Guilford County, North Carolina

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1 , North Carolina Rating Agency Presentation Parks and Recreation Bonds $ 7,500,000 School Bonds $ 145,000,000 Community College Bonds $ 40,500,000 Law Enforcement Bonds $ 39,615,000 TOTAL $ 232,615,000 January 2009

Where the Money Comes From GENERAL FUND Property Tax $296,738,654

Services 36,805,472 Investment Income 12,789,708 Miscellaneous 13,536,146

7% Miscellaneous 2.5% Other Fin. Sources 0.2% Intergov t Revenue 17.

2 Where the Money Comes From GENERAL FUND Property Tax $296,738,654 Intergovernment Revenue 96,043,064 Sales Tax 85,270,606 Charges for Services 36,805,472 Investment Income 12,789,708 Miscellaneous 13,536,146 Other Financing Sources 1,290,192 TOTAL $542,473,842 Property Tax 54.7% Miscellaneous 2.5% Other Fin. Sources 0.2% Intergov t Revenue 17.7% Investment Income 2.4% Charges for Services 6.8% Sales Tax 15.7% 2 FY 2008 Revenue & Other Financing Sources

Where the Money Goes GENERAL FUND Human Services

184,260,092 Debt Service 50,911,747 Public Safety

3 Where the Money Goes GENERAL FUND Human Services $173,386,520 General Government 39,464,132 Education 184,260,092 Debt Service 50,911,747 Public Safety 79,097,125 Other 11,541,895 TOTAL $538,661,511 Other 2.1% General Govt 7.3% Human Services 32.2% Debt Service 9.5% Public Safety 14.7% 3 FY 2008 Expenditures Education 42.7%

4 Fiscal Year 2008 Results 4 Total General Fund revenue of $541.2 million excluding other financing sources, exceeded the budget by $11.4 million. Property taxes exceeded budgeted revenue by $6.6 million and charges for services were $5.8 million over budget. Fiscal Year 2008 revenue exceeded 2007 levels by 6.2%. Property tax revenue increased by $20.1 million or 7.3% to million. Total expenditures for 2008 of $534.5 million, excluding other financing uses, increased by 5.9% over prior year totals. The greatest increases are debt service which increased $11.9 million to $50.9 million, education which increased $9.8 million to $184.3 million, and human services which increased $5.8 million to $173.4 million. Overall the General Fund continued to have an operating surplus with revenue and other finance sources exceeding expenditures and other uses by $3.8 million. The total fund balance of the General Fund increased by 8.5%. The General Fund ended the year with a $127.2 million fund balance, or 23.8% of revenues. The undesignated fund balance stood at $50.3 million at fiscal year end or 8.6% of the subsequent year s budget.

5 Fiscal Year 2009 Budget 5 The County s budget for fiscal year is $635,946,865, a 6.4% increase over the original fiscal year 2008 budget and up 4.5% over the final amended fiscal year 2008 budget. Notable increases in appropriations include an 11.3% increase in mental health over prior year, a 9.2% increase in law enforcement and an overall increase of 10.6% in appropriations for education. A 33% rise in budgeted debt service expenditures, the largest component in the overall increase, will not materialize as the issue date has been pushed farther into the fiscal year and the planned amount is roughly half of the budget-based amount. Recent State legislation concerning Medicaid funding will result in a projected 39% decline in medical assistance expenditures versus 2008 levelsandanaccompanying9%dropinsalestaxrevenue.generalfund property tax revenue is budgeted to exceed 2008 levels by 10.1%, federal and State funding is anticipated to increase 13.1% and user charges are estimated to increase 13.6% over prior year budgeted levels.

Tax Rates 0.72 0.7 0.68 0.66 0.64 0.62 0.6 0.58 0.

6 Tax Rates $ / 100 Assessed Value * * Revaluation Year 6 Consistently low tax rate. Consistently high collection rate approx. 99% for the last 25 yrs.

Assessed Value $ billions 45 Assessed Value (Billions) 40 35 1999

34 20 15 2005* 2006 2007 40.24 40.74 42.

