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25 <br /> Slide #10 <br /> Debt Service to General Fund Strategies <br /> 1.Refinance Existing Debt(as practical) <br /> • Refinancing(Refunding):If interest rates have decreased or bonds are callable,then staff will pursue <br /> refu riding to lower annual debt service costs. <br /> • Staff is monitoring opportunities with our financial advisors for any future debt service savings. <br /> 2. Review extending Debt Issuance Period from 7 to 10 Years)through Local Government Commission <br /> Approval <br /> • Current bond application based on issuing all General Obligation debt over 7 Year issuance period, <br /> but this can be extended to 10 Year issuance period with LGC Approval <br /> 3.Use of Pay-Go Financing for Capital Projects <br /> • Capital Improvement Plan Increases Pay-As-You-Go which is best practice to further diversify <br /> sources of income. <br /> • Increases General Fund revenues which improves this metric and avoids new interest obligations. <br /> 4.Economic Development Tool <br /> • Strategic economic development investments(Morinaga,Wegman's and ABB)has increased the tax <br /> base via seed funding from Article 46 thus increasing the commercial tax base- <br /> S.Continue Use of Eligible Projects through non-General Fund or Grants <br /> • Staff continues to identify capital expenses(e.g.,water/sewer,transit)which may qualify for grant <br /> programs. <br /> 6.Enhance Fund Balance and Reserves <br /> • Continue to apply fund balances above 16%policy to enhance internal capacity to self-finance <br /> capital. <br /> • Demonstrates financial strength and improves debt capacity without issuance. <br /> 7.Continue Practice of Communication with Stakeholders and Rating Agencies <br /> • Clearly explain mitigation efforts and long-term fiscal planning. <br /> • Provide updated debt affordability analyses and 10-yearforecasts. <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> Slide #11 <br /> Questions <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br />