b'11.The County will use xed rate debt in most cases to nance its capital needs; however, the County may issue variable ratedebt when necessary if deemed in the best interest of the County.12.Debt structures that result in signicant back loading of debt should be avoided.13.The Chief Financial Ocer (CFO) will maintain good communications with bond rating agencies:a.The CFO will provide periodic updates on the Countys nancial condition.b.Required disclosures on every nancial report and bond prospectus will be followed.c.The County may request ratings prior to the sale of securities from the major rating agencies for bond issues.14.The County will strive to achieve and maintain the highest credit rating awarded by the bond rating agencies.15.The County may undertake renancing of outstanding debt:a.When such renancing allows the County to realize signicant debt service savings (net present value savings equalto at least 2.0 percent of the refunded par amount) without lengthening the term of renanced debt and withoutincreasing debt service in any subsequent year; orb.When the public policy benets outweigh the costs associated with the issuance of new debt and any increase inannual debt service; orc.When a restrictive covenant is removed to the benet of the County.16.The CFO shall maintain a system of record keeping and reporting to meet the arbitrage rebate compliance requirements forthe federal tax code.17.The County will maintain enough fund balance, net of any potential incoming revenue, within its Debt Service Fund andCounty Purchase Property Fund to cover the Countys interest-only payments occurring on August 1 and September 1 ofevery scal year. The additional revenues required to grow the fund balance may be achieved by maintaining all borrowingpremium revenues. (Ordinance No. 2014/7)IV. CASH MANAGEMENT AND INVESTMENT POLICYThe Treasurer serves as the Countys chief banker and investment ocer, charged with the responsibility of investing funds thatare not needed for immediate expenditures. The Following is the investment policy of the Beaufort County and the BeaufortCounty Treasurers Oce. The scope of this investment policy applies to all moneys and other nancial resources available fordeposit and investment by the Beaufort County Treasurers Oce on behalf of Beaufort County and on behalf of any otheragency.1.The primary objectives of the Treasurers Oce investment activities are, in priority order:a.To conform with all applicable federal, state and other legal requirements (legality);b.Adequately safeguard principal (safety);c.To provide sucient liquidity to meet all operating requirements (liquidity) and;d.To obtain a reasonable rate of return (yield).2.Toappropriatelymeettheseobjectives,theTreasurersOcewillmakeinvestmentdecisionsbasedoncurrentandongoing cash ow needs.3.All participants in the investment process shall seek to act responsibly as custodians of the public trust and shall avoid anytransaction that might impair public condence. Investments shall be made with prudence, diligence, skill, judgment andcare, under circumstances then prevailing, which knowledge and prudent persons acting in like capacity would use, not forspeculation, but for investment, considering the safety of the principal as well as the probable income to be derived.4.All participants involved in the investment process shall refrain from personal business activity that could conict withproper execution of the investment program or which could impair their ability to make impartial investment decisions.5.It is the policy of Beaufort County and the Treasurers Oce to diversify its deposits and investments by nancial institution,by investment instrument, and by maturity schedule. Diversication of deposit and investment assets should be determinedwith the utmost care, with safety and liquidity being the primary objectives. As portfolios may range in size by account andpurpose,depositoriesandinvestmentmanagersshouldseektoinvestasprudentlyaspossible,withnoinvestmentrepresenting more than 5% of the total portfolio value; including all accounts.As some accounts may be smaller in size, 5%of the total portfolio value may not be prudent from a diversication standpoint. With these types of accounts special caremust be taken to ensure liquidity and safety. Under no circumstance should any investment in smaller accounts representmore than 20% of its portfolio value.6.It is the policy of Beaufort County and the Treasurers Oce for all moneys collected by any ocer or employee of BeaufortCounty, with the exception of certain special revenues and funds maintained by certain countywide elected ocials, totransfer those funds to the Treasurers Oce, or the nancial institution designated by the Treasurers Oce, within two (2)business days of receipt, or within the time period specied in law, whichever is shorter.The Treasurer is responsible forBeaufort County, SC | Budget Book 2024 Page 27'