Orange County NC Website
3 <br /> Commissioner Rich asked if the rating agencies prefer counties to have a fund balance <br /> policy. <br /> Gary Donaldson said yes because this is seen as a best practice of sustainable <br /> management. <br /> Commissioner Dorosin asked if there was a policy prior to 2011. <br /> Paul Laughton, Financial and Administrative Services, said there was a 15% policy <br /> prior to 2011, and the Finance Director at that time did some comparative analysis with other <br /> counties and decided to raise the threshold to 17%. <br /> 2. Vehicle Replacement Schedule for FY 2016-17 <br /> Paul Laughton reviewed the following background: <br /> BACKGROUND: <br /> In FY 2012-13, the Commissioner Approved Budget established a second Internal Service <br /> Fund, for County vehicle purchases. Internal Service Funds are an accounting device used to <br /> accumulate and allocate costs internally among the functions of the County. Historically, the <br /> County has used an internal service fund to account for one activity - its employee dental <br /> insurance program. With the creation of this Vehicle Replacement Fund, vehicles purchased <br /> occur through this fund instead of the departments' operating budgets. The change centralizes <br /> vehicle purchases, which increases the effectiveness of vehicle performance and cost <br /> monitoring. <br /> The current internal services fund is still being subsidized by the general fund. In the spring <br /> and summer of 2016, staff will be working with a recognized fleet services consulting firm to <br /> fully optimize the internal services fund model for Orange County. This optimization will <br /> influence recommendations for the internal services fund starting in FY 17-18. <br /> Recommendations for vehicle replacements are based on vehicle age, mileage, maintenance <br /> costs, fuel efficiency, and departmental mission need. The average age and accumulated <br /> mileage of the recommended replacements are 12 years and 161,754 miles, respectively. The <br /> vehicle replacement process is a dynamic process that unfolds over the course of a year. <br /> During the replacement cycle vehicles originally listed for replacement may ultimately not be <br /> selected for replacement as other fleet vehicles become a higher priority for replacement. <br /> The FY2016-17 recommendation involves public safety vehicles only in anticipation of the <br /> significant structural optimization expected within the Fleet Internal Services Fund to be <br /> recommended for FY2017-18 and beyond. <br /> Attachment 1 outlines the recommended vehicle requests for FY 2016-17. Pricing is based <br /> upon the current state contract rates. If the Board of Commissioners approve of this <br /> recommended list, the financing amount of$789,722 will be included in the FY 2016-17 <br /> Budget Ordinance to allow these vehicles to be ordered and placed into service in the early fall <br /> of 2016. <br /> Jeff Thompson, Asset Management Services, said the intention of the consultant study <br /> is to have the internal service fund to be self-sustaining. He said the results of the study will <br /> be presented to the Board of County Commissioners (BOCC) in the fall. <br /> Commissioner Pelissier asked if there are any hybrid vehicles on the list. <br />