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<br /> The Manager's FY 2017-18 Recommended Budget includes a fund balance appropriation of
<br /> $7,807,696 which was based on maintaining a 17% unassigned fund balance. The 16.2%
<br /> unassigned fund balance level discussed at the September 8, 2016 work session would result in
<br /> an additional one-time $1,651,338 for appropriation in the FY 2017-18 Budget and would
<br /> increase the fund balance appropriation to $9,459,034.
<br /> There was also discussion at the May 9, 2017 work session on whether a percent change
<br /> results in material recurring dollar amounts for appropriation in subsequent fiscal years. After
<br /> additional review of this question, it was determined that there is no material recurring dollar
<br /> amounts from the percent change. The table below illustrates this point and is consistent with
<br /> the Davenport attachment.
<br /> Unassigned Fund Balance Discussion on Subsequent Years Fiscal Impact
<br /> For Fiscal Year Ended June 30
<br /> General Fund 2017 Estimates 2018 2019 2020 2021 2022
<br /> Total Expenditures $ 206,417,275 $ 210,545,621 $214,756,533 $219,051,664 $ 223,432,697 $ 227,901,351
<br /> Unassigned Fund Balance
<br /> 17% 35,090,937 35,792,755 36,508,611 37,238,783 37,983,558 38,743,230
<br /> 16.2% 33,439,599 34,108,391 34,790,558 35,486,369 36,196,097 36,920,019
<br /> Difference 1,651,338 1,684,365 1,718,052 1,752,413 1,787,462 1,823,211
<br /> Fiscal Impact 1,651,338 33,027 33,687 34,361 35,048 35,749
<br /> Note: Assumes 2%Expenditure Growth Rate
<br /> $1,651,338 represents the additional amount to be added to$7,807,696 for FY 2017-18
<br /> If the Board selects a 16.2% unassigned fund balance level, the Manager recommends that the
<br /> additional $1,651,338 be used to fund:
<br /> School Improvements: $1,000,000
<br /> (Facility Improvements, Equipment and
<br /> Furnishings, & Vehicle and Bus Purchases)
<br /> County Operating Capital: 200,000
<br /> Board Amendments: 451,338
<br /> Total $1,651,338
<br /> FINANCIAL IMPACT: If the General Fund unassigned fund balance level was amended from
<br /> 17% to 16.2%, an additional $1,651,338 would be available for inclusion in the FY2017-18
<br /> budget.
<br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
<br /> this item:
<br /> • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY
<br /> The creation and preservation of infrastructure, policies, programs and funding necessary
<br /> for residents to provide shelter, food, clothing and medical care for themselves and their
<br /> dependents.
<br /> RECOMMENDATION(S): The Manager recommends that the Board continue its review and
<br /> discussion of the County's unassigned fund balance for the General Fund as detailed in the
<br /> County's Fund Balance Management Policy and consider amending the Policy to set the
<br /> General Fund unassigned fund balance at a level between 16 and 17%.
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