Agenda - 09-08-1987 - Laserfiche WebLink

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rage - Board Members September 1, 1987 263 Suggested changes to the policies proposed on July 20th are explained below. The numbers correspond to the numbers in the proposal. 1. The use of the ;1 sales tax revenues and the use of capital reserve funds should probably be considered as separate policy issues. k'irst, I suggest that the County's portion of the two 1 sales tax revenues (20% and 40%) be restricted to capital expenditure items costing $15,000 or more rather than to items costing over $50,000. we have typically used these revenue sources for small renovation projects and other similar nonrecurring capital items. The $15,000 limit would allow us to continue to fund these types of expenditures while eliminating other small, less appropriate ones. The $50,000 limit would not allow us.-to fund from. these revenues .a lot of the renovation projects that we undertake. The portion of the ;m sales tax revenues dedicated to school capital expenditures (80% and 60%) should be restricted as outlined in the July 20th proposal. The higher dollar amount for schools is appropriate due to the fact that these revenue sources have previously been used only for large scale school construction and renovation projects. Also, the current capital appropriation to schools funded by other General Fund revenues is available for smaller capital items. Apart from any restrictions on the use of the sales tax revenues, I suggest that the use of capital reserve funds not be restricted by a blanket dollar limit. Each such fund should be considered separately based upon the purpose for which it is established. At the present time, the County has established three capital reserve funds. The School Capital Reserve Fund is used for the large scale school construction and renovation projects. The $50,000 restriction would be appropriate for this fund. The County Capital Reserve Fund is used for all types of general county capital expenditures ranging from renovations to vehicle purchases. A much smaller dollar limit, such as $5,000, would be appropriate for this fund. The Recreation Capital Reserve Fund is used for land dedications and payments in lieu of land received from real estate developers for the purpose of providing open space and recreation areas within the County. A dollar limit as low as $1,000 may be appropriate for this fund. As a final point, I recommend that equipment acquisitions not be limited to just lease purchase arrangements. 3. As a matter of clarification, I feel that the debt service requirements of any new debt issued would be conidered when determining the amount, if any, ref the $800,000 that would be transferred to the School Capital Reserve Fund.