[PPT] - Table of Contents Page Carroll County Highlights 3 Regional PowerPoint Presentation

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Carroll County Commitment

Feeling good in Carroll County, we will tell you:

The Board of Commissioners is committed to: Economic Development

Many economic development success stories
Strong economy in a diverse Metropolitan Statistical Area
Businesses continue to choose Carroll County

Conservative Approach to Fiscal Management

We continue to support a conservative approach to fiscal

management

Ratios and financial indicators are positive

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Carroll County Commitment

Education Funding for a Successful School System

Ranks as one of the top performing school systems in Maryland
Highest graduation rate and lowest dropout rate
Students consistently score above state and national averages on

standardized student assessments Maintaining an Excellent Quality of Life

One of the safest and healthiest counties in Maryland
Ranked as SmartAsset’s Best Value for Your Money in Maryland &

Southern PA

Four nationally recognized towns for quality of life

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Regional Influencing Factors

Carroll County – nestled between D.C. and Baltimore, located in the

Washington-Baltimore-Arlington Combined Statistical Area.

Carroll is part of the most highly educated, highest income and fourth

largest combined statistical area in the U.S. with a population of nearly 10 million.

Carroll benefits from the huge business, education, health and

government opportunities of the area.

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Maryland is Strong

Maryland maintains AAA ratings from the three major bond

rating agencies

2nd highest % of professional and technical workers in the nation
Higher Education: 57 accredited institutions (39 four-year and 18

two-year) with total enrollment over 357,000

Port of Baltimore: the nation’s leading Roll On/Roll Off port
Maryland businesses have an edge in federal funding and

research

Home to Maryland state offices, the National Security Agency

(NSA), as well as the Social Security Administration and the Centers for Medicare & Medicaid Services (CMS)

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Carroll County 2018 Themes

 Robust Economic Development Growth  Steady Assessment/Income Growth  Strong Positive Change in Long-Term Liability  Strong Fiscal Management

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Strategic Economic Development Assets

Proximity to major transportation hubs
Labor force over 95,000
Variety of industrial sites from 1-169 acres
Properties located in or near incorporated towns with

infrastructure in place

Parks include Westminster Technology Park, Carroll County

Commerce Center, Warfield at Historic Sykesville, and North Carroll Business Park

Outstanding workforce; highly educated; proven work ethic
Major employers include several long-standing pillars in

sectors including publishing, healthcare, higher education and light manufacturing

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Carroll County Pillars

1867 1983 1967 1965 1991 1896 1996 1961 1962 1897 1976 1976 1989 1980 1964 1971 12

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Educational Attainment

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Source: U.S. Census Bureau 2000 and 2010 of Population and Housing, persons 25 years and over U.S. Census Bureau 2016 American Community Survey

Carroll County Maryland U.S. High School Graduate 30.6% 25.4% 27.5% Bachelor’s Degree 21.4% 20.7% 18.8% High School Graduate or Higher 92.1% 89.6% 87.0%

30.60% 21.40% 92.10%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% High School Graduate Bachelor’s Degree High School Graduate or Higher Carroll County Maryland U.S.

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Workforce: Our Competitive Advantage

Well-Educated Workforce

– Business/Employment Resource Center

Total Customer Visits:

11,794

Total Businesses Served:

346

Job Fairs/Recruitment Events:

36 – Community College Business & Workforce Training – Career and Technology Center

Small Business Development

– Miller Center for Entrepreneurs – Small Business Development Center – Small Business Loan Fund

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Businesses Talk Carroll

“What is critical for us and a reason we moved to Taneytown, is available workforce, particularly the quality of the workforce.” - Joe Mandato, Executive V.P., Evapco

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“When we looked for a new location, one of the attributes we looked for was a stable workforce. We have good success at recruiting new people here and find the availability and quality of people in this area to be very good.” - Daniel Cooper,

CEO, Fuchs North America

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Unemployment

Carroll County – consistently has one of the lowest unemployment

rates compared to other Maryland counties

Average unemployment rate of 3.6% in CY 18

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Carroll County Maryland United States CY 09 6.4% 7.0% 9.3% CY 10 6.8% 7.7% 9.6% CY 11 6.2% 7.2% 8.9% CY 12 6.0% 7.0% 8.1% CY 13 5.6% 6.6% 7.4% CY 14 4.9% 5.8% 6.2% CY 15 4.4% 5.2% 5.3% CY 16 3.6% 4.4% 4.9% CY 17 3.4% 4.1% 4.4% CY 18 3.6% 4.3% 4.0%

2.0% 4.0% 6.0% 8.0% 10.0% CY 09 CY 10 CY 11 CY 12 CY 13 CY 14 CY 15 CY 16 CY 17 CY 18

Average Unemployment

Carroll County Maryland United States Sources: United States Department of Labor, Bureau of Labor Statistics Maryland Department of Labor, Licensing and Regulation Notes: 2018 figures are averaged through July 2018. Only the national unemployment rate is seasonally adjusted.

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Carroll County Broadband

Carroll County Public Network (CCPN) – over 110 miles
f fiber optic lines throughout the county
Over 130 local and state agencies are connected to the

network

Business Leasing Program
Multiple leasing contracts have been signed since 2014
Carroll Broadband Grant - assists in leasing dark fiber to

last mile businesses and internet service providers

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Tourism Stronger Than Ever

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Tourism attracts visitors to Carroll County where they purchase goods and

services; it encompasses many business sectors including hospitality, transportation, retail and entertainment. Tourism adds significant dollars to the local economy.

Tourism sales increased to $120 million.

