LEE COUNTY BOARD OF COMMISSIONERS  MCSWAIN EXTENSION EDUCATION. AND AGRICULTURE CENTER  2420 TRAMWAY ROAD SANFORD, NC: 27330 October 3, 2022 MINUTES  Roll Call  Present: Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Absent: Arianna Lavallee, Robert Reives  CALLTO ORDER INVOCATION  Chairman Smith called the meeting to order at 6:00pm.  Commissioner Lovick provided an invocation and led the Board int the Pledge of Allegiance.  PLEDGE OF ALLEGIANCE ADDITIONAL AGENDA last meeting. Mover: Dr. Andre Knecht Motion Result: Passed Mover: Cameron Sharpe Motion Result: Passed  Motion: Move to revive the youth representative discussion that was tabled at the For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Absent: 2- Arianna Lavallee, Robert Reives Motion: Motion to approve the agenda as amended. Absent: 2- Arianna Lavallee, Robert Reives  For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick    II. APPROVAL OF CONSENT AGENDA Mover: Cameron Sharpe Motion Result: Passed  Motion: Motion to approve the consent agenda as presented.  For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Absent: 2- Arianna Lavallee, Robert Reives  II.A Purchase Approval ARPA Project, Lucas CPR Machines for Lee County EMS  Ambulance Service Quote State Contract  LUCAS 3_v3.1 Data Sheet.pdf  II.B Fire Panel Upgrade at! Lee County Government Center Patterson Group_ Fire Alarm Upgrade_ LCGC.pdf Sole Source_ Patterson Group_ Fire Panel Upgrade_ LCGC.pdf Memo_Sole Source Justification_ Fire Panel Upgrade_LCGC.pdf II.C HVAC Controls Upgrade at the Ruby McSwain Facility Lee Col McSwain GBB220214.1R1.pdf:  Sole Source_ Brady Services_ HVAC Controls Upgrade_ McSwain.pdf Memo Sole Source Justification Brady Services_HVAC Controls  Upgrade.McSwainpar II.DI Budget Amendment #10/03/22/03 10-03-22-03v2.pdf 165-1 FY23 Lee.pdf  II.E Request for Health Promotion to accept additional funds  II.FI MOA1 for contracted Maternal Health Services through Piedmont Health  Piedmont Health LCHD 22-23 Contract.doc II.G Lucas CPR Machine MOU with FirstHealth  Lee_FirstHealth Mou Lucas Devices FH CEO Signed.pdf  IIH ARPA Funding Trustees  II.I Consideration of Appointment of Gabby Murillo Anderson to the Library Board of II.J Consideration of Appointment of. John Rzycki to the Fire Advisory Board  2    II.K Consideration of the Appointment of. James Alexander Ammons to the Fire Advisory  Board  III. PUBLIC COMMENTS IV. OLDI BUSINESS  Noy public comments were received.  IV.A Discussion of Youth Representation at Board of Commissioner Meetings Dr. Bill Stone, Director of the Cooperative Extension Lee County Center, gave the Board a presentation regarding a potential youth perspective at Board of Commissioner meetings. Dr. Stone provided greater detail about the purpose of the initiative, youth eligibility requirements, structure of the youth representative position, role of the representative, as well as overall expectations. The Cooperative Extension Director would be responsible for facilitating the youth representative seat on behalf of the Young Commissioners and Youth Council. There is a photo release form already in use and could also be used for this seat. Commissioner Sharpe would support ay youth sitting on County committees, but not to have them seated on the board or with the Clerk. Dr. Stone said the youth representative would be more ofay youth advocate and present at meetings and could provide input as requested, but would nott take an active role in the business oft the board. The Young Commissioners is a 4-H Club for students in grades 8th-10th. Itis a two-week program that focuses on civics and government. The Youth Council functions as a Commissioner Reives, while not in attendance, asked that the following be readi for "oppose placing ay youth on an elected board; however, IS support and recommend adding ay youth seat to all or any one oft the 27 boards and commissions we already have in place. lalso ask that the Board recognize that this proposed policy is limited to only those youth who are members of one of the existing programs, Youth Council or the Young Commissioners club. Other students are ineligible according to this policy regardless of their interest or capabilities. Moreover, it does not address an age limit or/may have overlooked: it. I'm open to youth participation in local government ini the right arena. Ihope the Board will consider my concerns. Thanks." The purpose, eligibility criteria, and procedures will be memorialized in a Resolution Motion: Motion to approve Youth Representation at Board of Commissioner Meetings, as well as the Lee County Parks and Recreation Advisory Board.  County committee. the record:  to be adopted by the Board. Mover: Bill Carver Against: 1- Cameron Sharpe Absent: 2- Arianna Lavallee, Robert Reives Motion Result: Passed  lasCounyoumeocRepesemtalieFMALdox  For: 4- Dr. Andre Knecht, Kirk Smith, Bill Carver, Mark Lovick  3    V. NEW BUSINESS  V.A Davenport Debt Presentation  Ted Cole of Davenport. appeared before the Board to discuss debt capacity and the debt funding model, as well as the proposed change in Moody's rating methodology and Moody's Environmental, Social and Governance ("ESG") methodology. A copy of the  presentation given is attached and incorporated into these minutes. Lee County, NC Discussion Materials 9.21.22. pdf  V.B Hiring 2 Additional Staff for Board of Elections  Elections Director Jane Rae Fawcett came before the Board on behalf of the Board of Elections to ask for authority and funding to hire two additional staff members, a full- time attorney, or adequate funds to hire outside counsel, and a public records request coordinalo/adminsraive assistant. At the Board of Election's September 14th meeting, a motion was passed unanimously to hire an attorney and a second permanent full-time employee with their primary focus to address public records requests and serve as backup to the current Elections technician. These hiring requests were discussed by the Board of Elections after the department received multiple public information requests for extensive information that must be provided in compliance with NC General Statutes and also received. a notice of prospective litigation and demand for records retention. We have an obligation to fulfill these requests, without impeding our elections preparations. Both job descriptions for the attorney and coordinator were approved by the Board of Elections and the Lee County Human Resources Director. Commissioner Sharpe recommended providing Elections what they need. Elections has been using the State Board of Elections and Commissioner Reives, while not present, asked that the following be read for the "fully support the manager's recommendation for the Board of Elections. Each one of Dr. Crumpton recommended to approve up to $50,000 to hire outside counsel and to fund the coordinator position. The Elections Department was reviewed back in March and every position was analyzed. Elections are taking longer to prepare and review, and there's only one person doing it currently. We felt like we need to have backup for that person. Ifully support that position and putting money in their professional services for outside counsel. It was originally budgeted $12,000 and to get started, they need $20,000. Commissioner Knecht made a motion to approve the coordinator position and $20,000 to hire outside counsel, and also noted that Ms. Fawcett can come back for Motion: Motion to fund the public records request coordinator position and allocate $20,000 for the Board of Elections to hire outside counsel. For: 5-Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick V.CF Recommendation award, project # 4843-01-22 Historic Lee County Courthouse  the County Attorney thus far.  record:  the appropriations for the attorney and the new hire."  more ifneeded.  Mover: Dr. Andre Knecht Motion Result: Passed Design to Hobbs Architects  Absent: 2- Arianna Lavallee, Robert Reives  4    Development Services Director Santiago Giraldo presented staffs' recommendation award fort the Historic Lee County Courthouse project design. On August 11, the Request for Qualifications was posted for the design. Staff opened four sealed qualifications and conducted three in-person interviews, a site visit to one of the finalists, Hobbs Architects, in Pittsboro, and distance site tours. With unanimous consensus, staff chose Hobbs Architects for the design project. Hobbs Architects is a reputable design firm, which has successfully completed several projects with a similar scope, such as the restoration of the Chatham County Historic Courthouse. Lee County. Notice of Award- Architect Lee County HC- 9SEP2022.docx Motion: Motion to approve the recommendation to award project # 4843-01-22 Historic Lee County Courthouse Design to Hobbs Architects. For: 5-D Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick V.D Project 4839- 02-22 Lee Co. Multi Sports Complex Experience Theme Discussion Development Services Director Santiago Giraldo asked to discuss the multisportsplex experience theme with the Board. He noted that we need to start steering the architects towards the flavor we want for the park, between traditional, contemporary, feel, contemporary is similar to San-Lee Park Nature Center andi is a little more creative, and whimsical is a lot more colorful. Mr. Giraldo said we can blend some of these. After internal conversations and meeting today, and based on target audience of children ages 12 and under, we feel there should be more whimsy and color. The UDO provides guidance as to what colors and textures that can be utilized in the design. After providing feedback from tonight's meeting to the architects, the project will then go to the Planning Board and TRC in the next couple months. The Parks and Recreation Advisory Board has not reviewed these options yet due to timing. Staff consensus was a combination ofoptions 2and 3, contemporary and whimsical. Mr. Keel said at the renovations for Kiwanis Children's Park and Horton Park, Parks and Recreation has been using whimsical designs and the parents and families love it. The playgrounds would be whimsical and the rest contemporary. The Board gave consensus on utilizing ac contemporary and whimsical design, and directed staff to move forward accordingly. Planner Curtis Lee is taking over the Board presentations for Planning Administrator Amy McNeill. Mr. Lee noted the rezoning application by Street Dog Properties, LLCis to rezone 4.45 acres consisting of four parcels of land addressed as 3224 and 3226 Hawkins. Ave from Residential Agricultural (RA) to Highway Commercial (HC) to allow the installation ofa self-standing ice vending machine on the subject property. The Lee County Planning Board voted unanimously. County Attorney Whitney Parrish reminded the Board that they cannot vote ift there is a conflict ofi interest per NC G.S. 160D-109.  