Goal
To provide a debt management policy which recognizes the capital improvement needs of a growing County balanced by the taxpayer's ability to pay. The County will, at all times, manage its debt and financial position in order to maintain the highest credit ratings possible.

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

Factors Important to the Issuance of Debt
• Legal constraints on debt capacity and various financing alternatives.
• The urgency of the proposed capital improvement.
• Cost of delayed construction.
• Willingness and financial ability of the taxpayers to pay for the capital improvements.
• Proper balance between internal (pay as you go basis) and external (debt) financing based on prevailing interest rates, cash on hand and other market considerations.
• Reimbursement Resolutions should be utilized in order to limit the number of issues sold and frequency of sales in a 12 - 18 month period, minimizing costs. However, use of Reimbursement Resolutions should be based on General Fund balance goals and policy objectives.
• The financial condition ofthe County.
• The types, availability and stability of revenues to be pledged for repayment of the debt.
• Type of debt to be issued.
• The nature and asset life of the projects to be financed.

Debt Management Policies
I. Capital improvements may be financed by debt to be repaid from available revenue sources pledgeable for same.
2. Cash surpluses, to the extent available and eligible for the purpose, should be used to finance scheduled capital improvements as outlined in the fund balance policy.
3. The County may issue debt for the purposes of constructing or acquiring capital improvements and for making major renovations to existing capital improvements.
4. All capital improvements financed through the issuance of debt will be financed for the lesser of useful life of the improvements or 30 years.
5. Operating expenses will not be incurred from dollars being paid by a debt issuance.
6. The County will not construct or acquire a public facility without including the operation and maintenance costs of the facility in the annual budget.
7. The County will ensure that an adequate system of intemal control exists so as to provide reasonable assurance of compliance with appropriate laws, rules, regulations, and covenants associated with outstanding debt.
8. Revenue sources will only be pledged for debt when legally available. In situations where those revenues 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 those sources to meet operation and maintenance expenses (general operating expenditures).
9. The County will market its debt through the use of competitive bid whenever feasible, cost effective and advantageous to do so. However, it is recognized that, in some situations, certain debt issues or market conditions dictate marketing the debt via negotiated sale.
10. The County will continually monitor its outstanding debt in relation to existing conditions in the debt market and will payoff or refund any outstanding debt when sufficient cost savings can be realized.
11. Credit enhancements will be used only where the anticipated present value savings of reduced interest expense exceeds the cost of the credit enhancement.
12. The County will attempt to issue debt that carries a fixed interest rate. However, certain circumstances may warrant the issuances of variable rate debt. In those instances, the County should attempt to stabilize the debt service payments through the use of an appropriate stabilization arrangement.
13. The debt rate will not exceed 50% of the total tax rate.
14. The County Auditor's office shall establish a system of record keeping and reporting to meet the arbitrage rebate compliance requirements ofthe federal tax code. This process may be outsourced as needed. Additionally, general financial reporting and certification requirements embodied in bond covenants shall be monitored to ensure compliance with all debt covenants.
15. The Investment Committee will oversee the investments related to debt management.

Policy Review
This policy should be jointly reviewed by the Commissioners Court and the County Auditor's Office every three years, notwithstanding the fact that more frequent reviews may be performed as deemed necessary.

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Overview: 
The Williamson County Commissioners’ Court ensures financial stability within the County government by adopting proactive, responsible policies that allow the County to respond to growth and infrastructure needs while maintaining a high standard of County-provided services. This Financial Policy is intended as a guide for the members of Commissioners’ Court in evaluating the impact of policies and funding decisions on future County services. This policy reflects the Court’s commitment to sound financial management principles and the Court’s willingness to make difficult decisions to ensure the County’s long-term operational and financial success.

Goal:
The goal of the County is fiscal responsibility, decisions that consider near and longterm impacts, and sound and prudent financial operations. This is done while focusing on a commitment to honesty, reliability and accountability in all financial decisions.

Strategies:
1. Sustain ample cash balance reserve in order to maintain a favorable County bond rating, lower debt issuance costs and promote a solid fiscal position that can respond well to economic fluctuations.
2. Continue proactive bond market strategies in order to issue voter-approved debt at the lowest possible cost.
3. Manage fiscally responsible, balanced budgets which will help the County continue to provide high quality services while minimizing the financial impact on citizens and preventing higher costs to taxpayers in future years.
4. Manage County growth responsibly while maintaining citizen satisfaction and supporting County government activities.
5. Continue a proactive approach to addressing infrastructure expansion and maintenance by taking advantage of opportunities during periods of growth.
6. Invest in appropriate technology that leverages analysis and reporting capabilities, maximizing investment yields, increasing efficiencies and decreasing personnel costs.
7. Employ effective risk management techniques and respond effectively to changing economic conditions.
8. Assure financial transparency and accountability through regular internal audits and annual, independent audits.
9. Continue to support GFOA standards and achieve excellence in the Comprehensive Annual Financial Report and the Popular Annual Financial Report.

Summary: 
The County has demonstrated consistency in its planning and execution of the above strategies and is poised to handle all economic events. The County has and will continue to follow conservative values and limit exposure to unnecessary risk. The Williamson County Commissioners’ Court recognizes the need to effectively manage short and long-term financial matters. It will continue to act with speed in identifying early opportunities to reprioritize projects and investments and adjust strategies where necessary. The Williamson County Commissioners’ Court recognizes:

o Cash flow is key to strategic flexibility
o Early action is necessary to preserve capital
o A periodic examination and possible restructure of operations will maximize resources
o A focus on core activities is essential
o Regular monitoring of financial and operational key performance measurements enhances efficiency and effectiveness

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