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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 19, 2016 <br /> Action Agenda <br /> Item No. 7-c <br /> SUBJECT: Recommended Uses of General Fund Unassigned Fund Balance as of June <br /> 30, 2015 <br /> DEPARTMENT: Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. BOCC Fund Balance Policy <br /> 2. Fund Balance Position - General Bonnie Hammersley, 919-245-2300 <br /> Fund Travis Myren, 919-245-2308 <br /> Gary Donaldson, 919-245-2453 <br /> Paul Laughton, 919-245-2152 <br /> PURPOSE: To appropriate the use of the General Fund unassigned Fund Balance in excess of <br /> the BOCC's fund 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, 2015 the General Fund Available Fund Balance totaled $53.7 million (Attachment <br /> 2). Of this amount, $10.6 million was appropriated prior to the end of the fiscal year to balance <br /> the FY 2015-16 General Fund Operating Budget. <br /> After the appropriation of the General Fund's fund balance available for appropriation, the <br /> General Fund unassigned fund balance as of June 30, 2015 is $35.5 million, which represents <br /> 18.5% of the General Fund expenditures as of June 30, 2015. This amounts to unassigned fund <br /> balance of 1.5% in excess of the established fund balance policy of 17%. The excess 1.5% <br /> equates to $2.8 million of Unassigned General Fund Balance available for appropriation. <br /> Based on a review of Board goals and priorities and County needs, the Manager suggests the <br /> Board direct: <br /> • $1 million of the excess fund balance to fund Affordable Housing Projects; and <br /> • $1.8 million of the excess fund balance to fund priorities identified in the FY2016-17 <br /> budget. <br />