2. Hobbs RFQ 4843-01-22. pdf Mover: Mark Lovick Motion Result: Passed  Absent:2- Arianna Lavallee, Robert Reives  and whimsical. Traditional is more of college campus  2022-09-15 Experience Images.pdf  V.E Planning Board recommendation for a rezoning request.  There were no conflicts noted.  RECO-REZ@32248326 Hawkins Ave-BINDER.pdr  5    Motion: Motion that the proposed zoning map amendment is consistent with the Plan SanLee long range plan designation of Maker District because Highway Commercial (HC) zoning is listed as a secondary district and For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick Motion: Motion that the Lee County Board of Commissioners approve the proposed zoning map amendment because the site is appropriate fora highway commercial land use andi is reasonable and in the public interest given the location along al busy roadway and access to public water. For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  convenience retail uses are allowed. Mover: Dr. Andre Knecht Absent: 2- Arianna Lavallee, Robert Reives Motion Result: Passed  Mover: Mark Lovick Motion Result: Passed  Absent: 2-/ Arianna Lavallee, Robert Reives V.F Horton Pool Project Change Order #3  Development Services Director Santiago Giraldo said that early in June of this year while contractors were working on bathhouse at Horton Park, they discovered unsuitable soils beneath the structure. The County has worked out a plan to address the soils with McGill and. JMT, resulting in this change order. The total change order amount is $41,279.25 for change order #3. Change order #4 will address contract changes, but we do not have numbers yet, as we are still in negotiation. Mr. Giraldo requested that the Board give the County Manager authority to approve change order #4. Count Manager Dr. Crumpton said the contractor asked for the extension due to the additional time that was taken to formulate a plan to address the unsuitable soils and the associated overhead expense. The County Manager said we need the authorization to keep the project moving between meetings and expect more change orders because of the issues we're running into with the old building. If we want to finish the project by May 1,2 2023, Memorial Day, we need to keep the change orders moving to address any Motion: Motion to approve Change Order #3 for the Horton Pool Project and For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick V.G Allocation of ARPA revenue loss funds for Horton Park Bath House Project Assistant County Manager Lisa Minter asked the Board to allocate $125,0000fARPA revenue. loss funds to the Horton Park Bath House project to cover a change order related to unsuitable soils and the potential costs of delays that have been caused by the soil problem. The $125,000 will come from the $1,268,775 that was reserved on August 29, 2022 by the Board of Commissioners for projects that were not ready to be  further unforeseeable issues that may arise. Change Order No 3.pdf JMT CO3 CvrLtr 09 30: 2022.pdf Mover: Bill Carver Motion Result: Passed  authorize the County Manager to approve Change Order #4.  Absent: 2- Arianna Lavallee, Robert Reives  started yet.    ARPA revenue loss update for 10-3-22.pdf for the Horton Park Bath House project. Absent: 2- Arianna Lavallee, Robert Reives V.H2022 Fire Prevention Week Proclamation  Motion: Motion to approve the allocation of $125,000 of ARPA revenue loss funds For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Mover: Dr. Andre Knecht Motion Result: Passed  Emergency Services Director Matt Britt and Fire Marshall Aaron Bullard presented the 2022 Fire Prevention Week Proclamation to the Board. The ultimate goal of this proclamation is supporting the mission ofreducing injury and death, as well as property loss, as it relates to home fires. Mr. Bullard read the proclamation aloud, a copy ofv which is attached and incorporated into these minutes. Lee County Fire Prevention Week Proclamation 2022.docx Motion: Motion to approve the 2022 Fire Prevention Week Proclamation. For: 5-D Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Mover: Cameron Sharpe Motion Result: Passed  Absent: 2- Arianna Lavallee, Robert Reives V.I Basis of Charges for Work with Terraquest  County Manager Dr. Crumpton noted project request for $85,800.6 63 that's broken down into four sections well installation, a vacuum event, ground water sampling, and vapor intrusion study. This request is coming to the Board for approval because this item takes us over the $60,000 the Board has already allocated. We still have $31,000 available, but that means we're $54,800 short. These funds will come from fund balance. Terraquest, provided several maps, copies of which are attached and incorporated into these minutes. The mapi from August 17, 2022 shows a lot of red, which depicts the material need to be removed. The map from September 13, 2022 shows that after the first exercise, it's mostly green with a little bit of orange. Dr. Crumpton willi inform the Board when it's the last vacuuming occurs, but there will be more untila all of the hazardous material is gone. We are getting closer to finishing, but 9-2022 Agreement for Services Basis of Charges Schedule A.pdf Motion: Motion to approve the Basis of Charges for Work with Terraquest in For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  this is not last.  the amount of $85,800.63. Mover: Mark Lovick Motion Result: Passed V.J State of the County Report  Absent: 2- Arianna Lavallee, Robert Reives  NCACCIICMA Management Fellow Ben McQueary presented his first project to the Board, the State of the County Report. Mr. McQueary wanted to create something the public could interact with and share on social media. The video component of the report isal large portion oft this project. Mr. McQueary is new to Lee County and has enjoyed  7    getting to speak with the managers, survey the results, and getting to know Lee County. There are more statistics within the report, a copy of which is attached and incorporated into these minutes. The areas oft the report are Economic Development; Healthy and Educated Citizens; Maintaining a Safe, Clean Community; Enhancing Community Resources; and Efficient Usage of Tax Dollars. The State of the County video was shown and is available on the Lee County website and YouTube channel.  VI. MANAGERS' REPORTS  VI.A August 2022 Financial Report  Finance Director Candace Iceman provided the financial report for August  2022. August 2022.pdf  VII. COMMISSIONERS COMMENTS VIII. CLOSED SESSION  Motion: Motion to go into Closed Session Per N.C. General Statute S 143- 318.11(a)(4) to discuss matters relating to the location or expansion of business. The Board took at five-minute break at 8:26 p.m., then went into For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Closed Session. Mover: Mark Lovick Motion Result: Passed  Absent: 2- Arianna Lavallee, Robert Reives The Board went out of Closed Session at 9:01 p.m.  ADJOURN Mover: Bill Carver Motion Result: Passed  Motion: Motion to adjourn. The meeting adjourned at 9:03 p.m. For: 5- Dr. Andre Knecht, Cameron Sharpe, Kirk Smith, Bill Carver, Mark Lovick  Absent: 2- Arianna Lavallee, Robert Reives  DDSmitw Kirk D. Smith, Chairman Lee County Board of Commissioners  COUN?  ATTEST:  COUN,  #wloHall Hailey Hall, Clerk tot the Board    Exhibit G- Sole Source Justification Form  CARO  SOLE SOURCE. JUSTIFICATION FORM (for Hems costing $5,000.00 or more)  Patterson Group Services, Inc. FIREA ALARMF PANEL UPGRADE ATT THELCGC  Vendor: Hem:  Estimated expenditure fort the abovei item: 46,393.37 CONTAINING JUSTIFICATION, AND: SUPPORT DOCUMENTATION.  INITIALALLI ENTRIESBELOW1 THAT APPLYTO1 THEF PROPOSEDF FURCMASEATACHAMEMO  1. 2. monufacturer. 3. 4.  Sole sourcei is tori the original manufacturer orp provider. There are no area distributors. The parls/equipment are not interchangeable with similar parts ol another This is the only known item or service that will meet the specialized needs of this The ports/equipment are required from this source toy permit slandardization. 5. - None oft the above apply. A detailed explanation andj justification for this sole source The undersigned requests that compelitive procurement be waived and that the vendor identified as the supplier of the material or service described in this sole source justification be  department orp pertorm thei intended function. inc contained inf the attachedi memo.  authorzedasas solesourcet fort the material ors service.  fan  Manage Lmpontly Board of Commissioners  upt to$ $30,000) and ($30,000 up)  a  ID-3-22 Date  Lee County Purchasing and Contracting Poicy  Page 58  Revised! March 16, 2020    Exhibit G- Sole Source Justification Form  CAR  SOLE SOURCE. JUSTIFICATION FORM (forl lems costing $5,000.00 or more)  Brady Services  Vendor: Hem:  HVAC CONTROLSUPGRADE, ATR RUBY MCSWAIN FACILITY  Estimated expenditure for the above item: 50,318.00 CONTAINING. JUSTIFICATION. AND: SUPPORT DOCUMENTATION.  INITIALA ALL ENTRIES BELOW THAT APPLYTOT THEF POPOEDAAOMAEATACIA MEMO 1. - Sole sourcei ist tort the onginaimanufaclurer. or provider. There arer no area distributors.  2. monufacturer. 3. 5.  The parls/equipment are not interchangeable with similar parts of another This is the only known item or service thal will meet the specialized needs of this None oft the above apply. A detailed explanation and) justificationi for this sole: source  department orp pertorm thei intended function. incontained int the attached memo.  4. V Thep parts/equipment ore required from this source top permit slandardization.  