Orange County NC Website
Browse       Search
DRAFT <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 meet capital <br />improvement needs as they arise without experiencing dramatic impacts on operational costs and debt <br />service. The following policy statements will provide guidance on the issuance of debt to help ensure <br />that the County maintains a sound debt position and that its credit quality is protected. In conjunction <br />with the County's Capital Policies, these policy statements rationalize the decision making process, <br />identify objectives for staff to implement, and demonstrate a commitment to long term financial <br />planning objectives. In addition, this debt management policy will allow for an appropriate balance <br />between the establishing debt parameters and providing flexibility to respond to unforeseen <br />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 providing financing <br />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 andlor buildings) <br />d. Purchase of major equipment <br />e. To address adverse public health conditions <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 period not to <br />exceed the expected useful life of the improvements or equipment financed by the debt. <br />4. The County will not issue tax or revenue anticipation notes. <br />5. The County will not issue bond anticipation notes with maturities in excess of one year. <br />6. The County will strive to maximize the use of pay-as-you-go financing for capital improvements. <br />