Agenda - 02-18-2014 - 6a - Laserfiche WebLink

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25 1 2 Clarence Grier said the $3 million into the Other Post Employee Benefits (OPEB) will 3 fully fund the annual required pay as you go contribution. 4 He said he would recommend that the $315,000 for the recycling program be held for 5 start up. 6 He reviewed the fund balance changes outlined in attachment 3, and said the fund 7 balance has increased by 65 percent since 2008, and 125 percent since 2009. 8 Michael Talbert referred to attachment 2 and noted the appropriated fund balance of 9 $5,190,000 from last year. He said this same amount will need to be appropriated next year in 10 order to remain even. He said it is wise and prudent to leave $1.8 million available moving 11 forward, especially as the Board is concerned about not having a tax increase until the 2015 -16 12 bond referendum. He said this would allow the ability to do one more year's budget with 13 reasonable revenue growth, without a property tax increase. 14 He referred to page 55 of the audit that the Board received tonight. He said that page is 15 dedicated OPEB. He noted the total accrued liability of $65 million and said the addition of the 16 recommended $3 million will get the County to almost a 10 percent funding level of the $65 17 million. He said this item will no longer be in the notes of the 2015 -16 financial statement, but it 18 will be on the financial statement. He said there needs to be a plan of how to fund it in order for 19 the bond rating agencies to look favorably on it. 20 Chair Jacobs asked for clarification that the manager's recommendation is to approve 21 the suggested uses of the fund balance. He asked how specific the Board needs to be. 22 Michael Talbert said it should be a general statement, and this will be included in the 23 budget amendment in January. 24 Chair Jacobs asked if the Board should entertain a conversation about possible uses 25 now. 26 Michael Talbert said the intent was to talk about solid waste. 27 Commissioner Gordon said she wants to make sure she understands what is included in 28 the approval for tonight. She asked if this includes the $382,000. 29 Clarence Grier said the $382,000 has already been approved, and tonight's approval will 30 be for just the OPEB $3 million. 31 Commissioner Dorosin clarified that the manager's recommendation is to have the $1.8 32 million stay as is. 33 Michael Talbert said yes. He said that flexibility will be needed to fund the CIP and the 34 operating cost for next year. 35 Commissioner Dorosin said he would be in favor of moving some of this to the Social 36 Justice fund. 37 38 A motion was made by Commissioner Gordon, seconded by Commissioner Rich to 39 approve the suggested use of the fund balance for OPEB. 40 41 VOTE: UNANIMOUS 42 43 Chair Jacobs noted that if the Board does not raise taxes for 2014 -15, it would be the 6th 44 year that the Board has not raised taxes. He said it might be argued that, subject to 45 uncontrolled circumstance, a fairly stable system of financial governance has been achieved. 46 He said this is a good improvement. 47 48 Commissioner Dorosin said the school district tax has been raised, so it is not accurate 49 to say taxes have not been raised. 50 Chair Jacobs said the general property tax has not been raised.