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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 16, 2017 <br /> Action Agenda <br /> Item No. 6-a <br /> SUBJECT: Amendments to the County's Fund Balance Management Policy Regarding the <br /> General Fund Unassigned Fund Balance <br /> DEPARTMENT: County Manager Office and <br /> Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1. Excerpt of Approved Minutes from Bonnie Hammersley, 919-245-2300 <br /> September 8, 2016 Work Session Travis Myren, 919-245-2308 <br /> 2. Orange County's Fund Balance Gary Donaldson, 919-245-2453 <br /> Management Policy Paul Laughton, 919-245-2152 <br /> 3. Davenport Fund Balance Analysis <br /> 4. Financial Policies May 9, 2017 <br /> Work Session PowerPoint <br /> PURPOSE: To consider amending the County's Fund Balance Management Policy to set the <br /> unassigned fund balance for the General Fund at an amount lower than the current 17% level. <br /> BACKGROUND: The Orange County Fund Balance Management Policy, adopted on April 11, <br /> 2011, states: <br /> 1. The County will strive to maintain an unassigned fund balance in the General Fund of <br /> 17% percent of budgeted general fund operating expenditures each fiscal year. The <br /> amount of unassigned fund balance maintained during each fiscal year should not fall <br /> below 8% percent of budgeted general fund operating expenditures, as recommended by <br /> the North Carolina Local Government Commission. <br /> 2. To the extent that the General Fund unassigned fund balance exceeds 17% percent, the <br /> balances may be utilized to fund capital expenditures or pay down outstanding County <br /> debt. <br /> Staff provided information to the Board on June 16, 2016, September 8, 2016, and May 9, 2017 <br /> on the County's General Fund balance policy, best practices, and benchmarking with other peer <br /> North Carolina counties. During the September 8, 2016 work session, the Board discussed <br /> amending the 17% level to 16.2%. <br /> At the May 9, 2017 work session, the BOCC further discussed the unassigned fund balance, a <br /> possible revision to the 17% level, and directed staff to schedule additional Board discussion <br /> and a potential decision for this May 16, 2017 regular meeting. <br />