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' 4. <br />4 <br />Level of Debt <br />12. The County will strive to maintain its net bonded debt at a level not to exceed three <br />percent of the assessed 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 <br />than fifteen percent of general fund expenditures. This applies to debt service costs <br />paid by general fund revenues, including installment purchase debt. <br />Undesignated Fund Balance <br />14. The County will strive to maintain undesignated fund balance in the general fund at a <br />level sufficient to meet its budgeted goals, to be determined annually. The amount of <br />undesignated fund balance maintained during each fiscal year should not be less than <br />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. <br />could consider drawing upon the balance to fund major equipment purchases or one <br />time expenses on a pay-as-you-go basis. <br />Investment of Capital Funds <br />16. Investment of capital funds will be performed in accordance with the North Carolina <br />General Statutes (159-30). Funds will be invested in instruments that will provide the <br />liquidity required to meet the cash flow needs of each project funded. <br />17. Investment earnings on capital funds, after subtracting required or potential arbitrage, <br />will be used for project costs and/or debt service. <br />Bond Ratings <br />18. The County will maintain good communications with bond rating agencies about its <br />financial condition and will follow a policy of full disclosure on every financial report <br />and offering statement. <br />19. The County will strive to maintain bond ratings at or better than Aal (Moody's) and <br />AA+ (Standard & Poor's). <br />