 4,082,011 - 6,664,970 - 28,414,791 2029 - 6,995,163 983,325 2,402,500 1,550,000 - 11,930,988 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 5,644,723 4,082,011 - 9,726,734 - 38,141,525 2030 - 5,189,746 1,000,533 2,325,000 1,500,000 - 10,015,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 7,623,349 4,082,011 - 11,705,360 - 49,846,885 2031 - 5,106,408 1,018,042 2,247,500 1,450,000 - 9,821,950 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 7,880,225 4,082,011 - 11,962,236 - 61,809,121 2032 - 5,022,523 1,035,858 2,170,000 1,400,000 - 9,628,381 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 8,137,977 4,082,011 - 12,219,988 - 74,029,109 2033 - 4,936,451 1,053,985 2,092,500 1,350,000 - 9,432,937 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 8,398,245 4,082,011 - 12,480,256 - 86,509,365 2034 - 4,848,611 1,072,430 2,015,000 1,300,000 - 9,236,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 8,660,614 4,082,011 - 12,742,625 - 99,251,990 2035 - 4,769,972 1,091,198 1,937,500 1,250,000 - 9,048,669 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 8,914,113 4,082,011 - 12,996,124 - 112,248,114 2036 - 3,785,071 1,110,294 1,860,000 1,200,000 - 7,955,365 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 9,492,744 4,082,011 - 13,574,755 - 125,822,869 2037 - 1,522,938 1,129,724 1,782,500 1,150,000 - 5,585,161 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 11,348,942 4,082,011 - 15,430,953 - 141,253,822 2038 - - 1,149,494 1,705,000 1,100,000 - 3,954,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 13,047,740 4,082,011 - 17,129,751 - 158,383,573 2039 - - - 1,627,500 1,050,000 - 2,677,500 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 14,393,547 4,082,011 - 18,475,557 - 176,859,130 2040 - - - - - - - 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 17,140,547 4,082,011 - 21,222,558 - 198,081,688 2041 - - - - - - - 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 17,210,742 4,082,011 - 21,292,753 - 219,374,442 2042 - - - - - - - 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 17,281,640 4,082,011 - 21,363,651 - 240,738,092 2043 - - - - - - - 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 17,353,246 4,082,011 - 21,435,257 - 262,173,350 2044 - - - - - - - 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 17,425,569 4,082,011 - 21,507,580 - 283,680,929 2045 - - - - - - - 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 17,498,614 4,082,011 - 21,580,625 - 305,261,555 Total Tax Effect 5.03¢ Total 29,335,128 164,304,922 20,406,830 47,275,000 30,500,000 - 291,821,880 Total (4,860,233) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. February 27, 2018 Case 1: Debt Affordability Analysis Existing & Proposed Debt –FY 2019 Upfront Tax Impact FY 2018 Value of a Penny7:$811,333 Assumed Growth Rate:0.00% 7 Source: FY 2018 Budget Notes: –The County could utilize $14,587,677 of revenues or other reserves to offset the need for a future tax adjustment. –Additional future changes in operating impacts have not been included. 26Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) 2,640,889 - 888,491 3.26¢ 3,672,381 2020 3,444,485 12,764,596 841,177 3,100,000 2,000,000 - 22,150,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (5,113,502) 2,640,889 (2,472,613) - - 1,199,768 2021 2,477,062 12,318,941 855,897 3,022,500 1,950,000 - 20,624,401 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 (3,530,117) 2,640,889 (889,228) - - 310,539 2022 2,398,894 11,988,274 870,875 2,945,000 1,900,000 - 20,103,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 (2,950,657) 2,640,889 (309,768) - - 772 2023 2,319,235 11,602,077 886,116 2,867,500 1,850,000 - 19,524,928 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 (2,313,857) 2,640,889 - 327,033 - 327,804 2024 2,240,269 11,249,486 901,623 2,790,000 1,800,000 - 18,981,378 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 (1,711,035) 2,640,889 - 929,854 - 1,257,658 2025 2,154,014 9,481,510 917,401 2,712,500 1,750,000 - 17,015,426 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 314,781 2,640,889 - 2,955,671 - 4,213,329 2026 1,599,463 9,210,336 933,456 2,635,000 1,700,000 - 16,078,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 1,312,415 2,640,889 - 3,953,305 - 8,166,634 2027 1,525,295 8,714,937 949,791 2,557,500 1,650,000 - 15,397,523 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 2,054,214 2,640,889 - 4,695,103 - 12,861,737 2028 1,450,454 8,433,590 966,412 2,480,000 1,600,000 - 14,930,456 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 2,582,959 2,640,889 - 5,223,848 - 18,085,586 2029 - 6,995,163 983,325 2,402,500 1,550,000 - 11,930,988 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 5,644,723 2,640,889 - 8,285,612 - 26,371,197 2030 - 5,189,746 1,000,533 2,325,000 1,500,000 - 10,015,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 7,623,349 2,640,889 - 10,264,239 - 36,635,436 2031 - 5,106,408 1,018,042 2,247,500 1,450,000 - 9,821,950 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 7,880,225 2,640,889 - 10,521,115 - 47,156,551 2032 - 5,022,523 1,035,858 2,170,000 1,400,000 - 9,628,381 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 8,137,977 2,640,889 - 10,778,866 - 57,935,417 2033 - 4,936,451 1,053,985 2,092,500 1,350,000 - 9,432,937 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 8,398,245 2,640,889 - 11,039,134 - 68,974,551 2034 - 4,848,611 1,072,430 2,015,000 1,300,000 - 9,236,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 8,660,614 2,640,889 - 11,301,503 - 80,276,054 2035 - 4,769,972 1,091,198 1,937,500 1,250,000 - 9,048,669 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 8,914,113 2,640,889 - 11,555,002 - 91,831,056 2036 - 3,785,071 1,110,294 1,860,000 1,200,000 - 7,955,365 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 9,492,744 2,640,889 - 12,133,633 - 103,964,690 2037 - 1,522,938 1,129,724 1,782,500 1,150,000 - 5,585,161 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 11,348,942 2,640,889 - 13,989,831 - 117,954,521 2038 - - 1,149,494 1,705,000 1,100,000 - 3,954,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 13,047,740 2,640,889 - 15,688,630 - 133,643,150 2039 - - - 1,627,500 1,050,000 - 2,677,500 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 14,393,547 2,640,889 - 17,034,436 - 150,677,586 2040 - - - - - - - 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 17,140,547 2,640,889 - 19,781,436 - 170,459,022 2041 - - - - - - - 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 17,210,742 2,640,889 - 19,851,632 - 190,310,654 2042 - - - - - - - 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 17,281,640 2,640,889 - 19,922,529 - 210,233,183 2043 - - - - - - - 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 17,353,246 2,640,889 - 19,994,136 - 230,227,319 2044 - - - - - - - 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 17,425,569 2,640,889 - 20,066,458 - 250,293,777 2045 - - - - - - - 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 17,498,614 2,640,889 - 20,139,504 - 270,433,281 Total Tax Effect 3.26¢ Total 29,335,128 164,304,922 20,406,830 47,275,000 30,500,000 - 291,821,880 Total (5,747,953) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. Case 2 Fund All Potential Projects February 27, 2018 27Harnett County, NC February 27, 2018 Proposed Debt Service Proposed Principal Financing Summary Case 2: Proposed Debt Service Financing Assumptions: –Amortization:Level Principal –Term:20 Years –Interest Rate:5.00% Debt Issued: –Erwin Elementary School (FY 2019):$22,400,000 –Early College at Benhaven (FY 2019): $8,600,000 –Government Building (FY 2019):$20,000,000 –NW Harnett Elementary School (FY 2021): $21,900,000 –New South Harnett Middle School (FY 2023): $32,000,000 –New South Harnett High School (FY 2025):$63,000,000 –Total $167,900,000 Debt Service: –Erwin Elementary School (FY 2019):$34,160,000 –Early College at Benhaven (FY 2019): $13,115,000 –Government Building (FY 2019):$30,500,000 –NW Harnett Elementary School (FY 2021): $33,397,500 –New South Harnett Middle School (FY 2023): $48,800,000 –New South Harnett High School (FY 2025):$96,075,000 –Total $256,047,500 Level Principal Amortization 28Harnett County, NC - 5.0 10.0 15.0 20.0 25.0 30.0 MillionsExisting 2019 2021 2023 2025 - 5.0 10.0 15.0 20.0 25.0 30.0 MillionsExisting 2019 2021 2023 2025 February 27, 2018 Harnett County, NC 29 10 -Year Payout Debt Service to Expenditures Debt to Assessed Value Case 2: Key Debt Ratios Growth Assumptions: –Assessed Value:0.00% –Expenditures:0.00% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10-yr Payout Policy 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Existing Proposed Debt Policy 0% 5% 10% 15% 20% 25% Existing Proposed Debt Policy February 27, 2018 Case 2: Debt Affordability Analysis Existing & Proposed Debt –Natural Tax Impact FY 2018 Value of a Penny7:$811,333 Assumed Growth Rate:0.00% 7 Source: FY 2018 Budget Notes: –The County could utilize $68,007,675 of revenues or other reserves to offset the need for a future tax adjustment. –Additional future changes in operating impacts have not been included. 30Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) - (1,752,398) - - 1,031,491 2020 3,444,485 12,764,596 841,177 3,100,000 2,000,000 - 22,150,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (5,113,502) - (1,031,491) (4,082,011)5.03¢ - 2021 2,477,062 12,318,941 855,897 3,022,500 1,950,000 - 20,624,401 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 (3,530,117) 4,082,011 - 551,894 - 551,894 2022 2,398,894 11,988,274 870,875 5,135,000 1,900,000 - 22,293,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 (5,140,657) 4,082,011 (551,894) (506,753)0.62¢ - 2023 2,319,235 11,602,077 886,116 5,002,750 1,850,000 - 21,660,178 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 (4,449,107) 4,588,764 - 139,657 - 139,657 2024 2,240,269 11,249,486 901,623 8,070,500 1,800,000 - 24,261,878 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 (6,991,535) 4,588,764 (139,657) (2,263,115)2.79¢ - 2025 2,154,014 9,481,510 917,401 7,858,250 1,750,000 - 22,161,176 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 (4,830,969) 6,851,878 - 2,020,910 - 2,020,910 2026 1,599,463 9,210,336 933,456 13,946,000 1,700,000 - 27,389,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 (9,998,585) 6,851,878 (2,020,910) (1,125,797)1.39¢ - 2027 1,525,295 8,714,937 949,791 13,576,250 1,650,000 - 26,416,273 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 (8,964,536) 7,977,675 - (986,861)1.22¢ - 2028 1,450,454 8,433,590 966,412 13,206,500 1,600,000 - 25,656,956 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 (8,143,541) 8,964,536 - 820,995 - 820,995 2029 - 6,995,163 983,325 12,836,750 1,550,000 - 22,365,238 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 (4,789,527) 8,964,536 - 4,175,008 - 4,996,003 2030 - 5,189,746 1,000,533 12,467,000 1,500,000 - 20,157,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 (2,518,651) 8,964,536 - 6,445,885 - 11,441,888 2031 - 5,106,408 1,018,042 12,097,250 1,450,000 - 19,671,700 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 (1,969,525) 8,964,536 - 6,995,011 - 18,436,900 2032 - 5,022,523 1,035,858 11,727,500 1,400,000 - 19,185,881 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 (1,419,523) 8,964,536 - 7,545,013 - 25,981,912 2033 - 4,936,451 1,053,985 11,357,750 1,350,000 - 18,698,187 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 (867,005) 8,964,536 - 8,097,531 - 34,079,443 2034 - 4,848,611 1,072,430 10,988,000 1,300,000 - 18,209,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 (312,386) 8,964,536 - 8,652,149 - 42,731,593 2035 - 4,769,972 1,091,198 10,618,250 1,250,000 - 17,729,419 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 233,363 8,964,536 - 9,197,899 - 51,929,491 2036 - 3,785,071 1,110,294 10,248,500 1,200,000 - 16,343,865 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 1,104,244 8,964,536 - 10,068,780 - 61,998,271 2037 - 1,522,938 1,129,724 9,878,750 1,150,000 - 13,681,411 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 3,252,692 8,964,536 - 12,217,228 - 74,215,499 2038 - - 1,149,494 9,509,000 1,100,000 - 11,758,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 5,243,740 8,964,536 - 14,208,276 - 88,423,775 2039 - - - 9,139,250 1,050,000 - 10,189,250 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 6,881,797 8,964,536 - 15,846,332 - 104,270,107 2040 - - - 7,219,500 - - 7,219,500 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 9,921,047 8,964,536 - 18,885,583 - 123,155,690 2041 - - - 6,927,250 - - 6,927,250 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 10,283,492 8,964,536 - 19,248,028 - 142,403,718 2042 - - - 5,540,000 - - 5,540,000 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 11,741,640 8,964,536 - 20,706,176 - 163,109,894 2043 - - - 5,302,500 - - 5,302,500 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 12,050,746 8,964,536 - 21,015,282 - 184,125,176 2044 - - - 3,465,000 - - 3,465,000 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 13,960,569 8,964,536 - 22,925,105 - 207,050,281 2045 - - - 3,307,500 - - 3,307,500 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 14,191,114 8,964,536 - 23,155,650 - 230,205,931 Total Tax Effect 11.05¢ Total 29,335,128 164,304,922 20,406,830 225,547,500 30,500,000 - 470,094,380 Total (7,572,693) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. February 27, 2018 Case 2: Debt Affordability Analysis Existing & Proposed Debt –FY 2019 Upfront Tax Impact FY 2018 Value of a Penny6:$811,333 Assumed Growth Rate:0.00% 6 Source: FY 2018 Budget Notes: –The County could utilize $68,007,675 of revenues or other reserves to offset the need for a future tax adjustment. –Additional future changes in operating impacts have not been included. 31Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) 5,614,425 - 3,862,027 6.92¢ 6,645,917 2020 3,444,485 12,764,596 841,177 3,100,000 2,000,000 - 22,150,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (5,113,502) 5,614,425 - 500,923 - 7,146,839 2021 2,477,062 12,318,941 855,897 3,022,500 1,950,000 - 20,624,401 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 (3,530,117) 5,614,425 - 2,084,308 - 9,231,147 2022 2,398,894 11,988,274 870,875 5,135,000 1,900,000 - 22,293,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 (5,140,657) 5,614,425 - 473,768 - 9,704,915 2023 2,319,235 11,602,077 886,116 5,002,750 1,850,000 - 21,660,178 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 (4,449,107) 5,614,425 - 1,165,319 - 10,870,234 2024 2,240,269 11,249,486 901,623 8,070,500 1,800,000 - 24,261,878 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 (6,991,535) 5,614,425 (1,377,110) - - 9,493,124 2025 2,154,014 9,481,510 917,401 7,858,250 1,750,000 - 22,161,176 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 (4,830,969) 5,614,425 - 783,456 - 10,276,580 2026 1,599,463 9,210,336 933,456 13,946,000 1,700,000 - 27,389,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 (9,998,585) 5,614,425 (4,384,159) - - 5,892,421 2027 1,525,295 8,714,937 949,791 13,576,250 1,650,000 - 26,416,273 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 (8,964,536) 5,614,425 (3,350,111) - - 2,542,310 2028 1,450,454 8,433,590 966,412 13,206,500 1,600,000 - 25,656,956 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 (8,143,541) 5,614,425 (2,529,116) - - 13,194 2029 - 6,995,163 983,325 12,836,750 1,550,000 - 22,365,238 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 (4,789,527) 5,614,425 - 824,898 - 838,092 2030 - 5,189,746 1,000,533 12,467,000 1,500,000 - 20,157,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 (2,518,651) 5,614,425 - 3,095,774 - 3,933,867 2031 - 5,106,408 1,018,042 12,097,250 1,450,000 - 19,671,700 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 (1,969,525) 5,614,425 - 3,644,900 - 7,578,767 2032 - 5,022,523 1,035,858 11,727,500 1,400,000 - 19,185,881 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 (1,419,523) 5,614,425 - 4,194,902 - 11,773,669 2033 - 4,936,451 1,053,985 11,357,750 1,350,000 - 18,698,187 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 (867,005) 5,614,425 - 4,747,420 - 16,521,090 2034 - 4,848,611 1,072,430 10,988,000 1,300,000 - 18,209,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 (312,386) 5,614,425 - 5,302,039 - 21,823,128 2035 - 4,769,972 1,091,198 10,618,250 1,250,000 - 17,729,419 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 233,363 5,614,425 - 5,847,788 - 27,670,916 2036 - 3,785,071 1,110,294 10,248,500 1,200,000 - 16,343,865 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 1,104,244 5,614,425 - 6,718,669 - 34,389,586 2037 - 1,522,938 1,129,724 9,878,750 1,150,000 - 13,681,411 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 3,252,692 5,614,425 - 8,867,117 - 43,256,703 2038 - - 1,149,494 9,509,000 1,100,000 - 11,758,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 5,243,740 5,614,425 - 10,858,165 - 54,114,868 2039 - - - 9,139,250 1,050,000 - 10,189,250 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 6,881,797 5,614,425 - 12,496,222 - 66,611,090 2040 - - - 7,219,500 - - 7,219,500 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 9,921,047 5,614,425 - 15,535,472 - 82,146,562 2041 - - - 6,927,250 - - 6,927,250 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 10,283,492 5,614,425 - 15,897,918 - 98,044,480 2042 - - - 5,540,000 - - 5,540,000 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 11,741,640 5,614,425 - 17,356,065 - 115,400,545 2043 - - - 5,302,500 - - 5,302,500 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 12,050,746 5,614,425 - 17,665,171 - 133,065,716 2044 - - - 3,465,000 - - 3,465,000 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 13,960,569 5,614,425 - 19,574,994 - 152,640,710 2045 - - - 3,307,500 - - 3,307,500 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 14,191,114 5,614,425 - 19,805,540 - 172,446,250 Total Tax Effect 6.92¢ Total 29,335,128 164,304,922 20,406,830 225,547,500 30,500,000 - 470,094,380 Total (13,716,840) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. February 27, 2018 Case 2: Debt Affordability Analysis Existing & Proposed Debt –5¢ FY 2019 Upfront Tax Impact FY 2018 Value of a Penny6:$811,333 Assumed Growth Rate:0.00% 6 Source: FY 2018 Budget Notes: –The County could utilize $39,611,015 of revenues or other reserves to offset the need for a future tax adjustment. –Additional future changes in operating impacts have not been included. 