022312m planning retreatHarnett County Board of Commissioners
Minutes of Planning Retreat
February 23, 2012
The Harnett County Board of Commissioners met in special session on Thursday, February 23, 2012, at
the Raven Rock State Park's Visitors Center, 3009 Raven Rock Road, Lillington, North Carolina.
Commissioners present:
Staff present:
Guests present:
Timothy B. McNeill, Chairman
Beatrice B. Hill, Vice- Chainuan
Jim Burgin
Gary House
Dan Andrews
Scott Sauer, County Manager
Tony Wilder, Deputy County Manager
Sylvia Blinson, Finance Officer
Jennifer Slusser, Staff Attorney
Steve Ward, Director of Public Utilities
Margaret Regina Wheeler, Clerk to the Board
Bob High, Ted Cole and Mitch Brigulio with Davenport &
Company, LLC
Chairman McNeill called the meeting to order at 9:00 am. Vice Chairman Hill led the invocation.
Mr. Sauer delivered the following 2011 Year in Review:
"We had a tragic start to the year with the April tornados. And since then we are seeing most
homes and businesses rebuilding. Of particular note it the Sampson Community Church which
is rebuilding and expanding. Likewise, the Food Lion distribution center is under construction to
repair the damaged facility with a much larger footprint. It was also a very difficult year for our
poultry farmers with the closing of the Townsend processing facility and the loss of contracts for
these local producers."
Construction highlights:
• First Choice Community Health Lillington facility in the Brightwater Business Park
• ECU Dental School Learning Service Center in the Brightwater Business Park
• NC DOT 401 highway improvements in Lillington
• NC DOT 421 bridge replacement on Cape Fear River
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 1
Construction highlights continued:
• Harnett Health System Central Campus in Lillington (Brightwater Science and
Technology campus)
• Central Carolina Community College's Health Science facility in Brightwater Science
and Technology campus
• HCDPU Fort Bragg sewer extension bid awarded
• HCDPU South Central sewer service in multiple phases construction contracts approved
• Good Hope Hospital's renovation to establish 16 inpatient psychiatric beds
• Campbell University's Medical School set to open in August 2013 — ten year fiscal
impact includes $300 million and 1,100 jobs created
Other items of note:
• Unified Development Ordinance approved after 18 months of review
• Redistricting plan submitted to US Depai tment of Justice following census impact
adjustments
• Hazard Mitigation Plan approved
• Fire District/Insurance 6 mile coverage areas realigned for all fire department tax districts
• Former Boone Trail School acquired by the County
• Highland School property for new middle and high school projects acquired
• Parks and Recreation receives $500,000 PARTF grant for West Park project in
conjunction with HFTC
• County signs MOU with Campbell for use agreement at the new Medical school for staff
training in Health Department and Emergency Medical Services programs
• Department of Public Utilities receives $300,000 Clean Water Management Trust Fund
grant for Erwin WWTP project
• City of Dunn contracts with Tax Office for property tax collections
• Economic Development Commission joins Foreign Trade Zone #93 in conjunction with
Triangle J Council of Governments
• Board approves debt refinancing for 2002 construction loans saving $1.9 million
• June 30, 2011 financial audit reveals $2.4 million growth in fund balance reserves
Staff changes:
• Tyrone Fisher joined the Cooperative Extension Service as the new County Director.
• Sherre Toler announced her resignation as the Director for the County Board of
Elections.
Commissioner Andrews stated that he was ashamed of how the road sides look in Harnett County; in
regards to trash, and feels like something should be done about it.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 2
Mr. Ward gave the following overview of the Department of Public Utilities Program:
Harnett
COUNTY
Harnett County Department of
Public Utilities 2012: A Regional
Water & Wastewater Update
Partnering for the Future
Role of Regional Water Provider
• Provide water through contractual obligations (water purchase
contracts) to the Towns of Angier, Coats, Erwin and Lillington in
Harnett County.
• Provide water to the Towns of Fuquay- Varina and Holly Springs in
Wake County. HCDPU also has retail customers in unincorporated
areas of Wake.
• Provide water to the Towns of Spring Lake and Linden in Cumberland
County. HCDPU also has approximately 1,000 retail customers in
unincorporated areas of northern Cumberland county.
• Provide water to the Counties of Johnston and Moore.
• Provide 'z of daily water supply (3 MGD) to Fort Bragg.
Partneringfor the Future
Harnett County Public Utilities
Develo ment
• HDCPU was the first in NC to form a Metropolitan Water District to provide
water to three Towns in the County.
• Has since developed nine County Water and Sewer Districts.
• Districts issued GO Bonds to finance the installation of systems.
Infrastructure is leased from the districts by the County for operation by
HCDPU.
• The County sells water to five contiguous Counties and/or Towns within
those Counties.
• HCDPU has a 40 year contract to solely provide sewer treatment to Fort
Bragg and to jointly provide water treatment with Fayetteville/PWC to the
base.
• Cape Fear River is a tremendous resource providing a 7010 of 530 CFS or
345 MGD.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 3
Role of Regional Wastewater Treatment
Provider
• Provide wastewater treatment to the Town of
Fuquay -Varina in Wake County.
• Provide wastewater treatment to the Towns of
Lillington, Coats and Angier in Harnett County.
• Provide wastewater treatment for Fort Bragg in
2012 following SHWWTP and line/pump station
upgrades.
Parma-Mein- the Future
HCDPU Financial Statistics
• $27 million dollar annual operating budget
• $227 million dollars of capital assets net of
related debt
• $9 million dollars of unrestricted fund
balance as of 11/30/11
• 95 employees with annual payroll of $4
million dollars
HCDPU Operational Statistics
• Approximately 40,000 water connections & 10,000 sewer
• 95% of County residents have access to public water
• 24 MGD water treatment capacity -1 plant
• 22 MGD wastewater treatment capacity- 4 plants
• 1,869 miles of water mains
• 26 water tanks w/ 27 million gallons of storage
• 23 water booster stations w/ 81 MGD pumping capacity
• 322 miles of sanitary sewer
• 85 sewer lift stations
HCDPU Financial Statistics
• S &P Rating agency comments include:
• A lowly leveraged system /debt -to- equity ratio less than
19%
• Historically strong debt service coverage
• Strong cash /liquidity positions
• Willingness to adjust rates to maintain adequate margins
while meeting cost of service requirements.
• A wide and continuously expanding service area.
• HCDPU has been well managed with a financial profile we
consider strong and we expect it to remain strong.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 4
HCDPU Size Comparisons
There are 63 County owned utilities in North
Carolina. HCDPU is ranked as follows:
# of water /sewer connections operating revenues
1. Harnett County (40,766) 1. Brunswick County ($29m)
2. Union County (38,124) 2. Harnett County ($28m)
3. Brunswick County (32,824) 3. Union County ($25m)
Capital Assets net of debt
1. Harnett County ($227m)
2. Brunswick County ($198m)
3. Union County ($149m)
Harnett County Regional Water Treatment
Plant
Harnett County Public Utilities Business Center
700 McKinney Pkwy
Lillington, NC
Overview of HCPUBC & WTP
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 5
North Harnett Regional Wastewater
Treatment Plant
South Harnett Regional WWTP
NHWWTP from SLS 20
Example of Fort Bragg Partnership
• Upgraded WTP to provide max day water capacity of 8 MGD to Ft Bragg.
PWC will also provide an additional max day capacity of 8 MGD to Bragg.
• Transmission construction consisted of 21 miles of 30 & 24" water line and
5 miles of 36" line to connect with another 24" transmission from PWC
Also a 12 mgd booster pump station and a 5 MG ground storage tank.
• Total Harnett County cost of approximately $41 million for water paid by
DOD.
• Wastewater construction consisted of 10 mgd of capacity for Bragg in the
South Harnett WWTP located on the Little River in Harnett County.
• A combination of approximately 9.5 miles of 36" forcemam from Bragg to a
15 mgd influent pump station at the plant. Another 10 mgd pump station will
be constructed just outside of the base property.
• Total Harnett County cost of approximately $38 million for wastewater paid
by DOD.
• Total Federal Investment in HCDPU of over $80 million dollars. This is
infrastructure that is owned by HCDPU and can be used to benefit the water
and wastewater needs of our citizens.
Partneringfor the Future
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 6
Harnett/Fuquay /Angier WW
Project
Joint County /Municipality /Basin effort resulted in
construction of 7.5 mgd WWTP in Lillington and
approximately 20 miles of 48 ", 42 ", and 36" gravity
interceptor from Fuquay to Lillington with a 12 MGD
pump station. Angier also participated in the later stages
of the project by a planned diversion of all of their
wastewater effluent to the North Harnett WWTP.
• Total Project Cost = $45 million
• Funding = $21 million each for Harnett and Fuquay- Varina
with approximately $3 million from Angier.
• Joint construction with Angier of 1 mile of 24' gravity
from 42" at Kenneth Creek to Chalybeate Sp Rd.
Summary
• Regionalization is the most efficient and economic
means to provide affordable drinking water and
wastewater treatment to a growing region.
• Federal and State regulatory agencies are starting to
recognize and promote regionalization among utilities.
• Regionalization requires extensive planning and
cooperation with regulatory agencies and neighboring
political jurisdictions.
• I-ICDPU is definitely a leading regional utility in
central North Carolina.
Partnering for the Future
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 7
Mr. Ward pointed out that Harnett County is pretty well postured to serve all surrounding counties if
needed. He noted the line to Lee County would have to be upsized to provide a significant amount of
water.
Mr. Ward noted Chatham County would like for Harnett County to fund the infrastructure to serve a
small amount of their citizens which offers no benefit to Harnett County.
Mr. Ward noted the county provides water to half of Spring Lake but the City has their own sewer plant
which they recently upgraded with a grant.
Mr. Ward reported that there are on -going water quality issues in the City of Erwin because the pipes are
old and were constructed out of substandard material many years ago. He said over time an old line
becomes "tubuculated" and Erwin still has some old cast iron pipes that haven't been used in water
quality in over 65 years. Harnett County Public Utilities has replaced some of the old water lines in
Erwin.
In regards to regional wastewater, Mr. Ward reported that recent legislation has made it harder for
annexation which confuses the on -going issue with the City of Dunn which needs to be resolved. The
City of Dunn typically performs repairs on the lines in question.
In regards to regionalization; Mr. Ward said in the future he does not believe municipalities will have
the means to remain in the utility business, as is the national trend, which could be an opportunity for
growth for Harnett County Public Utilities.
Mr. Ward guessed there are less than 30,000 citizens in Harnett County remaining on well systems and
noted those citizens can bring water samples to Public Utilities to be tested for bacteria.
Chairman McNeill asked Public Utilities to try to figure out the most cost effective way to start serving
the small percentage of citizens in the county that need water service but due to different scenarios do
not have access. Mr. Ward said he would need direction from the Board on how to proceed with that list
of projects as most of these citizens do not meet the criteria or ordinance and all of these projects could
be very costly. Mr. Sauer offered the option of Public Utilities identifying an amount in their annual
budget and then let commissioners decide which projects to take on and when. Chairman McNeill said
he would imagine citizens participating in cost share with the county.
Mr. Sauer noted that staff would be bringing policies to the Board for consideration in the future.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 8
Discussion Materials
Harnett County Utility Fund
Harnett
COUNTY
Prepared By
Davenport & Company LLC
Memhe, NYS1;- FINRA - SIPC
February 23, 2012
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Goals and Objectives a
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Harnett County, NC
• Present a financial overview of the County's Water and Sewer Enterprise System. including: R,,
• Existing Debt Profile n
• Bond ratings g•
• Key Bond Covenants and Financial Policies
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• Projected financial performance 1••.t
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• Identify and discuss critical credit considerations and provide a preliminary assessment of how the Water and Sewer Enterprise �
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Provide the County Board with a clear understanding of the County's Water and Sewer Enterprise System's strengths and weaknesses
and provide guidance on future financial decisions and policy. Q+
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Existing Water and Sewer System Debt Profile
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2014 1 X76,244 2,111 174 I. 118 251.
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2.01, 1,911 197 1 714 170 4 .2 456 4,
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29716 1 069 411 420.4 1,494 729 7714
not totn 911 140 644 L470 696,
20,2 .1.955 152,527 1 214 192 9166
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Pay out Ratio = Total principal paid up to date certain divided
by total outstanding debt For a Utility 40% or better is
considered a 'best practice' level.
Credit Overview — Bond Ratings
• County Water and Sewer Enterpnse System Bond Ratings:
• Enterprise System Revenue Bonds.
