Agenda - 11-20-2012 - 7d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 20, 2012 Action Agenda Item No. 7-d SUBJECT: Recommended Uses of General Fund Unassigned Fund Balance, as of June 30, 2012 DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. BOCC Fund Balance Frank Clifton, 919-245-2300 Management Policy Clarence G. Grier, 919-245-2453 Attachment 2. Schedule of General Fund Balance Available for Appropriation Attachment 3. Chart and Schedule of Changes in Fund Balance since FY2008 PURPOSE: To provide the Board of County Commissioners (BOCC) with recommendations for the use of the General Fund unassigned Fund Balance in excess of the BOCC's fund balance policy. BACKGROUND: On April 5, 2011, the BOCC adopted a fund balance policy that states: 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 (Attachment 1). Over time, the County's financial reserves grew. On June 30, 2012, the general fund's unassigned fund balance totaled $39.6 million (Attachment 2). Of this amount, $3.2 million was appropriated, prior to the end of the fiscal year. After these appropriations, the general fund's unassigned fund balance was $36.4 million, which illustrated a 125% increase in the unassigned fund balance since June 30, 2009 (Attachment 3). Additionally, this represented 20.77% of budgeted general fund operating expenditures or$6.6 million, as of June 30, 2012.