32Harnett County, NC A B C D E F G H I J K L M N O P Q R S T Debt Service Requirements Revenue Available for DS Debt Service Cash Flow Surplus (Deficit) FY Existing County Debt Service Existing School Debt Service Existing Red Rock Debt Service Proposed School DS Proposed County DS1 Potential Operating Impact Total 2018 Budget Appropriation Lottery / ADM2 Restricted Art. 40 & 42 Sales Tax3 1/4 ¢ Sales Tax4 QSCB Subsidy5 Total Revenues Available Surplus/ (Deficit) Revenue From Prior Tax Impact Capital Reserve Utilized Adjusted Surplus/ (Deficit) Estimated Incremental Tax Equivalent Capital Reserve Fund Balance6 4,860,233 2018 4,902,181 13,282,584 812,491 - - - 18,997,255 7,175,000 1,000,000 5,639,477 1,946,000 1,160,434 16,920,911 (2,076,344) - (2,076,344) - - 2,783,889 2019 4,823,775 13,081,710 826,709 - - - 18,732,194 7,175,000 1,000,000 5,695,872 1,946,000 1,162,924 16,979,796 (1,752,398) 4,056,666 - 2,304,268 5.00¢ 5,088,157 2020 3,444,485 12,764,596 841,177 3,100,000 2,000,000 - 22,150,257 7,175,000 1,000,000 5,752,831 1,946,000 1,162,924 17,036,755 (5,113,502) 4,056,666 (1,056,837) - - 4,031,320 2021 2,477,062 12,318,941 855,897 3,022,500 1,950,000 - 20,624,401 7,175,000 1,000,000 5,810,359 1,946,000 1,162,924 17,094,283 (3,530,117) 4,056,666 - 526,548 - 4,557,868 2022 2,398,894 11,988,274 870,875 5,135,000 1,900,000 - 22,293,044 7,175,000 1,000,000 5,868,463 1,946,000 1,162,924 17,152,387 (5,140,657) 4,056,666 (1,083,991) - - 3,473,877 2023 2,319,235 11,602,077 886,116 5,002,750 1,850,000 - 21,660,178 7,175,000 1,000,000 5,927,147 1,946,000 1,162,924 17,211,071 (4,449,107) 4,056,666 (392,441) - - 3,081,436 2024 2,240,269 11,249,486 901,623 8,070,500 1,800,000 - 24,261,878 7,175,000 1,000,000 5,986,419 1,946,000 1,162,924 17,270,343 (6,991,535) 4,056,666 (2,934,870) - - 146,566 2025 2,154,014 9,481,510 917,401 7,858,250 1,750,000 - 22,161,176 7,175,000 1,000,000 6,046,283 1,946,000 1,162,924 17,330,207 (4,830,969) 4,056,666 (146,566) (627,737)0.77¢ - 2026 1,599,463 9,210,336 933,456 13,946,000 1,700,000 - 27,389,254 7,175,000 1,000,000 6,106,746 1,946,000 1,162,924 17,390,670 (9,998,585) 4,684,403 - (5,314,182)6.55¢ - 2027 1,525,295 8,714,937 949,791 13,576,250 1,650,000 - 26,416,273 7,175,000 1,000,000 6,167,813 1,946,000 1,162,924 17,451,737 (8,964,536) 9,998,585 - 1,034,049 - 1,034,049 2028 1,450,454 8,433,590 966,412 13,206,500 1,600,000 - 25,656,956 7,175,000 1,000,000 6,229,492 1,946,000 1,162,924 17,513,415 (8,143,541) 9,998,585 - 1,855,044 - 2,889,093 2029 - 6,995,163 983,325 12,836,750 1,550,000 - 22,365,238 7,175,000 1,000,000 6,291,786 1,946,000 1,162,924 17,575,710 (4,789,527) 9,998,585 - 5,209,057 - 8,098,150 2030 - 5,189,746 1,000,533 12,467,000 1,500,000 - 20,157,279 7,175,000 1,000,000 6,354,704 1,946,000 1,162,924 17,638,628 (2,518,651) 9,998,585 - 7,479,934 - 15,578,084 2031 - 5,106,408 1,018,042 12,097,250 1,450,000 - 19,671,700 7,175,000 1,000,000 6,418,251 1,946,000 1,162,924 17,702,175 (1,969,525) 9,998,585 - 8,029,060 - 23,607,144 2032 - 5,022,523 1,035,858 11,727,500 1,400,000 - 19,185,881 7,175,000 1,000,000 6,482,434 1,946,000 1,162,924 17,766,358 (1,419,523) 9,998,585 - 8,579,062 - 32,186,205 2033 - 4,936,451 1,053,985 11,357,750 1,350,000 - 18,698,187 7,175,000 1,000,000 6,547,258 1,946,000 1,162,924 17,831,182 (867,005) 9,998,585 - 9,131,580 - 41,317,785 2034 - 4,848,611 1,072,430 10,988,000 1,300,000 - 18,209,041 7,175,000 1,000,000 6,612,731 1,946,000 1,162,924 17,896,655 (312,386) 9,998,585 - 9,686,198 - 51,003,984 2035 - 4,769,972 1,091,198 10,618,250 1,250,000 - 17,729,419 7,175,000 1,000,000 6,678,858 1,946,000 1,162,924 17,962,782 233,363 9,998,585 - 10,231,947 - 61,235,931 2036 - 3,785,071 1,110,294 10,248,500 1,200,000 - 16,343,865 7,175,000 1,000,000 6,745,647 1,946,000 581,462 17,448,109 1,104,244 9,998,585 - 11,102,829 - 72,338,760 2037 - 1,522,938 1,129,724 9,878,750 1,150,000 - 13,681,411 7,175,000 1,000,000 6,813,103 1,946,000 - 16,934,103 3,252,692 9,998,585 - 13,251,277 - 85,590,036 2038 - - 1,149,494 9,509,000 1,100,000 - 11,758,494 7,175,000 1,000,000 6,881,234 1,946,000 - 17,002,234 5,243,740 9,998,585 - 15,242,325 - 100,832,361 2039 - - - 9,139,250 1,050,000 - 10,189,250 7,175,000 1,000,000 6,950,047 1,946,000 - 17,071,047 6,881,797 9,998,585 - 16,880,381 - 117,712,742 2040 - - - 7,219,500 - - 7,219,500 7,175,000 1,000,000 7,019,547 1,946,000 - 17,140,547 9,921,047 9,998,585 - 19,919,632 - 137,632,374 2041 - - - 6,927,250 - - 6,927,250 7,175,000 1,000,000 7,089,742 1,946,000 - 17,210,742 10,283,492 9,998,585 - 20,282,077 - 157,914,451 2042 - - - 5,540,000 - - 5,540,000 7,175,000 1,000,000 7,160,640 1,946,000 - 17,281,640 11,741,640 9,998,585 - 21,740,225 - 179,654,676 2043 - - - 5,302,500 - - 5,302,500 7,175,000 1,000,000 7,232,246 1,946,000 - 17,353,246 12,050,746 9,998,585 - 22,049,331 - 201,704,007 2044 - - - 3,465,000 - - 3,465,000 7,175,000 1,000,000 7,304,569 1,946,000 - 17,425,569 13,960,569 9,998,585 - 23,959,153 - 225,663,160 2045 - - - 3,307,500 - - 3,307,500 7,175,000 1,000,000 7,377,614 1,946,000 - 17,498,614 14,191,114 9,998,585 - 24,189,699 - 249,852,859 Total Tax Effect 12.32¢ Total 29,335,128 164,304,922 20,406,830 225,547,500 30,500,000 - 470,094,380 Total (7,691,049) 1 Lease payments on the County's existing DSS Facility will go away when the new County Facility is occupied. 2 Assumes 0% growth. 3 Restricted Article 40 & 42 Board of Education Sales Tax grown at 1.00% off of FY 2017 collections of $5,583,641. 4 The 1/4 ¢ Sales Tax is dedicated solely to pay for New Schools debt service and capital. Assumes no future growth. 5 2018 QSCB subsidy is shown as budgeted. Future QSCB Subsidies are reduced by 6.6% as a result of sequestration. 6 The beginning Capital Reserve Fund Balance represents the County's FY 2017 Ending Article 46 Sales Tax Fund Balance. Appendix A Existing Tax Supported Debt February 27, 2018 33Harnett County, NC February 27, 2018 Harnett County, NC 34 Existing Tax Supported Debt Summary Total Tax Supported Debt Service FY Principal Interest Total Total 165,155,423 48,891,457 214,046,880 2018 14,396,069 4,601,186 18,997,255 2019 14,325,215 4,406,979 18,732,194 2020 12,946,361 4,103,896 17,050,257 2021 11,837,457 3,814,443 15,651,901 2022 11,730,249 3,527,795 15,258,044 2023 11,563,316 3,244,112 14,807,428 2024 11,427,414 2,963,964 14,391,378 2025 9,842,644 2,710,282 12,552,926 2026 9,260,725 2,482,529 11,743,254 2027 8,921,292 2,268,732 11,190,023 2028 8,792,706 2,057,751 10,850,456 2029 6,082,680 1,895,807 7,978,488 2030 4,404,858 1,785,421 6,190,279 2031 4,388,840 1,735,610 6,124,450 2032 4,374,562 1,683,819 6,058,381 2033 4,358,547 1,631,890 5,990,437 2034 4,339,378 1,581,663 5,921,041 2035 4,329,876 1,531,293 5,861,169 2036 4,099,029 796,335 4,895,365 2037 2,591,433 61,228 2,652,661 2038 1,142,771 6,723 1,149,494 School Debt FY Principal Interest Total Total 119,613,450 44,691,472 164,304,922 2018 9,357,690 3,924,894 13,282,584 2019 9,278,922 3,802,788 13,081,710 2020 9,181,398 3,583,198 12,764,596 2021 8,953,098 3,365,843 12,318,941 2022 8,851,790 3,136,485 11,988,274 2023 8,692,536 2,909,541 11,602,077 2024 8,563,931 2,685,555 11,249,486 2025 6,994,151 2,487,359 9,481,510 2026 6,896,058 2,314,277 9,210,336 2027 6,571,891 2,143,046 8,714,937 2028 6,459,777 1,973,813 8,433,590 2029 5,159,947 1,835,216 6,995,163 2030 3,459,488 1,730,258 5,189,746 2031 3,420,400 1,686,008 5,106,408 2032 3,382,609 1,639,914 5,022,523 2033 3,342,631 1,593,820 4,936,451 2034 3,299,041 1,549,570 4,848,611 2035 3,264,651 1,505,320 4,769,972 2036 3,008,442 776,629 3,785,071 2037 1,475,000 47,938 1,522,938 2038 - - - February 27, 2018 Harnett County, NC 35 Existing Tax Supported Debt Summary County Debt FY Principal Interest Total Total 26,469,374 2,865,754 29,335,128 2018 4,338,089 564,091 4,902,181 2019 4,327,665 496,109 4,823,775 2020 3,027,641 416,844 3,444,485 2021 2,127,979 349,084 2,477,062 2022 2,102,650 296,244 2,398,894 2023 2,075,166 244,069 2,319,235 2024 2,047,682 192,587 2,240,269 2025 2,012,114 141,900 2,154,014 2026 1,507,313 92,150 1,599,463 2027 1,470,668 54,627 1,525,295 2028 1,432,406 18,048 1,450,454 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - 2034 - - - 2035 - - - 2036 - - - 2037 - - - 2038 - - - Community College Lease FY Principal Interest Total Total 19,072,599 1,334,231 20,406,830 2018 700,290 112,201 812,491 2019 718,628 108,081 826,709 2020 737,323 103,853 841,177 2021 756,381 99,516 855,897 2022 775,809 95,066 870,875 2023 795,613 90,502 886,116 2024 815,801 85,822 901,623 2025 836,378 81,023 917,401 2026 857,353 76,102 933,456 2027 878,732 71,059 949,791 2028 900,523 65,889 966,412 2029 922,733 60,592 983,325 2030 945,369 55,163 1,000,533 2031 968,440 49,602 1,018,042 2032 991,953 43,905 1,035,858 2033 1,015,916 38,069 1,053,985 2034 1,040,337 32,093 1,072,430 2035 1,065,225 25,973 1,091,198 2036 1,090,587 19,706 1,110,294 2037 1,116,433 13,290 1,129,724 2038 1,142,771 6,723 1,149,494 School Debt February 27, 2018 36Harnett County, NC $4,000,000 $789,500 $46,317,586 2004 QZAB 2005 QZAB 2007A COPs (partial refinancing) - School Portion Schools Schools Refinancing 2000 COPs, Overhills Elementary, Coats Elementary FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 593,370 - 593,370 Total 202,695 - 202,695 Total 1,158,636 23,309 1,181,946 2018 0.000%197,790 - 197,790 2018 0.000%40,539 - 40,539 2018 4.000%1,158,636 23,309 1,181,946 2019 0.000%197,790 - 197,790 2019 0.000%40,539 - 40,539 2019 - 2020 0.000%197,790 - 197,790 2020 0.000%40,539 - 40,539 2020 - 2021 - - - 2021 0.000%40,539 - 40,539 2021 - 2022 - - - 2022 0.000%40,539 - 40,539 2022 - 2023 - - - 2023 - - - 2023 - 2024 - - - 2024 - - - 2024 - 2025 - - - 2025 - - - 2025 - 2026 - - - 2026 - - - 2026 - 2027 - - - 2027 - - - 2027 - 2028 - - - 2028 - - - 2028 - 2029 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2033 - - - 2034 - 2034 - 2034 - - - 2035 - 2035 - 2035 - - - 2036 - 2036 - 2036 - - - 2037 - 2037 - 2037 - - - 2038 - 2038 - 2038 - - - Dated Date:5/28/2004 Next Call:unknown Dated Date:10/20/2005 Next Call:unknown Dated Date:5/16/2007 Next Call:12/1/2017 Purpose:Schools Insurance:n/a Purpose:Schools Insurance:n/a Purpose:Refinancing / Schools Insurance:FSA Coupon Dates:May 28 Maturity Date:May 28 Coupon Dates:Oct 20 Maturity Date:Oct 20 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Shown net of balance fund transfer of $835,362.40 Shown net of balance fund transfer of $140,875.20 Note: School portion interpolated based on Bond Ledger percentages. School Debt February 27, 2018 37Harnett County, NC $14,004,000 $23,967,000 $29,435,000 Series 2010 IPC (2008 IPC Refunding) - Bank of America 2011 IPC (SunTrust Leasing) - School Portion Limited Obligation Bonds, Series 2012B (QSCB) Refinancing 2008 IPC, Angier Elementary Refunding of 2002 COPs, Elementary, Overhills High Highland Middle FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 8,518,000 1,216,464 9,734,464 Total 13,788,550 1,192,259 14,980,809 Total 22,820,273 25,256,113 48,076,386 2018 2.400%793,000 204,432 997,432 2018 2.535%2,100,050 322,922 2,422,972 2018 588,223 1,365,195 1,953,418 2019 2.400%789,000 185,400 974,400 2019 2.535%2,058,340 270,214 2,328,554 2019 587,427 1,365,195 1,952,622 2020 2.400%786,000 166,464 952,464 2020 2.535%2,012,750 218,613 2,231,363 2020 586,847 1,365,195 1,952,042 2021 2.400%782,000 147,600 929,600 2021 2.535%1,971,040 168,118 2,139,158 2021 667,932 1,365,195 2,033,127 2022 2.400%779,000 128,832 907,832 2022 2.535%1,927,390 118,706 2,046,096 2022 665,049 1,365,195 2,030,244 2023 2.400%775,000 110,136 885,136 2023 2.535%1,882,770 70,412 1,953,182 2023 669,413 1,365,195 2,034,608 2024 2.400%771,000 91,536 862,536 2024 2.535%1,836,210 23,274 1,859,484 2024 667,826 1,365,195 2,033,021 2025 2.400%767,000 73,032 840,032 2025 - - - 2025 1,012,025 1,365,195 2,377,220 2026 2.400%763,000 54,624 817,624 2026 - - - 2026 994,226 1,365,195 2,359,421 2027 2.400%759,000 36,312 795,312 2027 - - - 2027 975,670 1,365,195 2,340,865 2028 2.400%754,000 18,096 772,096 2028 - - - 2028 957,428 1,365,195 2,322,624 2029 - - - 2029 - - - 2029 1,595,947 1,365,195 2,961,143 2030 - - - 2030 - - - 2030 1,984,488 1,365,195 3,349,684 2031 - - - 2031 - - - 2031 1,945,400 1,365,195 3,310,595 2032 - - - 2032 - - - 2032 1,907,609 1,365,195 3,272,804 2033 - - - 2033 - - - 2033 1,867,631 1,365,195 3,232,826 2034 - 2034 - - - 2034 1,824,041 1,365,195 3,189,236 2035 - 2035 - - - 2035 1,789,651 1,365,195 3,154,847 2036 - 2036 - - - 2036 4.638%1,533,442 682,598 2,216,040 2037 - 2037 - - - 2037 - - 2038 - 2038 - 2038 - Dated Date:11/1/2010 Next Call:Current1 Dated Date:##########Next Call:12/1/2020 1 Dated Date:11/15/2012 Next Call:Current1 Purpose:Refinancing / School Insurance:n/a Purpose:Refinancing / Schools Insurance:n/a Purpose:Schools Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Coupon Dates:May 1 / Nov 1 Maturity Date:Nov 1 1 Prepayment Note: Interest is Subsidized by the Federal Government at a sequester reduced rate of 3.97%. Principal Deposits shown are net of the Sinking Fund Earnings at 3.48% through 10/16/34. 1 Make-whole call. 1 The County may prepay, in whole on any regularly scheduled payment date after 12/1/2020 at a prepayment price of 100% of such principal amount prepaid School Debt February 27, 2018 38Harnett County, NC $30,497,000 $31,080,000 2015 Refunding COPs (Regions) - School Portion 2016 Installment Financing Contract, Series 2016 (Regions) Boone Trail Refinancing 2007 COPs, Overhills Elementary, Coats Elementary FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 12,534,926 1,821,920 14,356,846 Total 28,517,000 3,928,540 32,445,540 2018 2.520%175,452 313,669 489,121 2018 2.200%2,609,000 627,374 3,236,374 2019 2.520%1,330,826 294,690 1,625,516 2019 2.200%2,580,000 569,976 3,149,976 2020 2.520%1,311,472 261,397 1,572,869 2020 2.200%2,551,000 513,216 3,064,216 2021 2.520%1,297,587 228,523 1,526,110 2021 2.200%2,499,000 457,094 2,956,094 2022 2.520%1,277,812 196,073 1,473,885 2022 2.200%2,467,000 402,116 2,869,116 2023 2.520%1,256,354 164,143 1,420,496 2023 2.200%2,414,000 347,842 2,761,842 2024 2.520%1,234,896 132,753 1,367,649 2024 2.200%2,359,000 294,734 2,653,734 2025 2.520%1,207,126 101,984 1,309,110 2025 2.200%2,313,000 242,836 2,555,836 2026 2.520%1,176,832 71,946 1,248,778 2026 2.200%2,267,000 191,950 2,458,950 2027 2.520%1,148,221 42,650 1,190,871 2027 2.200%2,214,000 142,076 2,356,076 2028 2.520%1,118,348 14,091 1,132,440 2028 2.200%2,155,000 93,368 2,248,368 2029 - - - 2029 2.200%2,089,000 45,958 2,134,958 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2034 - 2034 - - - 2035 - 2035 - - - 2036 - 2036 - - - 2037 - 2037 - - - 2038 - 2038 - Dated Date:4/15/2015 Next Call:Current1 Dated Date:4/21/2016 Next Call:Current at 101% Purpose:Refinancing / Schools Insurance:n/a Purpose:Refunding of 2009 COPs Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Note: School portion interpolated based on Bond Ledger percentages. 1 In whole or in part on any day on or before May 1, 2020: 103%; after May 1, 2020 to and including May 1, 2025: 102%; after May 1, 2025: 101% School Debt February 27, 2018 39Harnett County, NC $2,200,000 $29,500,000 Installment Financing Contract, Series 2016 (BB&T)General Obligation School Bonds, Series 2017 Various Schools1 Benhaven Elementary School FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 1,980,000 - 1,980,000 Total 29,500,000 11,252,867 40,752,867 2018 0.000%220,000 220,000 2018 3.000%1,475,000 1,067,992 2,542,992 2019 0.000%220,000 220,000 2019 4.000%1,475,000 1,117,313 2,592,313 2020 0.000%220,000 220,000 2020 4.000%1,475,000 1,058,313 2,533,313 2021 0.000%220,000 220,000 2021 5.000%1,475,000 999,313 2,474,313 2022 0.000%220,000 220,000 2022 5.000%1,475,000 925,563 2,400,563 2023 0.000%220,000 220,000 2023 5.000%1,475,000 851,813 2,326,813 2024 0.000%220,000 220,000 2024 5.000%1,475,000 778,063 2,253,063 2025 0.000%220,000 220,000 2025 5.000%1,475,000 704,313 2,179,313 2026 0.000%220,000 - 220,000 2026 5.000%1,475,000 630,563 2,105,563 2027 - - - 2027 5.000%1,475,000 556,813 2,031,813 2028 - - - 2028 4.000%1,475,000 483,063 1,958,063 2029 - - - 2029 4.000%1,475,000 424,063 1,899,063 2030 - - - 2030 3.000%1,475,000 365,063 1,840,063 2031 - - - 2031 3.125%1,475,000 320,813 1,795,813 2032 - - - 2032 3.125%1,475,000 274,719 1,749,719 2033 - - - 2033 3.000%1,475,000 228,625 1,703,625 2034 - - - 2034 3.000%1,475,000 184,375 1,659,375 2035 - - - 2035 3.125%1,475,000 140,125 1,615,125 2036 - - - 2036 3.125%1,475,000 94,031 1,569,031 2037 - - - 2037 3.250%1,475,000 47,938 1,522,938 2038 - 2038 - Dated Date:5/20/2016 Next Call:n/a Dated Date:5/31/2017 Next Call:5/1/2027 Purpose:Various Schools1 Insurance:n/a Purpose:Schools Insurance:n/a Coupon Dates:May 1 Maturity Date:May 1 Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 1 Coats ES, Coats-Erwin MS, Harnett Central HS, Harnett Central MS, Lafayette ES, Lillington-Shawtown ES, Overhill HS, Triton HS, Western Harnett HS, Western Harnett MS. County Debt February 27, 2018 40Harnett County, NC $46,317,586 $5,059,009 $830,160 2007A COPs (partial refinancing) - County Portion Installment Financing, Series 2014 (Motorola)EMS Remount / Sheriffs Vehicle Refinancing 2000 COPs, Law Enforcement Center E-911 EMS Remount / Sheriffs Vehicle FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 1,484,007 29,855 1,513,863 Total 2,288,209 27,646 2,315,855 Total 261,189 6,679 267,868 2018 4.000%1,484,007 29,855 1,513,863 2018 0.982%1,138,285 19,642 1,157,927 2018 1.700%129,494 4,440 133,934 2019 - 2019 0.982%1,149,924 8,003 1,157,927 2019 1.700%131,695 2,239 133,934 2020 - 2020 - 2020 - - - 2021 - 2021 - 2021 - - - 2022 - 2022 - 2022 - - - 2023 - 2023 - 2023 - - - 2024 - 2024 - 2024 - - - 2025 - 2025 - 2025 - - - 2026 - 2026 - - - 2026 - - - 2027 - 2027 - - - 2027 - - - 2028 - 2028 - - - 2028 - - - 2029 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2033 - - - 2034 - 2034 - - - 2034 - 2035 - 2035 - - - 2035 - 2036 - 2036 - - - 2036 - 2037 - 2037 - - - 2037 - 2038 - 2038 - 2038 - Dated Date:5/16/2007 Next Call:12/1/2017 Dated Date:1/1/2014 Next Call:Unknown Dated Date:Unknown Next Call:Unknown Purpose:Refinancing / Law Insurance:FSA Purpose:E-911 Insurance:n/a Purpose:EMS Remount / Sheriffs Insurance:Unknown Enforcement Center Vehicle Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Coupon Dates:Jan 15 / Jul 15 Maturity Date:Dec 15 Coupon Dates:Unknown Maturity Date:Unknown Note: County portion interpolated based on Bond Ledger percentages.Interpolatd from 2016 CAFR. Need more information to refine County Debt February 27, 2018 41Harnett County, NC $30,497,000 $1,274,000 2015 Refunding COPs (Regions) - County Portion 2015 IPC (First Bank) Refinancing 2007 COPs, Law Enforcement Center Refunding of 2005 IPC, Ag Center FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 16,055,015 2,333,556 18,388,571 Total 748,000 19,512 767,512 2018 2.520%224,723 401,755 626,478 2018 1.490%254,000 10,244 264,244 2019 2.520%1,704,552 377,446 2,081,998 2019 1.490%249,000 6,482 255,482 2020 2.520%1,679,762 334,804 2,014,566 2020 1.490%245,000 2,786 247,786 2021 2.520%1,661,979 292,698 1,954,676 2021 - - - 2022 2.520%1,636,650 251,135 1,887,785 2022 - - - 2023 2.520%1,609,166 210,238 1,819,404 2023 - - - 2024 2.520%1,581,682 170,033 1,751,715 2024 - - - 2025 2.520%1,546,114 130,623 1,676,737 2025 - - - 2026 2.520%1,507,313 92,150 1,599,463 2026 - - - 2027 2.520%1,470,668 54,627 1,525,295 2027 - - - 2028 2.520%1,432,406 18,048 1,450,454 2028 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2034 - 2034 - - - 2035 - 2035 - - - 2036 - 2036 - - - 2037 - 2037 - - - 2038 - 2038 - - - Dated Date:4/15/2015 Next Call:Current1 Dated Date:8/27/2015 Next Call:Current1 