Wicomico County, Maryland Series 2018 Credit Rating Presentation September 19 - 21, 2018 Wicomico County, Maryland Member NYSE|FINRA|SIPC Contents / Agenda 111 Meeting Overview and Schedule 222 Economic and Demographic Overview 333 Financial Performance and Budget 444 Existing Debt Profile & Capital Improvement Plan 555 Overview of 2018 Bonds 666 Summary/Conclusion Appendix AAA Financial & Management Policies Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 1 County Elected Officials & Senior Staff / Principal Contacts Wicomico County, Maryland Bob Culver, County Executive Government Office Building – 410.548.4801 / [email protected] 125 North Division St. Salisbury, MD 21801 R. Wayne Strausburg, Director of Administration – 410.548.4801 / [email protected] Weston Young, Assistant Director of Administration – 410.548.4801 / [email protected] Dawn Mitchell Parks, Director of Finance* – 410.548.4840 / [email protected] David Ryan, Executive Director Salisbury-Wicomico Economic Development, Inc. – 410.749.1251 / [email protected] Financial Advisor *Note: Principal Point of Contact Davenport & Company LLC Joseph D. MasonMason, , Senior Vice President 8600 LaSalle Rd – 804.347.9693 / [email protected] The Chester Bldg, Suite 618 Towson, Maryland 21286 Jennifer L. DiercksenDiercksen,, First Vice President – 804.297.9050 / [email protected] Gary D. LeClair, Jr, Associate Vice President – 804.697.2911 / [email protected] Bond Counsel Funk & Bolton, P.A. Lindsay A. Rader, Esq. Twelfth Floor – 410.659.7758 / [email protected] 36 S. Charles Street Baltimore, Maryland 21201 Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 2 Management Team Biographies Bob Culver, County Executive ° Bob Culver was elected in November 2014. As a Wicomico County native, he has spearheaded many initiatives to better serve the community with efficiency and cost-effective management principles. Bob serves on the Wor-Wic Community College Board of Trustees, the Critical Areas Commission, Maryland Association of Counties (MACO) Legislative Commission and MACO Initiatives Committee. He is also the MACO representative for the Maryland Justice Reinvestment Act, was the Salisbury-Wicomico Lions Club past president and has been a member of the Trinity United Methodist Church for 53 years. Before becoming Executive, he served in his first term in the Wicomico County Council’s At-Large position, starting in November of 2010. Bob was raised on his family’s farm and attended Wicomico County Schools. Graduating from Wicomico High School in 1970, for his higher education studies, Bob attended Chowan University in Murfreesboro, North Carolina, where he received an Associate’s Degree in pre-law. After which he transferred back to the area, attending Salisbury University in 1972, where he pursued a degree majoring in economics along with a minor in business administration. In 1972, Bob started his career in real estate sales, after which established his own construction and land development business to compliment his real estate business. While owner of Culver Construction Company, he oversaw the creation of four subdivisions in the County, building over 150 homes. Additionally, as an entrepreneur, Bob has employed many Wicomico County residents through his various business interests – always giving back his beloved hometown. R. Wayne Strausburg, Director of Administration ° Wayne Strausburg was appointed as Director of Administration in February 2012, and has an undergraduate degree from Loyola University of Maryland and an M.B.A. from Morgan State University. Mr. Strausburg joined the County from the private sector after 40 years of senior level management experience in operations, real estate and financial management. Most recently he served as President of the English Company and Hall Consulting, both based in Salisbury, Maryland; he previously worked in executive level positions with Fair Lanes Inc., a Fortune 500 company, based in Baltimore, Maryland, retiring as President in 1995. Mr. Strausburg was a member of the Maryland Governor’s Commission on Small Business, Immediate Past Chairman of the Wicomico County Charter Review Committee, past Vice Chairman of the Wicomico County Youth and Civic Center Commission, past Vice Chairman of the Wicomico County Tourism Advisory Board, a past board member of Salisbury Junior Achievement, member of the School Building Commission and member of the Commerce Board for Greater Salisbury Chamber of Commerce. Mr. Strausburg is the chair of the Maryland Association of County’s County Administrator’s Affiliate group. Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 3 Management Team Biographies Weston Young, Assistant Director of Administration ° Weston S. Young, P.E. was named the Assistant Director of Administration since January 2017. He earned his Bachelor of Science degree in Civil Engineering from the University of Maryland, College Park, is a registered Professional Engineer in both Maryland and Virginia, and he is a state-appointed member of the Maryland Air Quality Control Advisory Council and the Electric Vehicle Infrastructure Council representing the Maryland Association of Counties. Mr. Young previously served as Director of Public Works for Wicomico County and has worked for various municipalities, including administering the City of Hampton, Virginia’s storm water utility. He has 11 years of progressive experience in local government budget and capital improvement plan development. Dawn Mitchell Parks, Director of Finance ° Dawn Mitchell Parks has served as Director of Finance since the confirmation of her appointment in July 2017. Mrs. Parks began her career with the Wicomico County Department of Finance in May 2005 as the Financial Systems Program Manager and has also served the County as the Assistant Director of Finance for Operations, Acting Director of Finance and as the Systems Project Manager under the Department of Information Technology. Mrs. Parks, who resides in Wicomico County, obtained her Bachelor of Science degree in Business Administration from East Carolina University in 1990; she later studied an Accounting curriculum at Salisbury University and N. C. State University. She is a graduate of the University of Maryland Institute for Governmental Services Academy of Excellence. She holds the appointment as the Eastern Shore Representative for the Maryland Government Finance Officers Association Board of Directors, as well as having held appointments as a County Trustee Member of the Trustees for the Employee’s Retirement Investment Trust, the GASB 45 Trust and as the chair of the Tyler Technologies Maryland User’s Group. Mrs. Parks is in the process of preparing for becoming designated as a Certified Public Finance Officer by the Government Finance Officers Association of the United States and Canada. Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 4 Management Team Biographies David Ryan, Executive Director, Salisbury-Wicomico Economic Development, Inc. ° David J. Ryan was named Executive Director of the Salisbury-Wicomico Economic Development Corporation in October 1993. He earned his bachelor’s degree in Business Administration from Old Dominion University in 1984 and his Master of Business Administration degree from Salisbury University in 1990. Mr. Ryan began his work career as a sales representative for the pharmaceutical firm of Warner-Lambert Company. After District, Key Account and Divisional assignments, he assumed the Regional Manager-Northeast position in Rochester, New York. Mr. Ryan is a current member and past president of the Maryland Economic Development Association and serves on various boards and commissions within Wicomico County and the region. Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 5 Meeting Overview and Schedule Wicomico County– Series 2018 Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 6 Purpose of Meeting The purpose of this Rating Agency Presentation is to: 1. Provide an update on Wicomico County (the “County”) to the national Rating Agencies. 2. Present key credit-related information to the agencies in anticipation of an upcoming General Obligation New Money Issue. Wicomico County’s current General Obligation Bond Ratings: Moody’s S&PS&PS&P Fitch Aa2 AA+ AAAAAA Current Bond Issue: Public Improvement and Refunding Bonds, Series 2017 ° Sale Date: Tuesday, October 16, 2018 (Competitive Sale). ° New Money: $10,504,500 Security for the Bonds ° The Bonds will be general obligations of the County for the payment of which the faith, credit, and taxing power of the County are pledged, subject to the County Charter limitation. Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 7 Anticipated Financing Schedule Date Action September 19 - 21 Rating agency meetings October 2 Release of ratings October 4 Post POS October 16 Bond sale October 29 and 30 Pre-closing / Closing Wicomico County, Maryland Credit Rating Presentation: Sept. 19 - 21, 2018 8 Wicomico County Overview Solid Financial Position Supported by Strong Reserve Levels ° The County maintains a very strong fund balance relative to state and national peers. – The county is proposing a reserve policy that strengthens the minimum target to 12% from 5%, and establishes a 17% maximum target. ° Excellent long-range planning practices, including multi-year forecasting, close coordination