ORD-2012-042 Refund of Funds to the County's Emergency Telephone Fund (911)

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ORD-2012-042 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 2, 2012 Action Agenda Item No. 5-h SUBJECT: Return of Funds to the County's Emergency Telephone Fund (911) for Funds Transferred to Establish an Emergency Services Capital Reserve within the General Fund and Approval of Budget Amendment#2-A DEPARTMENT: Manager's Office and Financial PUBLIC HEARING: (YIN) No and Administrative Services ATTACHMENT(S): INFORMATION CONTACT: January 21, 2010 Board Meeting Frank Clifton, 919-245-2300 Abstract Clarence Grier, 919-245-2453 Session Law 2007-3831NC House Bill 1755 PURPOSE: To 1) receive information on a request from the NC 911 Board for Orange County to return funds to the County's Emergency Telephone Fund (911) for funds transferred to establish an Emergency Services Capital Reserve within the General Fund; 2) authorize staff to make the appropriate transfer to the 911 Fund to resolve the matter with the NC 911 Board;-and 3) approve Budget Amendment#2-A to the fiscal year 2012—2013 budget. BACKGROUND: In November 2009, the Board of County Commissioners approved setting aside $1.2 million of 911 funds to establish an Emergency Services Reserve Capital Project to purchase equipment, vehicles and capital maintenance for Emergency Services. In FY 2010, $1.2 million was transferred from the 911 Fund to the General Fund. The funds from the transfer were used to purchase three ambulances. Based on information provided by the NC 911 Board, County staff incorrectly interpreted the transfer of all funds as an eligible expenditures based on NC House Bill 1755. NC House Bill 1755 stipulated that only landline fees could be transferred to the General Fund and used for any purpose. The total balance of landline fees available for transfer was $295,633. In a recent meeting with the NC 911 Board, County staff was informed that a majority of the funds transferred from the 911 Fund were ineligible, and only $295,633 of 911 funds were eligible for use for the establishment of the Reserve. The 911 Board has requested that Orange County return the funds to the County's 911 Fund. The original amount transferred from the 911 Fund was $1,200,000. The total amount agreed upon by the NC 911 Board and County staff to return to the fund is $904,367. These funds will be transferred back to the 911 Fund from the General Fund's fund balance. Funds are available for this purpose.