The undersigned requests that competitive procurement be waived and that the vendor identified as the supplier of the material ors service described in this sole source justification be  authorized aso asoles sourse fort the material ors service. our" Manage 5,000 upt Board of Commissioners ($30,000C andup) Lpaw  A  Departmekt  ID-3-22 Date  Lee CountyF Purchasing and Contracting Poicy  Page5 58  Revised! March 16,2 2020    MEMOT TO: FROM: SUBJECT: DATE:  LEE COUNTY BOARD OF COMMISSIONERS OHNACRUMPTON, LEE COUNTY MANAGER BUDGET AMENDMENT#: 10/03/22/03  October 3, 2022  SECTIONI. THE FOLLOWING GENERAL FUND(1100) REVENUE INCREASES ARE HEREBY APPROVED:  CURRENT BUDGET 10,000 4,253,206  NEW CHANGE BUDGET 24,586 34,586 74,963 74,963 84,269 4,337,475 183,818  DEPARTMENT Other Revenues Sheriff Revenues Fund Balance  ACCOUNT#  DESCRIPTION  1100-3930-38330 Insurance Refunds 1100-3431-32699 Sheriff Officers Fees 1100-3990-39900 Fund Balance Appropriated  TOTALCHANGES  SECTIONII. THE FOLLOWING GENERALFUND(100) EXPENSE INCREASES ARE HEREBY APPROVED:  CURRENT BUDGET 139,136  NEW CHANGE BUDGET 24,586 163,722 52,235 52,235 19,414 19,414 140 140 312 312 2,862 2,862 34,741 34,741 7,500 7,500 25,775 25,775 5,000 5,000 10,000 10,000 1,253 1,253 125,000 125,000 308,818  DEPARTMENT Sheriff Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant Sheriff Grant SheriffG Grant Sheriff Grant Misc Expense  ACCOUNT#  DESCRIPTION  1100-4310-43310 MaintenanceVehicles 1100-4311-43380 Maintenance-Tech 1100-4311-46413 Technology Equip $5000&> 1100-4311-44100 Office/Department: Supplies 1100-4311-46416 Technology Equip <$500 1100-4311-46412 1100-4311-43380 MaintenanceTechnology 1100-4311-43300 1100-4311-44260 Uniforms 1100-4311-44541 1100-4311-45700 Crime Prevention 1100-4311-43100 Professional Services 1100-9800-49584 Transfer to ARPA  Technology EQ$ $500-$4,999 Maintenance-rqupment Recognition Program Exp TOTALO CHANGES DESCRIPTION TOTAL CHANGES  SECTIONIII THE FOLLOWING GENERALFUND(100) EXPENSE DECREASES ARE HEREBY APPROVED:  CURRENT BUDGET 1,083,049  NEW  DEPARTMENT Sheriff-SRO  ACCOUNT#  CHANGE BUDGET 125,000 958,049 125,000  1100-4313-41200 Salaries & Wages    SECTIONI IV. THE FOLLOWING ARPAF FUND (2114)F REVENUE INCREASES ARE HEREBY APPROVED:  CURRENT BUDGET  NEW  DEPARTMENT  ACCOUNT#  DESCRIPTION TOTAL CHANGES DESCRIPTION TOTALCHANGES  CHANGE BUDGET 125,000 125,000 125,000  Horton Sanitation Facility 2114-3930-39700 Transfer from General Fund  SECTIONV. THE FOLLOWING ARPAI FUND( (2114) EXPENSE INCREASES ARE HEREBY APPROVED:  CURRENT BUDGET 737,116  NEW  DEPARTMENT  ACCOUNT#  CHANGE BUDGET 125,000 862,116 125,000  Horton Sanitation Facility 2114-8123-46300 General Construction  41  mlmy sll  KIRK  HAILEYHALL, CLERK  Kosdu  TOTHE BOARD uAy GGARE    MEMORANDUM OF UNDERSTANDING: BETWEEN LEE COUNTY GOVERNMENT ANDI FIRSTHEALTH OF THE CAROLINAS, INC. REGARDING CHEST WHEREAS, the Lee County Board of Commissioners prioritizes the safety ofall citizens and visitors ofLee County andi in doing so provides emergency medical services through ai franchisee agreement with FirstHealth of the Carolinas, Inc (hereinafter called) FirstHealth).; WHEREAS, the Lee County Board of Commissioners recognize that many oft the emergency medical service calls require first responders to engage inl life-saving techniques, WHEREAS, the Lee County Board of Commissioners approved the expenditure of $96,000.00 for the purchase of six Lucas 3 chest compression devices which provide automated chest compressions designed toj provide al higher level of care for patients receiving CPR; and, WHEREAS, thel Lee County Board of Commissioners will equip each oft the six ambulances with al Lucas 3 chest compressor to be utilized inj performing the franchise service of providing emergency medical services to alll Lee County citizens and visitors; and, WHEREAS, the-Lee County Government willi maintain ownership oft the devices while FirstHealth will utilize the devices for thei remainder oft the franchise agreement or for the useful NOW,THEREFORE, Lee County Government and First Health do mutually agree as 1. Lee County Government willj purchase the six Stryker Lucas 3 chest compression FirstHealth oft the Carolinas willl be responsible for maintaining accountability for each device including which ambulance each device is assigned to at any given time andj providing this information tol Lee County Government upon request. 3. FirstHealth of the Carolinas will ensure each ambulance serving Lee County's jurisdiction willl be equipped with ai fully working device at all times. FirstHealth oft the Carolinas will ensure all ofLee County's purchased devices remain on any vehicle primarily assigned tol Lee County's jurisdiction.  COMPRESSION DEVICES  and,  such as cardiopulmonary resuscitation (CPR); and,  life oft the devices; and, follow:  devices and will assign asset numbers to each device.  2.    5. Lee County willj purchase the six devices tol be utilized by FirstHealth until either the franchise agreement term ends, or at the end of the life of the device, whichever If, when the franchise agreement terminates, FirstHealth stilll has active devices in use on its ambulances, the devices willl be returned tol Lee County, as Lee County will maintain ownership oft the device throughout the term of the agreement or until the 7. Lee County has full discretion to determine ifa device has reached the end ofits usefull life. Ifa any device reaches its useful life and FirstHcalth is still providing services under its franchise agreement, Lee County is under no obligation tor replace  occurs first. 6.  useful life oft the device expires.  said device.  FirstHealth will ensure the following conditions are met.  A. FirstHealth will make each device available to) Lee County Government for inventory atl least once annually, and willj provide the device for inspection at any time during the term oft the franchise agreement. B. Thel Lee County Emergency Medical Services Division of] FirstHealth will bei responsible for providing device training to all Emergency Medical C. Thel Lcc County Emergency Medical Services Division will be responsible for providing training tol Lee County Emergency Responders who assist with calls through thel First Responder program. D. FirstHealth of the Carolinas will complete all required maintenance and repair to the devices based on best practices and when available, vendor recommended maintenance schedule and protocols. E. FirstHealth oft the Carolinas will repair and/or replace the device if damaged or destroyed for sol long as FirstHealth isi responsible for maintaining accountability for each device. FirstHealth will provide all required single use supplies necessary to support the use oft the device.  Services Personnel.  F.    Thet twol Parties agree this Memorandum of Understanding willl bei ine effect for the duration of  thel Lee County Emergency Medical Services Agreement. Adopted thist the 3rd dayof.Dchber LEE/COUNTY GOVERNMENT Amlonte kirk D. Smith,eir Lee County Board of Commissioners ATTEST Hall thgitl Hafley Clerk, Lee County Board of Commissioners FIRSTHEALTH OF THE CAROLINAS om2s  2022.  COUN?  CEO ATTEST Secretary  A SEALS  Aebishat  abulis    la 5  o la    3 0 6 o 3  I  2 3    2    44488    33923    13993899988  SUOIIW    93333988  SUOIIW    I 1  -      I  a  8E0Z ZEOZ 9E02 SEOZ VEOZ EEOZ ZEOZ TEOZ OE0Z 6202 8202 LZOZ 9202 Szoz vzoz EZOZ  @  @  - 8 e    I -  II  8E02 LEOZ 9E02 SEOZ VEOZ EEOZ ZEOZ TEOZ OEOZ 6202 8Z02 LZ02 9202 9zoz 4zo2 EZOZ  AEEEERE    5 a    E o E E    1402 Evoz Zvoz Tvoz Ovo2 6802 8E02 LEOZ 9802 SEOZ VEOZ EEOZ ZEOZ TEOZ 080Z 6202 8202 LZOZ 9202 92oz Vzoz EZOZ  vvoz Evoz Zvoz Tvoz Ovoz 680Z 8802 ZEOZ 9802 SEOZ VEOZ EEOZ ZEOZ TEOZ OEOZ 6202 8202 LZO2 9202 9202 vzoz EZOZ    : o 08  99889898  SUOIIW  SUOIIWI    S  tvoz Evoz @ Zvoz Tvoz Ov0z 6802 880Z LEOZ 9802 SEOZ VEOZ EEOZ ZEOZ TEOZ OEOZ 6202 8202 LZOZ 9202 9z02 4Zoz EZOZ  tvoz Ev0z Zvoz Tvoz Ovoz 6E02 8802 Z80Z 9802 SEOZ V802 EEOZ ZEOZ TEOZ OE0Z 6202 8202 LZOZ 9202 9Z02 vzoz EZOZ  tvoz Evoz Zvoz Tvoz Ov02 6802 880Z ZEOZ 9802 SEOZ VE0Z EEOZ ZEOZ TEOZ OEOZ 6202 8202 LZOZ 9202 Szoz 4zoz EZOZ  AEEEEEEERE  8888866    9    8 e b0 3  8  ci    E4  b    a NRS 888888 BE  5p    E  8 005 I #   OE O6 I fo  043    a  2  L  2 8  3332 2 S883 333 6  E        9    S        -        F à    N  N  ,    8 I  a 00 5    a e  E S X    0 888888 888888 8888888 8888888    @ h    -  - 8 0    8 C 1    a o 9 B    e bo o    I  0    LEE COUNTY NORTH CAROLINA Committed Today for a Betfer Tomorrow FINANCIAL POLICIES RESOLUTION  WHEREAS, stability inf fiscal affairs is a desirable objective but a difficult goal for counties to attain because of many factors some ofv which aret the relationship oft the various units of government, WHEREAS, the Board of Commissioners is of the opinion that the statement of minimum standards off fiscal policy would help present and future boards and staff to adapt tot the changes that occur NOW, THEREFORE BE IT RESOLVED, that the Lee County Board of Commissioners does  the changing economies and thel limited authority ofl local government; and and helpt them toa attain a reasonable measure off fiscal stability; hereby adopt thet following financial policies:  mandates,  Debt  Debt service will not exceed 15% of general fund expenditures. Ina any year where the debt service is less than or equal to 14% of general fund expenditures at least 1% of the operating budget will bet transferred to capital reserve. This contribution will only be made ifavailable fund balancei is at 15% or greater of general fund expenditures. Payout of aggregate principal outstanding shall be no less than 50% repaid within 10 The County will strive to maintain its net bonded debt ata al level not to exceed two percent As part of the budget process, the County shall annualy review the fees and user charges. All changes to the schedule of fees and charges must be approved by the Board of The County should charge other fees when it is allowable, when a limited and specific group of beneficiaries can be identified, when iti is feasible to charge beneficiaries for the services rendered, and when there is no reason to subsidize the service wholly or in part. To the extent possible, fee levels should be set to recover the full costs of the services provided, unlessi itis deemed necessary or desirable tos subsidize the service. Factors to consider in deciding whether a subsidy is appropriate include the burden on property tax payers, the degree to which the service benefits a particular segment oft the population, whether beneficiaries can pay the fee, and whether the service provides a  years.  ofthe assessed valuation oft taxable property withint the County.  Fees and user charges  Commissioners.  broader benefit tot the community.    Fund Balance  The County will maintain as ai floor an available fund balance equalt to 16% of the General Fundb budget att the end ofe each fiscal year; however, the County will strive tor reacha at target General Fund balances in excess of target levels will be transferred to capital reserve funds top provide equity resources tof fund the County's capital improvement plan. Ino order tor recruit and retaint ther most qualified employees while ensuring fairness and non- discrimination, Lee County will commit to having the Human Resources Department conducta a comprehensive compensation and classification study of 20 percent ofj jobs each year with 100 percent being reviewed over a five year period.. The study shall be based on the complexity and relative worth of each job as well as an extensive market comparability analysis which identifies competitive pay rates for jobs similar in content to those oft the County int the labor market inv which we compete for our labor supply. Ina an effort to maintain competitive rates of pay the County will strive to make annual cost of living adjustments for all employees based on the Consumer Price Index for Urban In an effort tos stabilize the County's tax rate, the Board of Commissioners will adopt a tax rate that considers the succeeding four years' anticipated expenditures and will strive not The Board of Commissioners prefers tol limit the growth oft the annual operating budget to an amount which can be accommodated by growth in the tax base as well as other local state andf federalr revenues, without at tax rate increase, whenever possible. Ina ane effort to stabilize the County's tax rate, the County will strive to develop and annually review projections of revenues, expenditures and fund balance for the next five years. Longer range projections should be developed as necessary. In an effort to stabilize the County's tax rate, all grant funded positions will be reviewed annually to verify continuation of funding. If grant funds are no longer available for a position, the position will be terminated unless a non-tax related source of revenue is  of24%.  