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May 16, 2017 <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 Refundinq of Debt <br /> 14.The County will make every effort to issue advance refunding bonds to <br /> achieve cost savings of at least 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 /> Unassigned Fund Balance <br /> 15.The County will strive to maintain an unassigned balance in the general fund <br /> of 16% percent of budgeted general fund operating expenditures each fiscal <br /> year. The amount of unassigned fund balance maintained during each fiscal <br /> year should not fall below 8% percent of budgeted general fund operating <br /> expenditures as recommended by the North Carolina Local Government <br /> Commission. <br /> 16.To the extent that general fund unassigned fund balance exceeds 16% <br /> percent the balances may be utilized to fund capital expenditures or pay down <br /> outstanding County debt. <br /> Investment of Capital Funds <br /> 17. Investment of capital funds will be performed in accordance with the North <br /> Carolina General Statutes (159-30). 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 /> 209 <br />