Agenda - 09-30-1998 - 1 - Laserfiche WebLink

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the supplemental school district tax 'he Chapel Hill- Carrboro Schools rely ou _a addition cc the monthly County appropriation. The supplemental tax is :ppraxi_ acelp 1/3 of their local current expease fund revenues and is received ,rimarily during the months of January and February. Because of this reliance in the district tax and again, using the County's 8z mini=,— standard as a gauge, 5.5z fund balance level should be adequate for the Chapel ill- Carrbara Schools. :n addition to my a-w-n analyses of the above percentages, I have discussed the and balance level appropriate far school systems with others in state and .ocal government who are fa:miliar with school-and county finances. The consensus as chat. the fund balance level for school systems should be somewhat lower than :hat of the County's 8z standard and that a system relying on a supplemental tax •ould need a higher level than otherwise necessary. ased on my analyses and discussions, I recommend that the following policies e established: 1. Orange Couaty Schools begin each - fiscal year, to the extent possible, with fund balance available but unappropriated in the local current expense fund that is equal to no more than 2.7z of the budgeted expenditures is that fund for that year, and; 2. Chapel Hill- Carrbora Schools begin each fiscal year, to the extent _ possible, with a fund balance available but' unapprapriac he local current expense fund that is equal to no more that 5.5z o the budgeted expenditures in that fund for that year_. must be noted that, based on the local current expense budgets as originally lopted for 1985 -86, Orange County, Schools fund balance level was approximately 36,000 short of the level. recommended in this draft, policy. Also, Chapel Hill - irrbaro Schools fund balance level was approximately $204,000 short of the acommeaded level. Considering the federal cut -back in assistance to local 3vernment3, the County should not be expected to build -up the school systems ind balance levels in one fiscal year. I recommend that this be accomplished -adually over a period of several fiscal years.