Union Mills Homestead Carroll County Farm Museum

Source: Comptroller designated tourism taxes

Carroll County Barn Quilt Trail

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Carroll County Regional Airport

Proximity to Baltimore, Washington, D.C. and southern PA
Reliever airport to Baltimore/Washington International Thurgood

Marshall Airport (BWI)

6th largest non-military runway in Maryland
82 T-hangars; seven corporate hangars, 50 tie-down locations
New 5500’ runway in development; FAA approved; acquiring land
Over $800,000 income annually
Enterprise fund forecasts positive revenues all years forward

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Expansion Projects

2016-2018

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World headquarters manufacturer
f products for evaporative cooling

and industrial refrigeration

140,000 square foot expansion
$20 million investment
420,000 total square feet
100 additional jobs created
Distributor of books
192,000 square foot addition
$14 million investment
1.6 million total square feet
300 additional jobs created

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22

Manufacturer of cement

products

4.6 mile conveyor belt
$150 million investment
Manufacturer of customized

metal products

75,000 square feet expansion

in new facility

$8.5 million investment
40 additional jobs created

SLIDE 23

Manufacturer of pressure

sensitive adhesive and flexible materials

65,000 square feet
$6.5 million investment
50 additional jobs created
Customized solutions for needs of

fixed/mobile wireless operators, wireless infrastructure vendors, and wireless consulting companies

Expanded by 20,000 square feet
$2 million investment
40 additional jobs created

SLIDE 24

Modern business park
25,000 square foot spec building
$3.7 million investment
Total of 225,000 square feet at build out
Total investment $35 million

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New Business Attraction Projects

2016-2018

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Manufacturer of customized

spices and seasonings

240,000 square feet
$40 million investment
175 jobs
$54,000/year co-ed, private,

international boarding/day school

Four buildings on 26 acres
85,000 square feet
$14 million investment
47 jobs and growing

SLIDE 27

Find Solid Corporation Advanced Thermal Batteries

Manufacturer of residential,

commercial and industrial doors and hardware systems Chinese company; 1st U.S. location

50,000 square feet
$5 million investment
Manufacturer of thermal

batteries for US Dept. of Defense and Prime Contractors

40,000 square foot facility
$6.8 million investment

27

Manufacturer of residential,

commercial and industrial doors and hardware systems; Chinese company; 1st U.S. location

50,000 square feet
$5 million investment
100 jobs
Manufacturer of thermal

batteries for US Dept. of Defense and Prime Contractors

40,000 square feet
$6.8 million investment
46 jobs

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Manufacturer/re-conditioner
f Certified Uninterruptible

Power Supplies (UPS)

65,000 square feet
$2 million investment
40 jobs
Manufacturer of specialized

mobility vehicles

156,000 square feet
$20 million investment
200 jobs increasing to 400

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Project Highlight Summary

2016 - 2018

Company Investment (millions) Square Footage Fuchs North America Lehigh Cement Evapco Penguin Random House CoastTec Strouse Corporation Fairlawn Tool Springdale School Find Solid ATB G3 FR Conversions Liberty Exchange TOTAL $ 40 160 20 14 2 7 9 14 5 7 2 20 4 $304 240,000 140,000 192,000 65,000 65,000 75,000 85,000 50,000 40,000 25,000 156,000 25,000 1,158,000

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Businesses Talk Carroll

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“I am truly proud to be a business in Carroll County. I cannot imagine a better place to do business and bring up a family. I feel like they are proud to have me as a member of the community, and that is very rewarding.” - Kent Martin, Plant Manager, Lehigh

Cement

“Carroll Broadband has really been a strategic advantage. Three years ago we took advantage of it and we went from the speed of cable to three, four times faster and at the same cost. This was particularly important for us because we power all of our manufacturing equipment through technology and computers, as well as what we do to manage our business. I would definitely recommend Carroll County because of Carroll Broadband.”

Sue Chambers, President, The Strouse Corporation

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Land Development

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Mixed-use business park
396,000 square feet at build out
$60 million investment

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Settlement 6/27/2018
Mixed-use/redevelopment of historic buildings in Sykesville
145 townhomes; 100,000 square feet of new development
140,000 square feet redevelopment
$123 million project at build out

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Warfield at Historic Sykesville

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129 acre high-end business park campus proposed on MD 27
900,000 square feet
$135 million capital investment at build out
I-70 access – 2 miles

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75 acre industrial park
600,000 square feet
$70 million capital investment at build out
Spring 2019

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19 acres of finished land available
580,000 square feet
$72 million capital investment

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Project Investment (millions) Square Footage Commerce Center Warfield at Historic Sykesville

Mt. Airy Business Park

North Carroll Business Park Westminster Technology Park Total $ 60 123 135 70 72 $460 396,000 240,000 900,000 600,000 580,000 2,716,000

Land Development Project Summary

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Trends are Positive

Ratios and Financial Indicators are Positive
Strong Financial Policies and Practices
Revenues Increasing
Declining Debt
Long-term Obligations Well-Funded and

Improving

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FY18 General Fund Results

Budget to Actual
Conservative budget approach
$2.5M revenues over budget
$1.6M expenditures under budget
Net change in fund balance
$8.2M reduction vs $11.5M budgeted reduction
Revenue growth is moderate
2.3% average annual growth over last 5 years

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($ in 000) 2014 2015 2016 2017 2018 $195,529 $192,963 $197,456 $198,686 $202,674 119,576 126,688 137,513 139,476 141,826 Fiscal Year Property Tax ... Income Tax .....