Ann AAA AAA
AM AA+ AA+
An2 AA AA
AA-
A I
A2 A A
AS A-
nna' BBB+ BBB+
Baa2 BBB 131313
Boa3 BBB- BBB-
Woroltroestno rut Grade
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Hanlon County, NC
Enterprise System Funding
• The County has created a separate Enterprise System Revenue Bond Credit.
• Additional utility needs have been funded through General Obligation Bonds, Installment Purchase Contracts, and State
Revolving Loans
• Al the time of each new debt issuance, the County must update the Rating Agencies on a wide variety of topics relevant to the
Enterprise System's performance and prospects so as to obtain an updated bond rating or roughly every other year under each rating
agency's surveillance program.. This rating process may result in the affirmation of the System's existing ratings, an upgrade, or a
downgrade,
• In December 2011, Standard and Poor's conducted a rating surveillance and affirmed thc System's credit rating.
• Maintaining and/or enhancing the System's credit rating is critical to obtaining the lowest cost of funds. Now, more so than anytime
in recent years, the System's bond ratings are the primary driver in securing low cost funding.
DAvE,Toni ConntANYLI.c
Credit Overview: Key Ratios
Ilomclt Cmmn'. NC
Peer Group
Harnett County, N0
• Debt Service Coverage — Ratio of Net Operating Revenues available to pay Debt Service needs to meet minimum targets. — (bunt) to In order to provide perspective on the System's financial performance in relation to the Key Credit Ratios previously discussed,
Consider Financial Polies Davenport has developed a Pccr Group for comparative purposes.
• Pants Covoraoe Reanrement Revenues together with 20%o f the balance in the Surplus Account at the end of the preceding
fiscal y ear shall at least equal the total of operating expenses plus 120% (1 20x) of debt set) ice on Parity Ros enuo Bonds.
• t.o, For every $1.00 of Panty Debt Service. the System must have $1 211 of Net Revenues + 20% of the Surplus Fund
• Total Covcraec Renuirement Revenues shall at least equal the total ofopcmting expenses plus 100% (I 00x) of debt service
on all outstanding Enterprise Sy stem supported debt service.
• t.e. For even 51 00 of Enterpnse System Debt Service. the System must have $1.00 of Net Revenues available to pay.
• System Reserves — Cumulative Funds available after Operanons and Debt Service needs to be established at a minimum acceptable
level. - Count) to (bnsidei Ftnanctal Niles
• Often referred to as liquidity and measured as a percentage of Operations & Maintenance. or Days Cash on Hand.
• CIP Funding Sources. Debt vs. Cash — System needs to Demonstrate a balanced approach between Debt and Cash for funding
Capital. — County to Consider Ftnancml Polies
• S1 stem Rates — County Board needs to set rates and charges to as to ensure the continued financial strength and the self - supporting
performance of the System tnsulatmg the General Fund from unexpected events related to the Unlit) System
• Throughout this presentation, the following group of Utility providers will be used in peer comparatives:
• North Carolina and National Medians for the Al, Aa3, and Aa2 rating categories
• North Carolina systems rated Al, Aa3, and Aa2:
• North Carolina At Rated Systems
• City of Thomasville
• City of Wilson
• North Carolina Aa3 Rated Systems:
• Brunswick County
• City of Burlington
• City of Gastonia
• Harnett County
Town of Mooresville
City of Salisbury
• North Carolina Aa2 Rated Systems:
• Cape Fear Public Utility Authority
• City of High Point
• Union County
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Capital Improvement Plan
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Potential Financial Policy: The County will target a minimum amount of equity funding of 15% of the water
and sewer system capital improvement plan on a five -year rolling average.
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4,367,665
5 (•9n 4,455,218 R t1x
7, 18 9,960,816 7%2r
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1,000 1,150,000
4.7(9,071 4,717,090
(04,720 1,004.180
111,180 211,180
11n ron 110 m0 I i0 Mon (01. 750.000
60.850.204 961.000 819400 4889090 1.55160 91949654
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Pay-Go 150,000 150,000 150,000 150,000 150,000 750,000
Rva0ea 1 000 II%900 011,180 6,145,801
Char. from allwmcos 7,102,481 . 9902. - 10,682,481
tie Bon 10042 .1 Rural lkr) 19.21190 00
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Slate R,rohmo Loam 3 901,00 1 737.0,0 ;904 100 14,948,370
US Amrytlphont Copal (7,019 000 iy',IXni 41,066,000
Moore CamM : 190100 1,900.000
May.., ConNMNaO t 44 M0 3.449000
Total 68.810,204 9,671.000 8x94000 4,889.090 3,965160 91949654
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Bonds Issued'
• 2012 USDA /GO Bond Issuance 13,211,0(10
• Term 40 years
O Rate 4.00%
▪ Level Debt Service Structure
O 2 -years interest only
• 2016 SRF Issuance 4.737,11911
O Term 20 years
▪ Rate 3 50%
▪ Level Principal Structure
• 2017 SRF Issuance 3.004,1 R0
O Term 20',ears
• Rate 3.50%
O Level Principal Structure
DAVENPORT& CosmANYLLC
Projected Financial Results
llmnctt County, NC
Projected Financial Profile
!lumen County, NC
1 Revenue 25,651,077 23,530,366 25,765,607 27,61% 362 28,479,617 30,400,391 31,300,248
2 Opeating Expenses (14.134,0411 (16.580.4211 (18,067.834) (18.580,169) (19.107,874) (19.651.410) (20.211.252)
3 Net Revenue Available For Debt Service 11,517.036 6.949,445" 7,697,774 - - - 9;038,194- "" - 9;371,743 - ` 10,748;9$1 - - 11;088,996
4
5 Debi Scr ice 5,373.507 6.213.072 6.089.072 6,980.190 6,516,558 6.257,599 6.221,778
, - 3
G Net Revenue Available After Deft Service 6,149,329 796,879- 1,606,701 -- - 2,038,041` - -- 2,855,185 -- -- 4:491,982 - -- 4,81,7,216
7
8 Capitol Outlay'
9 Other Sources (Uses)
10 System Surplus (Deficit)
11
12 Cash Balance
13
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15
163
(636.009) (150.549) 768.830.204) (7.673,000) (8.394.000) (4,887,090) (3.965.360)
(2,643,215) (400,0001 68,152,274 6,800,000 6,494,000 4.337,090 _ 2,604,180
"2,864,305 - - 186,324- - 930,771 - - 1,18504 - :- -� 955,185 : - -- 3,941;382 " 3,506,0338
7.467.892 7.654.216 8.584.980 9,769.992 10.725.177 14.600.558 18.172.596
'Note Audited and budgeted 6gumu do not ,nlcude c.pcmd,mres made front Capllnl Proiccts Fund F.xpenddnms from Copnal Protects Fund shown In assumed year of `toyer.(
Sources: 2011 Audit
2012 Budget
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• Days Cash on Hand = Unrestricted Cash - (Operating
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• Unrestricted Cash as % of O &M = Unrcstneted Cash +
Operating Expendintres
Standard and Poor's criteria for Water and Sewer Credit
defines categoncs of Days Cash on Hand as:
• <30 days: Low
• 30 - 60 days: Adequate
• 60 - 120 days: Good
• > 120 days: Strong
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Some Moody; Inverters Sem=: Behn Inn Feu,bdM Study and 111FR P0en51M)
• The County should consider establishing a Liquidity
Financial Policy Guideline to aid in planning and budgeting:
• Proposed Policy: Minimum 50% of Unrestricted
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Total Debt Service Coverage Ratio ( "DSCR)"
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• Measure of ability to meet operating and debt service
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• DSCR = Net Revenue Available for Debt service + Annual
Debt Service
• Standard and Poor's criteria for Water and Server Credit
defines categories of Debt San ice Coverage Ratio as
• <7 (tv Insufficient
• 1.0x-1 25x Adequate
• 1.2fiy- 1.50x: Good
• >I.50x; Strong
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• Proposed Policy: Minimum 1.25x
Observations and Next Steps
Harnett County, NC
• Historically, the System has demonstrated solid financial performance.
• Debt Service Coverage has been a financial strengths for the System.
• System Liquidity has been at moderate levels.
• The System compares reasonably well with similarly rated systems.
• The observations above are indicative of the System's strong credit ratings as is the recent rating affirmation by S &P
• The System has a manageable CIP that is funded by cash, outside sources, USDA Loans and State Revolving Loans
• Adopted Financial Policy Guidelines will help ensure a thorough planning process and will help to insulate the System from
unexpected events.
• On a going forward basis, Staff and Davenport should evaluate the planned CIP and explore alternative CIP funding and debt
structuring options to determine the optimal Plan of Finance for increasing debt capacity, minimizing rates /charges and maintaining
strong debt ratios
D.W ENTORT & COMP - :IYLLC
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Water & Sewer Financial Model
Harnett County Case 1 Current ('11' flan
t Operating Revenue
2 Water Sales
Sesser Sales
Fort Bragg Sesser
Water mil Sesser Taps
6 Johnson Counts
0 Other Operating Revenues
to Non - Operating Revenues
it Other
t1 Operating Fvpsnldtlures
I -icing
is Fort Bragg Sesser
le Transfers
Transfer 0 General Fund
20 0)1001
21
22 Yield on Investments (W &S Funds
Source Counts' Staff. 2011 Audit. 2012 Budge(
Dammed & Company I,I,C
" 2 5% 14 ""
12 3"" 5 2" 1%"
0 oss 0 11% it il"" (III "a
0 (7, 110 "" 011% 911"" (111°"
117. ill"" 111)0 1 II",, 5110'"
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'10" 00% uu "„ 0 04
(4011x101 140010911 1411110811 000 0415 1411110001
1. " 1190"" 10%0 10"" 1 046
2
Water & Senror Financial Model
Harnett County
Capital Program
Uses
1 Ft Bragg Wastewater
2 Bnghnvater Inf0ructur0
3 South Cenral WW Ph 1131
4 South Central WW Ph 1132
5 South Central WW Ph ICI
0
South Central WIN Ph IC2
7 Pismo WW PS R FM Phase
R Northeast WW EOennon
0 SW NTA Cam IhIls Transmission
10 WTP42_ MGUlipgrade
11 SW WW PS &FM
12 BCC FM and PS Upgrade
13 Wen Central Transmission
14 South lcn Regional ((ST
15 WAIF Transmission Protect
16
17
10 Mass P0')ecrs Vehicles
19
20
21
22
20 Total
24
25 Sources
26 Pas -Go
27 Reserves
20 Grants from all mere.
29 COPS 2009
10 00 Bonds(USDA Rural Dev)
31 Revenue Bonds
32 Slate Resolsmg Loam
33 11S Army Upfront Canna!
34 Moore Counts.
35 Developer Contnhlamni
11( Total
37
38
39
40 Debt Service SUmman'
41 I -lnmg Debt Soma,
42 Planned Debi Service
40 Total
44
45 EoroOan Baodr
46
47 General I)hhenuoo Roo'h
40 Pnm(ryd
49 Interest
50 Total
51
52 COP, IP
53 0100rrlal
54 Interest
55 Total
56
57 S$1,
58 Pomnml
50 Iniemst
60 Tool Tool
61
62 R ve B m
63 Pnacrpa1
64 Interest
65 rota]
66
67 E82801 D9hl Scrnoe Grand Tolal
68 Sunsr 1000 0!000., 201.1(1(0, 2012 6n41
Davenport & Comports I.I.0
17,610.010
2 151 exx1
1142.51
222 152
1 5,7 fx,5
1105 1)0
1.0 SP,
4 021(x1(1
410011x11
6 X'51'011
1 15111011
4 7179%
1501,01 1511010 (01(1x01 150(2,1
17 619 1100
2151,001
0 104 253
6 222,152
4167,605
4.455,11%
7,7(0016
4,5_3,000
111x11011
fi 894,000
1 350,1181
4,717,0911
010 (0( 1014,100
011 101, 811.110
1%.8.0 7501801
60,830.204 7.673.0M 0394.000 4,017.000 3,065.310 93,749,054
150,00 150 000 150,010 1501400 150,1111 750 000
I 000 521 2211001 1 350 Mal 011 180 6,144,001
102411 1501001 - 10,602,401
1 4 211 100 15.211,000
'1.7100 473711x, 1104 160 14.748.170
, 61'10x1 1,1171x21 412006.100
1x1 rxxl 3.71111,(00
14171801 1,447 000
6%,%30,201 7,671,000 0,394.100 4 807,090 1915 360 93.749 054
6,089,072 6.451.750 5,088.110 55'91,114 5.151,659
520,440 528.440 667,466 1070 118
6.089,072 6,980,190 6.516.558 6257,599 6 221 770
045001 70500 717510 744,510 702501
1 0201 95<, 191 '0 4 721 552201 0911,21'
