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ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 16, 2016 <br /> Action Agenda <br /> Item No. 1 <br /> SUBJECT: Discussion of Appropriate Level of General Fund Reserves <br /> DEPARTMENT: County Manager, Finance and <br /> Administrative Services <br /> ATTACHMENT(S): <br /> 1. Orange County Board of <br /> Commissioners Fund Balance <br /> Management Policy INFORMATION CONTACT: <br /> Bonnie Hammersley, (919) 245-2300 <br /> UNDER SEPARATE COVER Travis Myren, (919) 245-2308 <br /> 2. PowerPoint presentation-Appropriate Gary Donaldson, (919) 245-2453 <br /> Levels of Unassigned Fund Balance Paul Laughton, (919) 245-2152 <br /> (To be provided at the meeting) <br /> PURPOSE: To discuss the appropriate level of General Fund Reserves. <br /> BACKGROUND: Orange County's current Fund Balance Policy states that "The County will <br /> strive to maintain an unassigned fund balance in the General Fund of 17 percent of budgeted <br /> general fund operating expenditures each year. The amount of unassigned fund balance <br /> maintained during each fiscal year should not fall below 8 percent of budgeted general fund <br /> operating expenditures, as recommended by the North Carolina Local Government <br /> Commission." <br /> The attached PowerPoint (under separate cover - to be provided at the meeting) includes <br /> recommendations by the Government Finance Officers Association of the U.S. and Canada on <br /> appropriate levels of unassigned General Fund balance and the Rating Agencies scorecard for <br /> assessing state and local governments. <br /> FINANCIAL IMPACT: There is no financial impact related to discussion and receiving <br /> information of the recommended appropriate levels of General Fund Reserves. <br /> SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this <br /> item. <br /> RECOMMENDATION(S): The Manager recommends that the Board discuss the appropriate <br /> levels of General Fund Reserves and provide direction to staff. <br />