County of San Diego

1
County of San Diego

• TRANs
• Rating Agency Presentation
• May 2005

2
Introductions

• County of San Diego
• Donald F. Steuer, Chief Financial Officer
• Dan McAllister, Treasurer-Tax Collector
• Tracy Sandoval, Auditor and Controller/Asst.
  Chief Financial Officer
• Janel Pehau, Director, Office of Financial
  Planning
• Rob Castetter, Chief Investment Officer
• Lisa Keller-Chiodo, Capital Finance Manager
• Christopher Gilmore, Deputy Controller
• Suzanne Haynes-Pitts, Senior Auditor and
  Controller Manager
• Finance Directors
• Michelle Bush, Finance and General Government
  Group
• Terry Hogan, Health and Human Services Agency
• Dorothy Thrush, Public Safety Group
• Jerry Hughs, Community Services Group
• Ray Fernandez, Land Use and Environment Group

3
Table of Contents

• Economy
• County Overview Update
• Fiscal Year 05-06 06-07 Operational Plan and
  Fiscal Year 04-05 Estimated Results
• County Investment Pool
• 2005-06 Tax and Revenue Anticipation Notes

4
Economy
5
Economy

• San Diego County has experienced positive
  economic growth every year since 1994
• San Diego has the largest number of military
  personnel in the nation
• The multi-billion dollar Visitor Industry is San
  Diegos third largest economic sector. Visitors
  spent 4.3 Billion during the period ending
  September 30, 2004
• Housing prices are flat but still high at an
  average of 527,000 for a Single Family Dwelling
  in fiscal year end 2004.
• Property Tax Base has increased 9 a year since
  1997 due to increased home values and increases
  in real estate construction volume.

6
County Overview Update
7
County Overview Update

• VLF Securitization Through CSCDA
• 32.0 Million Tax-Exempt
• 24.9 Million Taxable
• Information Technology Recompete
• Potential Exposure
• County Medical Services lawsuit
• Labor Negotiations
• Medical Costs
• Retirement
• Budget Overview
• Proposed Budget
• F.T. E. Management
• May Revise

8
Fiscal Year 05-06 06-07 Operational Plan and
Fiscal Year 04-05 Estimated Results
9
General Fund Financial Results
As reported in the Third Quarter Fund Balance
Report.
10
FY 05-06 General Fund Budget
Revenues 2.913 Billion
Appropriations 2.913 Billion
11
General Fund Revenue Composition
By Source 2.913 Billion
General Purpose Revenue 721 Million
12
FY 05-06 General Fund Detail
13
County Investment Pool
14

Investment Pool Strength Stability

• Passed 5.0 Billion in first half of 2005
• Portfolio focus is Safety, Liquidity, and Return
• Highly Liquid
• 70 of securities mature within one year
• Portfolio positioned to take advantage of rising
  rates given low weighed average maturity
• Weighted average yield of 2.80
• The Pool portfolio has a .681 duration
• High credit quality
• (100 of securities are rated AAA or A-1/P-1/F-1)
• Pool has been rated AAA every year since 1999
• Professionally managedover 50 years of
  experience
• Strong cash flow model

15
2005-06 Tax and Revenue Anticipation Notes
16
2005-06 TRANs

• Preliminary Size
• 250 Million
• Final Maturity
• 12 or 13 Month Maturity To Be Determined
• Investment of Note Proceeds and Set-Asides
• Investment Agreement vs. County Pool To Be
  Determined

17
2004-05 General Fund Cashflow
18
2005-06 General Fund Cashflow
19
Interfund Borrowing
As of April 30, 2005
20
TRANs Financing Schedule
Date Activity May 17 County Board Approves
Financing May 25 Receive Ratings May
25 Post/Mail Preliminary Official Statement June
1 Price Transaction (Tentative) July 1 Closing
Preliminary, subject to change.