1.075.050 1.701.191 1.602,221 1.670,71) 1.590,120
546 017 '1116(17 575 207 162270 2)0041
140 589 101095 05 829 44 655 10 651
1,077,426 1,082,010 741.108 416,359 241,511
1 518 102 1,1.8467 1108457 1 660457 1.710 147
441445 1.40054 51.1004 402185 436500
1570,592 2.509.122 2404552 2.351,347 2,154!966
4,51)0 51.114. 0131101 605,1111 565 5111
591108 108 83% 540 218 121610 1921814
1.156,410 1.158.03R 1,160,210 1.155. 038 1,157 001
6,089,072 6.451.750 .5.9018,118 5,590,1..34 5,151,659
Water & Sewer Financial Model
Harnett County
69 Planned Bonds
70
71 Sams 2012 Rawnl1Inn Lorton
72 FY Issued
78 Interest enh
74 Amount
75 Rate
76 Annul 854,0
77 rmiopnl
78 Interest
79 Tail
80
81 Scnes 2013 Re, oh mg t oar
82 FY Issued 2011 bnercat OM, 9
8J Amount -
85 Rate .I mat *a
86 Amon (8r 2.1
R7 Pnnctl011
NR Interest
R9 fmnl
11
91 Server 2011 USDA I oar
92 FY issued 28111
91 Interest Owls
94 Amount 11,211 018)
055 Ram ! INi•„
90 Amon (yr) .Ili
2612
97 Nampa] - 139,026 144,587
98101e188 - 528 440 528.440 528.440 522 870
99 99801 - 52/.440 528.440 667.466 667,466
rat
01 Scnes '016Revnhma1 sun
02 FY Issued 2(118.
ell Interest 8)8111 I
04 Amount 4,797,011
05 Ralc Snsi
06 Amon (1cs) u
07 Pnompal
08 Interest
g Total
111
II Series 2017 Roonhmg l oar
12 FYlssued 2111'
11lnl6rew8)8111
14 Amount
15 Rate
16 Amon 888 '
17 Pnmtpol
IR Interest
0 16181
20 Sours Co. , n.008! 2011
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Disclaimer
Unless the enclosed material specifically addresses the pronston of financial advisory senrce81 or Imeslment 818 icon sun tees ht Daoenpon (ft Company 1.11
(-Davenport 1 or Dm capon hos an agreement w71h the recipient to pmn We such services. the recipient should assume that Dnvcnpon is acting in the capacin of an
underwriter or placement agent lJnlike a financial advisor. the peman• role of an underwriter is to purchase. or arrange t'nr the placement or secuntics in an arm's
length commercial Iransaclton between the issuer and the undenwitcr, and the underwater has financial and other interests that differ from those of the Issuer
Davenport may also perform or seek to porfonm financial ad4rson, undorwnhng or placement agent services for the issuers of the secunhes and arstruments
mentioned hercm
Phis material as prepared by Investment hnnkmg or other non- tesenreh personnel of Dmenpnn This material was not produced 61 a 10 0880h analyst although it
nrefer to 9 Dat capon research analyst or research repo. bale -• olhcmisc mdionlod. these views of am t me the authors and may differ from those of the
airnport fixed Income or research department or others in the Inn
This malenal has been prepared for information purposes only and is not a solieitalmn of am, ol7 r to bus or sell any secant) or instrument or to pa.etpntc in one
trading strategy An such offer would be made only over a pmspeotne pamcipant had completed Its own Independent ire esligahon of the securities, instruments or
transactions and men ed all mformalmn It requved to make its own investment dec1ston, Including. 0 here applicable. a remora, of any offering circular or
memorandum descnbing such security or Instrument That Information would contain Inatenal mtonnahon not contained heron and to which prospective
p^rtmipants arc referred This maternal s based on public information as of the specified date, and may be stale thereafter We have no nhligntmn to mil you when
formation heroin mm change We make no represcntanon or warranty with respect to the accuracy 01 completeness ofthts materal 085moon has no obligation
to contmuc to publish information on the securities and instruments mentioned herein
116.855 M9 securities referred tom this material ma, not hm a been registered under the 11 S Securities Act of 1933 as amended, and if not- mat not be o1Tered or sold
- 165 7818 absent an exemptmn therefrom Recipients are required to comply pith any legal or contractual restrictions on their purchase. hoidmg. sale. exercise of rights or
402,653 performance of ohliganois under any securnteshnstrumentstranoactiou
4
The secuntics/mstruments dtscassed m this malenal may not be suitable for all inn colors Thos matenal has been prepared and issued by Das enport for distribution
to market prole roonals and rnshmtmnal investor clients and other recnplents should seek independent financial adtice pour to making nn) mvestmenl decision based
on this material This material does not provide indinidualh tailored mvestmenl ad, ice or oiler tax, regulator' accounting or legal advice Poor to entering Into env
proposed transaction. rempients should determine, in consultation with thou own Investment, legal, lax. teguiatory and accauntuig advisors. the economm risks and
merits, as 53611 as the legal, tax. regulatory and accounting charaetenstms anal consequences, of the 11011 adlml You should consider this material as only a single
factor m making an mlastment decision
The value of and income from Innsstments mm vary because of changes in Interest rams, foreign exchange rates. default rates, prepayment rates, secunlics and
Instruments paces. market indexes. operational or financial conditions of companies or other factors There may be time Itmualrons on the exercise ofaptions or
other nghls m seeurlsn ;,nstmments 8ansactIons Past performances not necesaanly a guide to future performance I :shinams of future performance arc based on
o'umphos that may not be waltzed Actual events may differ from those assumed and changes m any assumptimis may hose a matcnal Impact on any projections
rs re
• timates other e,ems not taken into account mov occur and mm significanth affect the projections or estimates. Certain assumptions may lane been made for
modeling purposes only to sunplif v the ppra •ntanon and/or calculation ol'anv pro'lechons or estimates. and Davenport does not represent that any such assumptions
null reflect actual futurea,ents Aceordmgly, there can he no assurance That estimated returns or pmlecltons will be realved or that actual returns or performance
results will not materially differ from those 8shmaled Ileum Some of the mfonnatom contained m the document may be aggregated dam ol'trausacuons in
secunties or other financial Instruments executed by Datenport that has been compiled so as not to identify the uuderfving transactions orally particular customer
This malarial may not he sold or redtstribnted without the prior oniten consent ofDnsonpor
School Capital Funding Analysis
Harnett County, NC
Harnett
C O U N T Y
Prepared By
Davenport & Company LLC
Member NYSE -FINR . S11'C
February 23, 2012
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Goals and Objectives
p
}{amcll COUnIy, NC �?
Present a detailed overview of the County's Existing Debt Profile:
O
Outline preliminary timing and cost estimates for School Capital needs in order lo: IL.fD.��
tt Analyze a Series of Kcy Financial Ratios so as to Better Understand the County's Future Debt Capacity;
eD
Provide the County with an initial perspectlw on "Affordability" of Potential Funding of the School Capital Projects (i.o,
Debt Affordability);
Use o number of Key Financial Ratios to measure the impact of Potential Future Borrowings and position the County to establish / Q�
maintain compliance with a series Financial Policies and Guidelines; e9
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0
Work towards establishing a Responsible Comprehensive Plan of Finance which produces minimal impact on the constituency while r+
maintaining a healthy financial position.
4/1.
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Existing Debt Profile
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Peer Comparatives
• Harnett County is rated Aa3 by Moody's and AA-
by Standard and Poor's.
▪ The following pages contain sample peer
comparatives based on the following Moody's
rating categories and the County's population
Group.
• National Counties
• Aaa (87 Counties)
• Aa (633 Counties)
• A (226 Counties)
• North Carolina Counties
• Aaa (7 Counties)
• Aa (17 Counties)
• A (2 Counties)
• North Carolina Counties with a population of
100,000 - 250,000 (21 Counties)
DAVENPORT& COMPANY LLC
Harnett County, NC
Moody's, `- S&P- = =` - -" Fitch-- -
Aaa AAA AAA
Aal AA+ AA+
Aa2 AA AA
AA-
A 1 A + - -- A+
A2 A A
A3 A- A-
Baal BBB+ BBB+
Baa2 BBB BBB
Baa3 BBB- BBB -
Non- ILn'esnnent Grade
Existing Tax Supported Debt Service
140
1z0
100
80 •
2012 2011 2011 2615 Ells 2016 2019 20 021 2022 2021 2021 202$ 2026 2027 2029
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• Outstanding Tan Supported Debt.:
• General Obligation
• School Installment Purchases
namon Colmn, NC
5127.041.851
88.192.184
• Governmental Installment Purchases 38 ,551,034
• Capital Leases / ST Installments 548,118
Existing Tax - Supported Debt Service
ffamclt Counl■, NC
100 °4
90.4
80^4
70'4
60•c
50.4
40 %4
20% •
•lisnnro(ed as of 6 30 2011; mefades :011 relitne0 8 and 1P(• u,vnf
for Sheriffs reloch5.
• School Bonds Issued to fund Construction since 2000:
• 20(151 COPS 9,943.42(5
• 2002 COPS. 31,730,000
• 2004 QZAB: 4.000,(110
• 2005 QZAB: 789,500
• 2007 COPS 18,279,775
• 2008 Installment Purchase: 15,000,000
• 2009 COPS 35 075 000
• Total 114,817,695
• The 10 -Year Payout Ratio measures the amount of
principal to be retired in the next 10 years. This ratio
is an important metric in that it tells whether or not a
locality is back - loading its debt.
• NC 'A' Median: 100%
• NC `Aa' Median: 76%
• NC `Aaa" Median: 70%
DAVENPORT & COMPANY LLC
- FY _ _ Primipal- - - "Interest Total ` - --P/O Reno
Total 127,291336 44.194,829 171,486165
2012 7,175.737 5,017,370 12,194,107 56%
2013 6,247,446 4,581,840 10,829,286 10 5%
2014 8,015,806 4,390,440 12,406,246 16 8%
2015 8963,200 4,125,924 12,489,124 23,4%
2016 8,836,996 3,797,481 12,034,476 30 4%
2017 9,469,559 3,474,430 12,943,989 37 85S
2018 8,22fi 559 3,156,420 11982,970 44 3%
2019 8,179,559 2,801,039 11,040,598 507%
2020 8.129,559 2,506.951 10.696,510 57 1%
2021 7.657,103 2.267, 25 5.924,808 63.(56
2022 7,609,183 1,983,745 9,592,928 69 114
2023 7,518,644 1,077,873 9,196,517 750%
2024 7,466,644 1,173,134 8,819,077 808%
2025 5,569,644 1,092,776 6,662,420 85 2%
2026 5,560,874 836,473 6,397,346 89 6%
2027 5.556.874 575.030 6,131,903 93 9%
2028 5,551,874 308,328 5,860,202 98 3%
2029 2,155,000 107,750 2,262,750 100 0%
• The County's 10 -year payout ratio is currently at a
good level.
Existing Debt Ratios
250
1111Ellora
3 Pre, led
2001 2004 2007 2010 2013 2016 201,2022 2025 20282051 2054 20372040
• 5-year average growth:
• 10-year growth
• Assumed growth
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2.74%
2.71%
2.00%
von
Minot Counl, NC
1.200
.196 4?" 1?"
FY 2012: $1.055
Debt per Capita measures the amount of Tax Supported
Debt Outstanding compared to the Population.
No policy is recommended for this ratio.
NC County Benchmarks (100k-250k)
• High: 2.815
• Average: 1.312
• Low 104
• NC 'A Median: 558
• NC Via' Median: 1,014
• NC 'Aaa- Median: 2,066
Existing Debt Ratios
2004 2000 2010 2013 2016 2019 2022 2025 20211 2011 2034 2117 2040
• 5-year average growth:
• 10-year average growth:
• Assumed natural growth:
• FY 2012
• FY 2013
• FY 2014 and Beyond
DAVE. PORT & CONIPANYLLe
9,04%
9.00%
0.0%
0.0%
2.5%
Harnett County, NC
'4 2 2 2 2 2 2 2 2 2 n 2 2 2 2
• FY 2012:
1.85%
Debt to Assessed Value measures the amount of Tax
Supported Debt Outstanding compared to the Tax Basc.
NC County Benchmarks (100k-250k)
• High: 3.204%
• Average. 1.292%
• Low 0.185%
• NC 'A' Median: 0.8%
• NC `Aa' Median: 1.0%
• NC 'Aaa' Median: 1.6%
Existing Debt Ratios Summary of Potential Debt Policies
Harnett Count. NC
e 200
a 160
9 160
140
120
100
60
2004 2007 2010 2013 2016 2019 2022 2025 2026 2031 2034 2037 2040
• 5 -year average growth:
• Assumed growth
• FY 12
• FY2013
• FY 2014 and Beyond
2.57%
0.0%
1.0
3.5%
*Note (0o3 el-mental F °pendnures CNC lodes carnal and Debt Set,"
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• FY 21112:
•
12.1
• Debt Service to Expenditures measures the amount of
annual debt service burden on the County's budget
NC 'A' Median:
• NC 'Au' Median:
• NC 'Aaa" Median:
6.5
10.1%
12.6
ttomctt County, NC'
• 10 -Year Payout Ratio: The County should consider adopting a 10 -year payout ratio policy floor of 50 %.
