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,~ ~, <br />'~ <br />Purpose and Type of Debt (continued) <br />5. The County will not issue bond anticipation notes with maturities in excess of <br />one year. <br />6. The County will strive to maximize the use of pay-as-you-go financing for capital <br />improvements. <br />Issuance of Debt <br />7. The County will strive to issue bonds no more frequently than once in any fiscal year. <br />The scheduling of bond sales and installment purchase decisions and the amount of <br />bonds to be sold and installment financing to be sought will be determined each year <br />by the County Commissioners. These decisions will be based upon the identified <br />cash flow requirements for each project financed, market conditions, and other relevant <br />factors. These factors will be ascertained from the school systems and County <br />departments. If cash needs for bond projects are insignificant in any given year, the - <br />Board may choose not to issue bonds. Instead, the Board may fund up front project <br />costs and reimburse these costs when bonds are sold. In these situations the Board <br />will adopt Reimbursement Resolutions prior to the expenditure of project <br />funds. <br />8. The County will seek level or declining debt repayment schedules and will avoid <br />issuing debt that provides for balloon principal payments reserved at the end of the term <br />of the issue. <br />9. The County will avoid over-reliance on variable rate debt. Variable rate debt will <br />only be considered when market conditions favor this type of issuance. When <br />variable rate debt is considered, careful analysis will be performed and <br />techniques applied that will ensure that the County's sound debt position will be <br />maintained. At no time will variable rate debt exceed 20% of the County's total <br />outstanding debt. <br />10. The County is required by Statute to issue general obligation debt through a <br />competitive process. The competitive process will also be used for other debt <br />issuance unless time factors, interest rates or other factors make it more favorable to <br />the County to use a negotiated process. <br />11. In the planning process for debt issuance the County will assess the need to <br />maintain it's "Bank Qualification" if installment purchase financing is being <br />considered. <br />3 <br />