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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2013 <br /> Action Agenda <br /> Item No. 7-c <br /> SUBJECT: Recommended Uses of General Fund Unassigned Fund Balance as of June <br /> 30, 2013 <br /> DEPARTMENT: Finance and Administrative PUBLIC HEARING: (Y/N) No <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. BOCC Fund Balance Policy <br /> 2. Schedule of General Fund Balance Michael Talbert, 919-245-2300 <br /> Available for Appropriation Clarence G. Grier, 919-245-2453 <br /> 3. Chart and Schedule of Changes in <br /> Fund Balance since FY2008 <br /> PURPOSE: To provide the Board of County Commissioners (BOCC) with a recommendation <br /> for the use of the General Fund Unassigned Fund Balance in excess of the BOCC's fund <br /> balance policy. <br /> BACKGROUND: On April 5, 2011, the BOCC adopted a fund balance policy that states: <br /> The County will strive to maintain an unassigned fund balance in the General Fund of 17% <br /> percent of budgeted general fund operating expenditures each fiscal year. The amount of <br /> unassigned fund balance maintained during each fiscal year should not fall below 8% percent of <br /> budgeted general fund operating expenditures, as recommended by the North Carolina Local <br /> Government Commission. <br /> As of June 30, 2013, the General Fund Unassigned Fund Balance totaled $41.8 million <br /> (Attachment 2). Of this amount, $5.2 million was appropriated prior to the end of the fiscal year <br /> to balance the FY 2013 — 2014 General Fund Operating Budget. After the appropriations of the <br /> General Fund's fund balance available for appropriation, the General Fund unassigned fund <br /> balance as of June 30, 2013 was $36.6 million, which represents 20.17% of the General Fund <br /> expenditures as of June 30, 2013. This represents approximately a 125% increase in the <br /> General Fund unassigned fund balance since June 30, 2009. Additionally this represents <br /> unassigned fund balance in excess of the fund balance policy of $5.7 million. <br /> For the current fiscal year, staff recommends the appropriation $3 million of the excess fund <br /> balance to continue the funding of the Other Post Employment Benefit (OPEB) Fund established <br /> during the previous fiscal year to fully fund the total required contribution for the current fiscal <br /> year. It has been recommended by the Local Government Commission and the Bond Rating <br />