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April 5, 2011 <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 /> 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 need to <br /> maintain its "Bank Qualification" if installment purchase financing is being <br /> considered. <br />