Purpose:Refinancing / Law Insurance:n/a Purpose:Refinancing / Ag Center Insurance:n/a Enforcement Center Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 / Dec 1 Note: County portion interpolated based on Bond Ledger percentages.1 In whole or in part at any time at par 1 In whole or in part on any day on or before May 1, 2020: 103%; after May 1, 2020 to and including May 1, 2025: 102%; after May 1, 2025: 101% County Debt February 27, 2018 42Harnett County, NC $4,664,000 $1,902,953 2015 IPC (First Bank) - Taxable 2017 Lease (PNC) Harnett Forward Together Committee Land Purchase Software Replacement FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 3,730,000 406,052 4,136,052 Total 1,902,953 42,455 1,945,408 2018 2.420%467,000 90,266 557,266 2018 1.820%640,581 7,889 648,469 2019 2.420%467,000 78,965 545,965 2019 1.820%625,494 22,975 648,469 2020 2.420%466,000 67,663 533,663 2020 1.820%636,878 11,591 648,469 2021 2.420%466,000 56,386 522,386 2021 - 2022 2.420%466,000 45,109 511,109 2022 - 2023 2.420%466,000 33,832 499,832 2023 - 2024 2.420%466,000 22,554 488,554 2024 - 2025 2.420%466,000 11,277 477,277 2025 - 2026 - - - 2026 - - - 2027 - - - 2027 - - - 2028 - - - 2028 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2034 - - - 2034 - - - 2035 - - - 2035 - - - 2036 - - - 2036 - - - 2037 - - - 2037 - - - 2038 - - - 2038 - Dated Date:8/27/2015 Next Call:Current1 Dated Date:8/25/2017 Next Call:Noncallable Purpose:HFTC Insurance:n/a Purpose:Software Replacement Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 / Dec 1 Coupon Dates:Nov 15 Maturity Date:Nov 15 1 In whole or in part at any time at par February 27, 2018 Harnett County, NC 43 Community College Lease $21,910,705 Red Rock Science Center Lease FY Coupon Principal Interest Total Total 19,072,599 1,334,231 20,406,830 2018 6.840%700,290 112,201 812,491 2019 6.840%718,628 108,081 826,709 2020 6.840%737,323 103,853 841,177 2021 6.840%756,381 99,516 855,897 2022 6.840%775,809 95,066 870,875 2023 6.840%795,613 90,502 886,116 2024 6.840%815,801 85,822 901,623 2025 6.840%836,378 81,023 917,401 2026 6.840%857,353 76,102 933,456 2027 6.840%878,732 71,059 949,791 2028 6.840%900,523 65,889 966,412 2029 6.840%922,733 60,592 983,325 2030 6.840%945,369 55,163 1,000,533 2031 6.840%968,440 49,602 1,018,042 2032 6.840%991,953 43,905 1,035,858 2033 6.840%1,015,916 38,069 1,053,985 2034 6.840%1,040,337 32,093 1,072,430 2035 6.840%1,065,225 25,973 1,091,198 2036 6.840%1,090,587 19,706 1,110,294 2037 6.840%1,116,433 13,290 1,129,724 2038 6.840%1,142,771 6,723 1,149,494 Dated Date:3/8/2012 Next Call:Current Purpose:Science Center Insurance:n/a Coupon Dates:Monthly Maturity Date:Monthly Note: Interpolated from 2016 CAFR and Red Rock Lease. Appendix B Department of Public Utilities Debt Profile February 27, 2018 44Harnett County, NC February 27, 2018 Department of Public Utilities Supported Debt Service Par Outstanding –Estimated as of 6/30/2017 Existing Department of Public Utilities Supported Debt Type Par Amount General Obligation Bonds $30,275,000 Revenue Bonds $10,418,000 State Bonds $16,123,666 Installment Purchases $706,450 Total $57,523,116 Source: LGC Bond Ledger, County Staff, and 2017 CAFR Department of Public Utilities Supported Debt Service 45Harnett County, NC Note: In addition to the $57,523,116 of par outstanding, there is also $17,340,000 of LOBs outstanding linked to underlying GO debt of the Districts. The LOBs are excluded for purposes of this analysis FY Principal Interest Total 10-yr Payout Total 57,523,116 19,444,093 76,967,210 2018 3,422,861 1,705,878 5,128,739 60.1% 2019 3,465,571 1,613,017 5,078,588 62.8% 2020 3,374,161 1,511,085 4,885,245 63.0% 2021 3,366,668 1,411,550 4,778,219 63.4% 2022 3,424,318 1,308,536 4,732,855 63.8% 2023 3,424,307 1,203,674 4,627,981 64.2% 2024 3,484,867 1,100,707 4,585,574 64.1% 2025 3,489,077 999,495 4,488,571 63.0% 2026 3,523,077 896,764 4,419,841 61.7% 2027 3,586,077 795,677 4,381,754 59.7% 2028 2,863,077 692,606 3,555,683 57.0% 2029 1,382,077 612,522 1,994,598 55.1% 2030 1,396,077 573,514 1,969,591 56.5% 2031 1,414,077 534,088 1,948,165 58.2% 2032 1,423,077 494,099 1,917,176 60.4% 2033 1,193,751 452,417 1,646,168 62.8% 2034 883,000 416,019 1,299,019 66.5% 2035 902,000 387,319 1,289,319 67.8% 2036 803,000 358,006 1,161,006 69.3% 2037 828,000 332,231 1,160,231 71.4% 2038 854,000 305,069 1,159,069 73.9% 2039 879,000 277,044 1,156,044 77.0% 2040 905,000 248,188 1,153,188 80.9% 2041 937,000 218,469 1,155,469 85.8% 2042 913,000 187,675 1,100,675 92.4% 2043 940,000 157,838 1,097,838 100.0% 2044 448,000 127,106 575,106 100.0% 2045 461,000 114,306 575,306 100.0% 2046 474,000 101,131 575,131 100.0% 2047 488,000 87,581 575,581 100.0% 2048 501,000 73,625 574,625 100.0% 2049 516,000 59,294 575,294 100.0% 2050 531,000 44,531 575,531 100.0% 2051 546,000 29,331 575,331 100.0% 2052 481,000 13,700 494,700 100.0% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 MillionsPrincipal Interest February 27, 2018 Harnett County, NC 46 Department of Public Utility Debt General Obligation Bonds Revenue Bonds State Bonds FY Principal Interest Total FY Principal Interest Total FY Principal Interest Total Total 30,275,000 15,170,169 45,445,169 Total 10,418,000 1,647,384 12,065,384 Total 16,123,666 2,570,724 18,694,391 2018 1,011,000 1,042,556 2,053,556 2018 833,000 263,575 1,096,575 2018 1,373,911 377,131 1,751,042 2019 1,033,000 1,012,088 2,045,088 2019 855,000 242,501 1,097,501 2019 1,373,911 343,758 1,717,669 2020 1,063,000 973,069 2,036,069 2020 875,000 220,869 1,095,869 2020 1,373,911 310,386 1,684,296 2021 1,079,000 930,606 2,009,606 2021 896,000 198,732 1,094,732 2021 1,330,708 277,013 1,607,721 2022 1,112,000 882,894 1,994,894 2022 922,000 176,063 1,098,063 2022 1,330,708 245,909 1,576,617 2023 1,144,000 833,956 1,977,956 2023 944,000 152,736 1,096,736 2023 1,278,077 214,804 1,492,881 2024 1,180,000 785,319 1,965,319 2024 970,000 128,853 1,098,853 2024 1,278,077 185,815 1,463,892 2025 1,218,000 738,356 1,956,356 2025 993,000 104,312 1,097,312 2025 1,278,077 156,827 1,434,903 2026 1,230,000 689,738 1,919,738 2026 1,015,000 79,189 1,094,189 2026 1,278,077 127,838 1,405,915 2027 1,262,000 643,319 1,905,319 2027 1,046,000 53,510 1,099,510 2027 1,278,077 98,849 1,376,926 2028 1,266,000 595,700 1,861,700 2028 1,069,000 27,046 1,096,046 2028 528,077 69,860 597,937 2029 854,000 555,113 1,409,113 2029 - - - 2029 528,077 57,409 585,486 2030 868,000 528,556 1,396,556 2030 - - - 2030 528,077 44,958 573,035 2031 886,000 501,581 1,387,581 2031 - - - 2031 528,077 32,507 560,584 2032 895,000 474,044 1,369,044 2032 - - - 2032 528,077 20,056 548,132 2033 884,000 444,813 1,328,813 2033 - - - 2033 309,751 7,604 317,355 2034 883,000 416,019 1,299,019 2034 - - - 2034 - - - 2035 902,000 387,319 1,289,319 2035 - - - 2035 - - - 2036 803,000 358,006 1,161,006 2036 - - - 2036 - - - 2037 828,000 332,231 1,160,231 2037 - - - 2037 - - - 2038 854,000 305,069 1,159,069 2038 - - - 2038 - - - 2039 879,000 277,044 1,156,044 2039 - - - 2039 - - - 2040 905,000 248,188 1,153,188 2040 - - - 2040 - - - 2041 937,000 218,469 1,155,469 2041 - - - 2041 - - - 2042 913,000 187,675 1,100,675 2042 - - - 2042 - - - 2043 940,000 157,838 1,097,838 2043 - - - 2043 - - - 2044 448,000 127,106 575,106 2044 - - - 2044 - - - 2045 461,000 114,306 575,306 2045 - - - 2045 - - - 2046 474,000 101,131 575,131 2046 - - - 2046 - - - 2047 488,000 87,581 575,581 2047 - - - 2047 - - - 2048 501,000 73,625 574,625 2048 - - - 2048 - - - 2049 516,000 59,294 575,294 2049 - - - 2049 - - - 2050 531,000 44,531 575,531 2050 - - - 2050 - - - 2051 546,000 29,331 575,331 2051 - - - 2051 - - - 2052 481,000 13,700 494,700 2052 - - - 2052 - - - February 27, 2018 Harnett County, NC 47 Department of Public Utility Debt Installment Purchases LOBs (Linked to Offsetting District GO Bonds) FY Principal Interest Total FY Principal Interest Total Total 706,450 55,816 762,266 Total 17,340,000 7,609,538 24,949,538 2018 204,950 22,615 227,565 2018 770,000 666,250 1,436,250 2019 203,660 14,671 218,331 2019 780,000 643,150 1,423,150 2020 62,250 6,761 69,011 2020 805,000 611,950 1,416,950 2021 60,960 5,200 66,160 2021 815,000 577,450 1,392,450 2022 59,610 3,671 63,281 2022 840,000 537,950 1,377,950 2023 58,230 2,178 60,408 2023 865,000 497,450 1,362,450 2024 56,790 720 57,510 2024 895,000 457,450 1,352,450 2025 - - - 2025 925,000 419,300 1,344,300 2026 - - - 2026 925,000 379,650 1,304,650 2027 - - - 2027 950,000 342,650 1,292,650 2028 - - - 2028 945,000 304,650 1,249,650 2029 - - - 2029 560,000 273,938 833,938 2030 - - - 2030 565,000 255,738 820,738 2031 - - - 2031 575,000 237,375 812,375 2032 - - - 2032 575,000 218,688 793,688 2033 - - - 2033 555,000 198,563 753,563 2034 - - - 2034 545,000 179,138 724,138 2035 - - - 2035 555,000 160,063 715,063 2036 - - - 2036 445,000 140,638 585,638 2037 - - - 2037 460,000 125,063 585,063 2038 - - - 2038 475,000 108,388 583,388 2039 - - - 2039 490,000 91,169 581,169 2040 - - - 2040 505,000 73,406 578,406 2041 - - - 2041 525,000 55,100 580,100 2042 - - - 2042 490,000 36,069 526,069 2043 - - - 2043 505,000 18,306 523,306 2044 - - - 2044 - - - 2045 - - - 2045 - - - 2046 - - - 2046 - - - 2047 - - - 2047 - - - 2048 - - - 2048 - - - 2049 - - - 2049 - - - 2050 - - - 2050 - - - 2051 - - - 2051 - - - 2052 - - - 2052 - - - General Obligation Bonds February 27, 2018 48Harnett County, NC $2,795,000 $3,449,000 $3,937,000 South Central Refunding and Bunnlevel Riverside Refunding, Series 2004 South Central Water & Sewer GO, Series 2013A (USDA)South Central Water & Sewer GO, Series 2013B (USDA) Refunding of USDA Bonds Sanitary Sewer Sanitary Sewer FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 340,000 107,900 447,900 Total 3,296,000 2,150,125 5,446,125 Total 3,765,000 2,475,406 6,240,406 2018 5.000%25,000 17,300 42,300 2018 3.125%54,000 103,000 157,000 2018 3.125%61,000 117,656 178,656 2019 5.000%30,000 16,050 46,050 2019 3.125%56,000 101,313 157,313 2019 3.125%63,000 115,750 178,750 2020 5.000%30,000 14,550 44,550 2020 3.125%57,000 99,563 156,563 2020 3.125%65,000 113,781 178,781 2021 5.250%30,000 13,050 43,050 2021 3.125%59,000 97,781 156,781 2021 3.125%67,000 111,750 178,750 2022 5.250%30,000 11,475 41,475 2022 3.125%61,000 95,938 156,938 2022 3.125%69,000 109,656 178,656 2023 5.250%30,000 9,900 39,900 2023 3.125%63,000 94,031 157,031 2023 3.125%71,000 107,500 178,500 2024 5.250%30,000 8,325 38,325 2024 3.125%65,000 92,063 157,063 2024 3.125%73,000 105,281 178,281 2025 5.000%30,000 6,750 36,750 2025 3.125%67,000 90,031 157,031 2025 3.125%76,000 103,000 179,000 2026 5.000%35,000 5,250 40,250 2026 3.125%69,000 87,938 156,938 2026 3.125%78,000 100,625 178,625 2027 5.000%35,000 3,500 38,500 2027 3.125%71,000 85,781 156,781 2027 3.125%80,000 98,188 178,188 2028 5.000%35,000 1,750 36,750 2028 3.125%73,000 83,563 156,563 2028 3.125%83,000 95,688 178,688 2029 - - - 2029 3.125%76,000 81,281 157,281 2029 3.125%85,000 93,094 178,094 2030 - - - 2030 3.125%78,000 78,906 156,906 2030 3.125%88,000 90,438 178,438 2031 - - - 2031 3.125%81,000 76,469 157,469 2031 3.125%91,000 87,688 178,688 2032 - - - 2032 3.125%83,000 73,938 156,938 2032 3.125%94,000 84,844 178,844 2033 - - - 2033 3.125%86,000 71,344 157,344 2033 3.125%97,000 81,906 178,906 2034 - 2034 3.125%88,000 68,656 156,656 2034 3.125%100,000 78,875 178,875 2035 - 2035 3.125%91,000 65,906 156,906 2035 3.125%103,000 75,750 178,750 2036 - 2036 3.125%94,000 63,063 157,063 2036 3.125%106,000 72,531 178,531 2037 - 2037 3.125%97,000 60,125 157,125 2037 3.125%109,000 69,219 178,219 2038 - 2038 3.125%100,000 57,094 157,094 2038 3.125%113,000 65,813 178,813 2039 - 2039 3.125%103,000 53,969 156,969 2039 3.125%116,000 62,281 178,281 2040 - 2040 3.125%106,000 50,750 156,750 2040 3.125%120,000 58,656 178,656 2041 - 2041 3.125%110,000 47,438 157,438 2041 3.125%124,000 54,906 178,906 2042 - 2042 3.125%113,000 44,000 157,000 2042 3.125%127,000 51,031 178,031 2043 - 2043 3.125%117,000 40,469 157,469 2043 3.125%131,000 47,063 178,063 2044 - 2044 3.125%120,000 36,813 156,813 2044 3.125%136,000 42,969 178,969 2045 - 2045 3.125%124,000 33,063 157,063 2045 3.125%140,000 38,719 178,719 2046 - 2046 3.125%128,000 29,188 157,188 2046 3.125%144,000 34,344 178,344 2047 - 2047 3.125%132,000 25,188 157,188 2047 3.125%149,000 29,844 178,844 2048 - 2048 3.125%136,000 21,063 157,063 2048 3.125%153,000 25,188 178,188 2049 - 2049 3.125%140,000 16,813 156,813 2049 3.125%158,000 20,406 178,406 2050 - 2050 3.125%145,000 12,438 157,438 2050 3.125%163,000 15,469 178,469 2051 - 2051 3.125%149,000 7,906 156,906 2051 3.125%168,000 10,375 178,375 2052 - 2052 3.125%104,000 3,250 107,250 2052 3.125%164,000 5,125 169,125 Dated Date:5/12/2004 Next Call:Current1 Dated Date:1/22/2013 Next Call:Current Dated Date:1/22/2013 Next Call:Current Purpose:Refunding of USDA Bonds Insurance:n/a Purpose:Sanitary Sewer Insurance:n/a Purpose:Sanitary Sewer Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 Maturity Date:Jun 1 1 In whole or in part on any date at par General Obligation Bonds February 27, 2018 49Harnett County, NC $3,239,000 $2,586,000 $10,395,000 South Central Water & Sewer GO, Series 2013C (USDA)South Central Water & Sewer GO, Series 2013D (USDA)General Obligation Refunding Bond, Series 2013 (County LOBs) South Central Sanitary Sewer Sanitary Sewer Refunding of USDA Bonds FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 3,078,000 1,574,275 4,652,275 Total 2,456,000 1,252,925 3,708,925 Total 9,505,000 5,111,288 14,616,288 2018 2.500%56,000 76,950 132,950 2018 2.500%45,000 61,400 106,400 2018 3.000%260,000 355,425 615,425 2019 2.500%58,000 75,550 133,550 2019 2.500%46,000 60,275 106,275 2019 4.000%270,000 347,625 617,625 2020 2.500%59,000 74,100 133,100 2020 2.500%47,000 59,125 106,125 2020 5.000%280,000 336,825 616,825 2021 2.500%60,000 72,625 132,625 2021 2.500%48,000 57,950 105,950 2021 5.000%290,000 324,875 614,875 2022 2.500%62,000 71,125 133,125 2022 2.500%50,000 56,750 106,750 2022 5.000%300,000 310,775 610,775 2023 2.500%64,000 69,575 133,575 2023 2.500%51,000 55,500 106,500 2023 5.000%305,000 296,325 601,325 2024 2.500%65,000 67,975 132,975 2024 2.500%52,000 54,225 106,225 2024 5.000%325,000 282,225 607,225 2025 2.500%67,000 66,350 133,350 2025 2.500%53,000 52,925 105,925 2025 5.000%340,000 268,425 608,425 2026 2.500%68,000 64,675 132,675 2026 2.500%55,000 51,600 106,600 2026 4.000%345,000 253,875 598,875 2027 2.500%70,000 62,975 132,975 2027 2.500%56,000 50,225 106,225 2027 4.000%365,000 240,075 605,075 2028 2.500%72,000 61,225 133,225 2028 2.500%58,000 48,825 106,825 2028 3.250%375,000 225,475 600,475 2029 2.500%74,000 59,425 133,425 2029 2.500%59,000 47,375 106,375 2029 3.250%320,000 213,288 533,288 2030 2.500%76,000 57,575 133,575 2030 2.500%61,000 45,900 106,900 2030 3.250%325,000 202,888 527,888 2031 2.500%77,000 55,675 132,675 2031 2.500%62,000 44,375 106,375 2031 3.250%340,000 192,325 532,325 2032 2.500%79,000 53,750 132,750 2032 2.500%64,000 42,825 106,825 2032 3.500%345,000 181,275 526,275 2033 2.500%81,000 51,775 132,775 2033 2.500%65,000 41,225 106,225 2033 3.500%360,000 169,200 529,200 2034 2.500%83,000 49,750 132,750 2034 2.500%67,000 39,600 106,600 2034 3.500%375,000 156,600 531,600 2035 2.500%85,000 47,675 132,675 2035 2.500%68,000 37,925 105,925 2035 3.500%385,000 143,475 528,475 2036 2.500%88,000 45,550 133,550 2036 2.500%70,000 36,225 106,225 2036 3.500%400,000 130,000 530,000 2037 2.500%90,000 43,350 133,350 2037 2.500%72,000 34,475 106,475 2037 3.625%410,000 116,000 526,000 2038 2.500%92,000 41,100 133,100 2038 2.500%74,000 32,675 106,675 2038 3.625%425,000 101,138 526,138 2039 2.500%94,000 38,800 132,800 2039 2.500%76,000 30,825 106,825 2039 3.625%440,000 85,731 525,731 2040 2.500%97,000 36,450 133,450 2040 2.500%77,000 28,925 105,925 2040 3.625%455,000 69,781 524,781 2041 2.500%99,000 34,025 133,025 2041 2.500%79,000 27,000 106,000 2041 3.625%475,000 53,288 528,288 2042 2.500%102,000 31,550 133,550 2042 2.500%81,000 25,025 106,025 2042 3.625%490,000 36,069 526,069 2043 2.500%104,000 29,000 133,000 2043 2.500%83,000 23,000 106,000 2043 3.625%505,000 18,306 523,306 2044 2.500%107,000 26,400 133,400 2044 2.500%85,000 20,925 105,925 2044 - 2045 2.500%109,000 23,725 132,725 2045 2.500%88,000 18,800 106,800 2045 - 2046 2.500%112,000 21,000 133,000 2046 2.500%90,000 16,600 106,600 2046 - 2047 2.500%115,000 18,200 133,200 2047 2.500%92,000 14,350 106,350 2047 - 2048 2.500%118,000 15,325 133,325 2048 2.500%94,000 12,050 106,050 2048 - 2049 2.500%121,000 12,375 133,375 2049 2.500%97,000 9,700 106,700 2049 - 2050 2.500%124,000 9,350 133,350 2050 2.500%99,000 7,275 106,275 2050 - 2051 2.500%127,000 6,250 133,250 2051 2.500%102,000 4,800 106,800 2051 - 2052 2.500%123,000 3,075 126,075 2052 2.500%90,000 2,250 92,250 2052 - Dated Date:1/22/2013 Next Call:Current Dated Date:1/22/2013 Next Call:Current Dated Date:4/24/2013 Next Call:6/1/2023 Purpose:Sanitary Sewer Insurance:n/a Purpose:Sanitary Sewer Insurance:n/a Purpose:Refunding of USDA Bonds Insurance:n/a Coupon Dates:Jun 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 General Obligation Bonds February 27, 2018 50Harnett County, NC $1,485,000 $1,085,000 $2,315,000 General Obligation Refunding Bond, Series 2013 (County LOBs) West Central General Obligation Refunding Bond, Series 2013 (County LOBs) Northwest General Obligation Refunding Bond, Series 2013 (County LOBs) Southwest Refunding of USDA Bonds Refunding of USDA Bonds Refunding of USDA Bonds FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 1,200,000 302,825 1,502,825 Total 660,000 158,163 818,163 Total 1,845,000 456,388 2,301,388 2018 3.000%100,000 49,575 149,575 2018 3.000%65,000 27,238 92,238 2018 3.000%165,000 76,213 241,213 2019 4.000%100,000 46,575 146,575 2019 4.000%65,000 25,288 90,288 2019 4.000%165,000 71,263 236,263 2020 5.000%100,000 42,575 142,575 2020 5.000%65,000 22,688 87,688 2020 5.000%170,000 64,663 234,663 2021 5.000%105,000 38,275 143,275 2021 5.000%60,000 19,888 79,888 2021 5.000%165,000 57,363 222,363 2022 5.000%110,000 33,175 143,175 2022 5.000%60,000 16,988 76,988 2022 5.000%165,000 49,363 214,363 2023 5.000%115,000 27,875 142,875 2023 5.000%60,000 14,088 74,088 2023 5.000%170,000 41,413 211,413 2024 5.000%115,000 22,575 137,575 2024 5.000%60,000 11,288 71,288 2024 5.000%170,000 33,563 203,563 2025 5.000%115,000 17,675 132,675 2025 5.000%60,000 8,738 68,738 2025 5.000%175,000 26,263 201,263 2026 4.000%115,000 12,775 127,775 2026 4.000%55,000 6,188 61,188 2026 4.000%165,000 18,763 183,763 2027 4.000%115,000 8,175 123,175 2027 4.000%55,000 3,988 58,988 2027 4.000%170,000 12,163 182,163 2028 3.250%110,000 3,575 113,575 2028 3.250%55,000 1,788 56,788 2028 3.250%165,000 5,363 170,363 2029 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2033 - - - 2034 - 2034 - 2034 - 2035 - 2035 - 2035 - 2036 - 2036 - 2036 - 2037 - 2037 - 2037 - 2038 - 2038 - 2038 - 2039 - 2039 - 2039 - 2040 - 2040 - 2040 - 2041 - 2041 - 2041 - 2042 - 2042 - 2042 - 2043 - 2043 - 2043 - 2044 - 2044 - 2044 - 2045 - 2045 - 2045 - 2046 - 2046 - 2046 - 2047 - 2047 - 2047 - 2048 - 2048 - 2048 - 2049 - 2049 - 2049 - 2050 - 2050 - 2050 - 2051 - 2051 - 2051 - 2052 - 2052 - 2052 - Dated Date:4/24/2013 Next Call:6/1/2023 Dated Date:4/24/2013 Next Call:6/1/2023 Dated Date:4/24/2013 Next Call:6/1/2023 Purpose:Refunding of USDA Bonds Insurance:n/a Purpose:Refunding of USDA Bonds Insurance:n/a Purpose:Refunding of USDA Bonds Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 General Obligation Bonds February 27, 2018 51Harnett County, NC $1,000,000 $2,765,000 $1,020,000 General Obligation Refunding Bond, Series 2013 (County LOBs) Southeast General Obligation Refunding Bond, Series 2013 (County LOBs) East Central General Obligation Refunding Bond, Series 2013 (County LOBs) Riverside Refunding of USDA Bonds Refunding of USDA Bonds Refunding of USDA Bonds FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 830,000 260,625 1,090,625 Total 2,375,000 848,550 3,223,550 Total 925,000 471,700 1,396,700 2018 3.000%45,000 32,450 77,450 2018 3.000%110,000 90,963 200,963 2018 3.000%25,000 34,388 59,388 2019 4.000%45,000 31,100 76,100 2019 4.000%110,000 87,663 197,663 2019 4.000%25,000 33,638 58,638 2020 5.000%50,000 29,300 79,300 2020 5.000%115,000 83,263 198,263 2020 5.000%25,000 32,638 57,638 2021 5.000%50,000 27,150 77,150 2021 5.000%120,000 78,363 198,363 2021 5.000%25,000 31,538 56,538 2022 5.000%55,000 24,750 79,750 2022 5.000%125,000 72,563 197,563 2022 5.000%25,000 30,338 55,338 2023 5.000%55,000 22,100 77,100 2023 5.000%130,000 66,513 196,513 2023 5.000%30,000 29,138 59,138 2024 5.000%60,000 19,550 79,550 2024 5.000%135,000 60,463 195,463 2024 5.000%30,000 27,788 57,788 2025 5.000%60,000 17,000 77,000 2025 5.000%145,000 54,713 199,713 2025 5.000%30,000 26,488 56,488 2026 4.000%60,000 14,400 74,400 2026 4.000%150,000 48,513 198,513 2026 4.000%35,000 25,138 60,138 2027 4.000%60,000 12,000 72,000 2027 4.000%145,000 42,513 187,513 2027 4.000%40,000 23,738 63,738 2028 3.250%55,000 9,600 64,600 2028 3.250%145,000 36,713 181,713 2028 3.250%40,000 22,138 62,138 2029 3.250%55,000 7,813 62,813 2029 3.250%145,000 32,000 177,000 2029 3.250%40,000 20,838 60,838 2030 3.250%55,000 6,025 61,025 2030 3.250%145,000 27,288 172,288 2030 3.250%40,000 19,538 59,538 2031 3.250%55,000 4,238 59,238 2031 3.250%140,000 22,575 162,575 2031 3.250%40,000 18,238 58,238 2032 3.500%50,000 2,450 52,450 2032 3.500%135,000 18,025 153,025 2032 3.500%45,000 16,938 61,938 2033 3.500%20,000 700 20,700 2033 3.500%130,000 13,300 143,300 2033 3.500%45,000 15,363 60,363 2034 - 2034 3.500%125,000 8,750 133,750 2034 3.500%45,000 13,788 58,788 2035 - 2035 3.500%125,000 4,375 129,375 2035 3.500%45,000 12,213 57,213 2036 - 2036 - - - 2036 3.500%45,000 10,638 55,638 2037 - 2037 - - - 2037 3.625%50,000 9,063 59,063 2038 - 2038 - 2038 3.625%50,000 7,250 57,250 2039 - 2039 - 2039 3.625%50,000 5,438 55,438 2040 - 2040 - 2040 3.625%50,000 3,625 53,625 2041 - 2041 - 2041 3.625%50,000 1,813 51,813 2042 - 2042 - 2042 - 2043 - 2043 - 2043 - 2044 - 2044 - 2044 - 2045 - 2045 - 2045 - 2046 - 2046 - 2046 - 2047 - 2047 - 2047 - 2048 - 2048 - 2048 - 2049 - 2049 - 2049 - 2050 - 2050 - 2050 - 2051 - 2051 - 2051 - 2052 - 2052 - 2052 - Dated Date:4/24/2013 Next Call:6/1/2023 Dated Date:4/24/2013 Next Call:6/1/2023 Dated Date:4/24/2013 Next Call:6/1/2023 Purpose:Refunding of USDA Bonds Insurance:n/a Purpose:Refunding of USDA Bonds Insurance:n/a Purpose:Refunding of USDA Bonds Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Revenue Bonds February 27, 2018 52Harnett County, NC $10,673,000 Enterprise System Revenue Refunding Bond, Series 2015 (Regions) Refunding of FY Coupon Principal Interest Total Total 10,418,000 1,647,384 12,065,384 2018 2.530%833,000 263,575 1,096,575 2019 2.530%855,000 242,501 1,097,501 2020 2.530%875,000 220,869 1,095,869 2021 2.530%896,000 198,732 1,094,732 2022 2.530%922,000 176,063 1,098,063 2023 2.530%944,000 152,736 1,096,736 2024 2.530%970,000 128,853 1,098,853 2025 2.530%993,000 104,312 1,097,312 2026 2.530%1,015,000 79,189 1,094,189 2027 2.530%1,046,000 53,510 1,099,510 2028 2.530%1,069,000 27,046 1,096,046 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - Dated Date:4/15/2015 Next Call:Current1 Purpose:Refinancing / W&S Insurance:n/a Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 1 In whole or in part on any day on or before May 1, 2020: 103%; after May 1, 2020 to and including May 1, 2025: 102%; after May 1, 2025: 101% State Bond Loans February 27, 2018 53Harnett County, NC $864,047 $1,000,000 $15,000,000 2001 Harnett / Wake Transmission Line 2003 Southwest Regional III 2007 Revolving Loan Harnett / Wake Transmission Line Water Sanitary Sewer FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 129,607 13,609 143,216 Total 263,158 31,737 294,895 Total 7,500,000 909,563 8,409,563 2018 5.250%43,202 6,804 50,007 2018 4.020%52,632 10,579 63,211 2018 2.205%750,000 165,375 915,375 2019 5.250%43,202 4,536 47,739 2019 4.020%52,632 8,463 61,095 2019 2.205%750,000 148,838 898,838 2020 5.250%43,202 2,268 45,470 2020 4.020%52,632 6,347 58,979 2020 2.205%750,000 132,300 882,300 2021 - - - 2021 4.020%52,632 4,232 56,863 2021 2.205%750,000 115,763 865,763 2022 - - - 2022 4.020%52,632 2,116 54,747 2022 2.205%750,000 99,225 849,225 2023 - - - 2023 - 2023 2.205%750,000 82,688 832,688 2024 - - - 2024 - 2024 2.205%750,000 66,150 816,150 2025 - - - 2025 - 2025 2.205%750,000 49,613 799,613 2026 - - - 2026 - 2026 2.205%750,000 33,075 783,075 2027 - - - 2027 - 2027 2.205%750,000 16,538 766,538 2028 - - - 2028 - 2028 - - - 2029 - - - 2029 - 2029 - - - 2030 - - - 2030 - 2030 - - - 2031 - - - 2031 - 2031 - - - 2032 - - - 2032 - 2032 - - - 2033 - - - 2033 - 2033 - - - Dated Date:3/29/2001 Next Call:Unknown Dated Date:3/15/2003 Next Call:Unknown Dated Date:5/11/2007 Next Call:Unknown Purpose:Harnett / Wake Insurance:n/a Purpose:Water Insurance:n/a Purpose:Sanitary Sewer Insurance:n/a Transmission Line Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 State Bond Loans February 27, 2018 54Harnett County, NC $4,366,515 $6,195,019 2011 East Central Revolving Loan 2013 Erwin WW Revolving Loan Water Sanitary Sewer FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 3,274,886 581,620 3,856,506 Total 4,956,015 1,034,196 5,990,212 2018 2.220%218,326 72,702 291,028 2018 2.455%309,751 121,670 431,421 2019 2.220%218,326 67,856 286,181 2019 2.455%309,751 114,066 423,817 2020 2.220%218,326 63,009 281,335 2020 2.455%309,751 106,461 416,212 2021 2.220%218,326 58,162 276,488 2021 2.455%309,751 98,857 408,608 2022 2.220%218,326 53,315 271,641 2022 2.455%309,751 91,253 401,004 2023 2.220%218,326 48,468 266,794 2023 2.455%309,751 83,648 393,399 2024 2.220%218,326 43,621 261,947 2024 2.455%309,751 76,044 385,795 2025 2.220%218,326 38,775 257,100 2025 2.455%309,751 68,439 378,190 2026 2.220%218,326 33,928 252,254 2026 2.455%309,751 60,835 370,586 2027 2.220%218,326 29,081 247,407 2027 2.455%309,751 53,231 362,982 2028 2.220%218,326 24,234 242,560 2028 2.455%309,751 45,626 355,377 2029 2.220%218,326 19,387 237,713 2029 2.455%309,751 38,022 347,773 2030 2.220%218,326 14,541 232,866 2030 2.455%309,751 30,418 340,168 2031 2.220%218,326 9,694 228,019 2031 2.455%309,751 22,813 332,564 2032 2.220%218,326 4,847 223,173 2032 2.455%309,751 15,209 324,960 2033 - - - 2033 2.455%309,751 7,604 317,355 Dated Date:10/14/2011 Next Call:Unknown Dated Date:1/13/2013 Next Call:Unknown Purpose:Water Insurance:n/a Purpose:Sanitary Sewer Insurance:n/a Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 Coupon Dates:May 1 / Nov 1 Maturity Date:May 1 Installment Purchases February 27, 2018 55Harnett County, NC $2,100,000 $743,310 2004 IPC (Wachovia)2011 IPC (SunTrust) - Public Utilities Portion only Highway 87 Refunding of 2002 COPs, Water & Sewer FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 280,000 18,942 298,942 Total 426,450 36,874 463,324 2018 4.510%140,000 12,628 152,628 2018 2.535%64,950 9,987 74,937 2019 4.510%140,000 6,314 146,314 2019 2.535%63,660 8,357 72,017 2020 - - - 2020 2.535%62,250 6,761 69,011 2021 - - - 2021 2.535%60,960 5,200 66,160 2022 - - - 2022 2.535%59,610 3,671 63,281 2023 - - - 2023 2.535%58,230 2,178 60,408 2024 - - - 2024 2.535%56,790 720 57,510 2025 - - - 2025 - - 2026 - - - 2026 - - - 2027 - - - 2027 - - - 2028 - - - 2028 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - Dated Date:6/8/2004 Next Call:6/8/2016 1 Dated Date:11/15/2011 Next Call:12/1/2020 1 Purpose:Highway 87 Insurance:n/a Purpose:Refinancing / W&S Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 1 Any date at 101%1 The County may prepay, in whole on any regularly scheduled payment date at a prepayment price of 100% of such principal amount prepaid LOBs (Linked to Offsetting District GO Bonds) February 27, 2018 56Harnett County, NC $20,065,000 Limited Obligation Bonds, Series 2013 District Refundings FY Coupon Principal Interest Total Total 17,340,000 7,609,538 24,949,538 2018 3.000%770,000 666,250 1,436,250 2019 4.000%780,000 643,150 1,423,150 2020 4.000%805,000 611,950 1,416,950 2021 4.000%815,000 577,450 1,392,450 2022 4.000%840,000 537,950 1,377,950 2023 4.000%865,000 497,450 1,362,450 2024 5.000%895,000 457,450 1,352,450 2025 5.000%925,000 419,300 1,344,300 2026 4.000%925,000 379,650 1,304,650 2027 4.000%950,000 342,650 1,292,650 2028 3.250%945,000 304,650 1,249,650 2029 3.250%560,000 273,938 833,938 2030 3.250%565,000 255,738 820,738 2031 3.250%575,000 237,375 812,375 2032 3.500%575,000 218,688 793,688 2033 3.500%555,000 198,563 753,563 2034 3.500%545,000 179,138 724,138 2035 3.500%555,000 160,063 715,063 2036 3.500%445,000 140,638 585,638 2037 3.625%460,000 125,063 585,063 2038 3.625%475,000 108,388 583,388 2039 3.625%490,000 91,169 581,169 2040 3.625%505,000 73,406 578,406 2041 3.625%525,000 55,100 580,100 2042 3.625%490,000 36,069 526,069 2043 3.625%505,000 18,306 523,306 Dated Date:4/24/2013 Next Call:6/1/2023 Purpose:District Refundings Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Jun 1 Appendix C Solid Waste Debt Profile February 27, 2018 57Harnett County, NC February 27, 2018 Solid Waste Supported Debt Service Par Outstanding –Estimated as of 6/30/2017 Existing Solid Waste Supported Debt Type Par Amount COPs / LOBs / IPCs $1,510,250 Special Obligation Bonds $1,102,000 Total $2,612,250 Source: LGC Bond Ledger, County Staff, and 2017 CAFR Solid Waste Supported Debt Service 58Harnett County, NC 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Millions Principal Interest FY Principal Interest Total 10-yr Payout Total 2,612,250 342,018 2,954,268 2018 471,977 126,813 598,790 95.9% 2019 330,662 51,444 382,106 100.0% 2020 306,766 43,792 350,558 100.0% 2021 310,434 36,133 346,567 100.0% 2022 312,538 28,389 340,927 100.0% 2023 315,480 20,596 336,076 100.0% 2024 118,422 12,731 131,153 100.0% 2025 115,759 9,780 125,539 100.0% 2026 112,854 6,899 119,754 100.0% 2027 110,111 4,090 114,201 100.0% 2028 107,246 1,351 108,597 100.0% February 27, 2018 Existing Solid Waste Supported Debt Summary 59Harnett County, NC Total Solid Waste Supported Debt Service FY Principal Interest Total Total 2,612,250 342,018 2,954,268 2018 471,977 126,813 598,790 2019 330,662 51,444 382,106 2020 306,766 43,792 350,558 2021 310,434 36,133 346,567 2022 312,538 28,389 340,927 2023 315,480 20,596 336,076 2024 118,422 12,731 131,153 2025 115,759 9,780 125,539 2026 112,854 6,899 119,754 2027 110,111 4,090 114,201 2028 107,246 1,351 108,597 IPCs / LOBs / COPs FY Principal Interest Total Total 1,510,250 244,062 1,754,312 2018 298,977 99,373 398,350 2019 153,662 28,312 181,974 2020 125,766 25,067 150,833 2021 124,434 21,915 146,349 2022 122,538 18,803 141,341 2023 120,480 15,741 136,221 2024 118,422 12,731 131,153 2025 115,759 9,780 125,539 2026 112,854 6,899 119,754 2027 110,111 4,090 114,201 2028 107,246 1,351 108,597 Special Obligation Bonds FY Principal Interest Total Total 1,102,000 97,957 1,199,957 2018 173,000 27,440 200,440 2019 177,000 23,132 200,132 2020 181,000 18,725 199,725 2021 186,000 14,218 200,218 2022 190,000 9,587 199,587 2023 195,000 4,856 199,856 2024 - - - 2025 - - - 2026 - - - 2027 - - - 2028 - - - COPs / LOBs / IPCs February 27, 2018 60Harnett County, NC $1,947,414 $30,497,000 2007A COPs (partial refinancing)Solid Waste Equipment Lease 2015 Refunding COPs (Regions) Refinancing 2000 COPs, Solid Waste Transfer Station Solid Waste Equipment Refinancing 2007 COPs, Solid Waste Transfer Station FY Coupon Principal Interest Total FY Coupon Principal Interest Total FY Coupon Principal Interest Total Total 127,356 65,076 192,433 Total 180,835 4,269 185,104 Total 1,202,059 174,716 1,376,775 2018 4.000%127,356 65,076 192,433 2018 1.700%154,795 4,217 159,012 2018 2.520%16,825 30,080 46,905 2019 - - - 2019 1.700%26,040 52 26,092 2019 2.520%127,622 28,260 155,882 2020 - - - 2020 - 2020 2.520%125,766 25,067 150,833 2021 - - - 2021 - 2021 2.520%124,434 21,915 146,349 2022 - - - 2022 - 2022 2.520%122,538 18,803 141,341 2023 - - - 2023 - 2023 2.520%120,480 15,741 136,221 2024 - - - 2024 - 2024 2.520%118,422 12,731 131,153 2025 - - - 2025 - 2025 2.520%115,759 9,780 125,539 2026 - - - 2026 - 2026 2.520%112,854 6,899 119,754 2027 - - - 2027 - 2027 2.520%110,111 4,090 114,201 2028 - - - 2028 - 2028 2.520%107,246 1,351 108,597 2029 - - - 2029 - - - 2029 - - - 2030 - - - 2030 - - - 2030 - - - 2031 - - - 2031 - - - 2031 - - - 2032 - - - 2032 - - - 2032 - - - 2033 - - - 2033 - - - 2033 - - - Dated Date:5/16/2007 Next Call:12/1/2017 Dated Date:unknown Next Call:unknown Dated Date:4/15/2015 Next Call:Current1 Purpose:Refinancing / Solid Waste Insurance:FSA Purpose:Solid Waste Equipment Insurance:unknown Purpose:Refinancing / Solid Waste Insurance:n/a Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Coupon Dates:unknown Maturity Date:unknown Coupon Dates:Jun 1 / Dec 1 Maturity Date:Dec 1 Note: Solid Waste portion interpolated based on Bond Ledger percentages.Note: Interpolated from 2014 CAFR Note: Solid Waste portion interpolated based on Bond Ledger percentages. 1 In whole or in part on any day on or before May 1, 2020: 103%; after May 1, 2020 to and including May 1, 2025: 102%; after May 1, 2025: 101% Special Obligation Bonds February 27, 2018 61Harnett County, NC $1,750,000 2013 Special Obligation Bond (Cape Fear Farm Credit) Dunn-Erwin MSW Landfill, Convenience Center and Transfer Station FY Coupon Principal Interest Total Total 1,102,000 97,957 1,199,957 2018 2.490%173,000 27,440 200,440 2019 2.490%177,000 23,132 200,132 2020 2.490%181,000 18,725 199,725 2021 2.490%186,000 14,218 200,218 2022 2.490%190,000 9,587 199,587 2023 2.490%195,000 4,856 199,856 2024 - - - 2025 - - - 2026 - - - 2027 - - - 2028 - - - 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - Dated Date:1/23/2013 Next Call:Current1 Purpose:Solid Waste Insurance:n/a Coupon Dates:Feb 1 / Aug 1 Maturity Date:Feb 1 1 In whole or in part on any date at par Appendix D Financial Policies February 27, 2018 62Harnett County, NC Fiscal Policy Guidelines For: Harnett County, North Carolina Originally Adopted: May 7, 2012 Amendments Adopted: 11.7.16 FISCAL POLICY GUIDELINES Harnett County, North Carolina 1 TABLE OF CONTENTS Page Objectives 2 Capital Improvement Budget Policies 3-4 Debt Policies 5 Reserve Policies 6 Budget Development Policies 7 Education Funding Policies 8 Cash Management / Investment Policies 9-10 Enterprise Funds Policy 11-12 Summary of Policy Ratios 13 FISCAL POLICY GUIDELINES Harnett County, North Carolina 2 FISCAL POLICY GUIDELINES - OBJECTIVES This fiscal policy will influence and guide the financial management practice of Harnett County, North Carolina. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy: Contributes to the County's ability to insulate itself from fiscal crisis, Enhances short term and long term financial credit ability by helping to achieve the highest credit and bond ratings possible, Promotes long-term financial stability by establishing clear and consistent guidelines, Directs attention to the total financial picture of the County rather than single issue areas, Promotes the view of linking long-run financial planning with day to day operations, and Provides the County Staff, the County Board of Commissioners and the County citizens a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines. This policy will be reviewed periodically by County staff and any changes will be approved by the Board of Commissioners. To these ends, the following fiscal policy statements are presented. FISCAL POLICY GUIDELINES Harnett County, North Carolina 3 CAPITAL IMPROVEMENT BUDGET POLICIES 1. It is the responsibility of the County Board of Commissioners to provide for the capital facilities necessary to deliver municipal services to the citizens of the County, as well as facilities for the Harnett County Public Schools and the Central Carolina Community College system. 2. The County will consider all capital improvements in accordance with an adopted Capital Improvement Plan. 3. The Capital Improvement Plan is inclusive of Capital Improvements (renovations), Capital Replacement (vehicles and heavy equipment) and Major Capital Projects (new buildings). 4. The County will develop a five-year Capital Improvement Plan and review and update the plan annually. The Harnett County Public Schools and the Community College System will submit their respective five-year capital improvement requests annually and will provide a prioritization for the improvements within their request for the County Commissioner’s review. 5. The County will enact an annual capital budget based on the five-year Capital Improvement Plan, while considering changes in population, changes in real estate development, or changes in assumptions in the capital budget projections. 6. The County, in consultation with the Harnett County Public School and Community College Systems, will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. 7. The Capital Improvement Plan will include the estimated costs for the County to maintain all County, Public School and Community College assets at a level adequate to protect the public’s welfare and safety, the County's capital investment and to minimize future maintenance and replacement costs. A maintenance and replacement schedule will be developed and followed based upon these estimates. FISCAL POLICY GUIDELINES Harnett County, North Carolina 4 8. The County, in consultation with the Harnett County Public School and Community College Systems, will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval. 9. The County will pursue the most cost effective financing consistent with prudent financial management. FISCAL POLICY GUIDELINES Harnett County, North Carolina 5 DEBT POLICIES 1. The County will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues except where approved justification is provided. 2. The County will take a balanced approach to capital funding utilizing debt financing, capital reserves and pay-as-you-go funding that will provide the least financial impact on the taxpayer. Pay-as-you-go funding will come from budgeted appropriations. 3. When the County finances capital improvements or other projects by issuing bonds or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends. 4. Net debt as a percentage of estimated market value of taxable property shall not exceed 2.5%. Net debt is defined as any and all debt that is tax-supported. 