John G. Hulsey, CGFM

Overview of Debt Position  At March 31, 2011, the County’s outstanding debt totaled $179,385,093.

Capital Leases & Certificates of Participation (COPS)... Interest Rate – 2.25% to 5.870% Maturity Date - April 1, 2032 Purpose of Debt: 2003 Jackson County Courthouse Heavy Equipment for Road Construction Routine Replacement of Various Vechicles Source of Repayment: General Fund

General Obligation Bonds... $20,355,000 in Principal and $3,391,898 in Interest outstanding at March 31, 2011 Interest Rate – Average Coupon Rate of 3.389% Maturity Date – September 1, 2017 Purpose of Debt – Partial Refunding of Series 2007A Bonds issued to finance construction of the Jackson County Jail, Fire Training Center, and Historic Courthouse Restoration Source of Repayment Special Purpose Local Option Sales Tax (SPLOST V) - $23,747,657

Contracts Payable... IDA 2004 Economic Development Bonds - $16,815,000 At 12/31/2010, $14,000,000 in principal and $4,895,013 in interest outstanding Interest Rate – 3.00% % Maturity Date – March 30, 2024 Purpose of Debt – Economic Development Projects Source of Repayment – General Fund

Contracts Payable... City of Jefferson S2007A Bond - $40,595,000 At March 31, 2011, $20,050,000 in principal and $11,170,205 in interest outstanding. Interest Rate – 4.200% % Maturity Date – September 01, 2032 Purpose of Debt – Jail, Fire Training Facility, Historic Courthouse Restoration Source of Repayment – General Fund/SPLOST IV

Contracts Payable... City of Jefferson S2007B Bond - $7,985,000 At December 31, 2010, $7,675,000 in principal and $3,241,310 in interest outstanding. Interest Rate – 3.700% % Maturity Date – March 01, 2027 Purpose of Debt – Road Projects Source of Repayment – City of Jefferson

Contracts Payable... IDA 2009 Series A Economic Development Bonds - $25,050,000 At December 31, 2010, $25,050,000 in principal and $8,383,275 in interest outstanding. Interest Rate – 3.700% Maturity Date – July 01, 2024 Purpose of Debt – Economic Development Road Projects Source of Repayment – General Fund

Contracts Payable... IDA 2009 Series B Economic Development Bonds - $15,880,000 At December 31, 2010, $15,880,000 in principal and $5,448,628 in interest outstanding. Interest Rate – 3.700% Maturity Date – July 01, 2024 Purpose of Debt – Economic Development Road Projects Source of Repayment – General Fund

GEFA Note Payable GEFA Note Payable - $394,350 At December 31, 2010, $163,468 in principal and $27,244 in interest outstanding. Interest Rate – 5.30% Maturity Date – October 01, 2016 Purpose of Debt – City of Commerce Sewerage Expansion – Tanger Outlet Mall Source of Repayment – General Fund

Projected Debt Service-Current Outstanding Debt

Projected Debt Service-Less GO Bond Debt Service

Component Unit Debt Airport Authority- At 12/31/ $1,810,000 Series 2004 Revenue Notes Maturity Date – April 19, 2019 Variable Rate Debt – LIBOR +.75 basis points (5.595%) Jackson County Water & Sewerage Authority – Upper Oconee Basing Water Authority Contract At 12/31/2010 $26,397,062 in outstanding principal & interest Maturity Date – July 1, 2027 Interest Rate 4.25% to 5.25%

Projected Debt Service-Component Units

Rating Agencies’ Perspective  Jackson County is rated Aa2 by two major credit rating agencies.  County was last rated in March 2011 and our Aa2 ratings were affirmed and given a stable outlook.  Despite the affirmation of our Aa2 rating and the overall strength of the credit, the rating reports indicate some areas of concern.

Rating Agencies’ Perspective Moody’s Ratings: “Moody’s believes the county’s direct debt burden is above average but manageable.” Moody’s noted that our bond rating could move down as a result of the following: Deterioration of reserves driven by structurally imbalanced operations; Significant declines in tax base; Increased debt burden

Debt Statistics... In FY 2011, transfers-out for debt service in the amount of $5,951,926 and $2,086,159 for water administration were appropriated as a part of the General Fund Budget. The combined total of $8,038,085 represents 22% of the $35,753,598 FY 2011 General Fund Budget. Debt Service per Capita is $2,966.

Debt Policy – Revisions Needed The current debt policy lacks substance. A well written debt policy should include the following Benchmarks and Ratios: Overall Debt Per Capita: measure will be maintained in the range of ____________. Overall Debt as a Percentage of Assessed Valuation: ratio is targeted at _______% with a ceiling of ______%. Debt Service as a percentage of Operational Budget: ratio is targeted at level of ____% with a ceiling of _____%.

Questions?