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4 <br />Level of Debt <br />• ee ercent of the assessed <br />12. The County will stnve to maintain rts net bonded debt at a level not to exceed thr p <br />valuation of taxable property within the County. - <br />13. The County will strive to maintain its annual debt service costs at a level no greater than fifteen percent of general <br />fund expenditures. This applies to debt service costs paid by general fund revenues, including installment purchase <br />debt. <br />Undesignated Fund Balance <br />14. The County will strive to maintain undesignated fund balance in the general fund at a level sufficient to meet its <br />budgeted goals, to be determined annually. The amount of undesignated fund balance maintained during each fiscal <br />year should not be less than eight percent of budgeted general fund operating expenditures that fiscal year. <br />15. To the extent that undesignated fund balance exceeds the budgeted goals the County could consider drawing upon <br />the balance to fund major equipment purchases or one time expenses on apay-as-you-go basis. <br />Investment of Capital Funds <br />16. Investment of capital funds will be performed in accordance with the North Carolina General Statutes (159-30). <br />Funds will be invested in instruments that will provide the liquidity required to meet the cash flow needs of each <br />project funded. <br />7. Investment earnings on capital funds, after subtracting required or potential arbitrage, will be used for project costs <br />and/or debt service. <br />Bond Ratings <br />18. The County will maintain good communications with bond rating agencies about its financial condition and will <br />follow a policy of full disclosure on every financial report and offering statement. <br />19. The County will strive to maintain bond ratings at or better than Aal (Moody's) and AA+ (Standard & Poor's). <br />• <br />