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Fund Balance

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Fiscal Year Non Spendable Restricted Committed Assigned Unassigned Total General Fund Balances Total Available General Fund Balance General Fund Expenditures Available General Fund Balance as a % of Expenditures 2014 29,209 $ 26,052 $ 19,825 $ 22,036 $ 6,922 $ 104,044 $ 48,783 $ 353,820 $ 13.8% 2015 29,004 27,424 20,398 18,459 7,384 102,669 46,241 360,309 12.8% 2016 26,669 30,926 20,820 22,581 10,840 111,836 54,241 367,547 14.8% 2017 27,549 29,656 21,402 20,383 14,530 113,520 56,315 378,037 14.9% 2018 23,910 27,610 * 20,563 29,281 3,946 105,310 53,790 387,564 13.9% * $25.9 M Ag preservation 20 year investments restricted for debt service (9.7% of outstanding debt). General Fund ($ in 000)

13.8% 12.8% 14.8% 14.9% 13.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2014 2015 2016 2017 2018

Available General Fund Balance as a % of Expenditures

Available 5.0% Stabilization Fund

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Fund Balance Peer Comparison

42 14.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

Carroll County, MD Maryland AAA Median Maryland Aa1 Median Peer Group Median Anne Arundel County, MD Queen Anne's County, MD Baltimore County, MD Howard County, MD Montgomery County, MD Prince George's County, MD

Available Op Fund Balance as % of Revenue FY17

 Carroll County compares favorably to other highly-rated Maryland jurisdictions

Moody’s MFRA database; Fiscal 2017 audited data

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Continued Achievements

33rd consecutive GFOA Certificate of Achievement for Excellence in Financial Reporting (FY 17 Comprehensive Annual Financial Report) GFOA’s Distinguished Budget Presentation Award for the 11th consecutive year

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Enterprise Fund Summary

No significant concerns
Financially healthy
Rates reviewed and adjusted annually
Solid Waste fully accrued Closure & Post-

Closure Liabilities

All funds positive net positions
Strong combined liquidity
No new debt since 2010; rates funding capital

investments

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Pension & OPEB Summary

All Plans

Conservative 7% rate of return assumed
Actual Investment Returns
8.8% FY18
8.6% 5-year average return
Combined Net Pension Liability $14.3M
Net OPEB Liability $101.3M

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Actuarial Valuation, as of July 2017, 96.5% funded.
Net pension liability as of June 30, 2018 was $9M.
The Actuarially Determined Contribution in FY18 was $2.8M; County

contribution was $3.1M.

Pension - Employee

95.3% 97.9% 98.5% 98.1% 96.5%

0% 20% 40% 60% 80% 100% 2014 2015 2016 2017 2018

Employee Pension Plan – Percentage Funded

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Pension – Law Officers

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Actuarial Valuation, as of July 2017, 88.2% funded.
Net pension liability as of June 30, 2018 was $3M.
The Actuarially Determined Contribution in FY18 was $694K; County

contribution was $798K.

65.7% 77.9% 87.0% 87.3% 88.2%

0% 20% 40% 60% 80% 100% 2014 2015 2016 2017 2018

Certified Law Officers Pension Plan – Percentage Funded

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Pension – LOSAP

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Actuarial Valuation, as of January 2017, 75.2% funded for the

Volunteer Firemen’s Length of Service Award Program (LOSAP).

Net pension liability as of June 30, 2018 was $1.8M.
The Actuarially Determined Contribution in FY18 was $674K; County

contribution was $166K.

FY19 contribution $1.3M to fund benefit increases.

84.9% 84.1% 97.4% 75.2%

0% 20% 40% 60% 80% 100% 2009 2012 2015 2017

LOSAP – Percentage Funded

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Actuarial Valuation, as of July 2016, 38.2% funded.
Net OPEB liability as of June 30, 2018 was $101.3M.
The Actuarially Determined Contribution in FY18 was $11.4M; County

contribution was $10.6M.

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Post-Employment Medical Benefits (OPEB)

9.5% 19.6% 33.1% 38.2%

0% 20% 40% 60% 80% 100% 2011 2013 2015 2017

OPEB – Percentage Funded

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Outstanding Debt

Continued conservative approach
Debt Policy – fixed rate only
Aggressive debt repayment
71.4% repaid in 10 years
Compliance with continuing disclosure
bligations (Digital Assurance Corporation)

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Outstanding Bonded Debt

Reduced by $65 million, or 20.8%, from FY 14.

52 $312 $296 $293 $276 $247 $247 $256 $271 $282 $299 $309 $100 $120 $140 $160 $180 $200 $220 $240 $260 $280 $300 $320 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Millions

Outstanding General Obligation Bonds

Actuals 2014 - 2018 vs Projected 2019 - 2024

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Outstanding Bonded Debt to Assessable Base

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Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 G.O. Bonds $312 296 293 276 247 247 256 271 282 299 309 Assessable Base $18,549 18,496 18,733 19,099 19,595 20,034 20,592 21,262 21,902 22,546 23,197 Percent 1.7% 1.6% 1.6% 1.4% 1.3% 1.2% 1.2% 1.3% 1.3% 1.3% 1.3% ($ in 000,000) 1.7% 1.6% 1.6% 1.4% 1.3% 1.2% 1.2% 1.3% 1.3% 1.3% 1.3% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Outstanding General Obligation Bonds Percent to Assessable Base

Actuals 2014 - 2018 vs Projected 2019 - 2024

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Combined Fixed L/T Obligations