• Debt to Assessed Value: The County should consider adopting a debt to assessed value policy of not to exceed
2.50 %.
• Debt Service vs. Expenditures: The County should consider adopting a debt service vs. expenditures policy of not
to exceed 15.0 %.
DAV00TORT & COMPANY LI.0
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Decline in Debt Service
Under the current budget, the County has no debt
affordability until FY 2018.
15A9, 197120 & 421071727771'
'7.71
Harnett Count, NC
Cumulattve
FY, Etnatink DS DecIino
Tolal 171.486.165
2012 2 104,107 n/a
2013 829186 1,164.822
2014 2 406,246 (212.1381
2015 2.489.124 (295,016)
2016 2,614.476 1440,3697
2017 2,941,409 (749.881)
2016 1.3772,976 811.129
2019 1.040.090 1,153,510
2020 7,696310 1,497,597
2021 9,924,71017 2,269.299
2022 0592,926 2,601.179
2023 9 196,517 2,997,591
2024 8,814,477 3,354,130
2025 662,420 5,531.688
2026 0397,046, 5,796.761
2027 6,131,901 6,062,204
2028 5.800,202 6,331,9(76
2029 2.202 750 9.931357
2010 - 12,194.107
11
Tax Equivalent Analysis
Existing Tax Supported Debt Service Only
"anl,
11490ett County, NC
akilia5figigidakkidd47191,0737790744W4,7‘,7414714914194055la,7047471g.177WA754 84447848.448414478.084111778071161488448878117AnulaRtal8A88)7214477466 6 tlett7
_60767404779- 0457185;457e, 1.771 9509177, 069ai6-.15.011. 8eN5797177551
06 1715.4194 Mad.. 519979790 11- - 0491 = Grit, 99,8/ 17395011- - 15,79.7990 79.,1_ 46,990, 17.9.75fr71. Roafemi,
1,194,107 . p=, 12194.107 -10,829,775.6
.4..615 4,0
12489,102' - 577,1 1240,914
10614 476 7 5 5c5, 55 5 7 5,55 55..5 12,499,515 /0343900
1,449,914 9714 150
11.1827.7 ' 917 it-16 1,056,657
1.911155,8 •. 12.499,6,4 1,499.8
10 66,510 , 1 12949.616
9,724 905 1.149,616 2574.5.
6.694'090 1 0777 4 12749.06 2855,7071
9.19,517 , 5..17 12449.614 3.25,179
9.819,977 , 71 1' 75 • 7 -19 5 1,4..05 2.9.659
114,79.6.35 5,787.9
6 19.4,5 2,441 4,5 6.052.7
12449 616
519.70.2 77.711 124977.654 6,589 414
2.7,759 , 111 /2,047660 10.1779956
10449.614 18416,616
12449.616 12449.616
12490616 12449,616
70449,636 12,949,8,
,n1I 1,449,616 1247,6,
129..614 ' 1,90,616
12449,616 742904.610
12 449 614: 12.149 016
,2014 1040 12445,616
• FY 2012 Value of 1= $720,470
Assumcd natural growth:
• FY 2013
• FY 2014 and Beyond
0.0%
2.5%
,79,48111.
71,991)
Total 7.11 1901
41190 41,:z
080 9187 0,7p
008 77927 4o
1 571 -
1 5.419 1,50/ 784
2.3,490
7.070,401
VI( .1 12171,799
- 16.1751.215
4 197.789 -
.941
1.1 156,710
6,5,546 41,507.4
7.8 ,58 47,545,124
10,851,775
11.111,107 71.5..166
11.198.141 54,656,1477
15.165.699 97,841,915
11,181,505 111,025920
11201.852 124..7,272
.480 657 117,447970
11.9 911 150 67.,865
19.251 690 161047351
11.279,17 17...497
To.51,, Effect 0 64
DAVI 6'OR717 10 COMPANY LI.5" (2
Mr. Cole noted that under the current budget, the County will have no debt affordability until FY 2018.
Mr. Sauer stressed that staff and Davenport & Company were very conservative in numbers when
preparing these reports; assuming flat revenue.
The Harnett County Board of Education members and staff joined the group for lunch and discussion.
Members present were Chairman Billy Tart, Vice Chairman Vivian Bennett, Chuck Levorse,
Superintendent Tom Frye, Finance Officer Bob Troutman, Engineer John Birath and Jeff Tsai, Director
of the School Transportation Group at NCSU.
Mr. Frye gave an overview of the following needs analysis of the Harnett County Schools
2012 -2013 Budget:
HARNETT COUNTY SCHOOLS
2012 -2013 BUDGET
tys
Needs Analysis
• In order to fill other budget deficits, teacher
assistant positions have been significantly
reduced:
- Grades K -1 - 1:1
- Grade 2 - 1:2
• Teacher assistants now only work on 195
days (includes holidays) of employment as
opposed to 215.
• Teachers and classified staff have been
frozen at their same level of pay since 2008.
• Simultaneously, the cost of family health
coverage has risen $460 per year.
Realities
• For the 2012 -2013 School Year, Harnett
County Schools will operate WITHOUT:
- More than $3.82 Million in EduJobs Funding
- An additional $989,354 in State Reversions,
which brings the total for State reversions for
2012 -2013 to $6,718,936
- The total reversions from 2002 -2003 through
2012 -2013 is $22,556,962.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 25
Vi
Implications of the Reductions
"?, • Significantly larger class sizes
• Fewer support staff (instructional and non -
instructional support)
• Schools without assistant principals
• Significant negative impact on elementary
classroom instruction without teacher
assistants
• An inadequate number of bus drivers to
transport students
Experience of Teachers
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Teacher Years of Experience by Grade Level
2005 -2006 School Year
146%
■ 42%
Elementary Grades Middle Grades
1%
High School
10+ Years
rt 4 -9 Years
a 0-3 Years
2/23/2012
First Month Student Membership
Compared to Total Staff Employed
Experience of Teachers
100%
60%
40%
20%
0%
Teacher Years of Experience by Grade Level
2010 -2011 School Year
38%
44%
Elementary Grades Middle Grades
49% i
High School
22
5
3
10+ Years
4 -9 Years
0 -3 Years
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 26
2/23/2012
Harnett County Schools Teacher Supplement Regional Teacher Supplement Average
$2,000
$2,250
$2,400
$2,600
0 — 2 Years of Experience
3 —14 Years of Experience
15 — 25 Years of Experience
26+ Years of Experience
Budget Request - Staffing
• $4,050,000 to cover teaching positions lost to
EduJobs funding and the additional State
reversion
• $450,000 to cover 10 additional teaching
positions
• Currently, there are 118 classrooms with 35
or more students!
Average Local Teacher Supplement
Wake
Chatham
Cumberland
Johnston
Moore
Lee
Sampson
Hamett
nalYeklitaltr
56,031
54,009
53,662
53,642
53,535
$2,859
52,648
52,260
cos
„51�� j�t��aa�'�
Budget Request - Staffing
• $99,500 for 2 additional maintenance service
technicians
• Currently, 43 maintenance technicians each
support 77,885 square feet of facility space.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 27
Budget Request - Staffing
• $60,000 for 2 additional custodians
Students to Custodian Ratio for Neiahborina Districts
Elementary Schools
Middle Schools
High Schools
Other Systems
150.56
161.37
186.63
Transportation Statistics
Harnett
337.56
277.31
253.31
LEE 28.21
CHATHAM 27.25
SAMPSON 24.71
HARNETT 24.57
WAKE 22.12
CUMBERLAND 21.22
MOORE 20.68
JOHNSTON 20.36
2/23/2012
Budget Request - Staffing
• $90,000 for two additional transportation
mechanics
• Fleet size (2012 -13) — 266 yellow buses, 29
activity buses, 108 county vehicles
• 50% of the fleet is over 10 years old.
• Only 33% of the fleet is under warranty.
• HCS Transportation Department is rated as
100% efficient by NCDPI's Division of Pupil
Transportation.
Budget Request — Fuel Costs
• $548,900 in additional fuel costs
• In 2012 -2013, fuel for yellow school buses is
to be allocated at $2.51/gal; however, the
projected cost is $4.09 /gal. The $548,900
deficit will be the responsibility of local funds
(County funds).
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 28
Budget Request — Internet
Bandwidth
• Increased requirements for online testing
• Increased requirements due to Race- to -the-
Top initiatives
• Expansion request - $155,830
Budget Request — Additional
Yellow School Buses
`i • $125,000 for 4 additional yellow bus
lease /purchase (1St of 3 years)
• Routes have been optimized with respect to
staggered bus routes.
• The State is currently planning to fund
replacement yellow school buses.
2/23/2012
;�s;`�z�sawtc
Budget Request — Replacement
Computers
• Computer hardware continues to become
obsolete in the school district.
• An increased requirement for online testing
will require additional equipment.
• The amount requested is inadequate;
however, it is a start.
• Request - $500,000
Budget Request — Replacement
Activity Buses and Service Vehicles
• $450,000 for replacement activity buses that
are old with excessive mileage
- 1990 — 207,700 miles
- 1990 — 211,579 miles
- 1990 — 253,487 miles
- 1991 — 199,168 miles
- 1991 — 186,929 miles
• $390,000 for additional and replacement
Maintenance and Transportation vehicles
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 29
`�: Fay :fie!ac. =»;s:..;_�.x ^s�=�.:..� •�
2/23/2012
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 30
Health, Safety, Welfare WTI
Needs
Replacement of gyrn Current bleachers 5500,000
bleachers at HCHS are original to the 35
and WHHS year-old building.
Replace running
tracks at HCHS,
THS, and WHHS
Current tracks have
deteriorated to the
point that they are
unsafe for student
athletes to use.
Replacement is not
an option since the
sub-base is
inadequate.
5437,892
L.
1
2/23/2012
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 31
Health, Safety, Welfare (HSW)
Needs
f1i4u1�l4aM °y;;
Replace tennis Current courts have $136,400
courts atTHS deteriorated to the
point that they are
unsafe for use.
Patching does not
work since sub base
is inadequate.
2/23/2012
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 32
Budget Request — Air Conditioning
- Kitchens
• 10 schools currently do not have air
conditioning in kitchens.
• With the increased serving time required by
overcrowding, staff members must spend
more time cooking.
• A staff member has collapsed in the kitchen
due to the heat.
• Cost - $122,600
2/23/2012
Budget Reductions — 2011 -2012 Staffing
• 17.45 Certified staff positions eliminated
- 7.3 — Central Services
- 10.15 — School -based
• 76.165 Classified staff positions eliminated
- 8.0825 — Central Services
- 68.0825 — School -based
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 33
;`a' Proactive Solutions Implemented
• Grants
- DoDEA - $2M for technology initiatives
- Bright Idea Grants — Various projects
- Energy Efficiency Block Grant
to Adjusted school start times to allow for
staggered bus routes
• eRate Funding Program optimization
Proactive Solutions Implemented
• Technology Solutions
- Employee Portal
- Online work orders
2/23/2012
Proactive Solutions Implemented
• Staff development outside of the school day
without stipends
• 4 -day work week during summer
• Recycling program
• Energy conservation program
• Reduced days of employment for teacher
assistants
Proactive Solutions Investigated
• Investigated total mobile school concept
- Safety is a primary concern
- Life cycle of facilities
• Investigated year -round school concept
- Substantial additional cost to operate (Over $1M
for 1 middle and 1 elementary school)
- Minimal return on investment
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 34
Proactive Solutions to be
Investigated
• Privatized solutions for services
• Online Board Document System
• Alternative fuel sources for transportation
• Consolidation of Central Services
Ranking of Harnett County Schools among
All NC School Districts - Local PPE
Per Pupil Expenditure (PPE) - Local Funds
AVPRST■PgRAPRIER:
iliakargalitiakelneNfal
2004 $ 947.11 99th
2005 $ 1,116.74 81st
2006 $ 995.79 96th
2007 $ 1,001.16 100th
2008 $ 1,248.81 85th
2009 $ 1,149.52 99th
2010 $ 1,095.85 96th
2011 $ 992.19 101st
Cafs asue C warn .rnen cr Ses Prol. sq.1. e'er...tics:hoofs c s,...-ue.ve
2/23/2012
sre "
Ranking of Harnett County Schools among
AM NC School Districts - State PPE
Per Pupil Expenditure (PPE) - State Funds
2004 $ 4,512.35
2005 $ 4,640.78
2006 $ 4,764.73
2007 $ 5,308.77
2008 $ 5,622.63
89th
90th
95th
79th
79th
2009 $ 5,517.53 91st
2010 $ 5,139.24 90th
2011 $ 5,180.13 83rd
Da. Sparse NC,113,s-odrs Doostsre,R,P.A.Mar-s. Cstrs —sa•Pro. ran, I.C.IG,[30,001:Cg1.2.2JaifISP.12,9
Ranking of Harnett County Schools among
All NC School Districts - Federal PPE
Per Pupil Expenditure (PPE) - Federal Funds
Balkg,A, A 4,21iA,
2004 $ 482.92 77th
2005 $ 516.70 76th
2006 $ 546.67 78th
2007 $ 631.45 54th
2008 5 533.28 80th
2009 $ 580.90 79th
2010 $ 955.67 80th
2011 $ 851.12 104th
40,Carctra Decs,nort ker,cr r, a Sar n
navancsfrec., crc, 1.x...rvex.o.