7 Assessed Value $ billions 45 Assessed Value (Billions) $ * * *Revaluation Ten Year Growth 63.7%

8 2007/08 Tax Rates Metropolitan N.C. Counties Guilford County $/hundred of assessed value Wake Guilford Forsyth Durham Mecklenburg Our Tax Rate Compares Favorably To Peer Counties

58 8 Undesignated Fund Balance 6 4 LGC Recommended

9 Undesignated Fund Balance Relative to Subsequent Year's Budget 12 Board Policy 8% Undesignated Fund Balance 6 4 LGC Recommended Minimum 8% % of next year s budget

10 Existing Debt Service plus Proposed 2009 Debt Service (Customized Principal for 20 Years) Existing Debt Svc School Community College Parks & Rec. Law Enf ASSUMPTIONS Series 2009 bonds issued using fixed rate structure and 5.0% interest rate.

11 Debt Policy The Guilford County Board of County Commissioners has adopted a debt policy. The purpose of the Guilford County Debt Policy is to provide guidelines and procedures for the issuance and management of debt. The policy addresses the following topics: 11 Use of Debt Financing Debt Affordability Debt Structure Interest Rate Exchange Agreements Credit rating Refunding of Outstanding Debt Arbitrage Rebate Reporting and Covenant Compliance Continuing Disclosure Selection of Financial Consultants and Service Providers Administration and Implementation Use of Swaps Achieve interest rate savings Enhance investment returns Manage variable rate interest exposure Diversify debt structure Alternative to refinancing in debt restructuring

12 G O Debt Service Relative to Total Expenditures Metropolitan N.C. Counties Fiscal Year Guilford Durham (06-07) Forsyth Wake Mecklenburg Guilford s Ratio of Debt Service to Expenditures Best Among Peers

13 Comparison of Per Capita Debt Metropolitan N.C. Counties Fiscal Year $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,950 $1,652 Guilford s Per Capita Debt Compares Favorably Among Peers $1,200 $1,081 $926

14 GUILFORD COUNTY ECONOMY 14

15 Per Capita Income Guilford County Guilford County vs. NC & US N.C. State U.S. County 15 N.C. State U S County Guilford County exceeds state and remains close to national per capita income

Retail Sales 10 Year History 10 8 Billions 6 4 2 0 1999 2000 2001 2002 2003 2004 2005 2006* 2007* 2008* Fiscal Year Ending 16 * Since July 1, 2005, retailers have been required to submit, on a

16 Retail Sales 10 Year History 10 8 Billions * 2007* 2008* Fiscal Year Ending 16 * Since July 1, 2005, retailers have been required to submit, on a monthly basis, taxable sales rather than gross retail sales in compliance with the Streamlined Sales Tax Agreement. As a result, data for the fiscal years ended June 30, 2006 through 2008 in the above table represent taxable sales as opposed to gross retail sales and are not comparable to the gross retail sales figures for prior fiscal years.

17 Unemployment Comparison % Guilford Co. N. Carolina National

Major Private Employers 1981 vs. 2008 1981 2008 Cone Mills Corporation 5,150 Moses Cone Health Systems 7440 Lorillard Corporation 3,500 Western Electric Co.

1,470 UPS 2000 Sears 1,400 RF Micro Devices 1889 Wesley Long Hospital 1,200 Lorillard Corp. 1800 Blue Bell Inc. 1,200 Citi Cards 1700 Gilbarco, Inc.

18 Major Private Employers 1981 vs Cone Mills Corporation 5,150 Moses Cone Health Systems 7440 Lorillard Corporation 3,500 Western Electric Co. 2,750 US Postal Service H. P. Regional Hlth Sys Burlington Industries 2,750 Bank of America 2200 Moses H. Cone Hosp. 1,650 American Express 2100 Jefferson-Pilot Corp. 1,470 UPS 2000 Sears 1,400 RF Micro Devices 1889 Wesley Long Hospital 1,200 Lorillard Corp Blue Bell Inc. 1,200 Citi Cards 1700 Gilbarco, Inc. 1,100 Timco Aviation 1675 Guilford Mills 1,000 Tyco Elect J. P. Stevens 1,000 Volvo Grp Southern Bell 1,000 Pilot Life Insurance Alma Desk Company Thomas Blt AT&T* Gilbarco *New Company on list

Construction Activity 2003-2008* 1200 Value (million $) 6000 Units

19 Construction Activity * 1200 Value (million $) 6000 Units , ,978 4,995 4, , , * Non Residential Residential * Nine months through September 30, * Non Residential Residential

