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12 <br />• ORANGE COUNTY BOARD OF COMMISSIONERS <br />DEBT MANAGEMENT POLICY <br />The County has long recognized the importance of proper long-range planning in <br />order to meet capital improvement needs as they arise without experiencing <br />dramatic impacts on operational cost and debt service. The following policy <br />statements will provide guidance on the issuance of dept to help insure that the <br />County maintains a sound debt position and that its credit quality is protected. In <br />conjunction with the County's Capital Policies, these policy° st~~tements rationalize <br />the decision making process, identify objectives for staff to implement, and <br />demonstrate a commitment long term financial planning objectives. In addition, <br />this debt management policy will allow for an appropriate balance between the <br />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 <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 <br />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 <br />a period not to exceed the expected useful life of the improvements or <br />equipment financed by the debt. <br />. 4. The County will not issue tax or revenue anticipation notes. <br />