2017 Q1 Quarterly Report

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ADMINISTRATION Financial Stewardship The Town held a successful $32 million revenue bond sale on March 1 to finance water and sewer projects resulting in an average interest rate of 3.44% for the 25 year bonds. This sale followed an update to our bond ratings where Moody's, Fitch and Standard & Poors all confirmed the Town's AAA revenue bond ratings. The Town has maintained AAA ratings from all three bond rating agencies on both its general obligation bonds and revenue bonds since we earned the top possible ratings from all agencies in 2010. The Town's next bond sale has been scheduled for September to borrow another $30 million of Cary Community Bonds to finance transportation, parks and fire projects. This will be the second of three bond sales following the voter's 2012 approval of $80 million general obligation bonds. Contract Approval As part of reporting requirements in accordance with the authority granted by Council for contract approval, contract statistics are charted below for comparison. Cash & Investments Update As property taxes are received, the Town's pooled cash and investment balances typically peak in the third quarter of the fiscal year. In FY17 we crossed the $500,000,000 mark. As capital spending continues throughout the year, the pooled cash balances will fall back below this half billion dollar benchmark. Interest income inched up as interest rates increased following actions at the Federal Reserve. We project that the Town will earn about $4.7 million in total interest income for the 2017 fiscal year across all funds, about $1 million more than we earned in FY16.

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