Minutes 06-13-2013 - Laserfiche WebLink

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Frank Clifton said, at the beginning of every budget process, the number presented is 17 percent of the estimated total budget. He said anything above that becomes available revenue. Clarence Grier said the original manager's recommended budget appropriation was $650,000. The CIP discussions allocated $25,000 to the site study for Blackwood farm and DEAPR. This left the number at $625,000. He said the year-end returns yielded an additional $750,000, without going below 17% threshold for fund balance. This leaves a total of$1,375,000. He said 1 percent of the total fund balance equals $1.8 million. Frank Clifton said there was additional money that was not appropriated last year, and it was rolled into this year. He said that the official audit will be done in October or November, and a specific excess number will be available at that time. Commissioner Gordon said it would be helpful to know the number being used to estimate the 17%. Commissioner Gordon said there is $25,000 allocated for the site study, and she does not consider this a wise use of funds. She would rather have a space needs analysis completed. Chair Jacobs said this could be brought up under the CIP discussion. Paul Laughton said the space needs study is one component of the $25,000. Clarence Grier said, when they had the public hearing, the original estimate was $100,000. He said this was considered high, so it was reduced to get this into the operating budget now. Clarence Grier reviewed the Orange County Fund Balance Policy Calculation page from the recommended budget. He stressed the additional flexibility provided by the extra $750,000. Commissioner Dorosin asked if the 17 percent is a policy of the Board or if it is an external regulated cap on debt. Frank Clifton said there are general guidelines, but this Board set this percentage after looking at the average fund balance for a budget comparable to Orange County. The 17 percent is low by comparison, and this was done to be fiscally responsible. He said the money is there for use in a crisis, but the definition of a crisis needs to be examined carefully. Commissioner Dorosin asked if there had been a policy discussion on why 17 percent was chosen. Clarence Grier said the Government Finance Officers Association evaluates the County budget and financial statements, and their recommended threshold on fund balance was 16.7 percent. He said that going below the threshold would cause some concern and would have a detrimental effect on bond ratings. Chair Jacobs asked about page 2 and the $450,000 allocated for overtime and non- permanent personnel. He asked for an explanation of this jump. Paul Laughton said much of this is for the Board of Elections, Social Services and Emergency Services. Chair Jacobs noted that four new telecommunicators are being hired, and he asked if the schedule still necessitates this much overtime to make it livable. Frank Clifton said the total cost would be even higher if an 8 hour shift function was adopted. He said the staggered shifts are standard. Frank Clifton referred to page 136 of the budget book and noted the past fund balances shown for years 2010, 2011, and 2012. 5. CIP Follow-up Paul Laughton said the goal of the provided packet is to outline all the projects and changes that came out of the work sessions. He said the yellow highlights indicate changes