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1 <br /> 1 Attachment 3 <br /> 2 <br /> 3 DRAFT MINUTES <br /> 4 ORANGE COUNTY BOARD OF COMMISSIONERS <br /> 5 Budget Work Session <br /> 6 June 16, 2016 <br /> 7 7:00 p.m. <br /> 8 <br /> 9 The Orange County Board of Commissioners met in a budget work session on Thursday, June <br /> 10 16, 2016 at 7:00 p.m. at the Southern Human Services Center, in Chapel Hill, N.C. <br /> 11 <br /> 12 COUNTY COMMISSIONERS PRESENT: Chair McKee and Commissioners Mia Burroughs, <br /> 13 Mark Dorosin, Barry Jacobs, Bernadette Pelissier, Renee Price and Penny Rich <br /> 14 COUNTY COMMISSIONERS ABSENT: <br /> 15 COUNTY ATTORNEYS PRESENT: <br /> 16 COUNTY STAFF PRESENT: County Manager Bonnie Hammersley, Deputy Manager Travis <br /> 17 Myren and Clerk to the Board Donna Baker (All other staff members will be identified <br /> 18 appropriately below) <br /> 19 <br /> 20 Chair McKee called the meeting to order at 7:06 p.m. <br /> 21 <br /> 22 1. Discussion of Appropriate Level of General Fund Reserves <br /> 23 <br /> 24 BACKGROUND: <br /> 25 Orange County's current Fund Balance Policy states that, "The County will strive to maintain an <br /> 26 unassigned fund balance in the General Fund of 17 percent of budgeted general fund <br /> 27 operating expenditures each year. The amount of unassigned fund balance maintained during <br /> 28 each fiscal year should not fall below 8 percent of budgeted general fund operating <br /> 29 expenditures, as recommended by the North Carolina Local Government Commission." <br /> 30 Gary Donaldson, Chief Financial Officer, presented the following PowerPoint: <br /> 31 <br /> 32 Appropriate Level of Unassigned Fund Balance <br /> 33 Presentation to Orange County Board of County Commissioners <br /> 34 Gary Donaldson, Chief Financial Officer <br /> 35 June 16, 2016 <br /> 36 <br /> 37 Best Practices for Unassigned General Fund Balance <br /> 38 ➢ The Government Finance Officers Association (GFOA) of U.S. and Canada: <br /> 39 • Updated the Best Practice on unassigned general fund balances in 2009 <br /> 40 • At a minimum an unassigned general fund balance of no less than 2 months of <br /> 41 regular general fund operating revenues or operating expenditures <br /> 42 • Equates to 16.7% of either general fund operating revenues or operating <br /> 43 expenditures <br /> 44 <br /> 45 Appropriate Use of Unassigned General Fund Balance <br /> 46 ➢ The essential uses of General Fund reserves: <br /> 47 • Mitigate risk attributed to revenue shortfalls or unanticipated non-recurring <br /> 48 expenditures <br /> 49 • Provide a financial bridge during recessions or weak economic conditions <br />