Competitive Employment  Wage Earners, Southern Region, Average ofA All Groups.  Tax rate  toc changet the rate until the nextr revaluation.  providedt to cover the cost of the position.  Adopted this 19thd day of March, 2018.  Amy M. Dalrymple, Chair, Board of Commissioners  ATTEST:  Jennifer Gamble, Clerk    00   I    U.S.PUBLICF FINANCE  MOODY's INVESTORSSERVICE ISSUER COMMENT 28May2 2021 RATING General Obligation (or GOR Related)' Aa2 Contacts Katiel Townsend Associatel LeadAnalyst katie.t townsendemoodys.com Gregory W.L Lipitz VsOmdroceNemger segylpiuemoo)s.com CLIENT SERVICES Americas AsiaP Pacific Japan EMEA  Lee County, NC Annual Comment on Lee Issuer Profile  County  NoOutlook Lee Countyis is locatedi int theg geographic center of North Carolina. The countys seat of Sanford +1.212.553.3761 rate was 5% (3rdo quartile)2 The largesti industry sectors that drive the locale economy are +1.212.553.7782 Wer regardt the coronavirus outbreak asas social risk under oure environmental, social and  isapproximately 40r miles southwest oft the Raleigh-Durham metro area. The county! hasa population ofe 60,481 anda moderate population density of2 235 people per square mile. The county'sr median familyi income is $59,667 (4th quartile) andt the March 2021 unemployment governancef framework, given thes substantial implications forp public health ands safety and thee economy. We dor nots seea any material immediate credit risks for Lee County. However, dependo onb both thes severitya and durationo oft the crisis. Ifour view oft the credit quality of Lee  manufacturing, retailt trade, and healths services.  thes situation: surrounding coronavirusi is rapidly evolving andt the  termi longert impact  will  1-212-553-1653 County changes, wev will update our opinion att that time.  852-3551-3077 Credit Overview  81-3-5408-4100 Lee Countyh has ay veryl high quality credit position. Its Aa2 ratingi is equivalent tot the median 44-20-7772-5454 rating of Aa2 for counties nationwide. Key credit factorsi include ar robust financial position,  manageable pensionl liabilitya and small debt burden. The ratinga also reflectsac considerable Finances: Thef financialp position oft the countyi is very stronga andi is relatively favorable when comparedt tot thea assignedr rating ofA Aa2. Cash! balancea asap percent ofc operating revenues (278%) iss slightly beneath the USr mediant but grew between 2016 and 2020. Fund balance asap percent ofc operatingr revenues (34.2%) is consistent with the USr median. Debt and Pensions: Thep pensionl liability oft the county is affordable andi isar modest credit strength relative toi its Aa2r ratingp position. Thel Moody's-adjusted net pension liabilityt to operating revenues (0.4 43x)f favorablyi ist materially lower thant the USr median. Lee County! has alight debt burden whichi isre reflectedi int thea assignedr rating ofA Aa2. Net direct debt tof full Economy and1 Tax Base: Thee economy andt tax base oft the countya ares solid buts some aspects arev weak when comparedt toi its Aa2 rating. Total full value (S66 billion)i ist belowt the USr median buti increased from 2016t to 2020. Fully value per capita ($98,6 603)i iss stronger than the US median andr medianf familyi income equals only7 77.2% oft the USI level. Management: and Governance: North Carolina counties have ani institutional framework score 2of" "Aaa," or very strong. Property taxes, counties' main revenue source, are highly  taxb base andr moderate wealth andi income profile.  value (1.59)i iss slightly highert thant the US median.  Thisd authorized document hasb beenp preparedf fort theu usec ofMitch Brigulioa andisp protected! byl law. Itmay notb be undera ac contract with Moody'so ord otherwise authorizedi inv writing! by Moody's.  transferred or copied,  disseminated unless    MOODY'SI INVESTORS SERVICE  U.S. PUBLIC FINANCE  predictable ands stable. Counties have moderate revenue-raising ability, givent the cap; however, allr rated counties maintain ample headroom undert this cap. Expenditures, which arel largely forp personnel, arel highly predictable and stable and counties have ahigh North Carolina counties willo continue tob benefitf froma a growing state economy and strongr management, supported! byt thel Local Government Commission, despitee economic disruption duet tot the coronavirus. Sales tax collections will bei impactedb by thep pandemic, but willr rebound overt ther mediumt term, anda ani improving! housingr market willp provide stabilityi in property taxr revenues. Strongr reserve levels andl lowf fixed costs will providef financial flexibility. Pensionsa aret typically well funded, whereas debt burdens are slightly high  abilityt tor reduce expenditures given modestf fixed cost burdens andi no collective! bargaining units.  Sector Trends North Carolina Counties  because counties arer responsible fors schoola andt technical college infrastructure needs.  EXHIBIT1 Keyl Indicators 451 Lee County Economy/ /TaxE Base Total Full Value FullV Value Per Capita Median Familyl Income (%0 ofUS Median) Finances Available Fund Balance as%of Operating Revenues Net CashE Balance as%0 of Operating Revenues Debt/ /Pensions Net Direct Debt/ /Full Value Net Direct Debt/ Operating Revenues Moody/s-adjusted/ Net Pension Liability (3-yra average)t toF Full Value Moody's-adjusted/ Net Pensionl Liability (3-yra average)t to Operating Revenues Debt andF Financial Data Population Available FundE Balance ($000s) Net CashE Balance ($000s) Operating Revenues ($000s) Net Direct Debt ($000s) Moody's Adjustedi Net Pension Liability (3-yra average) ($000s) Source: Moody's sinvestorss Service  2016 2017  2018 79%  2019 2020 USMedian Credit Trend  $5,084M $5,182M $5,292M $5,540M $5,963M $8,266M $85,402 $86,655 $88,021 $91,607 $98,603 $88,050  Improved Improved 93% Weakened 34.3% Improved 39.5% Improved 0.5% Stable 0.56x Stable 1.2% Stable 1.39x Stable 2020 USI Median  84%  83%  77%  77%  26.0% 28.3% 29.5% 31.6% 34.2% 21.2% 22.8% 23.7% 25.5% 27.8%  1.1% 1.4% 0.85x 1.02x 1.37x 0.4% 0.5% 0.6%  1.8%  1.6% 1.5% 1.18x 1.12x 0.6% 0.6% 2019  0.29x 0.36x 0.43x 0.45x 0.43x 59,540 59,805 60,125 60,481 60,481 $17,731 $19,616 $20,325 $23,013 $26,666 $14,412 $15,812 $16,340 $18,561 $21,673 $68,119 $69,374 $68,804 $72,912 $77,881 $58,073 $70,465 $93,960 $86,341 $87,049 $19,524 $25,304 $29,929 $33,036 $33,725  2016  2017  2018  N/A $26,112 $30,464 $72,972 $40,647 $97,433  Thispublicationd doesnota announcea acreditr rating action. Fora anycreditr ratings referencedir inthisp publication, pleases seet www.moodyscomfort themostu updatedo credit rating actioni informationa andr ratingh history.  emPbonwesw, pageon  28May2021  Lee County, NC: Annual Commento onleec County  Thisd documenth hash been preparedf for theu use ofMitch Brigulioa andi is protectedb byl law. Itmay  authorized undera ac contract with! Moody's or otherwise authorizedi inv writing by Moody's. notb be copied, transferred or disseminated unless    MOODY'S INVESTORS SERVICE  U.S. PUBLIC FINANCE  EXHIBIT2  Availablef fundb balance asa percento ofo operating revenuesi increasedf from 2016t toz 2020  AvailableF FundBalanceas9 SsalOpeatigReenue" -L USMedian  35% 30% 25%  2016  2017  2018 TotalFullValue  2019  2020  Source:k Issuerfi fnancalstatements Moody's sinvestorsService  EXHIBIT3  Fully valued oft thep property taxb basei increasedf from 2016t to2 2020  (millions) $6,000 $5,500 $5,000  2016 2017 2018 2019 2020  Source: ksuerfmancalsatements: Governmento datas Offeringstatements: Moody'sinvestorss Service Moody's-adjustedi netp pension liabilityt too operatingr revenuesi increasedi fromz 2016to2 2020  EXHIBIT4  Debt! Pensions  2.0x 1.0x 0.0x 2016  2017  2018  2019  2020  Source: Issuerfi financialstatements Governmento datasources; Offeringstatements Mood/sinesossenice  Endnotes  11 Thera rating referencedint thisn reporti isthei issuer's General Obligation (GO) rating orit itsh highestp publicr ratingt thatis is GO-related. AGOL bondisg generally backedbyt thef fullfa faitha ando creditp pledge andt totalt taxing powero oft thei issuer. GO-relateds securitiesi includes general obligation! limitedt tax, annual appropriation, leaser revenue, non-adv valorem, andn moralo obligation debt. Then referencedr ratings reflect theg government's underlying credit quality Thed demographic datap presented, including population, populationo density, pero capita personali income andu unemployment ratea ared derived fromt then most recentlya available USg government databases. Population, populationo densitya and perc capitap personali income comef fromt theA American Community Survey Thel largesti industrys sectors ared derivedf fromt the Bureauo of Economic Analysis. Moody's allocatedt thep perc capita personal income dataa andu unemployment dataf fora allo countiesi inthel US censusi intoc quartiles. Theq quartiles areo orderedf from strongest- to-v weakest froma creditp perspective: theh highest per capita 3 Thei institutionalf framework scorea assessesa amunicipality's! legala ability tor match revenuesy withe expenditures based oni its constitutionally: andl legislatively conferredp powers andr responsibilities. See! USL Local Government General Obligation Debt (July 2020) methodologyr report for more details. 4 Ford definitions ofthen metricsir int thek Keyl Indicators Table, USLocal Government General Obligation Methodology: ands Scorecard User Guide (July 2014). 5 Then medians comef from ourn mostr recently publishedlocalg government medians report, Medians- Tax bases expansion bolsters revenue. but pensions remaina ahurdle (Mayz 2020)V whichisa availablec on Moodys.com. Then medians presented here areb based ont thek keyr metrics outlinedi in! Moody'sGO  withoutr regardt tos stateg guarantees, enhancement programs or bondi insurance. whilet theu unemployment ratec comes fromt theB Bureaud ofL Labor Statistics.  personali income quartilei isf firsto quartile, andt thel lowest unemployment rateis isf firsto quartile. Metricsn representeda as N/Air indicatet thed datav were nota available att thet timec ofp publication.  