20 GUILFORD COUNTY CAPITAL PLANNING 20

21 Bonds To Be Issued in January 2009 Purpose Date Authorized Amount Authorized Balance Authorization Amount To Be Issued Community College Nov 2004 $ 47,000,000 15,500,000 15,500,000 Parks & Recreation Nov ,000,000 10,000,000 7,500,000 Public Schools May ,315, ,315, ,000,000 Eastern Guilford HS May ,000,000 45,000,000 45,000,000 Community College May ,500,000 79,500,000 25,000,000 Law Enforcement May ,615, ,615,000 39,615,000 $232,615,000 21

22 School Bonds Planned Projects Authorization Airport Area High School $ 71,996,741 North Greensboro Area Elementary School 25,362,974 Airport High School Autism Wing 8,498,171 Northwest High School (site & athletics) 3,112,500 Airport Middle School Land 2,087,969 Northwest Middle School 7,741,712 Alamance Elementary School 20,300,161 Page High School (athletics) 2,074,801 Allen Jay Middle School 12,171,572 Ragsdale Autism Wing 8,505,330 Allen Middle School 9,099,383 Ragsdale High School 24,913,499 Dudley High School 3,150,748 Southeast Area Autism Wing 8,438,515 Dudley High School (athletics) 3,579,375 Simeon Stadium 2,075,000 Gateway Educ Ctr West 8,373,965 Southeast Area Elementary School 24,893,360 Grimsley High School 11,747,890 Southeast High School 33,311,222 High Point Central High School 5,332,621 Southeast Middle School 13,088,725 HVAC 8,069,487 Southwest High School 31,089,918 Jamestown Area Middle School 33,540,951 Summerfield Elementary School 17,949,768 McLeansville Elementary School 6,309,892 Tennis Courts 1,037,500 Mobile Classrooms 2,386,250 Tracks 2,075,000 TOTAL $ 412,315,000

23 Guilford Technical Community College Bonds Planned Projects 2008 Authorization Northwest Campus Aviation Classroom Bldg. Jamestown Parking Deck HVAC & Classroom Bldg. $ 50,500,000 6,000,000 12,000,000 9,000,000 Land Acquisition 2,000,000 TOTAL $ 79,500,000 23

24 Parks Bonds Planned Projects 2004 Authorization Southwest Park School Parks Greenways Open Space Triad Park Northeast Park $ 3,000,000 2,000,000 1,000,000 10,000,000 1,000,000 3,000,000 TOTAL $ 20,000,000 24

25 GUILFORD COUNTY ECONOMIC DEVELOPMENT 25

26 Development Activity Industrial Parks Greenpoint Corporate Parks Airport Area I-40 West Greensboro Downtown 26 High Point Downtown North High Point High Point - Other

27 Development Activity INDUSTRIAL PARKS Guilford County The County has six immediately viable options available for new businesses totaling 2, acres. All of these parks have convenient access to interstates and Piedmont Triad International Airport. 27

28 Development Activity Guilford County GREENPOINT - Corporate Office Parks The triangle between I-40 and I-85 in the southwest portion of the County has experienced sustained growth. This area has been dubbed Greenpoint because it encompasses northeast High Point, southwest Greensboro, and the area between. This area is leading the County in all types of development industrial, commercial, and residential growth. 28

29 Development Activity Guilford County GREENPOINT - Airport Area FedEx is scheduled to begin operations of its fifth national hub in 2009 at the Piedmont Triad International Airport (PTIA). The first phase involves approximately 1 million square feet and 750 workers, expanding to 1,500 workers in Phase II; nearly 20,000 new jobs could be created in the region over a 16-year period as a result of the hub. Initial investment is approximately $300 million. A 9,000-foot runway is currently under construction to accommodate the hub. PTIA will receive a $6.5 million federal grant for the construction of a second taxiway. The estimated cost is $14 million. Honda Motor Co., Ltd. has established a wholly-owned subsidiary, Honda Aircraft Company, Inc., to handle further development, sales promotion and production for the innovative HondaJet; their goal is to deliver the first mass production HondaJet in The company will invest up to $100 million and will, over a fiveyear period, create 300 jobs. 29 FedEx Ground is scheduled to begin construction of its $100 million southeastern distribution hub in 2009 on its 125-acre site in Triad Business Park. The 400,000-square-foot ground shipping hub will initially bring about 300 new jobs to the Triad. The company plans to open in 2011.

