The basic purpose of this policy is to provide a conceptual framework for the issuance and management of debt.

• Legal constraints on debt capacity and various financing alternatives.
• The urgency of the capital requirements to be met and the economic costs of delays.
• Willingness and financial ability of the taxpayers to pay for the capital improvements.
• Determination as to whether to employ a "pay as you acquire" versus a "pay as you use" approach.
• Proper balance between internal and external financing.
• Current interest rates and other market considerations.
• The financial condition of the County.
• The types, availability and stability of revenues to be pledged for repayment of the debt.
• Type of debt to be issued.
• The nature of the projects to be financed.

1. Capital improvements related to enterprise funds operations should be financed solely by debt to be repaid from user fees and charges generated from the respective enterprise funds operations.
2. Capital improvements not related to enterprise funds operations shall be financed be debt to be repaid from available revenue sources pledgeable for same.
3. Cash surpluses, to the extent available and appropriable, should be used to finance scheduled capital improvements.
4. The County will issue debt only for the purposes of constructing or acquiring capital improvements and for making major renovations to existing capital improvements. The only exception to the above would involve entering into long-term leases for the acquisition of major equipment when it is cost justifiable to do so.
5. All capital improvements financed through the issuance if debt will be financed for a period not to exceed the useful life of the improvements, but in no event to exceed 30 years.
6. The County shall not construct or acquire a public facility if it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility.
7. The County will, at all times, manage its debt and sustain its financial position in order to seek and maintain the highest credit rating possible.
8. The County should consider coordinating with other local government entities to the fullest extent possible, so as to minimize the overlapping debt burden to citizens.
9. The County will ensure that an adequate system of internal control exists so as to provide reasonable assurance as to compliance with appropriate laws, rules, regulations, and covenants associated with outstanding debt.
10. Revenue sources will only be pledged for debt when legally available and, in those situations where they have previously been used for operation and maintenance expenses/general operating expenditures, they will only be pledged for debt when other sufficient revenue sources are available to replace same to meet operation and maintenance expenses/general operating expenditures.
11. The County will market its debt through the use of competitive bid whenever deemed feasible, cost effective and advantageous to do so. However, it is recognized that, in some situations, certain complexities and intricacies of a particular debt issue are such that it may be advantageous to market the debt via negotiated sale.
12. The County will continually monitor its outstanding debt in relation to existing conditions in the debt market and will refund any outstanding debt when sufficient cost savings can be realized.
13. Credit enhancements will be used only in those instances where the anticipated present value savings in terms of reduced interest expense exceeds the cost of the credit enhancement.
14. In order to maintain a stable debt service burden, the County will attempt to issue debt that carries a fixed interest rate. However, it is recognized that certain circumstances may warrant the issuances of variable rate debt. In those instances, the County should attempt to stabilize debt service payments through the use of an appropriate stabilization arrangement.

This policy should be jointly reviewed by the Board of County Commissioners and the County Comptroller a minimum of once every three years, notwithstanding the fact that more frequent reviews may be performed as deemed necessary.