methodologya andt thea associateds scorecard.  28May 2021  Leec County, NC: Annual Comment onLee County  This document hasb been prepared fort theu use ofl Mitch Brigulio andis isp protected! by! law. Itmay not bec copied, transferred or disseminated unless  authorizedu undera a contractv with Moody'soro otherwise authorizedi inv writing! by Moody's.    MOODY'S INVESTORS SERVICE 020211 Moody'so RATINGS SYMBOLS ANDD CREDITR RATINGS. CREDITR RATINGS DON NOT VOLATILITY. CREDITR RATINGS, NON-CREDIT ASSESSMENTS OPINIONSA ANDP RATINGS, MOODY'S ISSUESITSCREDITI RATINGS, THATE EACHINVESTORY WILL, WITHDUE CARE, MAKEI ITSOWNS STUDYA ANDE HOLDING, ORS SALE. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHERC ORC OTHERWISEF REPRODUCED, REPACKAGED, FURTHERT FORA ANYS CONSENT. FOR MOODY'S Tothee extentp indirect,s special, damages, particulard creditra ratinga assignedb by! 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Additionalte terms forA Australiao only: Anyp publication intoA  ofthis documentis ispursuantt tot the Australian Financial Servicesl License OfMOODY'S affiliate, Moody's sInvestors  representt tOMOODY'S thaty youar are, orarea accessingt thed documenta asa representativec of,a  client" andti that neither younort thes entitys yourepresenty willo directlyor  thec stock MIKKa  obligationo oft theis issuer, noto onthe equitys securitieso oftheis issuer ora anyf formo ofs security thatisa available toretailin investors.  withthej JapanF Financials Services Agencya andtheirr registrationn renderedbyit feest ranging fromj PY125,000t toa approximately] JPY550,000,000.  areF FSACommissioner (Ratings)No. 2and3 respectively.  also maintaing policiesa andp procedurest toaddress) Japanese regulatory requirements.  REPORT NUMBER 1264496  28May2 2021  Leec County, NC: Annual Commento onLee County  This document hasb beenp prepared fort theu usec ofMitch Brigulio andi is protected! by law. Itmay not be copied, transferredc orc disseminated unless  authorized undera ac contract with Moody's ord otherwise authorizedi inv writing! by Moody's.    MOODY'S INVESTORS SERVICE CLIENT SERVICES Americas AsiaP Pacific Japan EMEA  U.S. PUBLIC FINANCE  1-212-553-1653 852-3551-3077 81-3-5408-4100  MOODY's INVESTORS SERVICE 28May2 2021  Leec County, NC: Annual Commento onLee County  This documenth hasb beenp preparedf fort theu use ofN Mitch Brigulio andi is protectedb byl law. Itmayr notb be copied, transferredc or disseminated  authorized undera ac contract with Moody's or otherwise authorizedi inv writing by Moody's.  unless    U.S. PUBLICFINANCE  MOoDY's INVESTORSSERVICE CREDIT OPINION 11May2 2018 Ratet this Research >  Lee (County of) NC Update to credit analysis  Summary fiscaly years. Exhibit1 $72 $70 2 $68 $64 $62 $60 $58 $56 $54 2013 Sourcelee-Coung,.NC Credit: strengths Stablef financialo operations High dailyi in-migration Credit challenges Slightlye elevated unemployment  Lee County (Aa2)t benefits froma at favorablel locationi int the central portion of North Carolina (Aaa,stable)t between majore employment centers. Prudentr management has drivens sound financial operatingr results with revenue growtha and operating surpluses forf four consecutive  Contacts Tiphanyl Lee-A Allen AVP-Analyst tiphany.lee-a allen@moodys.com Edward( (Ted) Damutz VP-SrCreditOficer warddamutuemcoscom CLIENTS SERVICES Americas AsiaP Pacific Japan EMEA  +1.212.553.4772  Modest operatingr revenueg growtht trends will continue  +1.212.553.6990 Largestr revenues source, propertyt taxes 60% ofFY 17revenues  1-212-553-1653 E $66 852-3551-3077 E 81-3-5408-4100 44-20-7772-5454  2014  2015  2016  2017  Experiencingg growth duet top proximityt toR Research Triangle Park  Thisd document hast beenp preparedf for theu use ofN MitchE Brigulio andis isp protected byl law. Itmay notb be copied, transferred or disseminated unless  authorizedu undera ac contractv withN Moody's oro otherwise authorizedi inv writing! byN Moody's.    MOODYSINVESTORS SERVICE  U.S.PUBLIC FINANCE  Wealthi indicest belowr nationala averages  Rating outlook  Outlooks aret typically nota assigned tois issuers with this limiteda amount ofd debt.  Factors that could lead to an upgrade Broade expansiona ando diversification ofl locale economy Factors that could lead toa a downgrade Failuret toa appropriate debt service payment Increasedu unemployment andt taxt base erosion Depleted financialr reserves Keyi indicators Exhibitz Lee(Countyo Of)NC Economy/T TaxB Base TotalF FullV Value($000) Population FullV ValuePerC Capita MedianFamilyl Income( (%ofU USMedian) Finances OpwraingFenversoo) FundBdance/s000) GshBalance/(S000) FindBaancesaséofF Pevenues CashE Balanceasa9 %ofF Pevenues Debt/Pensions Net Diredt Debt ($000) 3-Year Averageof! MooysANF_(S000) NetD Direct DE/QperirgfhEw Net Direct Deb/FJIVaue/9 Moody/s- adjustedNet Pensionl Liability (3-yra average)t tor Pevenues(x) Mood/'s- adjustedNet Pensionaility/S.yra average)t toFull Value(%) Source: Moodysinvestorss Service, UCCensus LeeCounty, NC  Increasedi reserves  2013 58,735 85.9% 23.7% 18.6% 1.1x 1.4% 0.3x 0.4%  2014 59,096 86.1% 25.6% 20.0% 1.0x 12% 0.3x 0.4%  2015 59,418 83.3% 26.1% 20.5% 0.9x 1.1% 0.3x 0.4%  2016 59,540 84.4% 26.0% 212% 0.9x 1.1% 0.3x 0.4%  2017 59,616 84.4% 28.3% 228% 1.0x 1.4% 0.4x 0.5%  $4,829,272 $5,131,932 $5,042,549 $5,084,832 $5,182,396 $82,221 $86,841 $84,866 $85,402 $86,930 $60,202 $62,760 $63,203 $68,119 $69,374 $14,294 $16,092 $16,521 $17,731 $19,616 $11,185 $12550 $12,945 $14,412 $15,812 $68,260 $62,855 $57,440 $58,073 $70,465 $17,552 $20,674 $20,192 $19,524 $25,304  Profile  Locatedi int theg geographic center of North Carolina, 25r miles from Pinehurst and4 46r miles southeast of Raleigh Durham( (Aaas stable), Lee Countyb benefitsf from proximity to RTP andag growinga advancer manufacturings sector. (Aaas stable) and  Detailed credit considerations  Thispublicationc doesnota announcea acreditr ratinga action. Fora anyo credit ratingsn referencedir inthisp publication, pleases seet theratingst tab onti thei  www.moodyscomfort then most updated creditn ratinga actionir informationa andra ratinghistory.  issuer/entityp pageo on  11May2 2018  Lee( (Countys of) NC: Update tocredita analysis  This document has beenp preparedf fort theu use of Mitch Brigulio andis is protectedb byl law. Itmay be  authorizedu undera a contractv withN Moody's ord otherwise authorizedi inv writing! by Moody's. notb copied, transferred or disseminated unless    MOODY'SI INVESTORS SERVICE  U.S. PUBLIC FINANCE  Diversifying locale economy withs strongr rate ofc daytimei in-migration  Lee Countyy willo continue toe experience modest growthi ini its diverset tax! base giveni itsl location, justs south oft the Research Parka andr relative proximityt toF Fort Bragg. Over the past fivey yearst thet taxb baseh has seena average annualg residential developmenta andt theg growtho oft thec county'sr manufacturing: sector whichr represented 319 % oft growtho totale of1.7%, reflectingr new  Triangle employment in Q3  2017. Exhibit3 $5,300 $5,200 $5,100 $5,000 $4,900 $4,800 $4,700 $4,600 2013 Source:  Modestf fullg growtht trends willo continue Fully valueh hasa averageda almost2 2%g growtha annually overp past5 Syears  2014  2015  2016  2017  Several large manufacturing companies! have establisheda aj presence int the countyi including Pfizer Inc (A1 stable), Coty, Inc. (Ba1s stable) cosmetics, Caterpillar Inc (A3s stable), Pilgrim's Pride Corporation (Ba3s stable) poultry processinga andl Moen Inc. (as subsidiary ofF Fortune BrandsH Home & Security, Inc. (Baa3s stable)p plumbingf fixtures. Favorably, employers! haves set upp partnerships with Central Carolina The countye enjoys al higho dailyi in-migrationa asi itsp populationg grows! 5.2% more thani itsr regular residential population Employment has steadilyi increased, while unemployment ratesh have generallyt beens slightly above thes statel level, with the current rate at 4.9%. The southern edge oft the county is ana approximately: 30r minuted commute toF Fort Bragg, aU.s. major Armyi installation, with approximately 57,000n militaryp personnel, 11,0000 civiliane employees and 23,000f familyr members makingit it one oft thel largestr military thev world. Thec county's per capitaa andr medianf familyi incomel levels approximate national levels and are! higher than thes complexesi state. Lee Countyv willl likelyr maintaina ar relatively healthyf financial positiong givenp proactive planninga andp prudent fiscal policies. Fore infi fiscal 2016t thec countyi implementeda al long-termf financial plan whichi includeda7 750 centi increase largelyt tof fundi upcoming example, capital  Community Colleget tot traint thev workf force.  in  Soundf financial operations  needs, schoold operatingo costs andt thee establishment ofac capital reserve.  11May2 2018  Lee (County of) NC: Updatet toc credita analysis or disseminated unless  This document hast beenp preparedf fort the use of Mitch Brigulioa andi isp protected by law. authorizedu underac contract with Moody'so oro otherwise authorizedi inv writing! by Moody's. Itmay bec copied,  notb  transferred    MOODYSINVESTORS SERVICE  U.S.PUBLIC FINANCE  Thec countyh has achievedo operatings surpluses int thep pastf foury years ande expecta anothery year off favorable resultsi inf fiscal 2018  budgeted $1.9r milliona appropriation. Growing reserves ando cashb bolster financialf flexibility 5-yearg growthi inc casha andf fundbalancec overs 5%  despitea  Exhibit4 30% 25% 20% 15% 10% 5% 0% Source:L leeCounty, NC the GeneralF Fundb budget. LIQUIDITY Manageable debt position  "Fund Balance as a % of Revenues  "Cash Balance as a % of Revenues  2013  2014  2015  2016  2017  Prudently the county! hasa ap policyo ofc only usingr reserves tof finance capitala ando other onet time expenditures. Additional financial includer maintaininga anu unreserved GeneralF Fund! balance at least 14%0 oft the GeneralF Fund! budget, with the goal ofr maintaining policies 18% of  Countyl liquidityr remains soundg growingt to $15.8 millioni inf fiscalz 2017, or 22.8% ofr revenues.  The county debt positionis ise expected tor remain modest, despite additional borrowing plans, givene expected tax base expansion and rapid amortization ofp principal (92% oftaxs supported debt within 10y years). Ona direct basis, the debt burdeni isas slightlya above averagea at1 1.4% offullv valuei inclusive ofl lease appropriation debt. Medium term capitalp plans (5y year CIP)i includea milliony with7 77%1 fundedv with additional debt. The countyr maintainsap policy ofl limitingo debt service expenditure to1 approximately 15% oft total $453  expenditures. DEBT STRUCTURE Allo debti isf fixedi rated. DEBT-RELATED! DERIVATIVES The countyisn notp party toa anys swapa agreements.  