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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 Refunding 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