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 35
Ranking of Harnett County Schools among
All NC School Districts — Total PPE
Per Pupil Expenditure (PPE) — Total Funds
2004 $ 5,942.38
2005 $ 6,274.22
2006 $ 6,307.19
2007 $ 6,941.38
2008 $ 7,404.72
2009 $ 7,247.95
2010 $ 7,190.76
2011 $ 7,023.44 114th
111th
99th
109th
105th
104th
112th
111th
;\f 4 0 A\
� ,
Comparison of Harnett County Schools to
Bordering School Districts — Local 2011 PPE
Local Per Pupil Expenditure (PPE) — Total Funds
Chatham, Cumberland, Harnett, Johnston, Lee, Moore, Sampson, Wake
Chatham $ 2,783.63
Johnston $ 2,094.17
Wake $ 2,039.27
Moore $ 1,811.47
Cumberland $ 1,787.87
Lee $ 1,770.85
Harnett $ 992.19
Sampson $ 975.86
1
2
3
4
5
6
7
8
2/23/2012
Comparison of Harnett County Schools to
Bordering School Districts — Total PPE
Total Per Pupil Expenditure (PPE) — Total Funds
2004 $ 5,942.38
2005 $ 6,274.22
2006 $ 6,307.19
2007 $ 6,941.38
2008 $ 7,404.72
2009 $ 7,247.95
2010 $ 7,190.76
2011 $ 7,023.44
Data Stu", avc..ovetrnert al F4G, r «or,.. spa•aofe
8th- Last
8'" - Last
8th- Last
8"' - Last
8"' - Last
8'^ - Last
8"' — Last
8'^- Last
ake
satrceetles
4 Comparison of Harnett County Schools to
Bordering School Districts — Total 2011 PPE
Total Per Pupil Expenditure (PPE) — Total Funds
Chatham, Cumberland, Harnett, Johnston, Lee, Moore, Sampson, Wake
Chatham $ 8,980.84
Lee $ 8,180.91
Sampson $ 7,886.99
Cumberland $ 7,835.93
Johnston $ 7,828.15
Moore $ 7,802.18
Wake $ 7,561.44
naHarnett„fa2,�� $ 7,02344, ..,.a...
Anm
1
2
3
4
5
6
7
8
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 36
Mr. Troutman gave an overview of the Harnett County Schools 2012 -2013 Total Appropriation
Request.
HARNETT COUNTY SCHOOLS
2012 - 2013 BUDGET REQUEST
FEBRUARY 23, 2012
Current Expense and Capital Projects
Employ 10 Additional Locally Funded Teachers
Maintenance Positions (2)
Custodial Positions (2)
Transportation Positions (2)
Expand Internet Bandwidth
Fuel for Yellow Buses
Replace State and Federal Fund Reductions
O R 450,000
O R 99,150
O R 60,000
O R 90,000
O R 155,830
O R 548,900
O R 4,050,000
Replace Classroom Computer Equipment C R
Lease /Purchase 4 Additional Yellow Buses- Year 1 of 3 C R
Instructional Furniture Additions /Replacement C R
Purchase 5 Replacement Activity Buses C N
Service Vehicle Replacement/Addition C N
Gym Bleachers, Track Resurfacing, Tennis Court Replacements C N
Air Conditioning for Cafeterias C N
C = CAPITAL O = OPERATING
R = RECURRING N = NON - RECURRING
Total Current Expense Operating Expansion
Total Capital Expansion
Total Expansion Request
REVENUE SOURCES
2012 -13 CURRENT EXPENSE REQUEST
2012 -13 CAPITAL OUTLAY REQUEST
2011 -12 COUNTY APPROPRIATION CURR. EXPENSE
2011 -12 COUNTY APPROPRIATION CAPITAL
TOTAL 2011 -12 COUNTY APPROPRIATION
2012 -2013 TOTAL APPROPRIATION REQUEST
TOTAL RECURRING
TOTAL NON - RECURRING
Budget 2013 Budget Request .2
500,000
125,000
25,000
450,000
390,000
1,074,292
122,600
5,453,880
2,686,892
8,140,772
25,741,884
3,652,073
20,288,004
965,181
21,253,185
29,393,957
6,103,880
2,036,892
8,140, 772
Classroom Teachers
Building /Equipment Maintenance & Repair
Buildings and Grounds Upkeep
Bus & Other Vehicle Maintenance
Current capacity has been maximized
Fuel Cost Not Supported by State
Retain 90 Teachers and Hire 10 Teachers
Scheduled equipment replacement
Yellow Bus Fleet Additions for ADM Growth
ADM Growth and Scheduled Replacement
HCHS, THS, WHHS (2), OHS
Maintenance & Transportation Vehicles
THS, WHHS, HCHS
Install AC at Various Schools (10)
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 37
Chairman McNeill requested that the Board of Education prioritize their request asking that they
research contracting maintenance and look at out - sourcing other services. Chairman Tart responded that
what was presented was priority needs. Mr. Sauer noted it would be over an .11 cents tax rate increase
to provide the current requested funding by the Board of Education.
Mr. Frye reported that the schools already optimize their school bus routes. He noted much of the
testing and assessments would be going on -line. Mrs. Bennett noted that Board of Education members
recently voluntarily took a reduction in their compensation.
Mr. Tsia presented the following overview of proposed future student trends for Harnett County:
Harnett County Schools
Paa-laaA, tr. set,
North Carolina
Moen,' PtenInersn.
axawarXT./Mwrnixe + remc
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 38
Observations
Harnett County Schools will continue experiencing growth due to:
— The nearly 20,000 students already in the system
— Strong historical new births trend
— Strong historical elementary population growth that %nil matriculate through the K-12
system in the next decade
• Overhills attendance area schools wit continue be the dominate growth force for
the Harnett County Schools
• Harnett County Schools future growth will be less sensitive to DoD activities due to
the large population cohort already in the system
2/23/2012
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 39
1 ,
3-year growth = 192
ZZr7 o YON 27C917 7- 771111.
/71-4orlont7c7ot Alothoott, Lion
thokover 1.1z-a
3-year growth = -31
17.tor.s17,1
o lootoote not000l soma.. 70..7.72
2/23/2012
3-year growth = 5
Docno OM
141117tonS [km
7.-notiore18.to 771.
3-year growth = 19
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 40
2/23/2012
~~,~ ~~ ~~,~~.
February 23, 2012 Planning Retreat
Harnett County Board of Commissoners
Page 41
Mr. Tsia reported his projections are that Harnett County School's future growth will be less sensitive to
U.S. Department of Defense activities due to the large population cohort already in the system. Mr. Tsia
noted Harnett County is 20th largest school district in the state and the trend shows Cumberland County
residents moving to Harnett County.
Mr. Birath shared a video compiled by students and teachers showing the current over - capacity
conditions in Harnett County Schools.
Mr. Birath gave an overview of the following Out -of- Capacity by Serviceable Capacity
Worksheets prepared by Mr. Tsia:
Harnett County Schools
Out -of- Capacity by Serviceable Capacity Worksheet
Model A - Conservative by Attendance Area
Sery Caoacityl
2010 -11 ADM 20 -day Membership Forecast
2010 -11 2011 -12 1 2012 -13 1 2013 -14 1 2014 -15 1 2015 -16 1 2016 -17 1 2017_08 1 2018 -19 I 2019 -20 1 2020 -21
Harnett Central
Angler Etem 748
E nes Creek Etern 200
,..afayette Beni 500
_if. +ington- Sirauwtowp EPern 700
^41arttr Harriett Prim 460
-larnett Centr& Mid 950
- +smelt Central i -figgh 1550
u�r
Totals 6108
?verhIlls
..7dersar! Creek Eem
)vertr.Fs Efemr*.
>•av11!t. Harnett Pruxn
)ve: 'f °s �1rd
)vegM rrs a-1 gam,
totals
700
920
634
800
1400
rrtton
::eats Fte 1 720
^a-^. Efe+r* 1 388
iertry P0m 1 213
°Arnett Pr^ ^,. 1 736
a,r.te Ave EPecr, 1 285
oafs -Erwin Mid 1 800
':jrrp MEd 1 650
ttarT 1 1625
btals 1 5418
503 1526
4 ,; , .,
a;,,r,,a� a".aar
Western Harnett
,enhavera Efern
'done TcaA& Eremn 1
!,g?rartd Elem.
;*hrrsonv fie Eremrt 1
lestem Harnett MFd 1
p`estere Harnett Higri
clads
VSTEMMM1 TOTALS
420
920
720
450
950
1442
4902 1 48921:0349.8,1
19879 1 19466 i 19721 I'r;' ' O i „ \'2” * 1,,;P;
95%- 100%
egend
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 42
Harnett County Schools
Harnett Central
Angier Elem
Buies Creek Elem
Lafayette Elem
Lillington-Shawtown Elem
North Harnett Prim
Harnett Central Mid
Harnett Central High
Totals
Overhills
Anderson Creek Elem
Overhills Elem
South Harnett Prim
Overhills Mid
Overhills High
Totals
Triton
Coats Elem
Erwin Elem
Gentry Prim
Harnett Prim
Wayne Ave Elem
Coats-Erwin Mid
Dunn Mid
Triton High
Totals
Western Harnett
Benhaven Elem
Boone Trail Elem
Highland Elem
Johnsonville Elem
Western Harnett Mid
Western Harnett High
Totals
SYSTEM TOTALS
..7
Out-of-Capacity
Model B
Sery Capacity ADM
2010-11 2010-11 I 2011-12 1 2012-13 1 2013-14 1
748
200
500
700
460
950
1550
=
by Serviceable Capacity Worksheet
- Aggressive by Attendance Area
20-day Membership Forecast
2014-15 1 2015-16 1 2016-17 1 2017-08 1 2018-19 1 2019-20 1 2020-21 I
455
-wiltaluifigniaMillinatilliat
1479
Ikedfleageledie
1487
1541 ==---1=--;1=
1
5108 $233t 83
700
920
634
800
1400
4454
720
388
213
736
285
800
650
1625
897
_ „i.14,,:f*rf2Sk':z:t'V.ot-ni:ttr,;a002tvl::3-& :11;
gar
0
xiiiigagits001111.10MignaLiellisationSWE
615
3-f41 • 324: 7
ia 47
5416 [--_,==-3414-t_t<V---
420
920
720
450
950
1442
4902
1
15601 1593 -Igs,Ff==2:4_
1606 1588 if
--&-7_000_01 51541 52261 63071 5394
4892[
19879 1 19465 1 19860
I Atti
1400 1436 14T8 14O 1431 1470
'11114114141EBBMISPLiMeted*
Capacity Legend
95% -190%
-LignEWitegi005.1 _TS
27.1-Az
0.ITRE
Ofl/td.
Mr. Cole presented the following Future School Needs and Operations and Annual Capital Outlay
Requirements of Davenport & Company's School Capital Funding Analysis for Harnett County:
Harnett Count NC
Future School Needs
DAVE: TART & CMa•
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 44
FY 2012 vs. FY 2013 School Draft Budget Request
FY 2012 Count) Appropriation for Current Expense
FY 2011 Requested increases
Teacher Mention
Expansion of Internet Dandxadlh
Fuel for fluxes
00190ial
FY 2013 Additional student Needs
Wink finds
Transpor(ollon
Maintenance, Custodial, Fnrchanna
Snbbnal
Total Requested FY 2013 Current Fxmmsc
20.288.004
4.500,000
155,810
548,900
5.2 4.710
100,604
128,039
029,443
26,122.177
FY 2(112 County Appropriation for Capital Expense
FY 21113 Rcqucslcd Increases
Computer Equipment
Instructional Finn=
Bleachers, Track Rem-Mune, Teams Costs
Air-condilionmc for Cofetena
Subtotal
FY 2013 Additional Student Needs
Transportation Vehicle Costs
Maintenance Vehicle Costs
Subtotal
Total Requested FY 2013 Carnal Outlay Exnnne
- TLae`arz�;.