30 Development Activity GREENPOINT - I-40 West Guilford County Aetna, a national health insurance company, announced in April 2008 that it will be adding 300 jobs in High Point after adding 120 new jobs in The company operates a major customer service center on Piedmont Parkway. Advanced Home Care added 53 jobs in 2007 and has announced that it will be creating 130 new jobs over the next five years. Construction began in 2007 on a 28,638-square-foot expansion on Piedmont Parkway. Home Meridian International, one of the nation s top 20 furniture suppliers, chose to locate its corporate headquarters and marketing and design centers in High Point in The company will be adding 40 jobs and has moved into its 20,000-square-foot office on Premier Drive. Legacy Classic Furniture opened its 347,000-square-foot distribution center and 40,000-square-foot corporate office in the Premier Center office park, an investment of more than $18 million. The company relocated 130 jobs within the County and plans to hire additional employees. 30

31 Development Activity GREENSBORO Guilford County 31 Mack Trucks, Inc., one of North America s largest producers of heavy-duty trucks, announced in August 2008 that it will relocate its corporate headquarters and some support functions to Greensboro, bringing or creating 493 jobs and investing $17.7 million over the next three years. Lenovo, the world s third-largest computer manufacturer, opened its $10.5 million, 203,350- square-foot facility in the spring of 2008 at Rock Creek Center in Greensboro. The company will bring over 160 new jobs to Guilford County. Rock Creek developers have constructed a 272,000-square-foot speculative building next to the Lenovo site, which was completed in December Zink Imaging, the innovators behind the recently-unveiled Zero-Ink digital printing technology, purchased the 350,000-square-foot Konica Minolta manufacturing facility in the eastern part of the County in July The company has hired the remaining employee base of approximately 60 individuals. Proctor & Gamble, named one of the world s top five most admired companies by Forbes Magazine, announced in June 2007 that it will invest $19 million to expand its facilities in Greensboro. The company plans to hire approximately 25 new employees and will make investments in new machinery and equipment Kay Chemical, an Ecolab Company, will be expanding its Greensboro facility to accommodate an industry changing product line. The company announced in July 2007 that it would hire approximately 25 new employees and invest $12 million in new machinery and equipment over two years.

32 Development Activity GREENSBORO (cont.) Guilford County 32 Proximity Hotel, a $27 million, 147-room, 8-story hotel, built to resemble an old textile mill, opened in October 2007 overlooking Wendover Avenue and Benjamin Parkway. The hotel and its Print Works Bistro have been awarded LEED Platinum certification by the U.S. Green Building Council (USGBC); the first in the hospitality industry to obtain the USGBC s top level of certification. Greensboro s Gateway University Research Park, a joint venture involving NC A&T University and UNC-Greensboro, recently received more than $60 million in State funding for its Joint School of Nanoscience and Nanoengineering, a graduate school focusing on nanobioscience, nanotechnology and environmental nanoscience. The park is comprised of two 75-acre campuses. When completed, the park will employ 2,000 people and contribute an expected $50 million into the local economy each year. O Reilly Automotive, Inc., one of the top five auto parts retailers in the U.S., announced in early 2008 that it will open an East Coast distribution facility in Greensboro. The facility will be in a new 300,000-square-foot speculative building in McConnell Center adjacent to I-40/85. The company will invest $41.7 million over three years and create 360 new jobs.

33 Development Activity GREENSBORO - Downtown Guilford County The revitalization of downtown Greensboro (Downtown) continues to thrive. In Downtown gained a net of 12 new storefront businesses and the downtown residential sector gained 194 new condominiums and apartments. These gains created a total financial investment of $50.9 million. The new Center City Park, a 2.2 acre, $12 million urban park in the heart of Downtown, opened in April The $37 million rehabilitation of the former Wachovia building in Greensboro, a 17-story 292,000-square-foot tower, vacant since 1990, began in 2006 and is expected to open for occupancy in early The building, which has been renamed Center Pointe, will include approximately 100 condos, one floor of office space, a restaurant, a coffee shop and retail businesses. 33 The construction of Downtown Greenway, a 4.8 mile trail for pedestrians and cyclists to loop around the central business district, is anticipated to begin by the end of The Downtown Greenway will be incorporated into Greensboro s citywide Master Trails Plan. It will also connect to a broader network of trails and parks including statewide efforts such as the Mountains to the Sea Trail.