11May 2018  Lee( (Countyo of)NC: Updatet to credit analysis  Thisd document hast been preparedf fort the use ofN Mitch Brigulio andi is protected byl law.  authorized under ac contract with! Moody'soro otherwise authorizedi inv writing byl Moody's. Itmay notb bec copied, transferred or disseminated unless    MOODY'S INVESTORS SERVICE PENSIONS AND OPEB proportiont Exhibit5  U.S. .PUBLICF FINANCE  The county contributes tot thel North Carolinal Local Government Employees Retirement System (NCLGERS), definedb benefit retirementplan administered! byt the State of North Carolina. We determined the county's share ofl liability for thes state-runp toit its contributions tot thep plan. The countya also operatesasmal! Law Enforcement Officers' Special Separation Allowance plani in plan. Thec county'sa adjustedr net pensionl liability, under! Moody'sr methodology fora adjusting reported pensiono data, is$ $36r million,  approximately: ane elevated 0.521 times operating revenues in2017.  or  Debta andp pensionsy willr remainr manageable 3year average ANPLO.36%0 ofOperatingR Revenues  "Moody's adjusted Net Pension Liability (3-yr average) to Revenues (x)  Net Direct Debt/Operating! Revenues (x)  1.6x 1.4x 1.2x 1.0x 0.8x 0.6x 0.4x 0.2x 0.0x Source:  2013  2014  2015  2016  2017  The county! hasr notb been fullyf funding OPEBa annualo contribution requirements thel lastf few years asit it devisesa a strategyt toa address thel liability. Ita addresses the annualo cost onap pay-gob basis. The most recent actuarial valuation date, ther reported unfunded actuarial North Carolina Cities have ani institutional framework: score ofA Aaa, whichi ish high compared tot ther nation. Institutional framework scores measurea as sector'sl legala abilityt toi increase revenues ando decreasee expenditures. The sector's majorr revenue sources ares toacap, which cannot bec overriden. However, thec cap of1 15%, stilla allowsf fors significantr revenue-raising: ability. Unpredictable subject revenuef fluctuationst tendt tob ber minor, or under 5% annually. Acrosst thes sector, fixed andr mandated costs areg 25% ofe expenditures. North Carolinai isa" "right tov work" state, providings significant expenditure- -cuttinga ability generally! tol localg governments.  accrued! liabilityy was $17.4 million.  Lee County operatesv withina a strongs statei institutional framework  lesst than  Unpredictable expendituref fluctuations tendt tob ber minor, under! 5%a annually  11May2 2018  Lee( (County of) NC: Updatet toc credit analysis  Thiso document has beenp preparedf fort theu usec of Mitch Brigulioa andi is protected byl law. Itmay nott authorizedu undera ac contractv with Moody'so or otherwise authorizedi inv writing! byN Moody's.  bec copied, transferred or disseminated unless    MOODYSINVESTORS SERVICE  U.S. PUBLIC FINANCE  02018N Moody's Corporation, Moody'si Investors Service,l Inc, Moody's Analytics, Inc and/ort theirl licensorsa anda affliates (collectively,"  CREDITF RATINGSIS ISSUEDE BYI MOODY'SI INVESTORSS SERVICE, INC.A ANDITSR RATINGSA AFFILIATES( ("MIS") AREN MOODYSCURRENT "MOODY'S"). 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Therefore, creditn ratingsa assignedb by! MSFJa are Non- NRSROC Credit MJKKO MSFJ (asa applicable) herebyd discloset thatn mostis issuerso ofdebts securities( (including corporatea MIKK andMSFja also maintainp policiesa andp procedurest toa address) Japaneser regulatoryn requirements.  NEITHERO CREDIT RATINGS  MOODY'SISSUES ITSCREDITE RATINGS ANDP PUBLISHESN NORI MOODY'SP PUBLICATIONS COMMENT ONT THE  PUBLICATIONS/ AREN NOTI INTENDEDFORI USEB BYF RETAIL INVESTORS ANDIT) WOULDBER  PROTECTEDBYL LAW, INCLUDINGE IFINDOUBT YOUSHOUIDCONTACT  hereini isprovided" "ASIS" withoutv warrantyo ofanykind. 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Informationr regarding affiliationst approximately $2,500,000. MCOa and MiSa alsor maintain ratede entities, between entitiesy whoholdra ratingsf fromN MISa andhavea alsop publicly reportedt tot thes SECa and ownershipi certaina interesti thatr maye existt betweenc directors ofMCOa and www.n moodys.com undert theh heading" Investor Relations- Corporate Governance- Directora ands ShareholderA Affliation Policy,." inMCOofmoret thans 5%,isposteda annuallyat Service Pty LimitedA ABN6 610033 3996 657AFSL3 336969a and/or Moody'sA Analytics Australiap Ptyl LtdABN941 1051 1369 972 AFSL Servicest Licensec ofM MOODY'S affiliate, Moodys Investors only to" wholesalec dlients" withint then meaningo ofsection? 761Go ofthe Corporations Act 2001. By.continuingt toa 383569 accesst (asa applicable). Thisd documentis intended ofadebto obligationo ofthei issuer, noto onthee equitys securities oftheis issuero ora anyf form ofs Corporations securityt thatis Act2 2001. MOODY'S creditr ratingis isand opinion as andir inappropriatef forr retail investorst tousel MOODY'Screditr ratingsorpublicationsi when makinganir investment decision. Ifindoubty savailablet ton retaili investors. Itwouldbe reckless OverseasH Holdingsi Inc, awholly- owneds subsidiaryofM MCO. Moody'sSE) JapankK. ("MSF)")is isay wholly- owned credit ratinga agencys subsidiaryofMKK whichisv wholly- ownedb by Moody's entityt thatis nota NRSROa and,o consequently, ther ratedo obligationy willnotq qualifyf for certaint typeso oftreatment underu U.S. Ratings. Non-N Credit Ratings area assignedbyan witht thej apan Financial ServicesA Agencya andtheirn registrationn numbersa areFSAC Commissioner (Ratings)N No. 2and3 Brespectively. laws. MJKK andN MSFJ arec credit ratinga agenciesn registered stock by MIKK MSFJ( (asa applicable)h have, priort toa assignmento ofanyr rating,a agreedt topayt toN MJKK andmunicipal or MSFI (asa bonds, applicable) debentures, notesa and commercial paper)a andp preferred  witht thei informationo  particulard creditr ratinga assignedbyM MOODY'S.  NOV WARRANTY,E  ORI IMPLIED, AST TOT THEA ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABLITYOR FITNESS FORA ANY  issuers  tobep tothed adviser.  representt 100DY'S thaty youa area accessingti the  asan representativec of,a'y wholesalec client'a andt thatn neither thisd documentf fromw withinA Australia,) you  younort theer entityy youre represent willd directlyor yous shouldcontacty yourf financialo or other NRSRO MSFjisnota Nationally fora appraisala andr rating servicesr renderedbyit itfees  ranging PY200,0 000t toa approximately PY350,000,000."  REPORTI NUMBER 1122790  11May2 2018 This document has beenp authorizedu  Lee( (Countyo of) NC:L Updatet to credit analysis  preparedf fort the use ofN Mitch Brigulioa andi isp protected by law. Itmay noth be  undera ac contractv with! Moody'so oro otherwise authorizedi inv writing! byN Moody's.  copied, transferred or disseminated unless    MOODY'SI INVESTORS SERVICE Contacts TiphanyLee- Allen AVP-Analyst tiphany.le lee-a allen@moodys.com  U.S. PUBLIC FINANCE  CLIENT SERVICES AsiaF Pacific Japan EMEA  +1.212.553.4772 Edward(Ted)p Damutz  +1.212.553.6990 Americas  VP-SrCreditoficer dwarddamutemcos.com:  852-3551-3077 81-3-5408-4100 44-20-7772-5454  MOODY's INVESTORS SERVICE 11May2 2018  Lee( (Countye Of)NC: Updatet tocredita analysis  This document hasb been preparedf fort theu use of MitchE Brigulio andisp protected  authorizedi undera ac contractv withN Moody's oro otherwise authorizedi inv writing! byN Moody's. byl law. Itmay notb bec copied, transferred or disseminated unless    MOODY's INVESTORS SERVICE Bonds, Series 2018 Global Credit Research- 06 Apr 2018 $32.71 Million ofc debt affected million Limited Obligation Bonds Series 2018. RATINGS RATIONALE management. RATING OUTLOOK Increased reserves  Rating Action: Moody's assigns Aa3 to Lee County, NC's Limited Obligation  New' York, April 06, 2018. - Moody's Investors Service has assigned a Aa3 ratingt to Lee  County's (NC)$32.7  The Aa3 ratingi incorporates reflects the risk ofr non-appropriation; the more essential nature oft thet financed projects tot the county's mandate; adequate legal provisions and the sound long-term tax-backed credit ofth the county. Lee County benefitsf froma af favorable locationi int the central portion of thes state, between profile employment centers, soundf financial operations, affordable debt andp pension profiles and prudent major  Outlooks are generally nota assignedt toi issuers with this amount of debt outstanding.  FACTORS THAT COULDI LEAD TO AN UPGRADE Broade expansion and diversification ofl local economy FACTORS THAT COULDI LEAD1 TOA AI DOWNGRADE -Failuret to appropriate debt service payment Increased unemployment: and tax base erosion Depleted financial reserves LEGAL SECURITY  Debts service ont the 20181 Limited Obligation Bonds is secured byt the county's service appropriations. The more essential nature oft the projects and pledged pledge assets somewhat mitigates risk ofr non-appropriation byt the county. The: 2018 Limited Obligation Bonds will bes secured the 20181 Trust Agreement ands securityi interesti in Wicker Elementary School Facility. The county will make payments undert the Installment Purchase Contract directly tot the days priort to debts service payment dates. Further strengthening security, the thea appropriation ini itsp preliminary budget, andi itr must ber removedf from the annual county Proceeds fromt the 2018i issuance willi fund various county-wide projects including: Construction oft the Wicker Elementary School, upgrades andi renovations tot the Locatedi int the geographic center of North Carolina, 25 miles from Pinehurst and 46r miles southeast ofF (Aaa stable)a and Durham (Aaas stable). The population wase estimated at 59,660i in  tor make annual debt the byt County's least has Trustee, covenanted atl toi five affirmative include budget by ana  vote oft the county board of commissioners. USE OF PROCEEDS  Courthouse and The 2015. county is  Government Center, and Parks andF Recreation projects.  County  PROFILE  Raleigh  comprised of2 255s square miles.    