Agenda - 09-14-2010 - 1 - Laserfiche WebLink

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Draft • Level of Debt 12. The County will maintain its net bonded debt at a level not to exceed three percent of the assessed valuation of taxable property within the County. 13. The County will strive to maintain its annual debt service costs at a level no greater than fifteen percent of general fund revenues, including installment purchase debt. This is a recommended "best practice" from the Government Finance Officers Association,...,. ; Undesignated Fund Balance 14. The County will strive to maintain an undesignated balance in the general fund of between 15% and 20% percent of budgeted general fund operating expenditures each fiscal year. The amount of undesignated fund balance maintained during each fiscal year should not fall below 8% percent of budgeted general fund operating expenditures as recommended by the North Carolina Local Government Commission. 15. To the extent that general fund undesignated fund balance exceeds 20% percent the balances may be utilized to fund capital expenditures or pay down outstanding County debt. • Investment of Capital Funds 16. Investment of capital funds will be performed in accordance with the North Carolina General Statutes (159-30). Funds will be invested in instruments that will provide the liquidity required to meet the cash flow needs of each project funded. 17. Investment earnings on capital funds, after subtracting required or potential arbitrage, will be used for project costs and/or debt service. Bond Ratings 18. The County will maintain good communications with bond rating agencies about its financial condition and will follow a policy of full disclosure on every financial report and offering statement. 19. The County will strive to maintain bond ratings at or better than AAA (Fitch), Aa2 (Moody's Investor Services) and AA+ (Standard & Poor's). • 18