Agenda - 06-20-2017 - 8-a - Minutes

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19 1 additional review of this question, it was determined that there is no material recurring dollar 2 amounts from the percent change. 3 4 If the Board selects a 16.2% unassigned fund balance level, the Manager recommends that the 5 additional $1,651,338 be used to fund: 6 School Improvements: $1,000,000 7 (Facility Improvements, Equipment and 8 Furnishings, & Vehicle and Bus Purchases) 9 County Operating Capital: $200,000 10 Board Amendments: $451,338 11 Total $1,651,338 12 13 FINANCIAL IMPACT: If the General Fund unassigned fund balance level was amended from 14 17% to 16.2%, an additional $1,651,338 would be available for inclusion in the FY2017-18 15 budget. 16 17 Commissioner Marcoplos asked if the growth rate of 2% is a conservative figure. 18 Bonnie Hammersley said the average over the last 5 years has been 1.7 to 2%, 19 anticipating a 1.2% growth rate on property taxes, which is $150 million, and a 4% increase on 20 sales tax, which is $22 million. She said the expenditure rate is growing at about 4%. 21 Chair Dorosin referred to the idea of operating capital, and clarified that Bonnie 22 Hammersley recommends using the available funds on a one-time expenditure, as opposed to 23 a recurring expense. 24 Bonnie Hammersley said yes. 25 Chair Dorosin said asked if these needs are currently being met, or deferred to the next 26 year. 27 Bonnie Hammersley said ideally this is the account used to maintain the school facilities. 28 She said over time, the schools have not seen an increase in this account and maintenance 29 has been deferred. She said she spoke with the Superintendents early in the budget process 30 about this being a possible source of additional funding, and it was felt that there is so much to 31 do that these funds would be a drop in the bucket; however, every little bit helps. She said 32 there are not a lot of one-time expenditures, but they do exist. 33 Commissioner Burroughs asked if the monies were available, would they be tacked on 34 to the Per pupil net count. 35 Bonnie Hammersley said yes, it would be part of the total package to the schools. 36 Commissioner McKee asked if there is a plan going forward to address these needs in 37 the future, given that this is a one-time reduction. 38 Bonnie Hammersley said this is a one-time action, and staff will look at this over the next 39 six months as to how to address decreasing the fund balance for FY 2018-19, and how to 40 address the needs of the County and the Schools. 41 Commissioner McKee clarified that expenditures were rising at 4%, and revenues are 42 rising at only 2%. 43 Bonnie Hammersley said yes. 44 Commissioner McKee said this is a clear indication that financial issues are coming in 45 the near future. 46 Bonnie Hammersley said a lot of the increased expense was due to the infusion of the 47 fund balance, and there are ways to look at the budget creatively to meet the needs of both the 48 County and Schools. 49 Commissioner Rich asked if the figure of 16.2% came from a particular discussion.