5. Debt Service expenditures as a percent of total governmental fund expenditures should not exceed 15.0%. Should this ratio exceed 15%, staff must request an exception from the Board of Commissioners stating the justification and expected duration of the policy exception. Exceptions shall be reviewed and approved annually by the Board of Commissioners until compliance is achieved. 6. The County will retire tax anticipation debt, if any, annually and will retire bond anticipation debt within six months after completion of the project. 7. Payout of aggregate outstanding tax-supported debt principal shall be no less than 50.0% repaid in 10 years. FISCAL POLICY GUIDELINES Harnett County, North Carolina 6 RESERVE POLICIES 1. The County will maintain a minimum Unassigned Fund Balance, as defined by the Governmental Accounting Standards Board, at the close of each fiscal year equal to 15% of General Fund Expenditures with a targeted Unassigned Fund Balance equal to 20% of General Fund Expenditures. 2. In the event that funds are available over and beyond the 20% targeted amount, those funds may be transferred to a capital reserve fund, a capital projects fund, to pay-down debt or to fund other one-time uses. Such transfers or uses shall be approved by the Board of County Commissioners in conjunction with a staff recommendation based upon a fund balance analysis to be completed within six months of the close of each fiscal year taking into consideration the prior year’s financial statements, current year-to-date budget performance, current property tax valuations and the County’s most recently adopted capital improvement plan. 3. The County Board may, from time-to-time, utilize fund balances that will reduce Unassigned Fund Balance below the 15% minimum for the purposes of a declared fiscal emergency or other such purpose as to protect or enhance the long-term fiscal security of the County. In such circumstances, the Board will adopt a plan to restore the Unassigned Fund Balance to the target level within 36 months. If restoration cannot be accomplished within such time period without severe hardship to the County, then the Board will establish a different but appropriate time period. FISCAL POLICY GUIDELINES Harnett County, North Carolina 7 BUDGET DEVELOPMENT POLICIES 1. The Budget Process will be compliant with the North Carolina Local Government Budget and Fiscal Control Act. 2. One-time or other special revenues will not be used to finance continuing County operations but instead will be used for funding special projects. 3. The County will pursue an aggressive policy seeking the collection of current and delinquent property taxes, utility, license, permit and other fees due to the County. 4. County staff will generate reports that show actual revenues and expenditures compared to the budget and will present this to the County Board on a monthly basis. 5. Budget amendments will be brought to the County Board for consideration as needed. FISCAL POLICY GUIDELINES Harnett County, North Carolina 8 EDUCATION FUNDING POLICIES 1. It is the intent of the County to appropriate funding to the Board of Education to assure that the necessary resources are provided for current expense and to meet the low wealth funding requirements. 2. The County will provide current expense funding based upon the most recent known 2nd month average daily membership (ADM) times the most recent known Three-Year Average of Appropriations as determined by the NC Department of Public Instruction. 3. The County will provide funding for an annual classroom teacher supplement to those teachers who were employed as of September 1 of the preceding fiscal year. To remain eligible for the payment, the teacher must remain in the employment of the Harnett County School system, as a teacher, at the time the payment is made. For purposes of this funding, a Teacher is defined as those individuals who are included in the Public School Personnel Summary provided by the NC Department of Public Instruction. 4. The County will provide funds for Capital and Capital Maintenance. The source of funding will be a portion of the sales tax expansion basis and will be disbursed based upon the Board of Education’s latest approved Capital Improvement Plan (CIP) at the discretion of the Board of County Commissioners. 5. The County will detail the amounts to be budgeted under this policy as part of the annual budget ordinance. FISCAL POLICY GUIDELINES Harnett County, North Carolina 9 CASH MANAGEMENT / INVESTMENT POLICIES 1. It is the intent of the County that public funds will be invested to the extent possible to reduce the dependence upon property tax revenues. Funds will be invested with the chief objectives of safety of principal, liquidity, and yield, in that order. All deposits and investments of County funds will be in accordance with N.C.G.S. 159. 2. Up to one-half (50%) of the appropriations to Non-County Agencies and to non debt-supported capital outlays for County Departments can be encumbered prior to December 31. Any additional authorization shall require the County Manager’s written approval upon justification. The balance of these appropriations may be encumbered after January 1, upon a finding by the County Manager that there is a reasonable expectation that the County’s Budgeted Revenues will be realized. 3. The County will use a Central Depository to maximize the availability and mobility of cash for all funds that can be legally and practically combined. 4. Cash Flows will be forecasted and investments will be made to mature when funds are projected to be needed to meet cash flow requirements. 5. Liquidity: No less than 20% of funds available for investment will be maintained in liquid investments at any point in time. 6. Maturity: All investments will mature in no more than thirty-six (36) months from their purchase date. 7. Custody: All investments will be purchased “payment-verses-delivery” and if certificated will be held by the Finance Officer in the name of the County. All non-certificated investments will be held in book-entry form in the name of the County with the County’s third party Custodian (Safekeeping Agent). 8. Authorized Investments: The County may deposit County Funds into: Any Board approved Official Depository, if such funds are secured in accordance with NCGS-159 (31). The County may invest County Funds in: the North Carolina Capital Management Trust, US Treasury Securities, US Agency Securities specifically authorized in GS-159 and rated no lower than “AAA”, and Commercial Paper meeting the requirements of NCGS-159 plus having a national bond rating. 9. Diversification: No more than 10% of the County’s investment funds may be invested in a specific company’s commercial paper and no more than 25% of the County’s investment funds may be invested in commercial paper. No more than FISCAL POLICY GUIDELINES Harnett County, North Carolina 10 25% of the County’s investments may be invested in any one US Agency’s Securities. 10. Allocation: Investment income will be allocated to each participating fund or account based on a fair and equitable formula determined by the Finance Director. FISCAL POLICY GUIDELINES Harnett County, North Carolina 11 ENTERPRISE FUNDS POLICY The County maintains Enterprise Funds (primarily water and wastewater) that are self-sustaining for both operational and capital purposes. The Enterprise Funds will adhere to the County’ Fiscal Policy with any exceptions being reported in this section. These policies will allow for orderly expansion of services and to allow operation within the financial framework insuring efficiency while providing necessary services. They promote long-term financial stability. They insure the future viability of the system while providing for predictable and reasonable rate increases. Budget Policies: Enterprise Funds will develop a multi-year capital improvement plan, which will be reviewed and updated annually. Any improvements required to meet new regulatory requirements or to meet changes in the service demands will be included in either the capital improvement plan or the annual budget request. Service rates will be reviewed annually as part of the budget process. Service rates will be adjusted as needed to provide adequate funding for the proper operation, maintenance, and expansion of the system. Service rates will be adjusted as necessary to meet bond covenants, debt service obligations, and Adopted Financial Policy Guidelines. Debt Policies: The Enterprise Fund is responsible for setting rates and charges at such a level which maintains the “self-supporting” nature of the fund. The County will target a minimum amount of equity funding of 10% of the Enterprise Fund capital improvement plan on a five-year rolling average. The Enterprise Fund will comply with all applicable bond covenants. FISCAL POLICY GUIDELINES Harnett County, North Carolina 12 The Enterprise Fund will maintain a debt service coverage ratio as defined by the General Indenture of the Enterprise System Revenue Bonds. These minimum requirements are summarized to be: o 1.20x debt service coverage on Parity Indebtedness (Revenues for this measure may include 20% of the balance in the Surplus Account at the end of the preceding Fiscal Year) o 1.00x debt service coverage of Parity Indebtedness, General Obligation Indebtedness, Subordinate Indebtedness, Other Indebtedness, and any amount due to the Qualified Reserve Fund or Qualified Reserve Fund Substitute. Reserve Policies: The County has adopted a comprehensive strategy for the long-term stability and financial health of each Enterprise Fund that provides for annual increases in fund reserves to an established goal of 50% of operating and maintenance expenses. FISCAL POLICY GUIDELINES Harnett County, North Carolina 13 SUMMARY OF KEY POLICY RATIOS Ratio Policy Tax Supported Debt to Assessed Value: <2.5% Tax Supported Debt Service vs. Expenditures: <15.0% Tax Supported 10-Year Payout Ratio: >50.0% General Fund Unassigned Fund Balance as a Percent of Operating Budget: >15.0% Enterprise Fund Pay-go Capital (5-year Rolling Average): >10.0% Enterprise Fund Parity Debt Service Coverage (with 20% of Surplus Account): >1.20x Enterprise Fund Debt Service Coverage on all Indebtedness: >1.00x Enterprise Fund Reserves as a Percent of Operating and Maintenance: >50% Appendix E Rating Reports February 27, 2018 63Harnett County, NC U.S. PUBLIC FINANCE CREDIT OPINION 23 March 2017 New Issue Analyst Contacts Edward (Ted) Damutz 212-553-6990 VP-Sr Credit Officer edward.damutz@moodys.com Edna R Marinelarena +1 212 553 1383 Analyst edna.marinelarena@moodys.com CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 Harnett County, NC New Issue - Moody's Assigns Initial Aa2 to Harnett County, NC's $25.2M GO Bonds 2017; Upgrades LOBs/COPs to Aa3 Summary Rating Rationale Moody's Investors Service assigns an initial Aa2 rating to the Harnett County, NC's $25.2 million General Obligation School Bonds, Series 2017. Concurrently, Moody's has upgraded the rating to Aa3 from A1 on the county's $126.3 million of outstanding lease revenue limited obligation bonds (LOBs) and certificates of participation (COPs). The assignment of the Aa2 GO rating reflects the favorable location between Raleigh (Aaa stable) and Fayetteville (Aa1), the sizable and growing tax base with below average wealth levels, healthy reserves and liquidity, and manageable fixed costs. The upgrade of the outstanding lease revenue LOBs and COPs reflects the one notch rating distinction lower than the GO based on the risk of non-appropriation, the more essential nature of the projects funded (schools and water system), adequate collateralization and sound legal provisions. Credit Strengths »Sizable tax base with favorable location poised for further growth »Healthy reserves and cash levels »Low pension cost Credit Challenges »Below average wealth levels »Elevated debt compared to national trends Rating Outlook Outlooks are typically not assigned to issuers with this limited amount of debt. Factors that Could Lead to an Upgrade »Decreased debt burden »Increase in reserve and liquidity levels »Significant economic expansion and diversification MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Factors that Could Lead to a Downgrade »Multi-year trend of structural budget imbalance »Reduction of General Fund balance and other available reserves »Deterioration of the county's tax base Key Indicators Exhibit 1 Harnett (County of) NC 2012 2013 2014 2015 2016 Economy/Tax Base Total Full Value ($000) $ 7,174,018 $ 7,358,426 $ 7,369,458 $ 7,827,919 $ 8,150,875 Full Value Per Capita $ 62,081 $ 61,943 $ 60,510 $ 62,966 $ 63,686 Median Family Income (% of US Median)83.0% 83.4% 81.1% 83.1% 83.1% Finances Operating Revenue ($000) $ 105,105 $ 106,373 $ 108,200 $ 110,760 $ 117,739 Fund Balance as a % of Revenues 20.9% 25.8% 28.8% 30.3% 33.7% Cash Balance as a % of Revenues 15.6% 19.2% 22.1% 23.7% 25.2% Debt/Pensions Net Direct Debt ($000) $ 121,236 $ 145,352 $ 142,608 $ 138,213 $ 154,172 Net Direct Debt / Operating Revenues (x)1.2x 1.4x 1.3x 1.2x 1.2x Net Direct Debt / Full Value (%)1.7% 2.0% 1.9% 1.8% 1.9% Moody's - adjusted Net Pension Liability (3-yr average) to Revenues (x) 0.3x 0.4x 0.5x 0.5x 0.5x Moody's - adjusted Net Pension Liability (3-yr average) to Full Value (%) 0.4% 0.6% 0.7% 0.7% 0.7% Source: Harnett County Comprehensive Annual Financial Reports, Moody's Investors Service Recent Developments In the Summer of 2015, Rooms To Go opened a 1.45 million square foot distribution and retail center just north of Dunn (A1). The project required an investment of $40 million to construct the building, stretching along I-95 for more than a quarter mile, resulting in the second largest Rooms To Go center in the US. A 65,000 square foot retail center is comprised multiple showroom and an outlet center. Construction was facilitated with a series of state, county and city incentives with the vast majority funding instructure improvements. Rooms To Go employs approximately 250 full-time employees at the Dunn facility including additional trucking contracts. Detailed Rating Considerations Economy and Tax Base: Continued Tax Base Growth, Poised for Further Expansion Located in central North Carolina (Aaa stable) just south of Wake County (Aaa stable), Harnett County has experienced continued economic expansion since the recession, with 3.2% average annual valuation growth over from 2012 to 2016. We expect the trajectory of economic expansion will increase as many of the projects currently underway are completed and come on-line. The county's $8.2 billion tax base benefits both from its adjacency to Fort Bragg and 30 mile commute to Research Triangle Park (RTP). Harnett County's central geographic location and role as a bedroom community to the Triangle area have spurred steady population growth and economic expansion during the past decade. The US Census ranks the micro-area of Dunn as one of the fastest growing populations in the country. The county has experienced significant growth as a result of the Department of Defense Base Realignment and Closure (BRAC) 2005 recommendation to relocate the Headquarters U.S. Army Forces and Headquarters U.S. Army Reserve Command to Fort This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2 23 March 2017 Harnett County, NC: New Issue - Moody's Assigns Initial Aa2 to Harnett County, NC's $25.2M GO Bonds 2017; Upgrades LOBs/COPs to Aa3 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Bragg, a U.S. Army installation located immediately south of the county. With approximately 57,000 military personnel, 11,000 civilian employees and 23,000 family members, Fort Bragg is one of the largest military complexes in the world. Unemployment in the county is elevated at 5.5% (December 2016) compared to 4.9% and 4.5% in the state and nation, respectively. Wealth indices remain considerably below state and national medians and full value per capital is only $63,686. Financial Operations and Reserves: Strengthening Operations Building Healthy Reserves and Liquidity Moody's expects the county to maintain a sound financial position given management's strong record of maintaining healthy fund balance levels in step with budgetary growth. The county has achieved six consecutive operating surpluses. Fiscal 2016 closed on a strong note with a $5.2 million operating surplus, growing the General Fund balance to $39.7 million or a healthy 33.7% of General Fund revenues. The unassigned portion increased to $26.3 million or 22.3% of General Fund revenues. The county enjoys a newly implemented ¼ cent sales tax with a voter approval rate of 70.8% in 2015, earmarked for school capital projects. Sales tax revenues grew by 12.6% and 15.0% in fiscal 2015 and 2016, respectively. Property taxes account for 52% of revenues ; Intergovernmental Revenues account for 17.3%; Sales tax/ Other taxes account for 16.1% in fiscal 2016. The fiscal 2017 budget conservatively projected utilization of reserves reflecting slight increases in the county's education expenses. Positively, sales tax receipts are tracking higher for the first six months of the fiscal year over last year. The tax rate remained flat for the fourth consecutive year. LIQUIDITY The county's liquidity remains strong with General Fund balance cash of $29.7 million or 25.2% of General Fund revenues in fiscal 2015. The fiscal combined operating fund balance was $46.1 million or a robust 47.5% of operating fund revenues. Debt and Pensions The county's direct debt burden, equal to 1.9% of full valuation, is higher than the 0.9% statewide median for similarly-rated credits and partially reflects the impact of a sizeable school capital program to meet growth in student enrollment. Amortization of principal is aggressively rapid, with 95% of principal retired within 10 years, and debt service comprised an above-average 15.4% of fiscal 2016 operating costs. The county next plans to issue long-term debt of approximately $17 million in 2019. DEBT STRUCTURE All debt issued by the county is fixed rate. DEBT-RELATED DERIVATIVES The county is not party to any swap agreements. PENSIONS AND OPEB The county contributes to the North Carolina Local Government Employees Retirement System (NCLGERS), defined benefit retirement plan administered by the State of North Carolina. We determined the county's share of liability for the state-run plan in proportion to its contributions to the plan. The county also operates a small Law Enforcement Officers' Special Separation Allowance plan. Moody's uses the adjusted net pension liability to improve comparability of reported pension liabilities. The adjustments are not intended to replace the county's reported liability information, but to improve comparability with other rated entities. The county's adjusted net pension liability, under Moody's methodology for adjusting reported pension data, is $55.9 million, or approximately a moderate 0.48 times operating revenues. The county has not been fully funding OPEB annual contribution requirements the last few years as it devises a strategy to address the liability. It addresses the annual cost on a pay-go basis and contributed 32.3% of the annual required contribution. The reported unfunded actuarial accrued liability was $24.6 million at 12/31/2014. 