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ORANGE COUNTY COMMISSIONERS <br /> 108 EAST MARGARET LANE <br /> HILLSBOROUGH, N. C. <br /> 27278 <br /> MOSES CAREY,JR- <br /> STEPHEN H.HALKIOTIS <br /> JOHN HARTWELL. <br /> SHIRLEY E.MARSHALL <br /> DON WILLHOIT <br /> • <br /> February 27, 1987 <br /> Mr. Everett M. Chalk <br /> - <br /> Assistant Director <br /> State and Local Government Finance Division <br /> Department of State Treasurer' <br /> 325 N. Salisbury Street - <br /> Raleigh, N.C. 27611 <br /> Dear Mr. Chalk; <br /> The Orange County Board of Commissioners has discussed the letter of November 7, 1986 • <br /> concerning the deficit in the Northside Renovations Capital Project Fund and the <br /> decreasing amount of fund balance available:_for appropriation in the General Fund_ <br /> As requested in that letter and in your letter of February 18,'-1987, we are now <br /> reporting to you the steps taken or to be taken to improve this-situation.. <br /> A budget amendment was adopted by the Boards on..February.2, 1987which authorized a <br /> transfer from another fund to the Northside Renovations Capital Project Fund. This <br /> transfer eliminate; the deficit that existed.. in" that fund. Enclosed is a certified <br /> copy of the minutes of the meeting at which this budget amendment was approved_ <br /> The Board has had several discussions concerning the downward':trend in the fund <br /> balance available for appropriation in the Genera]. Pund_.. :Saeme..of these discussion <br /> took place prior to the November 7th letter.';'.The decrease in the General Fund's fund balance has been:, the ,r_ esult: of several <br /> factors, but is mainly due to the County's efforts to address the tremoundous <br /> capital needs of our two public school systems on a pay-as-you-go basis. This - <br /> effort has put a strain on the County's budget and has forced us to use much of <br /> our fund balance. <br /> To address the fund balance problem the Board is now considering a two-pronged <br /> approach. The first part will be to adopt a tax-rate in the 1987-88 budget that <br /> will allow us to begin restoring the fund balance available for appropriation to <br /> a safer and more acceptable level. The second part of our approach will be to <br /> consider funding the schools' capital needs by means other than the pay-as-you-go <br /> plan, thus alleviating the strain on the fund balance. <br /> mmr <br />