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28 <br /> The debt service coverage (i.e., the ability to pay debt service after operations) will not go below 1.25 <br /> times (1.25X) annual debt service excluding principal payments on short-term debt. <br /> Debt service coverage is defined as Orange County Locally Dedicated Transit Funding Sources, <br /> plus additional fare box revenue attributed to services funded by Orange County Locally <br /> Dedicated Transit Funding sources plus and federal funds received, less the sum of expenses for <br /> tax district administration, and transit operations. <br /> Upon the full funding of reserves, any cash that maintains the Orange Transit plan in accordance with <br /> above mentioned rules may be used as cash funding for capital projects to provide additional sources of <br /> funding for capital projects to minimize debt levels. <br /> Future bonds issued will conform and adhere to <br /> Additional bonds test contained in bond documents, and <br /> Debt service coverage ratios of the Orange Operating Funds and Orange Capital Funds Debt <br /> Policies <br /> A Debt Service Reserve Fund ("DSRF")will be established for debt issuances where the DSRF creates a <br /> lower cost of funds and does not exceed the minimum amount permitted under federal tax law. <br /> Investment of bond proceeds will be in accordance with all applicable North Carolina statutes and <br /> federal tax law. <br /> Debt will be structured in a manner consistent with the useful life of related projects, not to exceed a <br /> final maturity of 35 years. Principal amortization will be level debt service or faster, except for deferrals <br /> of principal in connection with construction period financing or short-term financing related to future <br /> receipt of federal and/or state funds. <br /> Debt issued in support of the Orange County Transit Multi-Year Vision Plan will be authorized under <br /> N.C.G.S. 160A-20. Alternative debt instruments may be evaluated and utilized subject to <br /> recommendation by the SWG and approved by the Orange County Board of Commissioners and <br /> GoTriangle Board of Trustees. <br /> The combined liquidity position of the Orange Capital and Operating Funds shall be a minimum of 180 <br /> days unrestricted cash to meet the needs of the Orange County Transit Multi-Year Vision Plan. <br /> If a project sponsor seeks repayment for debt issued outside of the Orange County Transit Multi-Year <br /> Vision Plan it will be paid after all debt service and operating expenses of the plan have been paid and <br /> will subordinate to as debt issued by Tax District Administration. Debt payments reimbursed to the <br /> project sponsor will be identified as a yearly capital project and included in all Capital Improvement <br /> programs (CIP) upon initial approval. <br /> Select SWG members of SWG subcommittee members (if/when applicable) will participate in the <br /> following: <br /> RFP and/or selection process of: <br /> Financial Advisor; Investment Consultant for GoTriangle (as necessary) <br /> 7 <br />