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18 <br /> 1 This Amendment shall become effective upon adoption. <br /> 2 <br /> 3 Adopted by the Orange County Board of Commissioners this 16th day of May, 2017. <br /> 4 <br /> 5 A motion was made by Commissioner McKee, seconded by Commissioner Burroughs to <br /> 6 adopt the Ordinance and Resolution in Attachments 1 and 2. <br /> 7 <br /> 8 Commissioner Rich said she is not going to vote for this. She said this was data <br /> 9 intensive, and Orange County did its due diligence. <br /> 10 <br /> 11 VOTE: Ayes, 6; Nays, 1 (Commissioner Rich) <br /> 12 <br /> 13 6. Regular Agenda <br /> 14 <br /> 15 a. Amendments to the County's Fund Balance Management Policy Regarding the <br /> 16 General Fund Unassigned Fund Balance <br /> 17 The Board considered amending the County's Fund Balance Management Policy to set <br /> 18 the unassigned fund balance for the General Fund at an amount lower than the current 17% <br /> 19 level. <br /> 20 Bonnie Hammersley presented this item, and reviewed the background information <br /> 21 below: <br /> 22 <br /> 23 BACKGROUND: <br /> 24 The Orange County Fund Balance Management Policy, adopted on April 11, 2011, states: <br /> 25 1. The County will strive to maintain an unassigned fund balance in the General Fund <br /> 26 of 17% percent of budgeted general fund operating expenditures each fiscal year. The <br /> 27 amount of unassigned fund balance maintained during each fiscal year should not fall <br /> 28 below 8% percent of budgeted general fund operating expenditures, as recommended <br /> 29 by the North Carolina Local Government Commission. <br /> 30 2. To the extent that the General Fund unassigned fund balance exceeds 17% percent, <br /> 31 the balances may be utilized to fund capital expenditures or pay down outstanding <br /> 32 County debt. <br /> 33 <br /> 34 Staff provided information to the Board on June 16, 2016, September 8, 2016, and May 9, 2017 <br /> 35 on the County's General Fund balance policy, best practices, and benchmarking with other peer <br /> 36 North Carolina counties. During the September 8, 2016 work session, the Board discussed <br /> 37 amending the 17% level to 16.2%. <br /> 38 <br /> 39 At the May 9, 2017 work session, the BOCC further discussed the unassigned fund balance, a <br /> 40 possible revision to the 17% level, and directed staff to schedule additional Board discussion <br /> 41 and a potential decision for this May 16, 2017 regular meeting. <br /> 42 <br /> 43 The Manager's FY 2017-18 Recommended Budget includes a fund balance appropriation of <br /> 44 $7,807,696 which was based on maintaining a 17% unassigned fund balance. The 16.2% <br /> 45 unassigned fund balance level discussed at the September 8, 2016 work session would result <br /> 46 in an additional one-time $1,651,338 for appropriation in the FY 2017-18 Budget and would <br /> 47 increase the fund balance appropriation to $9,459,034. <br /> 48 There was also discussion at the May 9, 2017 work session on whether a percent change <br /> 49 results in material recurring dollar amounts for appropriation in subsequent fiscal years. After <br />