Total FY 2012 Country Appropnation
FY 2013 Requested Increaec
FY 2013 Additional Student Needs
Total FY 2013 Requested Comb Annronnation
21.253.185
6,926,622
2,105.693
30285 500
Note Tran9,000tion cads me hued on current legldlaumi alluvi ung co 1 of replacement hues to local funding
Source Ilurnett ('aunty I'uhhc &hoots
0,437.1 PART & COMPANY 1E0
Harnett Comb, NC
965.181
500,000
25,000
074,292
122.600
1,721.892
1151150
195,000
1.476 250
4.10.3,325
15
Projected Current Expense and Annual Capital Outlay
Harnett County, NC
- -- - Mats- _ Otfiu giaxan3- _ - - F t0ereted,
Cuslodis 'I' ronrr cnd Capital " " = 6' domed Value of - (risen real fox_
- =FY _ Tesseisflefialn' - _Ftachem - =-Mobdo Umfs" -- Cm1;9"'- Taa3'- - Annoal Darienec - - -1E - - FeitemoM, --
2013 7,962,898 9,994,633 1,063,958 11,264,011 10,285,500
2014 8,412.639 10.099.227 1.127,858 11164,011 10,901,735 618,215 749,070 O Se
2015 8,593,469 10,136275 1,157,858 11,264,011 11,151,613 247,878 767,797 0 3e
2016 8,430,187 10275193 1267,358 11,264,011 31,236,849 85,236 786.992 016
2017 8,527,547 10 969,092 1309,958 11,264,011 31,470,608 233,759 806,666 0 3e
2018 9.163.019 10,480,979 1,441,058 11,264,011 32,349,067 878,459 826.833 1.10
2019 9,349,093 10,411,790 1,314,758 11264,011 32,319,652 (9,415) 847,504 0 00
2020 7,878,984 10,528,518 1285,958 11264,011 30,957,471 (1382,181) 868,692 .I 0e
2021 9,397,726 10,604,497 1,330,058 11264,011 32,596292 1,638,821 890,409 1 85
2022 9197,726 10.604,497 1130.058 11,264,011 32.596292 - 912,669 000
2023 9.397.726 10.604.497 1,330,058 11,264.011 32.596292 915,486 0 08
Total 96.511,014 114.109198 13,958.938 123904,121 348.483,371 2.310,792 2 86
Transportation costs are based on current legislation allocating cost of replacement buses to local funding
10 Assumes no conslr0Chon of new school facthins
01 Assumed to be flat at FY 2013 levels Additional school cost component mercascs may further impact This analysts
Source Harnett County Public Schools
DATE. PORT .$ COP.4NYLLC
16
DA \7.: MIRT & COMIC } LI,r
07 -f
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Case 1
Expansion of Core Building Space in Existing Schools
CC
CC
Core U l m� P ace Requirements and Assumed Funding Sources
Rumen C WIt, NC
1lamett County, NC
17
Core ButWmg Space
2013 - 2014 _ - -. - 2015 1 - 2016 _ , - 2017 - - _2018 -- -2019-_-1-- ` - -- 2020- - - - "2021 -- --
- 5,335,087 1,593,591 1.667,141 952,726 74,000 74,000 74,000 9.770,547
Fundme Sources
Cash 74,000 74,000 74.000 222,000
Debt Proceeds 5,335,087 1,593,591 1,667,143 952.726 - - - 9,548,547
Total - 5.335,087 1,593.591 1,667,143 952,726 74.000 74.000 74,000 9,770,547
Source: Harnett County Public Schools
0.13T...PORT & COMPANY LC
I8
Case 1 Borrowing Assumptions
5 Ian
•19,074 l015
1 ,l
n;\ \1 WIRT & COMPANY LLC
d�Y, CD
I\
VY cr
CD
v .O`+ m
n�
O N
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rt
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CD
1
1/3
• Assumed borrowings:
• FY 2015:
• FY 2017:
• Total
RS
wrs
Harnett Counh, NC
$6,928,678
$2.619.869
$9,548,547
• Borrowing Assumptions
• Term 15 years
• Rate 4.5%
• Structure: Structured Principal (4:1)
• Total New Debt Service: $11744,130
Case 1 Debt Capacity
FY
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2010
2031
2032
2033
2014
2035
2036
2037
2038
2019
3040
2041
2042
11 °E
17%
300E 16,
38, 24 56 105E
44% 32°4 1956
51, 3959 28,
57, 4705 37%
63% 54% 4555
69% 61, 53%
75, _ 68K 6Bc
8176 -- 75, 701,
85% 61% 765
00% 86 %- _ 82,
9436 91, 89,
WE 97 55 95,
100% 9954 98,
003E 1000 99,6
100 7E 100 °5 100%
100% 10054 100%
100% 100% 100
100!: 100°6 100%
100, 100% 100.4
100% 100% 100%
100 1004. 1005,
100, , 100, 100%
100, 100°6 1005,
100% 100% 100%
100% 100, 100%
1008E 100% 100%
• Potential Policy: 50% or above
D.\\I:.PORT & CO30•.A \YLLC
Harnett County, NC
1
250:
Case 1 Debt Affordability
Tax Increases as Needed
Hornell CoOnt, NC.
- - ,
- 4 240 .104 17011.8004189 _ T.6 /16,605.1 21994 .0- Dots 10140. -04.91 6.604.019.9.51 Tex -211495.40.55.41
=_ A 47.7069 - -14 9 1.4. '4, " 01.161,6 - -
116
• FY 2012 Value of le= $720,470
Assumed natural gro,fir
• FY 2013
• FY 2014 and Beyond
DM45.16601114& C03111397141.3.
L5%
2.5%
12,066616 11.2301
12309 676
12 414 616
12 1.16 - 3114
1.1 --6 011,20
11 11 2,626
12010 616 12,12-326
12049,6 12 101 111
6244 7 1,09.
1,10,6 12349,,
11400 616 12 04.70,16
12 19, 616 12 107 616
12 419 616 12,0 6.
12049. 12300 OA
Total 31 1.
6 581.01
6 912 299
02507.
1,26 31
1,19 2-6
11'91 61,
14141616
11 161,6
13271 /11
1011-266
11 761 'A
21
Case 1 Debt Affordability
Tax Increases at Revaluation
"F_TI
Harnett Counh,04.
- - - - - _ - -
1,,,,..d e SOU Tha==ki0 Q20* 4*08.089. 80909.
- Px===.124 Sdez.DI - apoie - Tod - /===axen - Lae* 1=1:=a. 9776601 63014.669 - FUN..
10 429,6
12.7 124
125.69
1719,,
11 09415.01.
16. 60
3724.
===
.6,20
5.6
611..7
2 732'50
•
•
„156,1.65
.9 14, 76
69.2 3
020 .1
30952
62 9015
.119.
693
611161
1171410
5,11 41
12 104 1(17 1. 1 " " 115.107 1
.201. 1 .7 1 -0 19 12449.1
4,07 I - 43711 1 '9' 1 7.6 1 12004 6161
11,6,913
'1llll''0l"..4I7.40l_r40l
10,8026$4 ■=i ==== =,I= 12,1=0,6,5
94.0 • 611 9- 15 1:1.9636 4
7 37 715 + 73'2 019 17, .2 120096141 0,1160301
0.037399
3031369
A670 672 -.431 6. 1-7 6 9 7. 12 4.616 4 s ,s5,114
, 12349.6161 0,110.700
1.191310 .2 111 1 •S•/,. 124..635 11,235,426
121311 '7.11 '3: 1 1 12409616 12,123625
700325 - 017 4"- 4-42 1230963A 12.101,111
, 4.4 12409,616
12,409636
12 446 116 12 449,616
1, 1.11 .316316 12 406,6
/ 20 1 1,03613.1 12407916
• FY 2012 Value of le= $720,470
• Assumed natural growth.
• FY 2013
• FY 2014 and Beyond
DNVENPORT & COMPANY LIP
1.5%
2.5%
•
.635031
1177,9271
1.61 96'5211
•
•
11,790
013300 1 06
331396
110367
973 56; 1.103.9.2
1311,107 23-37317
1,663130 - 3.0919
2300391 6 00200
2987,066 9,177,475
1,31.sin - 126.326
1,710,210 10419,706
5,746 611 - 0.110,00
9115960 111,4114
6 010 Pen - 91,766,1101
6.761. 41 517 160
19109325 01,677,629
12112911 6196030
11311.100
11,251,64 91,101,541
”Rspon - 103061 601
13616364 - 117,613066
11965610 111,1,700
11 675 514 - 141979310
11,706,1112 1511.645316
1.1617=651" 1 Of 17,21912
Case 2
Undertake all Near-term New School Construction Projects
D,11 (.:,TORT & Crlhm %Nl 1 LC
linmcll CotmO', NC
•
Near -Term New School Construction Needs
1
2
5
Tatar
Ihgldend Ahddle 19c.
Southwest Elementary New
!lumen f-rnn.i Elementary Replace Au, Creel ES
West, Elcmrnlary Replace Rcnhaven ES
Iilghland Atgh New
70 011369 70,911,869 001-12
2018,770 21,080,014 Scp-14
21,797,476 25,495378 Sep-16
16,691,841 21,120,511 6,18
54.154.187 74,014,880 62.9.29
145,490.109 175.542,517
626.792 09.12
577,725 00.74
189,669 00416
41741 0,18
1.055,117 10130
1474 511
Darnell County, NC
2013 -2016
28162017
2018 -2019
20292021
20222021
146,176
111,200
111]80
86,592
248,512
704,152
' includes POemone noted, projected ultimo, mrtodul mpphm and yalpmrnl; frounda aupplm and equrymrnt; malMmanw mmm.la and equM95,6 118,1. w11w2m2Elemmlary School SI.Rng 4
11916696.. S Office Support, Aug Driven, 4lmtgucnmal Techtwlogy, l School NunuM1ddl2 School Slaffng 5 Cguloduna, a Office Support, Am Doren, 27.2002nnal Technology, !School Moue.
Coaching Supplemcn2A,gh School Staffing 7 Custodian.• 1 1:,966, Keeper, 5 Office Support. Rua Driven. 2lnaw6160.I Technology, I School None. Coaching Supplement
Source: Harnett County Public Schools
DAVENPORT & COMP,ANYLLC
zd
Mobile Unit Savings from New Schools
Morrie Unit Cost.
Case tNo New _Case 2-,-Ail Near- - - -
FY - - Sclxwi- - - - "Tam Needs- - Saviitoa (Co8tl
2019 063,958 1,063,958
2014 .127.858 1.127.858
2015 .157,858 1.157.855 -
2016 .267.358 951,053 315.405
2017 309 958 601.005 648,955
2018 ,441.058 690,805 804,253
2019 314.758 445.309 869,449
2020 .285,958 310 109 966.849
2021 330,058 200,600 1.129,458
2022 330,0 19 149,600 1.180,458
2029 330,058 145,400 1.189,658
Total 13.158.938 0.854.455 7.104.483
Source: Harnett County Public Schools
11:591 - P nRr & C(IKIP.11N1 LLr
-t7 = 71
00 v CS
C
O r+
o
N)
c W
rY N
O
W
O
2
f2 v
O
o W
9
9 CD
N 02
o r*
CD
N
97
Harnett Counts. NC
Case 2 Borrowing Assumptions
2i n
25 11A57.-PORT & COSIPANYLI.0
• Assumed borrowings:
• FY 2013 (QSCB):
• FY 2015:
• FY 2017:
• FY 2019:
• FY 2021:
• Total
flannel) County, NC
$30,911,869
$23.080,014
$25,495,238
$21,120,511
$74.934.886
$175,542,517
FY 2013 QSCB Botrowing Assumptions
• Amount: $30,911,869
• Term 15 years
• Rate 0.5
• Structure: Structured Principal (4:1)
1 -Year Interest Only
• Other Borrowing Assumptions
• Amount: 144,630,649
• Term 20 years
• Rate 5.0%
• Structure: Structured Principal (4:1)
I -Year Interest Only
• Total New Debt Service: $277,247,125
Case 2 Debt Capacity
- FY -_
ran
2012
2011
2014
2015
2016
2017
2010
2019
2020
2621
2022
2021
2024
2025
2026
2027
2024
2029
2010
2011
2032
2011
2014
2655
2016
2017
203(3
2059
2040
2041
2642
Ex.=
27°.