METHODOLOGY  The principal methodology usedi int this rating was Lease, Appropriation, Moral Obligation and Comparable Debt ofl US State andl Local Governments published inJ July: 2016. Please see the Rating! Methodologies page Forr ratings issuedo ona a program, series or category/class of debt, this announcement provides certain regulatory disclosures inr relation toe eachr rating ofas subsequently issued bond or note oft the same series or category/class ofc debt orp pursuantt to ap program for which ther ratings are derived exclusively from ratingsi in accordance with! Moody's rating practices. Forr ratings issued ona a support provider, this existing announcement provides certain regulatory disclosures inr relation to the credit rating action ont the support provider andi in relation toe each particular credit ratinga action fors securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation tot the provisional rating assigned, andi ini relation toa definitive ratingt that may be assigneds subsequent tot thef finali issuance oft the debt, ine each case wheret thet transaction: structure andt terms have noto changed prior tot the assignment oft the definitive ratingi ina ar manner that would have affected the rating. Forf furtheri information please see ther ratings tab ont thei issuerlentity page for the respective issuer on Regulatory disclosures containedi int this press release apply tot the credit rating and, ifa applicable, ther related Please see www.moodys.comi fora any updates ond changes to thel lead ratinga analyst andt tot the Moody's Please seet ther ratings tab ont thei issuer/entity page onv www.moodys.com for additional regulatory disclosures  onv www.moodys.comi fora a copy oft this methodology. REGULATORY DISCLOSURES  www.moodys.com. ratingo outlook orr rating review. entity that hasi issued the rating. fore each credit rating. Tiphany! Lee-Allen Lead/ Analyst Regional PFGI Northeast Moody's Investors Service, Inc. 7World Trade Center 250 Greenwich Street New' York 10007 US JOURNALISTS: 12125 553 0376 Client Service: 12125 5531 1653 Leonard. Jones MANAGING DIRECTOR Regional PFGI Northeast JOURNALISTS: 12125 5530 0376 Client Service: 12125531 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich: Street New York, NY1 10007 U.S.A JOURNALISTS: 12125 553 0376 Client Service: 12125 5531 1653  legal  MOODY's INVESTORS SERVICE  02018 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors  affiliates (collectively, "MOODY'S"). Allr rights reserved.  and    CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. 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MF Richardson, Dallas + (214) 765-5878; mmarcharden@-pacbhilcom Chase C Ashworth, Centennial + (303) 721-4289; dhausashonth@mabhulcom  Primary Credit Analyst: Secondary Contact: Table Of Contents Rationale Outlook Related Research  WWW.STAMDARDANDPOORS: COM/RATINGSDIRECT  APRIL 6, 2018 1    Summary:  Lee County, North Carolina; Appropriations;  General Obligation Credit Profile US$32.751 mill Itdo oblig! bnds ser 2018 due 05/01/2038 Long Term Rating Lee Cnty GO comnty colll bnds Long Term Rating Unenhancedi Rating Manyi issues aree enhancedb by bondi insurance. Rationale  AA-/Stable AA/Stable AA-(SPUR)/Stable  New Affirmed Affirmed  Lee Cnty certs ofp part (Pub Sch & Comnty Coll Proj)s ser 2004  S&P Global Ratings assignedi its' 'AA- long-term ratingt tol Lee County, N.C's series 2018 limited obligation bonds (LOBs) based ont thea application ofits Issue Credit Ratings Linked' To U.S. Public Finance Obligors' Creditworthiness criteria, published. Jan. 22, 2018, onl RatingsDirect. S&P Global Ratings also affirmedi its' 'AA'1 long-term rating ont the county's general obligation (GO) bonds outstanding, as well asi its' "AA-'rating on the county's existing certificates of Thes series 2018LOBs willf finance project costs associated with renovating and constructing a newe elementary campus, providef fundingf for courthouse renovations, andi fund parks and recreational project costs. Thel LOBs and COPS are secured by payments made by Lee County pursuant to at trust agreement. We rate these obligations oner notchl lower than our GO rating onl Lee Countyt to account for the appropriation risk associated with the payment. The county has pledgedi its best effortst tos seek appropriations annually out ofi its operating budget, and has considered the affordability of the payments ini itsl long-t term plans. Our consideration oft the affordability and likelihood of thea annual appropriation payments isr reflectedi int the' 'AA- rating. In our view, thei features oft thet trust agreements and terms are standard with nou unusual risks regarding timely payment of debt. The county's faith-and-credit- and-taxing-power, pledges secures the GO debt. Wel base our view ofL Lee County ont thef following factors:  participation (COPs).  Weake economy, with projected per capita effective buyingi income at 74.6% of the nationall level and market value Strong management, with goodf financial policies andj practices under our Financial Management Assessment (FMA) Strong! budgetary performance, with operating surpluses int the general fund and att the total governmental fund level  per capita of$ $88,831; methodology;  WWSTANDARDANDPORS COMRATINGSDIRECT  APRIL 6, 2018 2    Summary: Lee County, North Carolina; Appropriations; General Obligation  inf fiscal 2017;  Verys strongk budgetary flexibility, with an available fund balancei inf fiscal 2017 of21% of operating expenditures; Verys strongl liquidity, with total government available cash at 31.7% oft total governmental fund expenditures and Adequate debt and contingent liability position, with debt service carrying charges at 10.7% ofe expenditures andi net direct debt thati is 137.8% oft total governmental fund revenue, as well as rapid amortization, with 67.6% of debt We consider Lee County's economy weak." The county! has ane estimated population of 59,616. The county! has a projected per capitae effectivel buyingi income of 74.6% oft the nationall level and per capita market value of$88,831. Overall, the county's market value grew by 2.1%i in 20161 to $5.31 billioni in 2017. The county unemployment rate was Lee County encompasses 255 square miles in central North Carolina, about 46r miles southwest of Raleigh-Durham. Broadway and Sanford, which together serve as the county seat, aret the onlyt twoi incorporated municipalities within the county. Although thel local economy has continued to diversify, manufacturing iss still Lee County's largest employment industry. Leadinge employers include Lee County Schools, Pilgrim's Pride Corp., and Coty USI LLC. In October 2017, the county's largest taxpayer, Pfizer Inc., announced: a$130r millioni investment focused on gene therapy research that would create! 501 high-payingi jobs overt the next five years. Ina addition tot thesel local employers, management indicates Lee County residents commute toj jobsi ini int thel Raleigh-Durham metropolitan statistical area (MSA), including Chapel Hill and] Research' Triangle Park. The county! has also seen growth inc commercial activity, including new restaurants, retail, and grocery stores. Due tol Lee County's location near thel Raleigh-Durham MSA, we We view the county's management ass strong, with goodf financial policies and practices under our FMA methodology, indicating financial practices exist inr most areas, butt that governance officials might not formalize or monitor all of When draftingt the budget, management analyzes historical trends for revenue and expenditure assumptions and uses outsides sources tog gauget trends. Management monitors thel budget, with the ability to amend, throughout the fiscal year and provides monthly budget-to-actual reports tot the county commissioners. Att this time, the county does not maintain ai formall long-term financial plan, but wel believe forward-looking projections for the operating fund are being discussed alongside management's fiscal 20191 budget preparations. The county maintains af formalf five-year capital improvement plan, whichi is updated annually andi identifies project funding sources. Ina addition, the county commissioners have adopteda ai formal investment policy, but holding reports are not regularly provided to the county commissioners. Af formal debt management policy exists, andl limits debt servicet to 15% ofg general fund expenditures. County officials adopted a formal fund balancep policyt to maintain ar minimum available fund balance of 16% ofg general fund expenditures, though the county! has a target of24%. The countyi is currently inc compliance with this policy.  3.0xg governmental debt service, and access to external liquidity we consider strong; scheduled tob ber retired in 10y years; and Very strongi institutional framework score.  Weak economy 5.9%i in 2016.  expectg growtht to continue over thet two-year outlook period.  Strong management them ona a regular basis.  WWWSTANDARDANDPORS  APRIL 6, 2018 3    Summary: Lee County, North Carolina; Appropriations; General Obligation  Strong! budgetary performance  Lee County's budgetary performance iss strongi in our opinion. Thec county had operating surpluses of6 6.5%of expenditures int the general fund and of3.2% across all governmental: funds inf fiscal 2017. Our assessment accounts for thef fact that we expect! budgetary results couldo deteriorate somewhat from 2017 results int the neart term. After accounting for recurring expenses andi revenues into and out oft the general fund as well as one-time transfers to fund capital projects, the county experienced an operating surplus ofa approximately: $4.3 million, or6 6.5%of expenditures ini fiscal 2017. Lee County regularly transfers funds from its general fundt toi its capital projects outlay fund. Inf fiscal 2017, about $1.0r million oft the $1.61 million that it transferredi into the capital fund was at the county's discretion; therefore, we didi noti includet that discretionary transfer as ane expense. Property taxes aret the county's The county's approved $70.1 millionf fiscal 2018 budgeti included ai fund balance appropriation ofa approximately $1.9 million. The appropriation oft the fund balancei is consistent with the county's budgeting practices over the past several fiscaly years. Due to conservative revenue ande expenditure projections as well as current trendsi ins sales tax revenue, wea anticipate atl least balanced operations inf fiscal 2018. Budget preparations for fiscal 2019 are underway, but we do note expecta anys significant changes year-to-year. Asa a result, wel believe the county's budgetary performance will remain atl least strong overt ther next two years, ort thel budget willl be atl least balanced, but operating surpluses in Lee County's budgetary flexibilityi is very strong, inc our view, with ana available fund balancei in fiscal 2017 of21%of We consider thec county's general fund unassigned and assigned fund balances tob bea available. Lee County's nominal availablel balancel has consecutively grown overt thep past three years, and the county! has consistently maintainedi it above 15% ofe expenditures. Based ony year-to-date budget-to-actuals, we expect the county tor maintain very strong County officials approveda a7.5-centi increase inl Lee County's propertyt tax rate forf fiscal 2016, bringing the tax rate to 79.5 cents per $100 ofa assessed value from 72.0 cents. The purpose oft thisi increase was tof fund education capital needs, includingt this bond issuance, pay for ongoing schools system expenses, and to establish a capital reserve for future capital projects or debts service costs. The capital projects outlay fund maintained: af fundl balance ofa about $3.3 million aty year-end 2017. Based on conversations withi management, wel believe that reserves int the capital projects outlayf fund could! ber made available for any lawful purpose, should the need arise. Depending ons sales taxi receipts, the county couldu use about $2.31 million overt ther nextt two years associated with the initial increase in debt service ont the 2018LOBs. Asar result oft thep planned use oft these reserves, wel have noti included these available funds in our calculations. Asp per state statutes, Lee County alsol has more than $5.7 millioni ini its restricted general fund balance thati isr noti includedi inc oura available fund balance. North Carolina requires that certainf financial amounts ber restricted from appropriation untilt they are realized as cash. Therefore, this balance is noti included int the county's overall available fund balance, but wer recognize that it adds additional flexibility for North Carolina issuers. Had the combined $9r millioni fromt the capital outlay projects fund and state restricted reserve fund been included, we estimate that  largestr revenues source at6 60% of general fund revenue, followed by sales taxes at 18%.  