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($ in 000) 2014 2015 2016 2017 2018 Debt service: Principal $26,985 $28,145 $28,172 $29,139 $27,831 Interest 13,657 13,339 13,339 13,208 12,432 Pension and OPEB Contributions: Employee Pension 2,367 2,558 2,542 2,636 3,067 Law Officer Pension 870 835 681 799 798 LOSAP 250 250 50 100 166 OPEB 10,057 9,633 10,104 10,104 10,550 Total 54,185 54,761 54,887 55,985 54,844 General Fund Expenditures $353,820 $360,309 $367,547 $378,037 $387,564 Fixed Long Term Obligations as a percent of General Fund Expenditures 15.3% 15.2% 14.9% 14.8% 14.2%

15.3% 15.2% 14.9% 14.8% 14.2% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 2014 2015 2016 2017 2018 Fixed Long Term Obligations (Debt Service + Pensions + OPEB) as a percent of General Fund Expenditures

Approximately $11M of debt service is covered by dedicated revenues transferred in from the capital fund.

SLIDE 55

Current Bond Issue

Bond Sale Date 10/18/18
$25.0M New Money Issue
Use of proceeds: Public Schools, Public

Works, Conservation & Water Resources

Bonds are 20-year term with level principal

payments

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Management Approach

Keep it Simple
Be Consistent and Careful
Make the Choices That Need to be Made
Build Fiscal Resiliency
Plan for the Long-Term

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Management Tool Checklist

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Financial Planning Operational Planning Debt Management Capital Planning

 Fund Balance  Six-Year Balanced Operating Plan  Debt Affordability Review  Six-Year CIP  Contingency Planning  Budget Process  Rapid Debt Retirement  Dedicated Pay-go Capital Funding  Multiple Levels

f Reserves

 On-Going Multi-Fund Monitoring  Plan for the Operating Impact of Debt  Plan for the Operating Impact of Capital Projects

SLIDE 59

FY19 Budget Highlights

2.8% increase in the General Fund

– Biggest Changes

Schools
Sheriff
1.4% decrease in all funds

– Airport Enterprise Fund ($38.0M) – Utilities Enterprise Fund ($6.0M) – Capital Fund $23.0M

$18.0M for space for the State’s Attorney’s Office
$10.5M Career and Technology School

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Operating Revenues

Property Tax actual revenue increased $5.6 million from FY 17 to FY 18

to $207.0 million due to new construction and reassessment growth of 5.3% in Group 1.

Local Income Tax actual revenue increased $2.3M from FY 17 to FY 18.

Property Tax Revenue Local Income Tax

Sources: Department of Management and Budget and Maryland Comptroller. FY 19 reflects budgeted operating revenue.

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$195.5 $194.0 $199.3 $201.4 $207.0 $212.6

$0 $50 $100 $150 $200 $250 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Millions

$119.6 $126.7 $137.5 $139.5 $141.8 $148.8

$0 $20 $40 $60 $80 $100 $120 $140 $160 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Millions

SLIDE 61

Assessable Base

Carroll’s tax base continues to be highly

diverse with the top ten taxpayers making up

nly 2.4% of the assessable base. Top taxpayer

contributes 1.0% and the next highest contributes 0.2%.

Assessable base grew 2.7% in FY19.

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Gross Fiscal Assessable Year Base % Change

2007 15,452,905,666 14.57% 2008 17,849,115,068 15.51% 2009 20,421,064,497 14.41% 2010 22,077,626,050 8.11% 2011 20,907,114,686

5.30%

2012 19,829,611,572

5.15%

2013 18,808,823,173

5.15%

2014 18,549,381,425

1.38%

2015 18,495,548,665

0.29%

2016 18,733,020,866 1.28% 2017 19,098,609,701 1.95% 2018 19,514,216,000 2.18% 2019 20,034,438,000 2.67% 2020 20,592,306,000 2.78% 2021 21,262,196,000 3.25% 2022 21,901,530,000 3.01% 2023 22,545,575,000 2.94% 2024 23,197,375,000 2.89%

Source: FY 07-17 Carroll County CAFR [Table 6]; FY 18-19 Maryland State Department of Assessments and Taxation FY 20-24 is projected by the Department of Management and Budget.

$0 $5 $10 $15 $20 $25 $30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Billions

10-Year Gross Assessable Base

$20.0

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Commercial/Industrial

Source: State of MD Aims 2 report. In FY 12 the State Department of Assessments and Taxation reclassified $85 million in property from Residential to Commercial/Residential.

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FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Res $16.93 $15.71 $15.01 $14.76 $14.71 $14.90 $15.22 $15.60 Ag $1.11 $1.05 $0.99 $0.98 $0.96 $0.96 $0.94 $0.94 C/I $2.30 $2.38 $2.24 $2.21 $2.31 $2.33 $2.39 $2.50

10.6% 11.3% 12.4% 12.3% 12.3% 12.9% 12.8% 12.9%

$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 $22

Residential, Commercial/Industrial and Agriculture Assessable Base (Billions)

SLIDE 63

Median Household Income

In CY16, Maryland ranked highest in the nation for median household income

at $78,945, with Carroll among the highest in Maryland at $90,343

Carroll’s 2016 median household income is 14% above the State of

Maryland’s

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Source: U.S. Census Bureau, 2016 American Community Survey

Jurisdiction CY 12 CY 13 CY 14 CY 15 CY 16

Anne Arundel $89,179 $86,230 $87,217 $91,230 $96,483 Baltimore City 39,241 42,266 42,665 44,165 47,350 Baltimore 62,444 64,795 68,257 68,775 72,764 Carroll 80,028 82,955 85,274 84,887 90,343 Harford 76,645 77,765 79,649 78,050 84,175 Howard 108,844 109,476 107,490 110,892 120,941 Washington 53,167 57,615 55,471 55,979 54,250 Maryland 71,122 72,483 73,971 75,847 78,945 United States 51,371 52,250 53,657 55,775 57,617 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2012 2013 2014 2015 2016

