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2 4 <br />• "ORANGE COUNTY BOARD OF COMMISSIONERS :~"~~'. <br />DEBT MANAGEMENT POLICY <br />The County has long recognized the importance of proper-long-range planning in order to <br />meet capital improvement needs as they arise without experiencing dramatic impacts on <br />operational costs and debt service. The following policy statements will provide guidance <br />on the issuance of debt to help insure that the County maintains a sound debt position and <br />that its credit quality is protected. In conjunction with the County's Capital Policies, <br />these policy statements rationalize the decision making process, identify objectives for <br />.staff to implement, and demonstrate a commitment to long term financial planning <br />objectives. In addition, this debt management policy will allow for an appropriate <br />balance between the establishing debt parameters and providing flexibility to respond to <br />unforeseen circumstances. and new opportunities. <br />POLICY STATEMENTS <br />Purpose and Type of Debt <br />1. Incurrence of debt or long-term borrowing will only be used for the purpose of <br />providing financing for capital projects to include, but not be limited to: <br />a. Construction of new School and County facilities <br />b. Renovation and repair of existing School and County facilities <br />c. Acquisition of real property (land and/or buildings) <br />d. Construction or expansion of Sanitary Sewer Systems. <br />e. Providing funds for Affordable Housing Projects. <br />f. Construction, acquisition and development of Parks. <br />g. Purchase of major equipment <br />Debt issuance will not be used to finance current operations or normal~maintenance. <br />2. The types of debt instruments to be used by the County include: <br />a. General Obligation Bonds <br />b. Bond Anticipation Notes <br />c. Installment Purchase Agreements (private placement) <br />d. Special Obligation Bonds (landfill only) <br />e. Certificates of Participation, when feasible <br />f. Revenue Bonds <br />3. All debt issued, including installment purchase methods, will be repaid within a <br />period not to exceed the expected useful life of the improvements or equipment financed <br />• by the debt. <br />4. The County will not issue tax or revenue anticipation notes. <br />