2v,
x °.
44 °.
51 °,
37°.
63%
69^.
75%
x1°.
x5 °.
90 °.
94 °.
995,
00 °.
00 °.
66%
06.3
00•.
on °.
00 °.
00%
w.
2019-
21 °s
2015 -
2017
2914 =- --
21_
20°, r•
17% 26°. 11••
41 °, 11 °. 20°, 7°.
50°, 40% 27•. 14•.
46 °. 4•, 21 ^, 5 °.
6353 51°, 41^. 25°. 11°,
69°. 59% 47•, 15°° 17°. 050
]R•. - 66% 54°. 42°,
01°. 72•, _ 60°. 49'b 29••
57°, 75',: 664 55 °. 13•.
91° AJ•. T °. _ _ l,2 °. 41°,
911° , 951°. 79 °. 62% 47%
00% 92 °, 02 °4 71 °. 52 °6
115 °, 76 °„ 96 %'�
095„ 95•• F9°. 79 °. 61•.
110"° 96 °, Mw. 83 ", 65°•
11(1•, 97•. 92 °. 86% 70%
MI•. 99°, 5•.
89% 74 °6
no, 100•. 9] ^. 93% 79•.
99^, 95°6 43••
OM, 116 ^. 160 °.
136% 100•. 99% 90°,
00^° In0•. 100°. 100°. 94 °•
100°° 000 °. 100°° 97•,
100 °, 100•° 100°. Ion..
09.4
011 4 IMI °. 10413 1011. loll°,
1lamcn Countv. NC
®roasl s
• Potential Policy: 50% or above
DAOT: T0RT & COMP 699I.I.1'
T1 m
BO v a'
1-,
n
o N
c W
- 0
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CO 1->
o fV
o. 4l
n
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73
9 (D
t co
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o �*
ro
N
oa.
Case 2 Debt Affordability
Houton County, NC
Tax Increases as Needed
2014
w
7030 •
16) I
00 I
100 I
(111 I
1.17 I
.919
u 7000
11 111 6.4,1
111111, 11111111
.6.54 711
11.2 611
An 011
011 In
213 2,
• FY 2012 Value of le=
Assumed natural growth:
• FY 2013
• FY 2014 and Beyond
27 DAVENPORT & COMPANY LLe
90.99:996
15.415 104
10,700
$720,470
1.5%
2.5%
0 119
10740204
11169,616 1111,1691
614 (4.119 060
0.000 0000.057
,.,6,,,11
0 .255_0)
959366 15,3
0,3)
17407.6111
619
.09,16 (10,72x90
17.405616 0007.670
959616 19,17.611
17,47 616 66109)
15,911
(7, 5745
0000
040616 616 001,60 0
12.449.616 (7,0,40
316 360901
;1,0,96)
9,6 a (1366,
95 °1
11010 616 0,616 41601
17,49,616 2,019,110
)
n9,9N
09 0
7401 101 4141
011,160 0 29
31' 171 1 19
1641 lee
(1,0750 ir
0011,60 1dt
0.047,7951 14
11101 -
50311
1.131,560
11,913,1
1,11, Mel 11-60
191 41
729 167
•
03 194
06'609
9.449 463
12 970,611
19 00671
0
16,1
20
Case 2 Debt Affordability
Tax Increases at Revaluation
M1 11,
SAAArl DS Sr*
11 AI
09 91999990999
• FY 2012 Value of I $720,470
Assumed natural gron.th.
• FY2013
• FY 2014 and Beyond
DANT PORT & CnNIPANY
1.5%
2 5%
12 199 11.,
10 1.2-1.2A6
WA" e10 ill1 16,
11,1.21
12,4.614 (1.1r -161,
n67:1 TZ :71)
12 AlA 616 V4001121
12,4,,A1-6 1.1,120,6,
12 1.1.1016 11 /i6A-8111,
12 1.1-1616
0,1274111
12 A. 61.1 01,11172,
12419616 11,11,111.1
15,11/186A)
12 MA,616 (1.11.2on
12 4.616 11152111
(2.116.11.1
111, Al6 11 51/16
1111.1.1
12 AI, ilA111)
2019119
120.1,99-1
11,51,61,
1,1
-A Ala] A121, ,-kin
[Lomeli County, NC
Y1,141
15 122 A111
11,051.A 2,761356
'2 '16626
10 114 R,6
11,1116
12,211
1,, 1.00 RA115155'
145,5,1 161 410,5011
120 A-12.602
FITArt
29
Case 3
Fund Highland Middle School and Expansion of Core Building Space in
Existing Schools
0191. PORT & COMP N1'11,
}remelt County, NC.
Case 3 Capital Funding
Nomof Counts, NC
2015 --- 2014 - 2015 2016 - - - 2017 - 2018 - - 2019 - 2020- - - 2021 - - Total
Nighland Middle 90.911 069
Core Bmldmg Space -
1.200,666 1,595,591 1,667,141 952,726 74,000 74,000 74.000 5,636,126
Pura fing_Sotorr,
Cash - - - - - - 74.000 74.01(1 74,(18(1 222.1001
Debt Proceeds 30.911.869 11110,666 1593.591 1.607,143 952.726 _ 36,325,995
rota) 50.911,869 1.200,666 1.093,591 1.667,143 952,726 74,000 74,010 74,001 36,547,995
Mobile Unit Savings from New School
Mobile Unit Casts
_ - Cane 1-No New Case 3. Hlghlml
_ FY- - = School Middlo OON - Sams(Cost)
2013 1,063,958 1,063,958 -
2014 1.127,850 1,127,858
2015 1,157,858 1,157,858 -
2016 1,267,358 960,153 907,205
2017 1309,958 898.953 411,005
2018 1,441,058 1,030,053 411,005
2019 1,314,758 929.553 385,205
2020 1285.958 934,355 351.605
2021 1330,058 938,553 391505
2022 1,330,058 947,853 382,205
2023 1330,058 1,013,555 316,505
Total 13,958,938 11.002.698 2,956240
Source: Harnett County Public Schools Source: Harnett County Public Schools
DAM 1 - PORT & C(Afl' .-,1 (.LP
▪ = TI
C12 pl tD
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CD
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DAVE -PORT & COMPANY LLc
Harnett County, NC/ft
a
Case 3 Borrowing Assumptions
I1110c.,
anon .2017
51A91.: PORT & COMP -n LLC
111
1111111,
11/1111/
• Assumed borrowings:
• FY 2013 (QSCB):
• FY 2015:
• FY 2017:
• Total
Harnett County, NC
$30,911.869
$2,794,257
$2.619.869
$36,325,995
• FY 2013 QSCB Borrowing Assumptions
• Amount: $30,911,869
• Term 15 years
• Rate 0.5%
• Structure: Structured Principal (4:1)
1 -Year Interest Only
• Other Borrowing Assumptions
• Amount: 5,414,126
• Term 15 years
• Rate 4.5%
• Structure: Structured Principal (4:1)
Total New Debt Service: $40,344,197
Case 3 Debt Capacity
FY - - -_
Total
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
20137 - - -- -2015 -
6%
11% 4%
17% 9%
23% 16% 7%
30% 23% 14%
38% 30% 22% 9%
44% 37% 30% 17%
51% 43% 37% 26%
57% 50% 44% 34%
-'63 % 56% 51% 43%
69% - _ 63% 58% 51%
75% 69% 66% 59%
81% 76 %: - -73% 67%
85% 81% 79% 74%
90% 87% 85% 82 %.
94% 93% 92% 89%
98% 99% 98% 96%
100% 100% 100% 99%
1000% 100% 100% 99%
100% 100% 100 100%
• Potential Policy: 50% or above
DA3Z:.P0RT& C6\mANYLLC
Hanlon County, NC
,1
t.1 .9 +Z s i t I.•
Case 3 Debt Affordability
Tax Increases as Needed
'47N1
Hama! Count, , NC
2.4,2 ' -22.1.8.221-1,411161,611111, ,E2lephlat amt.& ,43r.rre.0.-- 21,11.0.21,41.22.-cRlaent '
TE%1 mrivait tram A.212122 - 1,1,22itd !DA. rast.ies -
• FY 2012 Value of lc= $720,470
Assumed natural gross the
• FY 2013
• FY 2014 and Beyond
DAVE PORT & COMP. 5 1.1,0
oj
Ctg - CT
CD =
Ln f-Dt• CU
Ul ■--t• —
O • NJ
13J
• 1-4
O N.1
• "t1
a
o 0
-h
• ag
3
3 2.
CD
1.5%
2.5%
-2 11 0.129.166
■1, 2449016 ill. 1992
14, 44, 616 0 614 6111
11, 2 04016 Cr, 211
61.101,11
2,44, DM 1E6.0.1
,.18.202
216 6.
5•1 311
1161622
217,7
1, n10
..091 7,1
11.201 701
11 111,4
1E11.70
12 139,7.
11 112 741
11 112 741
12 110121
•
2111 le; 0.710.
21,1105641 2,00
1611.162, 0 80
r1711291 0 20
1601251
2.280 461
-111151,
4.90 02
5,111,9
12e
75
Case 3 Debt Affordability
Tax Increases at Revaluation
. 12.194,16/
12.111 114 159 . - 11,260.005
12 ..2 124 1 4....141 - 1074 464
1..727,7
14.006,701 • 112151 I l',..,,, ■ -1, 1,,,
■ 1 On, 2,1, 111,, 2,111 1„2,2,1,j2.,..5,
s.s,S OIq j OS ,,,, III IS. ■ 1,n 12,9,12
I71 12441061 7,2'1;74
12,2,951 12,449 616 ,
•, 111 11202,16 12,02, '
10,12,014 12.09614 1
10.211.6-2
12,19007
12,219,616
12,0,616
12■1492516
12.449.614
12.40.61.5
12.0,6
12 0.2,616
(111.1691
0.62,12
(2.117.0211
1.2.509.7911
11619 W.
0,1,6292
(1,101.5112
120 lin qa■ 4.1
„—„
9,5,611
1.15E611
711691
697,021
109.01
109,2292
VW,
• FY 2012 Value of lc= $720470
Assumed natural growth:
• FY 2013
• FY 2014 and Beyond
DAVE PORT & COMPANY Ur
1.5%
2.5%
= I
1:449,6Z
:i:i,616 1*11.62,701
12E49 616 11,1,944
12,9,616 11,2 615
11,0 616 11,110,7.
12,449,616 12,119.70
12,9.616 12,139,41
12,9,616 12,119,1
12,449716 11.129,741
12.09,6 12,119,70
116.60
521.112
1,7 621
2.111.004
1601.010
Harnett County, NC
•
•
212,1111
1714,4141
701,1 244,1111
01E109) Olt
4.4,719 2 60
•
601,175
.22
1,162 60
1900,04
1,161,211
1E8007
4,562..0
•
•
•
464,7,
21011
14,94
615,669
2'4:11'11
4,70,62
7,009.572
13 041.102
2,0,107
11,450.217
rs
Equivalent Tax Impact Summary
FY
2011
2014
2015
2016
201]
2018
2019
2021
2031
of
Taal
ell
Cpa+l - Nrilg---- C4iul-
RBE0,ria RAW- Proem. -- - Tatl , toillaa aorta' 9= Itagap " - -- T t- -p Teem» gxw;vn - 6Wpa-
JL — 125[ II 1! 4Jf - 125! J
le J!
On OB! — — Ogg 02! 10! — — 080
Ole 02! 05e — — 0 3t 22e 10! — — 01t
Ole 08t 10e — — 0 l Ile IJ0 — — Olt
Ole 04! n>e — — 20e 210 — — 01t
I le — Ile _ _ Ile — Iii — — 114
— 416! — -16! — — - -1 fie -1 fie —
— I ei _ 18L _ _ I B! 15e 3. — — - IBe
— 00e — 004 — — One 1 g 18G — — O0'
2e 22L
44- ! 28! iJG 1664 el! 44e 2Be 1161 269! 81- ! J4! 284
Harnett Counh, NC
DA11.: TORT & CrAil %N i.l.l-
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DAVE. PORT & COMP ;NYLLC
Tax Supported Debt Detail
'ax Supported Debt Detail
',.rt;N;;;;4;;RWiREIMANU3 A
g
_ rt
=
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February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 57
Tax Supported Debt Detail
1...11.1111 11,111211
D,ENTY/127. & COMPANY
We. - 777tal FS'
2011
1.7,1 2012
202,
2Q211
2711,
2711
2012
271,
2011
201(
C.B.7 - - Tetli
;5--
- -
2014
2011
2016
:or
21118
2010
2020
2021
E.N,110010% ,
Hornell Counh, NC
11172 T.1.11% 11
Tax Supported Debt Detail
7:17.70.650 01,2:2 - 7.472.7172
2.111
2.017. 110,26
2011 1307,
2014 2.1195.22,
2013 2,790,1
2017 207,1
2017 7,14. le, 2308,2
2018 49,10
201. 2.400.171
2020 2,00,74
2021 2.205.11■1
2022 ' 1 • - ,
202, 2,01,5.0
2024 19/ 4...1
2023
-.2na
202.
