Orange County NC Website
Browse       Search
13 <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 <br />capital improvements. <br />Issuance of Debt <br />7. The County will strive to issue bonds no more frequently than once in any <br />fiscal year. The scheduling of bond sales and installment purchase decisions <br />and the amount of bonds be sold and installment financing to be sought will <br />be determined each year by the County Commissioners. These decisions will <br />be based upon the identified cash flow requirements for each project <br />financed, market conditions, and other relevant factors. These factors will be <br />ascertained from the school systems and County departments. If cash needs <br />for bond projects are insignificant in any given year, the Board may choose <br />not to issue bonds. Instead, the Board may fund up from project costs and <br />reimburse these costs when bonds are sold. In these situations the Board <br />will adopt Reimbursement Resolutions prior to the expenditure of • <br />project funds. <br />8. The County will seek level or declining debt repayment schedules and will <br />avoid issuing debt that provides for balloon principal payments reserved at <br />the end of the term of the issue. <br />9. The County will avoid over-reliance on variable rate debt. Variable rate debt <br />will only be considered. when market conditions favor this type of <br />issuance. When variable ,rate debt is considered, careful analysis will be <br />performed and techniques applied that will ensure that the County's <br />sounds debt position will be maintained. At no time will variable rate <br />debt exceed 20% of the County's total 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 <br />favorable to the County to use a negotiated process. <br />11. In the planning process for debt issuance the County will assess the <br />need to maintain it's "Bank Qualification" if installment purchase <br />financing is being considered. <br />• <br />