Agenda - 04-05-2011 - 8c - Laserfiche WebLink

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Grange County has therefore adapted a policy that requires management to maintain an unassigned balance as follows: 1. The County will strive to maintain an unassigned fund balance in the General Fund of 17°/~ percent of budgeted general fund operating expenditures each fiscal year. The amount of unassigned fund balance maintained during each fiscal year should not fall below 8% percent of budgeted general fund operating expenditures, as recommended by the North Carolina Local Government Commission. ~. To the extent that the General Fund unassigned fund balance exceeds 17% percent, the balances may be utilized to fund capital expenditures or pay down outstanding County debt. 3. The County's budget and revenue spending policy provides for programs with multiple revenue sources. The Financial Services Director will use resources in the fallowing hierarchy: bond proceeds, Federal funds, State funds, local non-county funds, county funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in-order by committed fund balance, assigned fund balance, and lastly, unassigned fund balance. The Financial Services Director has the authority to deviate from this policy if it is in the best interest of the County with Board of County Commissioner's approval. 4. Management is expected to manage the budget sa that revenue shortfalls and expenditure increases da not impact the County's total unassigned fund balance. If a catastrophic economic event occurs that requires a ~ 4% or more deviation from fatal budgeted revenues or expenditures, then unassigned fund balance can be reduced by action from the Board of County Commissioners; the Board also will adapt a plan of action tv return spendable fund balance to the required level. Enterprise Funds - Solid Vtilaste, Efland Sewer, and the Grange County Sportsplex~ -The County will strive to maintain unrestricted net assets greater than S°/~ of total operating revenues at fisca! year-end, net of any donated assets recognized, to provide reserves for operations and future capital improvements. Restrictions reservations and desi nations of Net Assets for Enter rise Funds Far external reporting purposes, net assets will be reported as restricted or unrestricted in accordance with GAAP. For `internal purposes, net assets will be reserved ar designated as follows: 1. Encumbered balances to continue existing projects are designated. 2. Designations forfunding of planned projects in afuture period to reduce the financial demands placed upon a subsequent budget. Internal Service Funds -~ Dental Insurance Fund --total net assets shall maintain a positive balance to illustrate the internal nature of recovery fees for services performed inself-insuring employees of the County. Additionally, the net assets of the fund will demonstrate adequate funding for incurred, but not reported claims.