Orange County NC Website
5 <br /> 16 <br /> Gary Donaldson made the following PowerPoint presentation: <br /> Work Session Update on Appropriate Level of Unassigned Fund Balance <br /> Presentation to Orange County Board of County Commissioners <br /> Gary Donaldson, Chief Financial Officer <br /> September 8, 2016 <br /> Regular Finance Updates to BOCC and Manager <br /> ➢ Financial Reporting <br /> • Quarterly Financial Report Provide General Fund Reserve Updates as part of <br /> regular financial reporting <br /> • New Five Year Financial Plan Provide County General Fund balance <br /> information as part of the long-term financial planning <br /> Best Practices for Unassigned General Fund Balance <br /> ➢ The Government Finance Officers Association (GFOA) of U.S. and Canada: <br /> • Updated the Best Practice on unassigned general fund balances in 2009 <br /> • At a minimum an unassigned general fund balance of no less than 2 months of <br /> regular general fund operating revenues or operating expenditures <br /> • Equates to 16.7% of either general fund operating revenues or operating <br /> expenditures <br /> Appropriate Use of Unassigned General Fund Balance <br /> ➢ The essential uses of General Fund reserves: <br /> • Mitigate risk attributed to revenue shortfalls or unanticipated non-recurring <br /> expenditures <br /> • Provide a financial bridge during recessions or weak economic conditions <br /> • Use for natural disasters and emergencies <br /> • Cash Balance cushion <br /> S&P Scorecard (chart) <br /> Moody's Scorecard (chart) <br /> The Ten `AAA' Rated Counties of North Carolina (chart) <br /> General Obligation Bond Rating Scale (chart) <br /> Audited Unassigned Fund Balance as a Percent of Expenditures—General Fund (graph) <br /> Best Practice Unassigned Fund Balance <br /> ➢ In Summary <br /> • GFOA Recommends Unassigned Fund Balance at 2 Months of Expenditures or <br /> 16.7% <br /> • North Carolina AAA Rated County Peers Maintain at Least 2 Months; one <br /> exception <br /> • Strong Fund Balance provides Financial Bridge in Recession and Emergencies <br />