Median Household Income

Carroll Maryland United States

SLIDE 64

Balanced Multi-Year Operating Plan

Six years
Balanced for all years
Projected debt service based on known and

projected new debt

Projected operating impacts of capital projects
Everything we know or think we know, no

matter the size

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Revenue Dedicated to the CIP and Debt Service

Direct appropriation to the Capital Fund
Transfer to the Operating Budget

– Supports debt service on school projects

Direct appropriation to Operating

– Supports Ag Pres debt service

Built into our plans

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Revenue Dedicated to the CIP

Property Tax

– 2.25% dedicated to our Agricultural Preservation efforts – FY 19 – 24 annual average of $4.6M

Agricultural Transfer Tax

– FY 19 – 24 annual average of $175,000

Income Tax

– 9.09% dedicated to our school capital program – FY 19 – 24 average annual funding of $16.4M

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Revenue Dedicated to the CIP

Park Impact Fee

– FY 19 – 24 average annual funding of $170,000

Program Open Space (POS)

– FY 19 – 24 average annual funding of $650,000

Highway User Revenue (HUR)

– Used for our roads capital program – Average annual funding of approximately $1M is built into our plan – We only recognize an approximately $1M ‘grant’ after it makes it into the State’s budget

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Flexibility

Reserve for Contingencies
Tax Rates

– Income Tax: 3.03% currently (State allows up to 3.2%) – Property Tax: $.01 yields slightly over $1.9M

Maintenance of Effort (MOE)
Stabilization Fund
Long-Term Liabilities
Dedicated Revenues

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Flexibility

Funding set aside and planned for IPAs

– Investments in place for final payments – Debt service in Operating Plan

Operating Plan Growth assumptions
Well-funded long-term liabilities
Operating impacts of capital projects
Projected revenue from new construction

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FINAL THOUGHTS: Carroll County’s Continued Success

(COMMISSIONER)

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Carroll County Onward

 Strong County within a Strong Region  Robust Economic Development Growth  Steady Assessment/Income Growth  Strong Positive Change in Long-Term Liability  Strong Fiscal Management

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Carroll County Principal Contacts

Dennis E. Frazier, President Carroll County Commissioner Office: 410-386-2043 Mobile: 443-952-0138 Email: dfrazier@carrollcountymd.gov Robert M. Burk, Comptroller * Department of the Comptroller Office: 410-386-2085 Mobile: 443-605-6148 Email: rburk@carrollcountymd.gov Stephen A. Wantz, Vice President Carroll County Commissioner Office: 410-386-2043 Mobile: 443-952-0430 Email: swantz@carrollcountymd.gov John T. Lyburn, Jr., Director Department of Economic Development Office: 410-386-2070 Mobile: 410-259-9607 Email: jlyburn@carrollcountymd.gov Roberta J. Windham, County Administrator Carroll County Government Office: 410-386-2043 Mobile: 443-289-5340 Email: rwindham@carrollcountymd.gov Ted Zaleski, Director Department of Management & Budget Office: 410-386-2082 Mobile: 410-259-1342 Email: tzaleski@carrollcountymd.gov Joseph D. Mason, Financial Advisor Davenport & Company, LLC Office: 571-223-5893 Mobile: 804-347-9693 Email: jmason@investdavenport.com Jennifer L. Diercksen Davenport & Company, LLC Office: 410-296-9426 Mobile: 804-297-9050 Email: jdiercksen@investdavenport.com

Carroll County Government 225 North Center Street Westminster, MD 21157 410-386-2400

73 * Primary Contact

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Supplemental Information

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Total Property Tax Revenues

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Source: FY 09 - 17 Carroll County CAFR, FY 18 Unaudited, FY 19 - 24 projected by the Department of Management and Budget Notes: 1In FY 12 the Real Property Tax rate was lowered from $1.048 to $1.028 and Personal Property Tax rate from $2.62 to $2.57. 2In FY 13 the Real Property Tax rate was lowered from $1.028 to $1.018 and Personal Property Tax rate from $2.57 to $2.545. 3In FY 14 the Personal Property Tax rate was lowered from $2.545 to $2.515.

Property Tax % Property Collected Change Tax Rate

FY 09 189,079,529 8.45% 1.048/2.62 FY 10 201,526,399 6.58% 1.048/2.62 FY 11 208,296,512 3.36% 1.048/2.62 FY 12 203,601,066

2.25%

1.028/2.571 FY 13 197,727,477

2.88%

1.018/2.5452 FY 14 195,528,915

1.11%

1.018/2.5153 FY 15 194,029,688

0.77%

1.018/2.515 FY 16 199,281,166 2.71% 1.018/2.515 FY 17 201,438,220 1.08% 1.018/2.515 FY 18 207,878,588 3.20% 1.018/2.515 FY 19 212,629,382 2.29% 1.018/2.515 FY 20 219,022,796 3.01% 1.018/2.515 FY 21 225,613,632 3.01% 1.018/2.515 FY 22 232,130,011 2.89% 1.018/2.515 FY 23 238,694,960 2.83% 1.018/2.515 FY 24 245,339,473 2.78% 1.018/2.515

SLIDE 76

Top Ten Taxpayers as a %

f Total Assessable Base

76

Business FY 14 FY 15 FY 16 FY 17 FY 18

Baltimore Gas & Electric 0.94% 0.99% 1.00% 1.03% 1.06% Carroll Lutheran Village 0.31% 0.31% 0.31% 0.22% 0.21% Penguin Random House, Inc. 0.20% 0.20% 0.20% 0.20% 0.21% Stag Hampstead LLC

0.17%

0.18% 0.18% Eldersburg Sustainable

0.17%

Lehigh Portland Cement 0.15% 0.16% 0.19% 0.17% 0.16% Colonial Pipeline Co. 0.12% 0.12% 0.14% 0.15% 0.16% Verizon-Maryland 0.17% 0.16% 0.14% 0.14% 0.13% Wal-Mart Real Estate 0.16% 0.16% 0.17% 0.12%

Comcast of Ca./Md./Pa.

