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Chair Jacobs asked if some of the fund balance has been appropriated toward OPEB <br /> this year <br /> Clarence Grier said yes, but the $36.7 million is without the OPEB. <br /> Chair Jacobs asked if the difference between the 17 percent and the 20 percent would <br /> be available for spending. <br /> Clarence Grier said yes <br /> Chair Jacobs asked if this is apart from what has been appropriated or if it is reflected <br /> in what has been appropriated. <br /> Clarence Grier said this is reflected in the $8.5 million that has been appropriated. <br /> Chair Jacobs asked if it would really be 17 percent if you look at the $8.5 million, or if it <br /> would still be 20 percent. <br /> Clarence Grier said that would be about 18.15 percent. He said the only reason this is <br /> not changed is because there is the ability to change the appropriation of the $8.5 million. He <br /> said to be consistent the amount is said to be $36.7 million. <br /> Chair Jacobs asked if this $36.7 million reflects the $650,000 that could be spent. <br /> Clarence Grier said no; that would be over and above. <br /> Michael Talbert said each year the County creates a certain amount of fund balance, <br /> and staff thinks this $8.9 million is in the range of what will be created this year. <br /> Chair Jacobs asked if the revaluation in 2017 is reflected in the 2018-2018 budget. <br /> Michael Talbert said yes. <br /> Chair Jacobs asked what the tax increase would be on a $100 million bond issue. <br /> Clarence Grier said this would be 3.78 cents. <br /> Chair Jacobs said, based on the scenarios presented, this could be 7 or 8 cents, which <br /> would exceed the proposed limit on property tax increases being discussed by the state <br /> legislature. <br /> Clarence Grier said this is correct. <br /> Chair Jacobs said moving forward with bonds, there may be a need to project about <br /> what happens if the revaluation does not bring things back up. He said defensive measures <br /> may be needed. <br /> Clarence Grier said the first defensive measure was getting the AAA rating with all of <br /> the bond rating agencies, and the second would be making sure to close the gap on general <br /> fund revenues versus fund balance. He said it is important to make sure nothing is done to <br /> adversely affect fund balance. He said the County is in very good financial shape. He said <br /> there should be fund balance generated this year and next fiscal year, but it will not be at the <br /> same levels, due to the appropriations that have been done stave off a property tax increase. <br /> Chair Jacobs asked how fund balance is generated. <br /> Clarence Grier said some people say he is very conservative with budgeting. He said <br /> there has been a lot of under-spending in the departments. He said there has also been 1.5 <br /> percent growth, and there have been improvements in sales tax generation as the economy <br /> has improved. He said it is a composite of things, but the main thing is the departments <br /> holding the line on budgets and adhering to the policies and procedures put in place. <br /> Michael Talbert said an oversimplification would be to say that the fund balance is <br /> money appropriated but not spent, and money over collected from conservative revenue <br /> estimates. He said there will be a significant build in fund balance from the vehicle property <br /> tax. <br /> Clarence Grier said the collection rate on registered vehicles has always been low, and <br /> with the new method of paying taxes along with your registration, revenues are expected to go <br /> up. <br /> Commissioner Price referred to the cash flow page and asked for an explanation of the <br /> overage in the second quarter. <br />