Orange County NC Website
Browse       Search
14 <br />• Level of Debt <br />12. The County will strive to maintain its net bonded debt at a level not to exceed <br />three 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 <br />greater than fifteen percent of general fund revenues, including installment <br />purchase debt. <br />Undesignated Fund Balance <br />14. The County will strive to maintain undesignated balance in the general fund at <br />a level sufficient to meet its budgeted goals, to be determined annually. The <br />amount of undesignated fund balance maintained during each fiscal year <br />should not be less than eight percent of budgeted general fund operating <br />expenditures that fiscal year. <br />15.To the extent that undesignated fund balance exceeds the budgeted goals <br />the County could consider drawing upon the balance fund major equipment <br />purchases or one time expenses on apay-as-you-go-basis. <br />Investment of Capital Funds <br />• 16. Investment of capital funds will be performed in accordance with the North <br />Carolina General Statutes (159-30). Funds will be invested in instruments that <br />will provide the liquidity required to meet the cash flow needs of each project <br />funded. <br />17. Investment earnings on capital funds, after subtracting required or potential <br />arbitrage, 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 <br />about its financial condition and will follow a policy of full disclosure on every <br />financial report and offering statement. <br />19. The County will strive to maintain bond ratings at or better than Aal (Moody's) <br />and AA+ (Standard & Poor's). <br />• <br />