3 23 March 2017 Harnett County, NC: New Issue - Moody's Assigns Initial Aa2 to Harnett County, NC's $25.2M GO Bonds 2017; Upgrades LOBs/COPs to Aa3 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Management and Governance North Carolina counties have an institutional framework score of “Aaa”, or very strong. Counties operate under limited levy constraints. Pensions are well-funded. Counties have more limited mandates than cities, which supports this sector's overall operating consistency and maintenance of ample reserves. County management typically budgets conservatively for expenditures, which has led to the maintenance of healthy reserves despite significant pay-go financing. Prudent policies include maintaining the unassigned General Fund balance at a minimum 15% and a targeted 20% of budget. In the event that funds are available over and beyond the 20% targeted amount, those funds may be transferred to a capital reserve fund, a capital projects fund, to pay-down debt or to fund other one-time uses. Legal Security The GO bonds are secured by a pledge of the faith and credit and taxing power of the County. The LOBs and COPs are secured by the county's appropriation pledge and a first lien on pledged assets. Use of Proceeds Series 2017 GO bonds will finance construction of a new elementary school, as a portion of the November 2014 referendum. Benhaven Elementary will be approximately 114,000 square feet and will contain 58 educational spaces designed to accommodate 1,010 students. Obligor Profile The County is located adjacent to Fort Bragg and 35 miles south of Raleigh. The County comprises 595 square miles with a population estimated at 127,986. Methodology The principal methodology used in this rating was US Local Government General Obligation Debt published in December 2016. The additional methodology used in the lease rating was Lease, Appropriation, Moral Obligation and Comparable Debt of US State and Local Governments published in July 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. Ratings Exhibit 2 Harnett (County of) NC Issue Rating General Obligation School Bonds, Series 2017 Aa2 Rating Type Underlying LT Sale Amount $25,200,000 Expected Sale Date 05/09/2017 Rating Description General Obligation Source: Moody's Investors Service 4 23 March 2017 Harnett County, NC: New Issue - Moody's Assigns Initial Aa2 to Harnett County, NC's $25.2M GO Bonds 2017; Upgrades LOBs/COPs to Aa3 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE © 2017 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. 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REPORT NUMBER 1064921 5 23 March 2017 Harnett County, NC: New Issue - Moody's Assigns Initial Aa2 to Harnett County, NC's $25.2M GO Bonds 2017; Upgrades LOBs/COPs to Aa3 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 1 1820981 | 302557532 Summary: Har nett County, Nor th Carolina; Appr opr iations; General Obligation Primary Credit Analyst: Kimberly Barrett, Centennial (1) 303-721-4446; Kimberly.Barrett@spglobal.com Secondary Contact: Nora G Wittstruck, Centennial (1) 303-721-4362; nora.wittstruck@spglobal.com Table Of Contents Rationale Outlook Related Criteria And Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 2 1820981 | 302557532 Summary: Har nett County, Nor th Carolina; Appropr iations; General Obligation Rationale S&P Global Ratings assigned its 'AA-' long-term rating to Harnett County, N.C.'s series 2017 general obligation (GO) bonds and affirmed its 'AA-' rating on the county's outstanding GO debt. At the same time, we affirmed our 'A+' long-term rating on the county's appropriation debt. The outlook for all ratings is stable. The GO bonds are secured by the full faith and credit of the county; proceeds will be used to construct a new elementary school. The rating reflects our opinion of the county's Weak economy, with market value per capita of $63,487 and projected per capita effective buying income at 72.8% of the national level; Strong management, with "good" financial policies and practices under our Financial Management Assessment methodology; Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016; Very strong budgetary flexibility, with an available fund balance in fiscal 2016 of 23% of operating expenditures; Very strong liquidity, with total government available cash at 66.8% of total governmental fund expenditures and 4.9x governmental debt service, and access to external liquidity we consider strong; Strong debt and contingent liability profile, with debt service carrying charges at 13.6% of expenditures and net direct debt that is 134.2% of total governmental fund revenue, as well as low overall net debt at less than 3% of market value and rapid amortization, with 68.4% of debt scheduled to be retired in 10 years; and Very strong institutional framework score. Weak economy We consider Harnett County's economy weak. The county has an estimated population of 127,986. The county has a projected per capita effective buying income of 72.8% of the national level and per capita market value of $63,487. Overall, the county's market value grew by 2.4% over the past year to $8.1 billion in 2017. The county unemployment rate was 6.7% in 2015. Harnett County is located about 35 miles south of Durham and Raleigh, and about one hour from the Research Triangle, where many of the county's residents commute for work. The county is just north of Fort Bragg, which is located in neighboring Cumberland County. Fort Bragg is the nation's largest Army base by population, and its Credit Profile US$25.2 mil GO sch bnds ser 2017 due 05/01/2037 Long Term Rating AA-/Stable New WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 3 1820981 | 302557532 Summary: Harnett County, North Carolina; Appropriations; General Obligation long-standing presence results in a number of defense industry-related businesses being located in Harnett. The county's assessed value has increased 10.5% over the past five years and the area has also experienced growth through a variety of recent economic development projects. Harnett recently expanded its economic development office and increased efforts to coordinate with other economic development entities with the goal of becoming more competitive with surrounding areas. Highlights over the past two years include construction of a mixed-use business park, the opening of a large furniture distribution center, the expansion of a defense-industry manufacturer, as well as a variety of other retail developments. Strong management We view the county's management as strong, with "good" financial policies and practices under our Financial Management Assessment methodology, indicating financial practices exist in most areas, but that governance officials might not formalize or monitor all of them on a regular basis. When developing its budget, the county reviews historical revenue and expenditure data, and has a practice that it will not appropriate nonrecurring revenues for recurring expenses. Budget amendments can be made as needed throughout the fiscal year, and management provides monthly budget-to-actual performance reports to the commission. Harnett develops and maintains a five-year capital improvement plan that details costs of each project. Its investment policy focuses on liquidity and investments are made with cash flow needs in mind. The county's debt management policy includes quantitative metrics that limit the amount of debt to 15% of total government expenditures, and requires 50% of debt to be paid within 10 years. The county's formal reserve policy requires maintenance of an unassigned fund balance of at least 15% of general fund expenditures, with a target level of 20%. The county does not have a formal long-term financial plan that includes multiyear forecasts of revenues and expenditures. Strong budgetary performance Harnett County's budgetary performance is strong in our opinion. The county had operating surpluses of 4.8% of expenditures in the general fund and of 3.1% across all governmental funds in fiscal 2016. We adjusted for recurring and nonrecurring transfers into and out of the general fund. After these adjustments, for fiscal 2016, the county experienced an operating surplus of approximately $5.4 million, or 4.8% of general fund expenditures. The county's operating revenue base is diverse, with property taxes making up 52% of general fund revenues; intergovernmental revenues 18%; sales taxes 16%; and other taxes, services, and fees the remainder. We expect Harnett's operating performance to remain strong, because we believe management will remain prudent in managing the county's budget. Very strong budgetary flexibility Harnett County's budgetary flexibility is very strong, in our view, with an available fund balance in fiscal 2016 of 23% of operating expenditures, or $26.3 million. At this time, management does not plan to draw down the county's reserve in fiscal 2017, and expects to maintain available fund balance at current levels over the next two fiscal years. As a result, we believe the county will likely maintain very strong budgetary flexibility. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 4 1820981 | 302557532 Summary: Harnett County, North Carolina; Appropriations; General Obligation Very strong liquidity In our opinion, Harnett County's liquidity is very strong, with total government available cash at 66.8% of total governmental fund expenditures and 4.9x governmental debt service in 2016. In our view, the county has strong access to external liquidity if necessary. The county's strong access to external liquidity is demonstrated through its access to the market during the past two decades. Harnett County has issued GO, enterprise, and revenue bonds in recent years. It does not have what we consider aggressive investments. The investment policy prioritizes preservation of principal and liquidity over returns, requires at least 20% of funds to be held in liquid investments, and limits investments to those maturing within three years. As of January 2017, nearly half of all investments were held in the North Carolina Capital Management Trust, which is a local government investment pool. Harnett County has entered into five private placement agreements to finance or refinance debt obligations. Three of the agreements, with an outstanding par amount of $38.2 million, contain acceleration provisions as a remedy in the event of default. While highly unlikely, in the event there is a default that triggers an acceleration provision, we believe the county's cash position of $85.2 million at June 30, 2016, would provide sufficient flexibility to cover any payments due. Because of this, we do not believe the privately placed debt constitutes a contingent liability risk, and therefore does not adversely affect the ratings on the county's debt. Strong debt and contingent liability profile In our view, Harnett County's debt and contingent liability profile is strong. Total governmental fund debt service is 13.6% of total governmental fund expenditures, and net direct debt is 134.2% of total governmental fund revenue. Overall net debt is low at 2.3% of market value, and approximately 68.4% of the direct debt is scheduled to be repaid within 10 years, which are in our view positive credit factors. The 2017 bonds are being issued in the amount of $25.2 million, and are the first piece of a $100 million voter-approved GO bond authorization. Proceeds of the 2017 bonds will be used to construct a new elementary school. The new school will be approximately 114,000 square feet and is designed to accommodate 1,010 students. The county plans to use the remaining $74.8 million bond authorization to issue additional school construction bonds in fiscal 2020 in the amount of $15 million and in fiscal 2021 in the amount of $59.8 million. Harnett County's combined required pension and other postemployment benefits (OPEB) contributions totaled 2.7% of total governmental fund expenditures in 2016. Of that amount, 2.1% represented required contributions to pension obligations, and 0.6% represented OPEB payments. The county made 96% of its annual required pension contribution in 2016. The county participates in two cost-sharing, multiple employer, defined benefit pension plans that are administered by the state, the Local Government Employees' Retirement System (LGERS) and the Register of Deeds' Supplemental Pension Plan. In addition, Harnett administers the Law Enforcement Officers' Special Separation Allowance, which is a single-employer, defined benefit pension plan. LGERS is the county's primary plan and accounts for 90% of total pension costs. The county consistently makes 100% of annual required contributions for the LGERS and the plan has a strong funded ratio of 92.0% in fiscal 2016. Harnett also made 100% of required contributions for its supplemental plan, and made 62.8% of required contributions for the law enforcement plan in fiscal 2016. The county provides WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 5 1820981 | 302557532 Summary: Harnett County, North Carolina; Appropriations; General Obligation postemployment healthcare benefits through a single-employer defined benefit plan, which is funded on a pay-as-you-go basis. Very strong institutional framework The institutional framework score for North Carolina counties is very strong. Outlook The stable outlook reflects our opinion that Harnett will continue to maintain strong financial performance and very strong reserves. Rating stability is also provided by the county's good financial policies and practices. Therefore, we do not expect to change the rating within the two-year outlook period. Upside scenario Holding all other factors equal, if the county's economic indicators improve to levels we consider comparable with those of higher-rated peers, we could raise the rating. Downside scenario If the county's financial performance were to experience significant deterioration, leading to sustained decreases in reserves, we could lower the rating. Related Criteria And Research Related Criteria S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 Alternative Financing: Disclosure Is Critical To Credit Analysis In Public Finance, Feb. 18, 2014 Ratings Detail (As Of March 24, 2 017) Harnett Cnty ltd oblig bnds Long Term Rating A+/Stable Affirmed Harnett Cnty taxable ltd oblig qual sch bnds Long Term Rating A+/Stable Affirmed Harnett Cnty COPs - 2009 (ASSURED GTY) Unenhanced Rating A+(SPUR)/Stable Affirmed Harnett Cnty certs of part ser 2007A Unenhanced Rating A+(SPUR)/Stable Affirmed Harnett Cnty ICR Long Term Rating AA-/Stable Affirmed Many issues are enhanced by bond insurance. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 6 1820981 | 302557532 Summary: Harnett County, North Carolina; Appropriations; General Obligation Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com. All ratings affected by this rating action can be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT MARCH 24, 2017 7 1820981 | 302557532 Copyright © 2017 by Standard & Poor’s Financial Services LLC. All rights reserved. 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Version 1.13.14 CH |MB |TC February 27, 2018 65Harnett County, NC 2018-2023 HARNETT COUNTY PUBLIC LIBRARY MASTER PLAN February 27, 2018 2 Acknowledgments We offer a sincere thanks to so many community members who offered the generosity of their time and insights in developing this plan. That long list includes the following individuals. County Commissioners Abe Elmore Barbara McKoy Joe Miller Vice-Chairman Howard Penny Chairman Gordon Springle County and Municipal Officials Paula Stewart, Interim County Manager Brian Haney, Interim Assistant County Manager Amanda Bader, County Engineer Coley B. Price, Angier Town Manager Nick Holcomb, Coats Town Manager Steven Neuschafer, Dunn City Manager Snow Bowden, Erwin Town Manager Joseph Jeffries, Lillington Town Manager (former County Manager) Library Board of Trustees Jerry Ennis, Chair Cindy Ramsey, Vice Chair Elaine Blackman Michelle Ceballos David Hesselmeyer Margaret House Angela McCauley Barbara McKoy Robert Purtle Betty Wishart Gloria Gulledge Ronnie Vinston Dr. Carol Simonson Friends of the Library Board of Directors Cyndi Moss, President Melanie Collins, Treasurer Marcia Johnson, Secretary Carrie Bibbens Judie Cook Peggy McPhail Angela McPhail Consultant Karen Dash Consulting LLC Library Staff Master Planning Team Mike Williams Amanda Davis Jeanne Serrette Teresa Brown Amanda Duntz Autumn Landers Heather Giunta Joanna Cox Katie Whitehead Kim Sirois Laura Bright Mary Atkinson Paula Avery Drew Bryant Michelle Wester Angela McCauley Master Planning Advisory Committee Cyndi Moss Melanie Collins Marcia Johnson Carrie Bibbens Angela McPhail Peggy McPhail Gloria Gulledge Ronnie Vinston Dr. Carol Simonson Shirley White-McNeill Elaine Blackman Jerry Ennis Cindy Ramsey Michelle Ceballos David Hesselmeyer Margaret House Barbara McKoy Betty Wishart Billy Barfield Why Conduct a Master Plan / Feasibility Study? Harnett County’s population increased 14.1% from 2010 to 2016 (114,678 to 130,881), making it one of the fastest-growing “micropolitan” areas of the country. As the county has grown, so has the demand for library services. Today, residents make over a quarter of a million visits to our libraries annually, checking out 338,000 items. Nearly 18,000 county residents have enjoyed over 690 library programming events annually. Numerous research studies show the powerful benefits libraries provide to rural communities: for children; for economic growth; for access to government services, including health services; for access to technology and the internet; for community events. community events.* County and municipal leaders acknowledge the importance of library services to our growing community. With their support, library leadership, including the Board of Directors and Friends of the Library, sought a new vision for the library system to meet the needs of 21st century patrons. In doing so, our governmental leaders recognize that much of our growth has occurred in the western third of the county, and commissioned a feasibility study of developing a Western Harnett library branch. Through an LSTA grant from the State Library of North Carolina, this Master Plan and Feasibility Study was developed. 