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