2010
2011
2012
201,
2014
2013
Dated Dais
Ue■.3n.11r,
r.P071Ibla
41 DAVE,-PORT & CO1.11,NYLI,
Imam. „
Met...Aft 11, 1
27.4.
111111211
Hornell County, NC
• 9,
.M.:o. zs 09. v t 101, au U. 4A1 8 671
2011 2011
2011 . ,... ■ I'. ■ I 1111,7 201!
2011 .,..-7,1... ”,. ''•7 , ' 116,4 2011
2014 ,,,r■41., A.1,11 7s, 1,32 2014
2011 2014
201.3 . 2016 ..
2017 . 2017 ..
201R 201A
2010 2019
2020 2020
2021 202.1
2022 2021.
2021 2021
2024 2024
202,
0,6
6072
16032
726
42
he-7I
5)amett Connis. NC
Appendix 2: Core Building Space Detail
DAVE. PORT & Cnsm _ l 111
BUILDING CAPITAL IMPROVEMENT SUMMARY - Core Building Space Additions Needed
Jam, 31.2012
Ben .ve
ar
c ".o: 'lee. 11
2011.12 Membership 2020.21 MembesNo Lunch Start Tire Lunch FMhh Time Cvclny
518 876/653 1100 1:15 1 aurae Every 4 Minutes
Student Dbmg Need, Expend student dining area. Current is 2112 sf and DPI requires 3,267 sl for 840 sIudenb.
Expand kitchen and serving km. Current is 940 sl and DPI requires 2,556 el.
Option 1' Lease a mohh dining/kitchen uml
B udget Annul Lease Cost
Setup. hook -up, sp1dler
Sepik Field Survoyhg, Engheerkg, Installation
Equipment Relocation and New Equipment
Requires bvesigation of septic field avalbbdiry, may loose a be81ald to do this.
671,40000
689,000.00
5150,000.00
5100,009.00
Students per Class Minutes In Calelede Number of Sea. Sarvino Lines
l2 00 168 I
Cermmen:y Fees Total
53213.000 65,355.000 879,968.00
64.905.00 66,87500 699.680.90
68,250.00 611,250,00 6168,000.00
6100,000.00
1
Option 2' Freeshuldng Bulling 6,000 sf Conemormy Fees Total
Budget Budding Construction and Equipment 61.342000,00 690.390.000 5100,650.090 51,503,040.00
Septic Plaid Engineering and Pemtlidg 8150,000.00 86,75000 611,25000 6188,000.00
• Requires investigation of sapho field avageb1ty. may loess a bMIeld to do this. 11
Buses e - en a c 1 -ed 1;
2111 -12 Membership 2020.21 Membership Lunch Marl Time Luxh Finish Time Cvchm Students per Chas Minutes M Cafeteria Number of Spats Servin(Lies
350 3301397 1035 120 5c555ses Every 5 Minutes 29 25
Student Dining Need' Expand student dining area. Current 61.400 87 and DPI requires 2,500 sf for 400 students.
Expand kitchen and serving tine- Current is 1,100 sl and DPI requires 2,138 sf-
Contipencv Fees Total
B udget Dining 919207.00 per sf(DPI Feceey Nestle Survey) $269.600.00 313,061.000 621.735.000 6324,516.00
Kitchen at 5207,00 par sl (DPI Fac8hy Needs Survey) and equip. 8214.866.00 89.688,97 616,114.55 6240,649.92
Repbcement and New Kdchen Equipment 1300.000.00 613,500.00 $0,00 8313,500.00
6676,725.92
108 1
Total
Pape 11 0713
Harnet , e r.,..
2011 -12 Membership 2020-21 Membership Lunch Stan Tree Lunch Finish Time C3cimy
1253 1225/1437 1045 150 2 Classes Every 5 Mngles
Student Dining Need
Expand student dining area. Current 10 4,510 sf and DPI requires 6,300 st for 1,350 students.
Expand kitchen web -411 for capacity
Gymnasium Need Steamy Gym treaded for capacity
Budget Dining at $207.00 per sl (DI Feebly Needs Survey)
Kitchen w41k -kn expansion
Replacement and New Kitchen Equipment
Auxbery Gym 6.000s1 at 5179 per sl
5370,530.00
5160,000.00
975,00.0
51,074,000.00
SWdemsp.r Class Minutes inCNelorla Number of Seats SeMrq tines
25.30 20 2 3
Cermngercy
516,693,650
57,20.0
53,375.0
548.330.0
Fees Total
927,789.750 9414,993.60
31230,0 5179,20.0
50.00 578.375.0
580.550.0 31202 80.0
51
"1° a ' Ie`eN : y ,coo.:
2011.12 Membership 202041MembenH0 Lunch Stan Time Lunch Finish Time Cyc8rq SWdentsper Class Minutes in Cafeteria Number et Seats Serving Lines
882 927/951 1045 1250 5 Gigs*, Every 5 Minutes 25-28 20 314 2
Student Dining Need' Expend 56Ment dating ere.. Current is 3.540 sl and DPI requires 4,293 sl ter 940 students.
Cosbngercy
Budget Dining 015207,0 per sl(DPI Feebly Needs Survey) 5155,671.0 Sip14.195
Expend W.N4ns and add Equpment 9130,000.0 55.850.000
Fees
511,60.325
59,750.000
Total
5374,575.52
5145.60.0
9320,175.52
0 " sonv3 - emena c 00 .1"0. k - •
2011.12 Memberahlp 2020.21 Membership Lunch Start Thu Lunch FINZh Time Cycbg Students per Class Minutes M Cafeteria Number of Seats Se Mrq Lines
585 7121751 10745 110 20908e2 Every 450405te5 25 30 192 1
Student DiiNng Need' Expand student dining area. Current 50 220 sl and DPI requires 3.733 sI for 735 atudente.
Expend kitchen and serving Fm. Current is 1,940 sl and DPI requires 2,558 sl.
Budget
Dieing at 3207.0 per sl (DPI FecWy Needs Survey)
Kitchen at 5207.0 per sr (DP1 Facily Needs Survey)
Renovate Existing Kitchen et 50 per 01
New Equipment and WaM•Ins
fD
OX1 1 ES
CD M C
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aj
n O<
o NJ
C W
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p N N3
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• 0)
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5. 0)
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Ln
CentMaency Fees Total
530,771.0 513.534.695 522,557.825 5336,863.52
9127,926.0 55,756.87 59,594.45 9143,277.12
9174.600.00 57,857.0 913,095.0 9195552.0
3450,00.80 920.25030 50.00 9470,250.00
Page 12 0513
81,545,942.64
a aye °' a e a es... tee. 1.'
2020.21 Membership Lurch Stan Time Lunch Finish Time Cycing Slu4ents per Class Mkades In Cafeteria Number et Seats Serving Lines
246
621/838 1050 12,55 2 Cbases 590535 Minutes 28 25
Student Dung Need, Expand student dining wee. Current is 2,475 sl and DPI requires 4293 st tar 830 students.
Expand kitchen and serving fine. Current Is 1,960 sf end DPI requires 2.558 sr.
Budget Dning at 5207.00 per sl (DPI Facay Needs Survey)
Kitchen at $207.00 pr st (DPI Facedy Needs Survey)
Renovate Exiting Kitchen at 590 per sl
New Equipment and Wak4ns
Sanitary LM Station I0 Sewer Connection
8376,326.00
8123.786.00
9176,40.00
5450,000.0
54020.0
Comknoencv
118 3737
575 .930.0.00
30,250.0
920,250.00
31,09.0
Fees 5Mai
528224.450 5421.405.12
59.263.95 9138,84032
913230.0 9197,566.0
50.00 9470,250.0
93,01530 945,024.90
1372,967,44
Over 1 s:elgo cto.': Need 2014 -15
2011 -12 Membership 2020.21 Membership Lunch Sinn Time Lunch Finish Tlma C inn StudeNSper Perkd Minutes b 001810rb Number of Seals Serving Lines
1690 183211997 1045 1255 4knchperlods 420 25-30 425
Student Dining Need: Expend student riming area. Current 134,596 af and DPI requires 0 633 sl far 1,900 students.
Budget
Expo. into vocational teems and Wild newvoo.5.nal rooms
Expand Dining al 560.00 pr sl
Add 2 Vocational Rooms et 510 per sl
AddSongi Web-Ins
5328,240.0
5652.48030
510.00.0
G74- la14e!'cy
514,660,600
$29,361.80
54,500.00
Fees Total
524,468.000 8355,388.60
549,936.0 3730,777.0
50.00 5104.500.99
51108666.40
Overhl,) I.. e c 0o : tee. > L1
2011 -12 Membership 202621 Membership Lunch Sled Time Lunch Finish Time eyeing
1124 1270/1611 10'45 1.50 2 Cbases Every 5 Mantes 2530
Student Dining Need' Expand student riming area. Current is 5870 sr and DPI requires 7,000 et for 1.500 students.
Gymnasium Need Aux8ary Gym needed Mr capacity
Budget Dining at 5207.0 per at (DPI Facility Needs Survey)
Amber/ Gym 5,0001 at 9179 per sl
Expend WeliNns
New Equipment
ShMenls oar Class Minnutes1 Cafeteria Number of Seats Semi? Lines
20 286 3
Contingency Foes TMal
9647,910.0 329,1§€.90.4 548,593.250 9725,659.20
51,074,00,0 548.330,0 580,50.0 51202,80.0
9178,400.00 50,028.000 913,380,00 5199308.00
512530.0 55,625.0 50.0 5130,625.0
52258,972.20
Page 13 0113
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rDevenpon -1. or Daeenport has an agreement oo
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Dar =port may also perform or seek 10 perform financial advisor. underwriting or placement agent services for the tssu000 of the securities and Instruments
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this malcnnl 001 prepared he investment honking or other non - research personnel of Davenport Thsort,: terml was not educed t a research nnah st, nllhough it
Dayrefer 1, a Dm capon research hoop al or reso or oh report Unlc - - -a otherwise mdmnmd, these vireos rc I are the author s and may differ Iiom Ihnse abbe
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This material may not be sold or rcdtstnhutod wcthon the prior mnllen consent ofDacanport
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Ms. Jennifer Sass, Community Program Specialist with USDA Rural Development, joined the group to
report that North Carolina would receive an additional ARRA appropriation this year which would total
about $48 Million for the state. She reported this would allow USDA to partner with a lender, Capital
Market Solutions, to develop a good funding package that would hopefully allow the County to meet
some of their needs with the least impact on the citizens. She stressed these funds would have to be
obligated by mid - summer of 2012.
As an example, Ms. Sass suggested a $50 Million loan would be and split between the lender and
USDA, one allowing 30 years and the other 40 years, which would result in a $2.7 Million annual
payment. She noted once funds are obligated they would be fixed at that rate. USDA typically wants
funds drawn down within 5 years of obligation but the County would not start repayment until the end of
construction of the projects. Ms. Sass said the money can be used for construction or renovation.
Representatives from Davenport & Company, LLC, were asked to perfoun financial analysis based on
scenarios provided by Ms. Sass.
Mr. Frye reminded the group that the QSCB monies must be allocated this year. The Board of
Education already has authority over $22 Million in QSCB bonds and will be seeking authority to apply
for an additional $9 Million.
The Davenport & Company report showed it would take a $.185 cents tax increase to be able to repay
the $30 million QSCB bonds while making needed core improvements on existing schools. The group
discussed the issue of raising taxes.
Mr. Birath was unable to get consensus from the Board of Commissioners for authority to move
forward in spending approximately $350,000 to get the proposed new middle school shovel ready.
Mr. Frye asked about the possibility of impact fees which at this time cannot be collected to help
construct schools in Harnett County. This issue must be changed through state legislation. Mr. Frye
stated that he could not continue to operate a safe school district with things as they currently are.
Commissioner Burgin recommended the Board of Education sale 61 acres of land they have decided
they no longer need. Commissioner Burgin also asked to discuss tax rates of municipalities soon. Mr.
Wilder reported that the Tax Department has currently collected 93.7% of taxes owed.
The Board adjourned its planning retreat at 3:13 p.m.
McNeill .` .'.lar_; et Regina j'heeler
February 23, 2012 Planning Retreat
Harnett County Board of Commissioners
Page 62