3 The purple areas denote the 3-mile road service areas for HCPL branches (53% county coverage)The density of new home growth since 2015 is indicated by the yellow, orange, and red. How Did We Conduct the Planning Process? Over the last year, we have worked with our municipal and county leaders, patrons, staff, board, friends, and other county residents to create a community-based plan. In all, over 700 county residents provided their feedback to the Master Planning process, both patrons and non-patrons. What Vision and Mission Guided our Efforts? Our strong foundational Vision and Mission statements were enhanced to meet our community’s priorities. HCPL Vision Statement Supporting the love of reading, the joy of lifelong learning, and the search for information, ideas, and knowledge HCPL Mission Statement The library’s mission is to cultivate lifelong learning, empower individuals, and strengthen our community. 4 WHAT WE LEARNED Our community is passionate about our county’s storied history and our bright future! Over 700 people and county leaders participated in surveys, focus groups, and interviews to tell us that: •Harnett County citizens are deeply involved in their community, including our libraries, faith organizations, community festivals, our county’s parks and outdoor beauty, gardening, and creative arts •Our people find our libraries to be an integral resource for education, community, and economic empowerment •County residents feel welcomed and valued by our professional library staff •In a changing world, people find the answers they need within our libraries’ collections, programming, and knowledgeable employees •The demand for exemplary library services and collections continues to increase, especially in the growing western part of our county •5 SUMMARY OF GOALS & OBJECTIVES Empower the Economic Development, Student Success, and Personal Growth of Our Communities A. Strengthen support of our Entrepreneurs, Workforce, and Job Seekers B. Partner with local schools to enhance young people’s 21st century literacy and life skills C. Fuel our county’s passion for Reading, Personal Growth, and Learning Create Consistently Exemplary Patron Experiences A. Consolidate the county’s branches into a unified library system B. Provide more hours of library access across the county C. Develop county-wide programming for children, teens, and adults D. Bring library resources to where people are GOAL 1 GOAL 2 6 SUMMARY OF GOALS & OBJECTIVES Create Library Spaces that are Welcoming to All A. Enhance our library grounds, buildings, and interiors B. Grow collections of materials of cultural relevance and significance C. Configure spaces to provide flexible learning environments equipped with cutting-edge technology D. Develop a Western Harnett Library Branch Develop and Build Strategic Collaborations to Strengthen the Library and our Communities A. Partner with county government and organizations to develop a “One-Stop Shop” for patrons B. Identify additional outreach venues through partnerships C. Seek collaborative opportunities to showcase the best of our community GOAL 3 GOAL 4 7 SUMMARY OF GOALS & OBJECTIVES Build a Collaborative and Supportive Work Environment that Encourages Innovation A.Build library staff and institutional capacity to innovate B. Challenge employees to respond creatively to library opportunities and challenges C. Utilize rigorous analysis of user data to provide a positive patron experience GOAL 5 8 GOAL 1 9 Empower the Economic Development, Student Success, and Personal Growth of Our Communities A.Strengthen support of our Entrepreneurs, Workforce, and Job Seekers •Serve as a hub of information and assistance for job seekers and local businesses •Offer on-demand computer training and job training assistance •Partner with Small Business development agencies to link companies with financial and business support •Provide flexible spaces for meetings and conferences B.Partner with local schools to enhance young people’s 21st century literacy and life skills •Expand efforts to instill a love of reading and learning from babies to teens •Work with Teen Advisory Board to develop compelling teen materials and programs, such as “Maker Spaces” or Teen Game Rooms •Partner with public, private, charter, and early college schools and homeschoolers to: (1) provide books to children on regular basis; (2) offer supplementary curricula materials; (3)offer access to library databases through school ID; (4) offer Life Skills classes C.Fuel our County’s Passion for Reading, Personal Growth, and Learning •Build community around Harnett’s love of books and book-related programming •Partner with community organizations to offer information and classes to support personal growth •Develop additional literacy-based and educational programming to meet community needs Harnett County is growing, and we need dynamic entrepreneurs and skilled workers.Some families lack internet access, and our libraries are critical resources for connecting people to today’s workforce opportunities. Our citizens told us they look to the library for more hands-on computer classes and job search support. Free small business coaching and support, and flexible spaces for small meetings, would support our workforce. The library may offer online links to Small Business Administration opportunities and loans. We met dozens of parents who find the library’s children’s books and programming indispensable to developing their child’s love of reading. Staff members want to create programming to keep teens just as excited about the library. Serving the needs of the homeschool community as well as schools can continue to bring books and programming to young people through multiple venues. Longer term, the library will consider a partnership with Harnett County Schools utilizing NC Cardinal’s Student ID Project initiative which provides K-12 students access to electronic resources including online research databases, e-books, and e-audiobooks. Harnett’s people have dynamic and varied interests that the library and its partners are well-positioned to serve! Our community seeks library classes on Health and Wellness, Cooking, Gardening, Genealogy, Financial Planning/Money Management and other topics. To fuel our community’s love of reading, the library may consider Author Events, book-related Movie Nights, and additional community reading programs. 10 GOAL 1 GOAL 2 11 Create Consistently Exemplary Patron Experiences A.Consolidate the county’s branches into a unified library system •Establish Consolidation Planning Team to develop unified policies and procedures •In consolidated county system, increase programming, personnel, and branch book budgets while preserving local autonomy B.Provide more hours of library access across the county •Consolidation may budget for additional personnel to support increased hours at all branches C.Develop county-wide programming for children, teens, and adults •Under consolidated system, supplement local programming through coordinated Children’s, Teens, and Adult programming from main branch D.Bring library resources to where people are •Consider implementation of “Pop-Up” libraries as independent locations or at partner locations across the county •Purchase bookmobile to provide services across county Consolidate the 6 branches into a unified Harnett County Public Library System. We frequently heard that patrons expect an outstanding and consistent experience in every branch of the library. Nearly half of all respondents ranked the purchase of more books and additional programming and events as top priorities. Many staff and citizens wanted more library hours. Today, the Main library offers many “back office” services and systems to the branch libraries. With consolidation, Harnett’s citizens would benefit from economies of scale that allow for expanded collections and staff. Additionally, consolidating library expertise and resources would lead to more effective deployment of library staff and assets throughout the county. At the same time, local flavor would be maintained as branch libraries continue to select collections based on their local patrons’ needs. With increased staffing, branch libraries would be able to offer more hours of service, which would especially benefit working families. Children’s, Teen, and Adult Programming at the Main Branch could be expanded to supplement each of the branch libraries’ programs. Main Branch staff could rotate among the different libraries on a set schedule each week. 12 GOAL 2 GOAL 3 13 Create Library Spaces that are Welcoming to All A.Enhance our library grounds, buildings, and interiors •Enhance or develop new library branding and logo for all branches •Increase street signage at branch locations •Consider funded, pro bono, or volunteer committee options for refreshing library branch landscaping, grounds, or interiors B.Grow collections of materials of cultural relevance and significance •Increase collections of materials related to the interests of 2017 Community Survey respondents •Consider offering unconventional items for checkout, including those related to patron interests and educational needs, such as gardening tools and microscopes (if liability considered) •Grow collections in the languages of new residents C.Configure spaces to provide flexible learning environments equipped with cutting-edge technology •Replace older furniture and tables/desks with flexible options to meet needs of varying groups •Update all libraries to provide access to contemporary technology and innovation D.Develop a Western Harnett Library Branch •Short-Term: Establish 2,000-5,000 square foot library in rental facility near family-friendly organizations •May supplement with 1-2 “Pop-Up” libraries in area •Medium/Long-Term: County may build 8,000-10,000 square foot stand-alone library or build county government center including library branch GOAL 3 14 Establish a Western Harnett Branch. Nearly 48,000 people in western Harnett live without local library service; many are over 15 miles from the nearest branch. The success of the Boone Trail Recreational Library shows the demand for and value of a western library branch. Nearly 16% of our survey respondents were residents of western or southwestern Harnett. Most emphasized the great need for library services. We met one grandmother who drove 45 minutes each way to take her grandson to Storytime every week. In addition to meeting demand, a new branch can be a good long-term investment for the county. Research suggests that a $1 investment in library services can accrue a $4.99 return on investment to a community. Recognizing the time and expense of building a new branch, we suggest both short and longer-term solutions. The need is too great to wait. Key to the proposed branch’s success is easy accessibility, ideally near other family-friendly establishments. In the short-term, a 2,000-5,000 sq ft branch might be sited •NC87 near future YMCA •Spout Springs Shopping Mall near Highland Middle School •Centennial Parkway near Lexington Woods and future Rainbow Rascals Day Care In the medium/long-term, the county may consider building an 8,000-10,000 sq. ft. standalone library or developing a western county government services building, which includes a library branch. While utilizing county land is most cost-effective, the location should be in a high-use corridor or one anticipating future growth. GOAL 4 15 Develop and Build Strategic Collaborations to Strengthen the Library and our Communities A.Partner with county government and organizations to develop a “One-Stop Shop” for patrons •Consider partnerships and joint programming with county agencies and nonprofits •Dedicate a kiosk to information regarding government or nonprofit services •Host a “Government/Nonprofit Services Day” to disseminate information about agencies •Offer monthly free legal clinics through local partnerships B. Identify additional outreach venues through partnerships •Seek opportunities and partnerships to enhance early childhood initiatives •Identify partner spaces to offer programming and outreach C. Seek collaborative opportunities to showcase the best of our community •Partner with county organizations to deliver library programming throughout community •Seek partnerships to display community’s artwork or other projects Especially in rural counties, partnering to share expertise and resources makes the most of precious assets. Harnett is fortunate to host numerous government, nonprofit, and private organizations which enrich the lives of our citizens. However, in a county so vast, getting to various locations involves significant time and effort. The library may wish to position itself as a “One-Stop Shop”for information on services available to county residents. The library might invest further in strategic partnerships with county agencies, including health, social services, veteran services, schools, youth services, economic development, etc. to educate and support residents. At the same time, the library’s expertise may enhance early childhood efforts of various organizations, particularly reading and literacy. The library may also help parents of young children to get linked to other services. Partnerships with other agencies, such as county parks, theaters/art spaces, day care/senior care facilities, can offer outreach and programming outside the library’s doors. Our citizens enjoy celebrating their community. The library might showcase displays of local artists’ work, student art work, Science Fair winners’ projects, etc. With some planning, the library might host small performance art shows. 16 GOAL 4 Build a Collaborative and Supportive Work Environment that Encourages Innovation A. Build library staff and institutional capacity to innovate •Seek out or develop cutting-edge professional development opportunities for employees •Increase staff to meet county’s demands for new services and programming, especially with Consolidation and Western Branch •Acquire new space to house additional staff as needed B.Challenge employees to respond creatively to library opportunities and challenges •Tap into staff expertise to manage development of protocols, policies, and systems to manage new demands C.Utilize rigorous analysis of user data to provide a positive patron experience •Conduct periodic public opinion research to identify new community needs •Continue ongoing analysis of circulation trends to target patron preferences & needs •Strengthen outcomes for library users by utilizing data and information gathered from patron satisfaction surveys GOAL 5 17 Our six libraries’ staff are the core strength of our library system. Many people spoke warmly of the HCPL employees, praising them for their knowledge and professionalism. The challenges of evolving service demands, as well as potential Consolidation and the development of a Western Harnett branch, will rely heavily on staff expertise. To support staff, HCPL may seek out or create innovative professional development that equips employees with the technical skills and knowledge to navigate these challenges. Additionally, the library may budget for additional staff to support demands for more hours of service and increased “back office” support. Just as the Staff Master Planning Team provided critical insights to the development of this plan, employees possess a wealth of knowledge that can support these transitions. Harnett County Library already collects and analyzes significant patron data. The library may wish to continue collecting user preference and satisfaction data in the form of surveys, focus groups, or interviews on an annual or biennial basis in order to stay informed of changing demand. 18 GOAL 5 As a state-funded library, the Harnett County Public Library system already collects significant data which can be utilized to measure implementation effectiveness. At a baseline, we would recommend review of the following performance metrics. KEY PERFORMANCE MEASURES 19 Performance Metrics (by library branch) Circulation •By New Patrons and Active Borrowers •Holds sent/received Intra- Harnett and through Cardinal •Items Added/Deleted Patron Satisfaction •Patron Satisfaction Surveys •Patron Evaluation of New Programs •Staff Satisfaction •# New Patrons Programming Attendance •Children’s Programs •Children’s Attendance •Young Adult Programs •Young Adult Attendance •Adult Programs •Adult Attendance •Meeting Room Programs •Meeting Room Attendance •Programs by Branch •Attendance by Branch Outreach (OR) •Children’s Programs •Children’s Attendance •Adult Programs •Adult Attendance •# New Partnerships Staff Productivity •Door Count •Hours Open •Reference Questions Answered •Tech/Computer Questions •Job/Career Questions Technology Utilization •PC Reservation Sessions •Envisionware Print jobs To begin implementation of key recommendations, we recommend the following high-level milestones/metrics based on the Master Plan Approval date, with timing to be adjusted as county priorities, library staffing, and budgeting allow. KEY IMPLEMENTATION MILESTONES 20 Key Implementation Recommendations Proposed Date Consolidation •Finalization of Financial Step-Down (75-50-25) •Final proposed budget and staffing plans •Agreement among Municipal and County Officials •County Commissioner Approval •Hiring of new staff as needed •Transition of branch employees to county •Establish Staff teams to develop uniform Policies & Procedures •Development of Library Programming expansion plans/schedule •Consider refreshing HCPL “brand” •Full Implementation of Consolidation Month 3 Month 4 Month 6 Month 6 Month 9 Month 9 Month 10 Month 11 Month 12 Month 12 Western Harnett Branch •County Commissioner Approval of Western Harnett budget •Establish Staff Team/Board to support expansion •Development of proposed budget & staffing plan •Site selection/negotiation for short-term rental location •Selection of retrofit vendors/contractors •Retrofit space as needed for library use, including technology •Consider Long-Term configuration (Stand-alone library or part of government complex) •Consider Site Selection for proposed configuration •Develop Request for Proposal & select Architect •Finalize configuration and site selection •Develop Request for Proposal for Bids •Selection of construction Vendors •Building of configuration Month 3 Month 3 Month 4 Month 6 Month 6 Month 9 Month 12 Month 15 Month 18 Month 24 Month 26 Month 30 Month 36 To begin implementation of key recommendations, we recommend the following high-level milestones based on the Master Plan Approval date , with timing to be adjusted as county priorities, library staffing, and budgeting allow. KEY IMPLEMENTATION MILESTONES 21 Key Implementation Recommendations Proposed Date Strategic Partnerships •Establish Staff Strategic Partnership Committee •Develop list of potential governmental, nonprofit, faith, business, etc. partners and/or venues through which to expand library programming and outreach •Identify locations in library to promote “One-Stop Shop” for information about county services •Develop list of benefits to partnering with library, perhaps brief brochure •Contact organizations to discuss potential partnerships •Meet with local organizations to promote partnerships with library •Continue to work with partners to expand