34 Development Activity High Point Guilford County The City of High Point has continued to experience healthy growth in its downtown as well as in outlying areas with new commercial capital investment of $117.5 million and $57.7 million of commercial additions or expansions, while creating or announcing 3,096 jobs in A 2007 study by High Point University shows that the home furnishings industry has an $8.25 billion impact on the Triad Region of North Carolina. The City of High Point and its High Point Economic Development Corporation have been selected as one of the five national recipients of Expansion Solution Magazine s 2008 Award of Excellence in the Warehouse/Distribution category. 34

35 Development Activity HIGH POINT - Downtown Guilford County High Point University is undergoing a $225 million upgrade of its campus and programs over a three-year period through The expansion created an additional 59 jobs for the University in Cornerstone Health Care added 85 jobs in 2007, in addition to the 129 it created in 2006, bringing its workforce to 870. The organization also opened a 105,000-square-foot outpatient facility on 15 acres of land in November 2008 on Westchester Drive. 35

36 Development Activity HIGH POINT - North High Point Guilford County 36 Trans Tech Pharma and PharmaCore, sister biotech companies, announced in December 2007 that they will be expanding in High Point, which will create 205 new jobs within the next five years. The company plans to invest over $23 million while increasing High Point s tax base by a minimum of $15.2 million. The expansion will occur around the companies two existing buildings at Mendenhall Oaks Parkway creating a campus of more than 30 acres. La-Z-Boy moved it divisional headquarters within the County to High Point in The relocation moved approximately 100 employees to a 28,000-square-foot facility on Regency Drive. The project added $3.1 million to High Point s tax base. Lodging by Liberty, a subsidiary of Brown Jordan International, moved its divisional headquarters and manufacturing operations to High Point in The company is investing more than $3 million and plans to create 53 new jobs. The company makes furniture for the hospitality industry.

37 Development Activity Guilford County HIGH POINT - North High Point (cont.) Quantum Group, the industry leader in developing and manufacturing specialty yarns and woven fabrics is building a 55,680 square foot addition and adding 60 jobs. The addition opened in November 2008 at a cost greater than $2 million. Anco-Eaglin, a manufacturer of industrial-sized tanks, cylinders and equipment, announced plans in October 2008 to build a 65,000- square-foot manufacturing facility on a 10-acre site north of US 311. The company plans to invest about $4 million in the new building and equipment and increase its workforce by at least 12 people. 37

38 Development Activity HIGH POINT - Other Guilford County Polo Ralph Lauren completed its $13.7 million, 12,000 square foot Global Data Center in September, The data center will handle all of the corporation s technical support and help desk activities around the world. In 2006, Polo Ralph Lauren announced a major project to be completed in two phases concluding in Adding $40 million to High Point s tax base and creating 250 jobs, the first phase was completed in May 2008 with the grand opening of their 330,000-squarefoot facility in Kivett Drive Industrial Park. Phase I was permitted for $19.1 million and has created 215 jobs. Marquis Seating is adding 100 jobs to its manufacturing operations and moving its existing workforce into a 160,000-square-foot vacant building in southwest High Point. Decca Classic Upholstery added 50 jobs to its workforce in 2007; more employees are expected to be hired in Pennybyrn at Maryfield, a continuing care retirement community in east High Point, opened the first phase of its 450,000-square foot expansion in Fifty new jobs were added in 2007, with another 50 jobs added in 2008 with the completion of a 256,000- square-foot independent living complex with a community and wellness center. 38

39 GUILFORD COUNTY 39 FINANCIAL STRENGTH Strong Balance Sheet...Low Debt...Low Tax Rate Addressing School, Detention, and General Government Capital Needs Capacity To Meet Future Capital Needs Good Financial Management PERFORMING ECONOMY Stable Economy With Moderate Growth Over Time Diversified Employment and Industry SOLID ECONOMIC DEVELOPMENT Trained workforce with reasonable labor cost Good Transportation Infrastructure Recognized As An Attractive Place To Develop Track Record Of Steady Manageable Development Growth

Technical Report 2: Synthesis of Existing Plans

Technical Report 2: Synthesis of Existing Plans Compiled by the Piedmont Triad Regional Council January, 2013 Triad Tomorrow Figure 1. Piedmont Triad Region CONTEXT The Piedmont Triad region consists of