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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 <br />capital improvement needs as they arise without experiencing dramatic impacts on operational costs <br />and debt service. To articulate this commitment, the following policy statements are developed to <br />provide certain guidance on the issuance of debt to assist in the assurance that the County maintains <br />a sound debt position and that its credit quality is protected. In conjunction with the County's <br />Capital Policies, these policy statements rationalize the decision making process, identify <br />objectives for staff to implement, and demonstrate a commitment to long term financial planning <br />objectives. In addition, this policy will allow for an appropriate balance between the establishment <br />of debt parameters and providing flexibility to respond to unforeseen circumstances and new <br />opportunities. <br />Policy Statements <br />1. Incurrence of debt or long-term borrowing will only be used for the purpose of providing <br />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. 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 />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 />3. The County will not issue tax or revenue anticipation notes. <br />4. The County will not issue bond anticipation notes with maturities in excess of <br />one year. <br />