programming opportunities Month 1 Month 2 Month 3 Month 4 Month 6 Month 6 ongoing Build Staff and Institutional Capacity •Provide ongoing updates to staff re status of implementation, especially of potential Consolidation & Western Branch •Establish Staff Development Committee •Canvass staff and managers about training and development needs •Work with State Library or other libraries to identify training resources •As needed, increase budgets for training •As needed, increase budgets for staffing & space •Provide training to staff •Locate/negotiate space for additional staff •Hire new staff as needed to support transitions •Canvass staff and managers re ongoing support Month 1 Month 2 Month 3 Month 6 Month 6 Month 6 Month 9 Month 9 Month 10 ongoing 22 Research reviewed in the course of this Master Plan includes the following: •US Census Data, US Census Quickfacts •Harnett County GIS (https://gis.harnett.org) •Pearl C. Akanwa, “Public Library Services to Children in Rural Areas,” Library Philosophy and Practice, 2013 •Paul T Jaeger and Kenneth R Fleischmann, “Public Libraries, Values, Trust, and E-Government,” Information Technology and Libraries, 2007 •Brian Real, Ph.D., and R. Norman Rose, “Rural Libraries in the Untied States,” American Library Association, 2017 •Nicolle Steffen et al, “Public Libraries –A Wise Investment,” Library Research Service, 2009 Background information regarding the community stakeholder research is also available upon request. Please note: Illustrations on pages 6-7 are courtesy of Creative Commons. ADDITIONAL RESOURCES Carl Davis, Harnett County Parks and Recreation Comprehensive Master Plan (2017) reported deficiencies in total acreage of park land, programming, staff, facilities, and trails in Harnett County when compared to National, State, and similar sized counties. Master Plan Recommendations to acquire an additional 400 acres and use current County owned property to develop community (30-50 acres) and district (50-200 acres) parks. to construct indoor community/recreation centers to support indoor recreational programs, fitness, and athletics plan and construct 36 miles of additional greenway provide one river access every 4-6 miles along Cape Fear River and Upper Little River Existing Parks Proposed Parks Parks and Recreation * Land Acquisition ($4 Million) Current Park plans and expansions ($12.5 Million) New Park Construction ($22.8 Million) Recreation/Community/Aquatic Center ($8.2 Million) Greenway Trails ($35 Million) Blueway/Water Access Sites ($2 Million) TOTAL: $84.5 Million *Per Comprehensive Parks and Recreation Master Plan over 15 year period. Our typical ways General Fund Capital Improvement Plan Grants Donations Generated Revenue through Programs and Facilities A New Idea Recreation/Cultural Resource Tax Cumberland County currently has 5 Cent Recreation tax Adopted in before 1990 (2 cents in 1990) Has been 5 cent since 1996 Countywide tax, several municipalities have also opted in. Used for Capital Projects, Renovations, salaries, and other Recreation expenses. City of Durham adopted half penny recreation tax in 2014. maintain and renovate current facilities (updated restrooms, resurface courts, renovate playgrounds) Hired additional staffing to assist with maintenance and upkeep Who else is using this method to fund parks and recreation projects? G.S. 153A, Article 16 discusses the options for Service District RECREATION is one of the purposes in which a service district can be established. Requirements to establish a district: There is a demonstrable need It is impossible or impracticable to provide services on a countywide basis It is economically feasible to provide the services in the district without unreasonable or burdensome annual tax levies There is a demonstrable demand for the services County prepares a Report showing we meet the requirements, a statement attesting the need, and a plan that shows how we will implement the tax (available to public in Clerks office). Hold a Public Hearing Hearing has to be advertised and inform all property owners of the hearing by mail. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 1 Cent 2 Cent 3 Cent 4 Cent 5 Cent Excluding Muncipalities Excluding Muncipalities Parks: -Year 1-5 •Anderson Creek Park, Phase 2 •Patriots Park (Ponderosa) •Government Complex Park, Phase 2 •Barbecue Creek Park Lighting •Neills Creek Park Expansion •Boone Trail Park •North Harnett District Park •Shawtown Neighborhood Park •Benhaven Park and Community Center •Land Acquistion Parks: -Year 6-10 •Anderson Creek Park, Phase 4 •Government Complex Park, Phase 3 •Neills Creek Park Expansion, Phase 2 •Boone Trail Park, Phase 2 •North Harnett District Park •Communinty Center/Library •(2) Community Parks •Phillips/Rail Trail Park •Southwest Harnett Park •Land Acquistion Parks: -Year 11-15 •Anderson Creek Park, Phase 4 •Government Complex Park, Phase 4 •Neills Creek Park Expansion, Phase 3, Field Lighting •Boone Trail Park, Phase 3, Field Lighting •Central Harnett Aquatic Center •Middle Point District Park •Land Acquistion Blueways: •Year 1-5 •American Legion Water Access •Wicker Water Access •Airport Water Access •Ross Road Water Access •Year 6-10 •Buckhorn Harnett Water Access •Year 11-15 •Raven Rock South Water Access Greenways: •Year 1-5 •5 Miles •Dunn Erwin Rail Trail to Coats •Begin Greenway from Lillington to Raven Rock •Year 6-10 •5 Miles •Finish Greenway from Lillington to Raven Rock •Connect Old Benhaven School to New Benhaven School •Year 11-15 •3.5 Miles •Connect Raven Rock State Park to Northwest Harnett District Park EXPENSES YMCA Contract: $114,000 (yearly) for 10 years Annual Town Allotments/Western Harnett Youth Recreation: $185,000 (yearly) $28 per child who participate in youth sports programming DEFERRED EXPENSES YMCA Annual Town Allotments WHYR CIP Expenses Recreation Fund PARTF Grant Match Paving Projects Harnett County has 51,634 parcels in unincorporated areas. (Exempt parcels not included) Based on the revenue projections each parcel is valued at approximately $110,000. At a Recreation Tax rate of 5 cents on the $100 valuation, each parcel owner would pay an additional $55 per year.1 cent 3 cent 5 cent 0 20 40 60 80 100 $100,000 $125,000 $150,000 $200,000 Cost per Parcel Value 1 cent 3 cent 5 cent Economic Development Attracting Business and Workers Knowledge workers prefer places with a diverse range of outdoor recreational activities, from walking trails to rock climbing. Portland, Seattle, Austin, Denver, and San Francisco are among the top cycling cities; they also are among the leaders in knowledge workers. Workers attracted to an area are then positioned to put money back into the local economy through jobs, housing, and taxes, which then contribute to parks. Economic Impact Local and regional park spending not only turns our neighborhoods, towns and cities into vibrant, connected and healthier communities, but they also spark economic activity that ripples well beyond the initial spending to create jobs and prosperity throughout our nation. Property Value Increase Sales Tax Revenue Increases Tourism Sport Costs Reducing the County citizen’s costs to play sports within the County’s municipalities HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 1 DSS b UILDING ADDITION & LObbY RENOVATION HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 1OVERALL PLAN UP UP HARNETT COUNTY GOVERNMENT SERVICES COMPLEX OVERALL GOVERNMENT SERVICE COMPLEX PLAN 02/07/18 EXISTING SOCIAL SERVICES EXISTING COMMONS PROPOSED ADDITION LOBBY RENOVATION 2,200 SF HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 2EXISTING DSS bUILDING PHOTOGRAPHS HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 3NEW ADDITION - CHILD SUPPORT SERVICES & FLEX SPACE CHILD SUPPORT SERVICES MANAGER SUPERVISOR PROFESSIONAL OFFICE CHILD SUPPORT OFFICER ADMINISTRATIVE ASSISTANT OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING CONFERENCE ROOM SERVICE RECEPTION / WAITING RESTROOM KITCHEN / bREAK ROOM STORAGE FILE STORAGE 1 1 2 14 1 1 1 1 1 1 1 150 130 130 90 120 280 130 90 130 60 100 NSF 1.4 DGSF 130 130 260 1,260 110 280 130 90 130 60 100 2 2 2 1 2 6 -- -- -- -- -- 2,680 1,072 3,752TOTAL UP CHILD SUPPORT CHILD SUPPORT WAITING AREA MANAGER SUPERVISOR PROFESSIONAL OFFICE PROFESSIONAL OFFICE CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT ADMIN ASSISTANT CHILD SUPPORT CHILD SUPPORT STOR.CHILD SUPPORT BREAK ROOM CONFERENCE STORAGE RESTROOM FLEX SPACE HARNETT COUNTY GOVERNMENT SERVICES COMPLEX Unnamed 02/21/18 CHILD SUPPORT CHILD SUPPORT WAITING AREA MANAGER SUPERVISOR PROFESSIONAL OFFICE PROFESSIONAL OFFICE CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT CHILD SUPPORT ADMIN ASSISTANT CHILD SUPPORT CHILD SUPPORT STOR.CHILD SUPPORT BREAK ROOM CONFERENCE STORAGE RESTROOM FLEX SPACE HARNETT COUNTY GOVERNMENT SERVICES COMPLEX Unnamed 02/21/18 SECOND FLOOR PLAN FIRST FLOOR PLAN HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 4NEW ADDITION - CHILD SUPPORT SERVICES & FLEX SPACE - 3D VIEW EXTERIOR MATERIALS TO MATCH EXISTING DSS BUILDING HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 5NEW ADDITION-CHILD SUPPORT SERVICES & FLEX SPACECOST ESTIMATE SUMMARY GENERAL REQUIREMENTS DEMOLITION FOUNDATIONS/SOG/SLAb ON DECK MASONRY STRUCTURAL STEEL MISC. METALS CASEWORK WATERPROOFING + CAULKING ROOFING FIREPROOFING DOORS, FRAMES, & HARDWARE GLASS & GLAZING DRYWALL / METAL FRAMING CEILINGS PAINTING / WALLCOVERING FLOORING MISC. SPECIALTIES FIRE PROTECTION PLUMbING HVAC ELECTRICAL NEW ADDITION TOTAL $26,400 $23,000 $98,904 $150,000 $164,444 $26,000 $55,000 $38,876 $52,800 $17,512 $74,700 $78,450 $109,296 $14,931 $14,931 $52,800 $18,000 $24,200 $48,000 $118,000 $182,776 $1,673,298TOTAL $1,975,812GRAND TOTAL COSTS $790,324WITH *60% REIMbURSEMENT TOTAL INDIRECT COSTS $279,409 MISC. FINISHES DSS LOBBY RENOVATION TOTAL $252,000 $302,514TOTAL TOTAL INDIRECT COSTS $50,514 NEW CHILD SUPPORT SERVICES + FLEX SPACE ADDITION DSS ADDITION & RENOVATION TOTAL $252,000 $50,514DSS LObbY RENOVATION 2 NEW LIbRARY + ADMINISTRATION bUILDING HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 7PROGRAM ADMINISTRATION COUNTY MANAGER DEPUTY COUNTY MANAGER CLERK OFFICE PUbLIC INFORMATION OFFICER OFFICES FOR GROWTH SHARED OFFICE OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING CONFERENCE ROOM CHAMbER ROOM SERVICE RECEPTION / WAITING FILING ROOM KITCHEN STORAGE/COPY/WORKROOM CHAMbER ROOM STORAGE 1 1 1 1 3 1 1 1 1 1 1 1 1 220 180 150 150 120 120 200 2,000 200 200 250 230 200 NSF 1.4 DGSF 220 180 150 150 360 120 200 2,000 200 200 250 230 200 1 1 1 1 1 1 6 100 -- -- -- -- -- 4,460 1,784 6,244TOTAL 6,244 sf FINANCE FINANCE OFFICER DEPUTY FINANCE OFFICER SUPERVISOR ACCOUNTING TECH EMS bILLING CLERK ACCOUNTANT (PR) ACCOUNTANT OFFICES FOR GROWTH OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING AUDIT / CONFERENCE ROOM TEAM ROOM SERVICE RECEPTION / WAITING bREAK ROOM STORAGE/COPY/WORKROOM 1 1 2 2 2 2 4 2 1 1 1 1 1 180 150 120 80 80 100 80 120 240 120 160 0 0 NSF 1.4 DGSF 180 150 240 160 160 200 320 240 240 120 160 0 0 1 1 1 1 1 1 1 1 -- -- -- -- -- 2,170 868 3,038TOTAL3,038 sf NOTE: bREAKROOM AND STORAGE/ COPY/WORKROOM MOVED TO SHARED SPACE. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 8PROGRAM VETERAN’S AFFAIRS DIRECTOR WORKSTATION OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING MULTI-PURPOSE MEETING CONFERENCE SERVICE STORAGE 1 5 0 1 1 150 80 3,000 200 250 NSF 1.4 DGSF 150 400 0 200 250 1 1 50 4 -- 1,000 400 1,400TOTAL LEGAL DIRECTOR OFFICE OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING MEDIUM CONFERENCE SERVICE RECEPTION / WAITING STORAGE/COPY/WORKROOM 1 3 1 1 1 180 150 200 0 120 NSF 1.4 DGSF 180 450 200 0 120 1 1 6 -- -- 1,000 400 1,400TOTAL 1,400 sf 1,400 sf NOTE: MULTI-PURPOSES SPACE MOVED TO SHARED SPACES. NOTE: RECEPTION / WAITING SPACE MOVED TO SHARED SPACES. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 9PROGRAM HUMAN RESOURCES DIRECTOR OFFICE OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING MEDIUM CONFERENCE SMALL CONFERENCE MULTI-PURPOSE ROOM SERVICE RECEPTION / WAITING STORAGE/COPY/WORKROOM LOCKAbLE FILE ROOM bREAK ROOM WELLNESS ROOM 1 7 1 1 0 1 1 1 1 1 180 120 200 120 2,000 0 120 200 0 0 NSF 1.4 DGSF 180 840 200 120 0 0 120 200 0 0 1 1 8 4 -- -- -- -- -- -- 1,660 664 2,324TOTAL PARKS + RECREATION DIRECTOR WORKSTATION OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREA1 3 150 80 NSF 1.4 DGSF 150 240 1 1 390 156 546TOTAL 2,324 sf 546 sf NOTE: MULTI-PURPOSES SPACE MOVED TO SHARED SPACES. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 10PROGRAM GENERAL SERVICES DIRECTOR WORKSTATION OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREA1 3 150 80 NSF 1.4 DGSF 150 240 1 1 390 156 546TOTAL 546 sf AGING OFFICE WORKSTATION OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING SMALL CONFERENCE SERVICE RECEPTION / WAITING STORAGE 2 9 1 1 1 150 80 120 160 100 NSF 1.4 DGSF 300 720 120 0 100 1 1 1 -- -- 1,240 496 1,736TOTAL 1,736 sf HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 11PROGRAM JOBLINK DIRECTOR OFFICE CUbICLES FOR PARTNERS INTERVIEW OFFICE OFFICE/WORKSPACE OCCUPANCYQUANTITYAREATOTAL AREAMEETING TRAINING ROOM SERVICE RECEPTION / WAITING COFFEE bAR 1 4 3 1 0 1 1 150 120 80 100 1,000 160 100 NSF 1.4 DGSF 150 480 240 100 0 160 100 1 1 1 1 -- -- -- 1,230 492 1,722TOTAL SHARED SPACES TRAINING ROOM MULTI-PURPOSE ROOM CAFE / bREAKOUT GATHERING OCCUPANCYQUANTITYAREATOTAL AREASERVICE TAbLE AND CHAIR STORAGE bREAK ROOM WELLNESS ROOM 1 1 1 1 1 1 3,000 3,000 400 200 400 130 NSF 1.4 DGSF 3,000 3,000 400 200 400 130 -- -- -- -- -- -- 7,130 2,850 9,980TOTAL 1,722 sf 9,980 sf NOTE: TRAINING ROOM SPACE MOVED TO SHARED SPACES. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 12PROGRAM LIBRARY OCCUPANCYQUANTITYAREATOTAL AREA-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 21,000TOTAL 1 2 1 1 1 1 1 1 2 1 1 1 1 1 2 2 1 1 240 120 200 3,160 425 600 750 670 100 350 570 1,070 565 3,800 130 200 500 1,000 240 240 200 3,160 425 600 750 670 200 350 570 1,070 565 3,800 260 400 500 1,000 BUILDING SYSTEMS LObbY MAIN ELECTRICAL ELECTRICAL MAIN MECHANICAL MECHANICAL MDF IDF STAIRS ELEVATOR TOILETS GROUND FLOOR TOILETS JANITOR SERVICE OCCUPANCYQUANTITYAREATOTAL AREA1 1 2 1 2 1 2 4 2 2 1 2 400 400 200 350 250 350 100 250 175 350 500 100 NSF 1.4 DGSF 400 400 400 350 500 350 200 1,000 350 700 500 200 -- -- -- -- -- -- -- -- -- -- -- -- 5,350 2,140 7,490TOTAL 21,000 sf 7,490 sf SUPERVISOR MANAGER SELF CHECK / HOLDS YOUTH READING AREAS CIRCULATION DESK CIRCULATION WORKROOM CHILDRENS PROGRAM ROOM YOUTH WORKROOM STORAGE/COPY/WORKROOM STAFF bREAKROOM ADULT WORKROOM ADULT PROGRAMMING QUIET STUDY ADULT READING AREAS SERVICE DESKS STORAGE LObbY / GALLERY COMPUTER / MEDIA ROOM NSF 1.4 DGSF 15,000 6,000 NOTE: PROGRAM SHOWN FOR CONCEP- TUAL PURPOSES ONLY. FINAL PROGRAM TO bE VERIFIED. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 13 ADMINISTRATION FINANCE VETERAN’S AFFAIRS LEGAL HUMAN RESOURCES PARKS + RECREATION GENERAL SERVICES AGING JOBLINK SHARED SPACES LIBRARY BUILDING SYSTEMS TOTAL BUILDING SF 6,244 sf 3,038 sf 1,400 sf 1,400 sf 2,324 sf 546 sf 546 sf 1,736 sf 1,722 sf 9,980 sf 21,000 sf 7,490 sf 57,426 sf PROGRAM SUMMARY ADMINISTRATION FINANCE VETERAN’S LEGAL HUMAN RESOURCES PARKS + REC b UILDING SYSTEMS LIbRARY SHARED SPACES JObLINK AGING GEN. SERVICENEW BUILDING HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 14NEW LIbRARY + ADMINISTRATION bUILDINGCOST ESTIMATE SUMMARY GENERAL REQUIREMENTS FOUNDATIONS/SOG/SLAb ON DECK MASONRY STRUCTURAL STEEL ROUGH CARPENTRY ARCHITECTURAL MILLWORK WATERPROOFING + CAULKING ROOFING FIREPROOFING METAL WALL PANELS DOORS, FRAMES, & HARDWARE GLASS & GLAZING DRYWALL / METAL FRAMING PAINTING / WALLCOVERING FLOORING ACOUSTIC ROOM TREATMENTS MISC. SPECIALTIES APPLIANCES FURNITURE ELEVATORS FIRE PROTECTION PLUMbING BUILDING CONSTRUCTION TOTAL $85,500 $570,000 $228,000 $1,140,000 $57,000 $513,000 $116,850 $399,000 $113,430 $285,000 $285,000 $1,881,000 $684,000 $171,000 $570,000 $228,000 $122,550 $57,000 $42,750 $228,000 $171,000 $399,000 HVAC ELECTRICAL BUILDING CONSTRUCTION (CONT.)TOTAL $1,596,000 $1,539,000 $13,783,706TOTAL EARTHWORK EROSION CONTROL PARKING SITEWORK & HARDSCAPES UTILITIES SITEWORK TOTAL $450,000 $60,000 --------- $150,000 $125,000 $942,356TOTAL bUILDING CONSTRUCTION SITEWORK TOTAL BUILDING & SITEWORK TOTAL $13,783,706 $942,356 $14,726,062TOTAL COSTS TOTAL INDIRECT COSTS $2,301,627 TOTAL INDIRECT COSTS $157,356 HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 15NEW LIbRARY + ADMINISTRATION bUILDING CONCEPT OVERALL SITE PLAN SKETCH HEALTH DSS COMMONS COURTHOUSE SHERIFF’S VETERAN’S PARK N MCKINNEY PKWYW C O R N E L I U S H A R N E T T B L V D HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 16NEW LIbRARY + ADMINISTRATION bUILDING CONCEPT OFFICE LIBRARY SITE SKETCH COST ANALYSIS N Estimated ROM Value: $13,783,706 Estimated Site Value: $942,356 Total = $14,726,062 CONNECTOR ROAD SHOWN PER FUTURE MASTER PLAN. SITE WORK NOT INCLUDED IN SCOPE OF PROJECT HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 17NEW LIbRARY + ADMINISTRATION bUILDING CONCEPT 3 COST AND PROJECT SUMMARY HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 19OVERALL COST SUMMARY bUILDING CONSTRUCTION SITEWORK NEW LIBRARY + ADMIN BUILDING $13,783,706 $942,356 COST ESTIMATE SUMMARY CHILD SUPPORT SERVICES, FLEX SPACE ADDITION, & LOBBY RENOVATION TOTAL $1,975,812SUbTOTAL $14,726,062SUbTOTAL GRAND TOTAL PROJECT COST $16,701,874 *SUGGESTED FURNITURE, FIXTURES, & EQUIPMENT $1,800,000 *NOT INCLUDED IN GRAND TOTAL PROJECT COST HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 20PROJECT ENGAGEMENT COMMUNITY.INCLUSIVE.ENGAGING.ACTIVE UNIQUE. ADAPTABLE. COLLAbORATIVE. SCALE. EMbRACING. SUSTAINABLE. TRANSFORMATIVE. TEACHABLE. SYNERGIES. DAYLIGHTING. IDENTITY. CONNECTING. APPROPRIATE. MULTI-MODAL. INSPIRING.WARM.WELCOMING.FRIENDLY. HARNETT COUNTY GOVERNMENT COMPLEX FEbRUARY 26, 2018 HARNETT COUNTY 21PROJECT SUMMARY BENEFITS OF NEW PLAN MULTI-PURPOSE ROOM TRAINING ROOMS CHILD’S OUTDOOR PLAY / READING AREA OUTDOOR READING AREA VETERAN’S PARK FIRST FLOOR LIBRARY SPACE P O R C H N HEALTH SERVICES• RENOVATED MECHANICAL SYSTEM FOR EXISTING DSS, LObbY IMPROVE-MENTS, AND NEW FLEX SPACE. • ACCESS TO JObLINK ON CAMPUS • ACCESS TO CAFE • ACCESS TO KITCHEN • NEW 3,000 SF TRAINING ROOM • ACCESS TO NEW LIbRARY - OUTDOOR PLAY/READING AREAS, GAMING AREAS, AND RECREATION SPACES. CLIENTS WILL HAVE ACCESS TO COM-PUTERS AND FAMILY AND CHILDREN’S PROGRAMS. • CLOSE ACCESS TO bOARD OF ELECTIONS AND AGING. ONE-STOP ACCESS • DSS WILL KEEP THE CIRCULATION, TECHNOLOGY, AND PRIVATE OFFICES THAT ARE COMFORTAbLE FOR THEM. THEY WILL MAINTAIN THEIR TRADI-TIONS SUCH AS GATHERING AROUND THE TREE AND ‘DECK-THE-HALLS’ FOR SEVERAL SEASONS; THEY WOULD HAVE TO SACRIFICE THIS IN THE NEW bUILDING CONCEPT. IN THE PROGRAMMING MEETINGS, WE HEARD RESISTANCE TO CHANGE. • ALL DEPARTMENTS WILL bE IN A CENTRAL LOCATION. • EMPHASIZE A SENSE OF COMMUNITY AND WELLNESS WITH THE NEW APPROACH. KITCHEN CAFE CONCEPTUAL FIRST FLOOR SKETCH OF NEW bUILDING T O E A S T C A M P U S