0.08% 0.09%

0.12%

0.12% Potomac Edison Co. 0.08% 0.09% 0.09% 0.09% 0.10% Fairhaven Inc. 0.17% 0.17% 0.17%

% of Total Assessable Base

2.38% 2.45% 2.58% 2.42% 2.51%

Source: FY 14-FY 18 Carroll County CAFR, Table 8 Note: Taxpayers are sorted based on FY 18 percentages.

SLIDE 77

Reassessment History

77

County FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Group 1 Group 2 Group 3 Group 1 Group 2 Group 3 Group 1 Group 2 Group 3 Allegany 0.4%

4.5%
5.3%
2.4%
2.8%
0.4%

1.3%

0.2%

40.0% Anne Arundel

17.9%
16.6%
12.6%
1.9%

9.9% 10.8% 11.5% 12.4% 8.9% Baltimore City

2.6%
8.7%
6.8%
3.1%

7.0% 9.6% 10.9% 6.2% 3.6% Baltimore

13.2%
13.6%
14.5%
8.1%

1.2% 6.4% 12.4% 8.5% 6.6% Calvert

15.1%
20.7%
16.1%
11.4%
2.9%

0.8% 3.9% 3.8% 4.0% Caroline

15.6%
18.8%
18.9%
15.7%
3.6%
2.8%

0.5%

0.8%

7.0% Carroll

19.2%
19.6%
15.4%
3.8%
3.0%

4.1% 6.0% 5.3% 7.1% Cecil

11.0%
20.0%
15.4%
10.4%
2.3%

3.9% 1.1% 6.1% 6.0% Charles

19.8%
26.6%
15.2%
6.8%
4.2%

3.3% 12.4% 8.3% 5.6% Dorchester

9.9%
21.4%
10.8%
11.7%
7.9%
0.8%
1.4%

2.1%

5.1%

Frederick

22.0%
24.1%
18.8%
2.2%

4.0% 11.2% 9.3% 6.3% 6.2% Garrett 0.0%

2.4%
14.7%
3.6%
14.0%
2.8%

1.5% 0.1% 0.2% Harford

14.3%
15.3%
5.8%
6.5%

1.6% 3.1% 3.2% 6.0% 4.5% Howard

19.8%
18.8%
8.7%

2.5% 8.1% 10.5% 9.0% 6.1% 5.9% Kent

10.3%
12.5%
9.0%
6.0%
5.5%
0.7%
1.6%
0.2%

2.2% Montgomery

17.0%
14.5%
8.6%

4.1% 11.0% 18.7% 11.1% 7.8% 8.4% Prince George's

18.4%
28.7%
24.8%
10.6%

5.3% 19.5% 24.7% 13.5% 17.5% Queen Anne's

12.4%
18.6%
13.7%
9.0%
10.3%

1.2% 7.7% 3.6% 8.6%

St. Mary's
15.5%
16.0%
9.6%
7.9%
2.2%

1.5% 0.8% 0.5% 2.2% Somerset

10.6%
18.5%
20.6%
11.5%
13.3%

3.1%

5.2%
6.4%

0.5% Talbot

9.0%
15.0%
15.3%
11.5%
11.4%
7.1%

1.7%

0.5%
1.6%

Washington

18.4%
18.3%
9.0%
6.9%
3.0%

5.5% 4.3% 2.2% 4.0% Wicomico

15.6%
20.1%
20.2%
17.4%
6.2%

2.6% 3.5% 6.4% 6.0% Worcester

20.0%
14.9%
17.4%
14.3%
7.8%

2.2% 9.4% 4.1% 4.3% State Average

16.1%
17.9%
13.0%
3.6%

4.7% 10.8% 10.9% 8.2% 7.7%

Source: Maryland State Department of Assessments and Taxation Note: These figures represent the full-cash value increase or decrease before phase-in. Group 1: Southern portion of the county. Group 2: Northeastern portion

f the county.

Group 3: Northwestern and Central portion of the county.

SLIDE 78

Local Income Tax

78

Sources: FY 09 - 17 Carroll County CAFR (Schedule 1-1); FY 12 adjusted down by $2.8M due to FY 13 revenue received in in final FY 12 distribution. FY 13 adjusted up by $2.8M for FY 13 revenue collected in the final FY 12 distribution. FY 18 Unaudited, FY 19 - 24 Local Income Tax revenues projected by Department of Management and Budget Notes: Local Income Tax represents General Fund dollars only. A portion of Local Income Tax revenues are dedicated to the Capital Budget and are not included in this chart. The Income Tax rate changed in FY 04 from 2.85% to 3.05%. The BCC adopted a rate reduction from 3.05% to 3.04% effective 1/1/14. The BCC adopted an additional reduction to 3.03% effective 1/1/15.