excess of5 5%1 might noth bes sustained. Very strong! budgetary flexibility operating expenditures, or $13.41 million.  reserves over ther next two years, and remain compliant withi its reserve] policy.  WWW.S STANDARDANDPOORS. COMRATIGSDIRECT  APRIL 6, 2018 4    Summary: Lee County, North Carolina; Appropriations; General Obligation  reserves would] have totaledr more than 30% of operating expenditures.  Very strongl liquidity  Inc our opinion, Lee County's liquidityi is very strong, with total government available cash at3 31.7% oft total governmental fund expenditures and3 3.0x governmental debt service in 2017. In our view, the county has strong Lee County's strong access to externall liquidity is demonstrated, wel believe, by the county's issuance of GO debt and COPS over thej past 20 years. The county does not engage int the aggressive use ofi investments that we view asl likely toa adds significant volatility toi itsl liquidity position. Ina addition, the countyi isr not exposed to variable-rate debt that The county hase enteredi intos several private placement COPS. Whilei its private placement transactions contain acceleration provisions, we believe thel liquidity risks are partially mitigated byt thej provisions of Section 160A-20 oft the North Carolinas statutes, which does not allow for deficiency judgments. Ina addition, on review oft these provisions and Inc our view, Lee County's debt and contingent liability profilei is adequate. Total governmental fund debt serviceis 10.7%0 oft total governmental fund expenditures, and net direct debti is 137.8%0 oft total governmental fund revenue. Approximately 67.6% oft the direct debti is scheduled tob ber repaid within 10 years, which isi inc our view aj positive credit Since ourl last review, wel have changed our assessment oft the county's debt profile to adequate from strong because, following thes sale oft thes series 2018 issuance, overall debt-to-market valuei is estimated at 3.1%. We make positive adjustments for overall debt-to-market valuel being less than 3%. Lee County has no additional debt over ther next two years. Asar result, and givent the growing economy, wel believe the county's debt profile willl likelyi improve tov what we consider tol bes strong withint ther next two years. Direct debt oft the countyi is about 2%. Based on our understanding of the proposed structure oft the 20181 LOBs, wee estimate that more than 65% ofd debt will be retired overt ther next 10 years. Ins subsequent reviews, should the 10-year pay-out fall! below 65%, our view of debt may weaken. Lee County's combined required pension anda actual other postemployment benefits (OPEB) contributions totaled2.1% oft total governmental fund expenditures in 2017. Oft that amount, 1.4% represented required contributions top pension obligations, and 0.7% represented OPEB payments. The countyr madei its full annual required pension contribution in The county participatesi int three pension plans: thel North Carolina Local Government Employees'" Retirement System (LGERS), thel North Carolina Registers of Deeds' Supplementall Pension Fund (RODSPF), and thel Law Enforcement Officers' Special Separation Allowance. According to Governmental. Accounting Standards Board Statement No. 68, employers with benefits administered through cost-sharing, multiemployer pension plans such asI LGERS andl RODSPF must report their proportionate share oft ther netp pension liability. As of June 30, 2017, the county's proportion ofn net LGERSI liabilities was $5.1 million. Ina addition, the plan fiduciary net! positiona as aj percent oft the total pension liability ofLGERS was 91.5%. As ofJ June 30, 2017, RODSPF was overfunded with aj planf fiduciary net position as aj percent of  access to externall liquidity ifr necessary.  could resulti in unduel liquidity pressures.  other terms oft the agreements, wel believe thee events of default arer remote. Adequate debt and contingent liability profile  factor.  2017.  WWWISTANDARDANDPOES: COMRATINGSDIRECT  APRIL 6, 2018 5    Summary: Lee County, North Carolina; Appropriations; General Obligation  total pension liability of 160%. The county's proportionate share OfRODSPF assets was $107,416.  Thel Law Enforcement Officers' Special Separation. Allowancei isa a single-employer, defined-benefit pension plant that provides benefits to qualified law enforcement officers. Lee County funds this plan ona aj pay-as-you-go basis from the generalf fund. Inf fiscal 2017, the county contributed: $47,068 tot thej plan with ant unfunded! liability of$1.161 million. Lee County also participatesi ina a supplemental: retirement income plan forl law enforcement officers. The supplemental retirement income plani isac defined-contribution; plan offered tol lawe enforcement officers ina addition tot their pension Thec county provides OPEBI through as single-employer, defined-benefit plan. Lee County funds thel health care benefits plan onap pay-as-you-go! basis, andt the county board of commissioners has the authority toa amend the plan. The county's OPEB costi inf fiscal 2017 was $476,378 with ant unfunded liability of$19.21 million. Thei institutional framework score for North Carolina counties is verys strong.  plan. Inf fiscal 2017, the county contributed: $151,991 tot this plan.  Very strongi institutional framework  Outlook  The stable outlook reflects S&P Global Ratings' opinion that Lee County will continue tor maintain itss strong financial performance and verys strong reserves. Ina addition, wel believe the county's strong management and growingl local economy provide additional ratings stability." Therefore, we do not expect to change the rating withint the two-year Witha allo other ratingf factors remainings stable, ifeconomici indicators were tos show sustained improvement tol levels we Ifbudgetary performance were to deteriorate, leadingt tos significant reductions inr reserves, we could lower the rating.  outlook period. Upside scenario Downside scenario Related Research  consider commensurate witht the county's higher-rated peers, we could raise the rating.  S&PE Public Financel Local GO Criteria: How We Adjust Datal For Analytic Consistency, Sept. 12,2013 Incorporating GASB6 67A And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's UIS. Local Alternative Financing: Disclosure Is Critical" To Credit Analysis In Public Finance, Feb. 18, 2014  Government GO Criteria, Sept. 2,2015  2017 Update OfI Institutional Framework For U.S. Local Governments  Certain terms usedi int this report, particularly certain adjectives used to express our view onr rating relevant factors, have specific meanings ascribed tot themi in ouro criteria, and shouldt therefore be read in conjunction with such criteria.  WWSTANDARDANDPOES: COMPRATINGSDIRECT  APRIL6,2018 6    Summary: Lee County, North Carolina; Appropriations; General Obligation  Please seel Ratings Criteria at mmwsamdaréandpor.com forf furtheri information. Complete ratings information is available tos subscribers of RatingsDirect atv www.capitalig.c com. 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WWWSTANDARDADPOR: COMRATINGSDIRECT  APRIL6,2018 8        - A  a    North Carolina 2022 Fire Safety Week Proclamation  Lee County,  and security ofa allt those livingi in and visiting our County; and  WHEREAS, Lee Countyi is committed to ensuring the safety WHEREAS, firei isas serious! public safety atg greatest risk from fire; and Association" (NFPA9), and fire departments WHEREAS, smokea alarms sense smoke have asl little as2r minutes toe escapes safely; and WHEREAS, workings smoke WHEREAS, Lee County residents oft thes smoke alarms andl knows howt tor respond; and WHEREAS, Lee County therefore ber morel likely tos survivea ai fire; and family members, including WHEREAS, Lee County responders through prevention: andj protection education; and WHEREAS, Lee County residents increase their safety from fire, especially int their homes; and WHEREAS, the Lee Countyi itisi important tol have al home fire escape plan; and NOW,THEREFORE, 15, 2022, as Firel Prevention' Weekt throughout andt home fire escapet for Firel Prevention Week 2022 tos support firea ande emergency services. Datedt this 3rd day ofOctober, 2022.  concern! both locally and nationally, and homes are the locations where people are civilian deathsi int the United Statesi in2 2020, accordingt tot thel National Firel Protection wellb before you can, alerting yout to danger in the event off firei in whichy your may  WHEREAS, home fires caused 2,580d int the United States responded to3 356,5001 home fires; and  alarms cut ther risk of dyingi inr reportedl home fires in! half; and should bes sure everyone int thel home understands thes sounds  residents whol have planned andj practiced al home fire escape plan are more prepared and will  willr make sure their smoke and carbon monoxide (CO) alarms meet the needs ofa allt their are dedicatedt tor reducingt the occurrence of home fires and home fire injuries  WHEREAS, Lee Countyr residents those withs sensory or physical disabilities; and  first  that are  toj responsive public  education measures are better able tot take personal stepst to  20221 Fire Prevention Week" TMt theme," "Fire won't wait. Plan your escape." TM,"e effectively serves tor remind BEI ITI RESOLVED, that thel Lee County Board of Commissioners dol hereby proclaim October 9-  this County, and urge allt the people ofI Lee County to plan andj practicea  ther many public safety activities and efforts ofLee Counties  AIL Kirk D. Smith, Lee County Boar  ATTEST:  COUA   4 BF  simtlc Hailey! Hall, Clerkt tot thdB Board  CAR  NORTHCAROLINA,! LEECOUNTY Presented forr registrationo ont tisl day othnuany20,33 aD:55AMPM recordedi in Book 34 Pageln33 Pamela G. Bilt, Registero rofDeeds