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13 <br /> 1 3.1. Fund Balance for Cash Flow Purposes — Each school district will make a good faith effort <br /> 2 to maintain a level of unassigned fund balance that will ensure sufficient funds are available to <br /> 3 address its cash flow needs. The following levels are to be maintained for cash flow purposes <br /> 4 only: <br /> 5 <br /> 6 3.1.1. Chapel Hill Carrboro City Schools - The targeted level of unassigned fund balance for <br /> 7 cash flow purposes will be at a minimum of 5.5 percent of budgeted expenditures. <br /> 8 <br /> 9 3.1.2. Orange County Schools —The targeted level of unassigned fund balance for cash flow <br /> 10 purposes will be at a minimum of 3 percent of budgeted expenditures. <br /> 11 <br /> 12 3.2. Accumulated Fund Balance Above Cash Flow Purposes - In the event that either school <br /> 13 district accumulates more than the percentage amounts allowed for cash flow purposes, the <br /> 14 respective Boards of Education will develop a plan in place for spending the accumulated fund <br /> 15 balance surplus for non-recurring purposes. The Board of Education will share that plan with the <br /> 16 Board of County Commissioners. <br /> 17 <br /> 18 3.3. Fund Balance Appropriation Occurring Outside the Normal Annual Budgeting <br /> 19 Process —Appropriation of fund balance is a budgetary action that rests with elected bodies of <br /> 20 each school system. It is highly desired that fund balance appropriations be limited to non- <br /> 21 recurring expenses. Both school districts have historically appropriated fund balance as a part <br /> 22 of their normal budgeting process, and this practice will remain until additional revenue is <br /> 23 available to eliminate the use of fund balance. The board of education should note and explain <br /> 24 significant deviations in the normal budgetary appropriation as a part of the budget narrative <br /> 25 accompanying the recommended and adopted budgets. If the board of education finds it <br /> 26 necessary to appropriate fund balance, outside the normal annual budgeting process, the board <br /> 27 of education shall highlight the appropriation in their next fiscal year's budget request. <br /> 28 <br /> 29 The county commissioners are not obligated to increase local current expense in order to fund <br /> 30 recurring items for which the board of education appropriates fund balance outside of the <br /> 31 normal budgeting process. <br /> 32 <br /> 33 Paige Worsham said if the school districts choose to appropriate fund balance to <br /> 34 recurring or non-recurring expenses, the BOCC is not obligated to match that amount in the <br /> 35 next budget cycle. <br /> 36 <br /> 37 Capital Outlay Fund <br /> 38 Includes: <br /> 39 > Revenues made available for capital outlay purposes by the State Board of Education <br /> 40 and the board of county commissioners, <br /> 41 > supplemental school district taxes, <br /> 42 > the proceeds of the sale of capital assets, <br /> 43 > the proceeds of claims against fire and casualty insurance policies, <br /> 44 > and other sources. <br /> 45 "No contract for the purchase of a site shall be executed nor any funds expended <br /> 46 therefore without the approval of the Board of County Commissioners as to the amount <br /> 47 to be spent for the site." <br /> 48 • Dispute resolution process in G.S. 1150-431 used to settle disagreement <br /> 49 <br /> 50 County Expenditures per Pupil (map) <br /> 51 <br />