Agenda - 08-05-1991 - Laserfiche WebLink

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7 C. The amount proposed within the contract exceeds what can be prudently raised by the County from it's current resources. Fund balance has been appropriated in the current year to fund operations. Further appropriations could adversely impact the fund balance next year by causing it to fall below the 8% level. d. The County currently can not issue bonds under the "two - thirds limitation" because there was not a reduction in the County's net debt at June 30, 1991. The County retired debt on previously issued bonds but issued new bonds in excess of the bonds which were retired. e. Changes within the current year County budget to fund this acquisition could severely impact the delivery of much needed services in other areas. Adequate funding has been provided within the County's Capital Reserve fund to pay the installments required in the proposed contract. 3. Not applicable. 4. The sums to fall due under the contract are adequate and not excessive for the proposed purpose because a. The amount to be financed is not excessive when compared to the County's previous agreements. b. The term of the agreement is less than five years and the interest rate of 7% is very favorable. c. The funding for the sums which fall due are included in the County's 5 year CIP and does not impact other operational areas. 5. The County of Orange's debt management procedures and policies are good because a. All applicable laws regarding incurrence of debt are strictly followed. b. Reporting of all outstanding debt and disclosures involving debt are appropriately done within the County's Financial Statements. c. The County has never defaulted on any of its debt service payments. d. Adequate appropriations are made annually for debt service payments. e. Incurrence of all debt is carefully planned and provided for in the County's 5 year CIP.