Orange County NC Website
<br />Level of Debt <br />12. The County will maintain its net bonded debt at a level not to exceed three <br />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. This is a recommended "best practice" from the Government <br />Finance Officers Association. <br />Advance_Refunding of Debi <br />~ 4. The County will make every effort to issue advance refunding bonds to <br />achieve cost savings of at feast 3°/° percent net of the refunding bonds. Net <br />savings includes gross savings less issuance costs and any cash <br />contributions to the refunding. The 3% savings is the minimum savings <br />permissible before the North Carolina Local Government Commission will <br />consider advance refunding bonds. These decisions will be based upon the <br />maturity date of the refunded bonds, the call date and premium on the <br />refunded bonds and the interest rates at which the refunding bonds can be <br />issued. <br />Undesignated Fund Balance <br />~ 5~ The County will strive to maintain an undesignated balance in the general <br />fund of ~?'°/° percent of budgeted general fund operating expenditures each <br />fiscal year. The amount of undesignated fund balance maintained during each <br />fiscal year should not fall below 8°/° percent of budgeted general fund <br />operating expenditures as recommended by the North Carolina Local <br />Government Commission. <br />~ 6. To the extent that general fund undesignated fund balance exceeds ~ 7°/° <br />percent the balances maybe utilized to fund capital expenditures or pay down <br />outstanding County debt. <br />investment of Capital Funds <br />~ 7. investment of capital funds will be per#ormed in accordance with the North <br />Carolina General Statutes ~~59-3g}. 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 />