Income Tax % Collected Change

FY 09 102,511,911

4.42%

FY 10 98,309,157

4.10%

FY 11 105,610,792 7.43% FY 12 112,881,085 6.88% FY 13 118,759,789 5.21% FY 14 119,575,545 0.69% FY 15 126,688,154 5.95% FY 16 137,512,883 8.54% FY 17 139,476,252 1.43% FY 18 141,825,805 1.68% FY 19 148,847,211 4.95% FY 20 155,087,578 4.19% FY 21 162,816,957 4.98% FY 22 170,432,805 4.68% FY 23 178,954,445 5.00% FY 24 187,902,167 5.00%

SLIDE 79

Recordation Tax

79 Recordation Tax % Collected Change FY 09 9,220,249

38.32%

FY 10 9,154,578

0.71%

FY 11 7,612,907

16.84%

FY 12 8,520,674 11.92% FY 13 10,021,395 17.61% FY 14 10,576,850 5.54% FY 15 11,888,637 12.40% FY 16 14,093,918 18.55% FY 17 14,241,331 1.05% FY 18 13,923,538

2.23%

FY 19 14,900,000 7.01% FY 20 15,400,000 3.36% FY 21 15,900,000 3.25% FY 22 16,400,000 3.14% FY 23 16,900,000 3.05% FY 24 17,000,000 0.59%

Sources: FY 09-FY 17 Carroll County CAFR Schedule 1-1, FY 18 Unaudited FY 19-FY 24 Projected by the Department of Management and Budget Note: The Recordation rate changed in FY 04 from $3.50 per $500 to $5.00 per $500.

SLIDE 80

Building Permits - Residential

80

Source: FY 07-FY 18 Carroll County Bureau of Permits and Inspections

Applications Issued U&O's FY 07 375 334 441 FY 08 238 255 357 FY 09 165 160 222 FY 10 225 201 216 FY 11 186 188 165 FY 12 298 246 204 FY 13 343 333 302 FY 14 330 347 341 FY 15 292 298 294 FY 16 279 272 299 FY 17 333 324 287 FY 18 314 309 317

SLIDE 81

Capital Appropriations/Revenues

81 APPROPRIATIONS FY 19 FY 20 FY 21 FY22 FY23 FY24 General Government $29,185,650 $6,450,350 $4,722,300 $5,123,000 $7,117,000 $8,547,000 Roads 15,949,200 15,205,000 15,160,000 15,907,000 16,410,000 17,283,000 Bridges 1,471,294 324,000 2,581,000 612,000 1,560,000 1,112,000 Roads and Bridges 17,420,494 15,529,000 17,741,000 16,519,000 17,970,000 18,395,000 Enterprise Funds 4,806,400 5,467,300 5,718,400 4,849,300 7,277,200 7,752,100 Public Schools 28,429,689 14,026,000 15,930,806 59,870,000 13,707,000 16,652,000 Culture and Recreation 1,724,670 1,215,200 984,700 1,394,700 1,436,700 1,287,700 Conservation 8,842,850 8,256,030 8,438,640 8,875,490 9,311,660 9,499,810 Total Expenditures $90,409,753 $50,943,880 $53,535,846 $96,631,490 $56,819,560 $62,133,610 REVENUES FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Paygo General Fund Transfer $4,115,199 $4,726,700 $4,472,500 $4,683,800 $4,323,300 $4,399,200 Income Tax 2,065,668 1,855,000 1,910,000 1,965,000 2,020,000 2,075,000 Property Tax 5,008,391 2,638,030 2,720,640 3,057,490 3,393,660 3,481,810 Impact Fees Parks 140,000 85,000 220,000 300,000 50,000 Ag Transfer Tax 300,000 150,000 150,000 150,000 150,000 150,000 Enterprise Funds 4,806,400 5,467,300 5,718,400 4,849,300 7,277,200 7,752,100 Total Paygo $16,435,658 $14,922,030 $15,191,540 $15,005,590 $17,214,160 $17,858,110 Bonds $53,583,415 $25,414,000 $25,996,106 $40,982,500 $28,399,500 $32,411,000 State 14,764,730 9,806,850 9,952,200 39,856,400 9,358,900 10,815,000 Federal 329,000 222,000 1,825,000 187,000 1,217,000 388,000 Other 5,296,950 579,000 571,000 600,000 630,000 661,500 Total Revenues $90,409,753 $50,943,880 $53,535,846 $96,631,490 $56,819,560 $62,133,610

Source: Carroll County, Maryland FY 19 - 24 Adopted CIP Note: Beginning in 1997, a portion of the Income Tax is dedicated to capital projects and BOE debt service. Does not include Income Taxes transferred to the operating budget for debt service. Other Funding includes Grants, Federal and other contributions.

SLIDE 82

CIP Appropriations

82 General Government 14.6% Roads and Bridges 24.9% Enterprise Funds 8.6% Public Schools 35.9% Culture and Recreation 2.2% Conservation 13.7%

FY 19 - 24 Community Investment Plan Appropriations

Source: Carroll County, Maryland FY10-FY15 Adopted CIP Note: Does not include taxes transferred to the operating budget for debt service.

