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Draft Revised 10/26/10 <br />9 <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 to 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 front project costs and <br />reimburse these costs when bonds are sold. In these situations the Board will <br />adopt Reimbursement Resolutions prior to the expenditure of 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 issuance. <br />When variable rate debt is considered, careful analysis will be performed and <br />techniques applied that will ensure that the County's sound debt position will <br />be maintained. At no time will variable rate debt exceed 20% of the County's <br />total outstanding debt. <br />1O.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 need to <br />maintain its "Bank Qualification" if installment purchase financing is being <br />considered. <br />• <br />