SLIDE 83

Outstanding Bonded Debt Projection

83

Projected Debt start of FY New Debt projected to be issued Projected Debt end of FY Cumulative $ Debt Reduction Cumulative % Debt Reduction Principal Payments

FY 11 $333,666,864 $21,955,000 ($24,489,753) $331,132,111 ($2,534,753)

0.8%

FY 12 331,132,111 18,295,000 (29,104,906) 320,322,205 (13,344,659)

4.0%

FY 13 320,322,205 20,685,000 (27,600,271) 313,406,934 (20,259,930)

6.1%

FY 14 313,406,934 26,274,000 (28,855,858) 310,825,076 (22,841,788)

6.8%

FY 15 310,825,076 15,000,000 (31,081,675) 294,743,401 (38,923,463)

11.7%

FY 16 294,743,401 27,535,000 (29,949,733) 292,328,668 (41,338,196)

12.4%

FY 17 292,328,668 20,400,000 (37,196,040) 275,532,628 (58,134,236)

17.4%

FY 18 275,532,628 (29,367,609) 246,165,019 (87,501,845)

26.2%

FY 19 246,165,019 28,248,611 (27,307,448) 247,106,182 (86,560,682)

25.9%

FY 20 247,106,182 36,615,101 (27,330,001) 256,391,282 (77,275,582)

23.2%

FY 21 256,391,282 40,573,342 (25,798,186) 271,166,438 (62,500,426)

18.7%

FY 22 271,166,438 35,508,587 (24,301,853) 282,373,172 (51,293,692)

15.4%

FY 23 282,373,172 41,333,000 (25,087,282) 298,618,890 (35,047,974)

10.5%

FY 24 298,618,890 36,595,000 (25,753,932) 309,459,958 (24,206,906)

7.3%

Source: Department of Management and Budget Note: Includes debt and debt service associated with County, Board of Education, Fire Companies, and Enterprise Funds. Based on the Adopted CIP. FY 19 - 24 Adopted CIP.

SLIDE 84

Cash, Investments & Liquidity Highlights

Collateralized by 3rd party US Government

Investments

Policy more conservative than state allows
No Commercial Paper/Derivatives/Swaps
Liquidity: limit 30% beyond 1 year (max 2 year)
Daily and monthly monitoring
Quarterly summarized reporting to Board of

Commissioners

84

SLIDE 85

Liquidity – Cash Balances

Five years of cash balances for Governmental Activities and Business-type Activities:

Fiscal Year Governmental Activities Business-Type Activities Total $ in 000 2014 $141,541 $29,643 $171,184 2015 124,893 29,023 153,916 2016 140,839 25,035 165,874 2017 134,795 21,256 156,051 2018 99,885 20,635 120,520

85

SLIDE 86

Important Links

FY 18 Budget

http://ccgovernment.carr.org/ccg/budget/18- abudget/entire.pdf?x=1538136734129

FY 19 Budget

http://ccgovernment.carr.org/ccg/budget/19- abudget/entire.pdf?x=1538136701114

FY 17 Comprehensive Annual Financial Report

http://ccgovernment.carr.org/ccg/comp/17-cafr/

86

Table of Contents

3

6

10

38

56

70

73

74

Carroll County Commitment

Feeling good in Carroll County, we will tell you:

Carroll County Commitment

Regional Influencing Factors

Maryland is Strong

rating agencies

two-year) with total enrollment over 357,000

research

(NSA), as well as the Social Security Administration and the Centers for Medicare & Medicaid Services (CMS)

Carroll County 2018 Themes

 Robust Economic Development Growth  Steady Assessment/Income Growth  Strong Positive Change in Long-Term Liability  Strong Fiscal Management

Strategic Economic Development Assets

infrastructure in place

Commerce Center, Warfield at Historic Sykesville, and North Carroll Business Park

sectors including publishing, healthcare, higher education and light manufacturing

Carroll County Pillars

Educational Attainment

Workforce: Our Competitive Advantage

– Business/Employment Resource Center

11,794

346

36 – Community College Business & Workforce Training – Career and Technology Center

– Miller Center for Entrepreneurs – Small Business Development Center – Small Business Loan Fund

Businesses Talk Carroll

“What is critical for us and a reason we moved to Taneytown, is available workforce, particularly the quality of the workforce.” - Joe Mandato, Executive V.P., Evapco

“When we looked for a new location, one of the attributes we looked for was a stable workforce. We have good success at recruiting new people here and find the availability and quality of people in this area to be very good.” - Daniel Cooper,

Unemployment

Carroll County Broadband

network

last mile businesses and internet service providers

Tourism Stronger Than Ever

Carroll County Regional Airport

Marshall Airport (BWI)

Expansion Projects

2016-2018

New Business Attraction Projects

2016-2018

Find Solid Corporation Advanced Thermal Batteries

commercial and industrial doors and hardware systems Chinese company; 1st U.S. location

batteries for US Dept. of Defense and Prime Contractors

Project Highlight Summary

2016 - 2018

Businesses Talk Carroll

“I am truly proud to be a business in Carroll County. I cannot imagine a better place to do business and bring up a family. I feel like they are proud to have me as a member of the community, and that is very rewarding.” - Kent Martin, Plant Manager, Lehigh

Land Development

Warfield at Historic Sykesville

Land Development Project Summary

Trends are Positive

Improving

FY18 General Fund Results

Fund Balance

Fund Balance Peer Comparison

 Carroll County compares favorably to other highly-rated Maryland jurisdictions

Continued Achievements

33rd consecutive GFOA Certificate of Achievement for Excellence in Financial Reporting (FY 17 Comprehensive Annual Financial Report) GFOA’s Distinguished Budget Presentation Award for the 11th consecutive year

Enterprise Fund Summary

Closure Liabilities

investments

Pension & OPEB Summary

All Plans

Pension - Employee

Pension – Law Officers

Pension – LOSAP

Post-Employment Medical Benefits (OPEB)

Other Post Employment Benefits

Outstanding Debt

Outstanding Bonded Debt

Outstanding Bonded Debt to Assessable Base

Combined Fixed L/T Obligations

Current Bond Issue

Works, Conservation & Water Resources