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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />44 <br />i <br />10 <br />rate each year. A phase -in scenario will give us time to make adjustments if they are <br />needed, she said. <br />In reply to a question from Ms. Hammersley, Ms. Ramaglia said that under Sample Option B <br />the property tax would increase less than two cents per $100 of value per year for three <br />years. <br />The following additional points were noted by the facilitator following the presentation, during a <br />more general discussion: <br />• In reply to a question from Commissioner Jacobs, Mr. Knudsen said that Management <br />Partners is headquartered in Ohio. <br />• In reply to a question from Commissioner Marcoplos, Mr. Myren clarified that unassigned <br />General Fund Balance amounts are represented by the blue portions of the bars on the <br />Sample Option slides — this would be the "spendable" amounts -- and reserved amounts <br />( "not spendable" under the current 16% policy) are represented by the white portions. <br />Commissioner Dorosin suggested that the unassigned segments of the bars be placed <br />above the assigned amounts so that the spendable amounts would be easier to see on the <br />charts. <br />• Commissioner Jacobs said he would like to see a scenario with a different fund balance. <br />What would 14% or 15% look like? What would be the break point from AAA to the next <br />lower bond rating if we went from 16% to a lower reserve, he asked. If we are moving into a <br />more difficult financial future and we are considering an increase in the property tax rate, <br />then we should understand the implications of this option as well. <br />• Mr. Knudsen said the 16.7% recommended reserve in Orange County is based on two <br />months of working capital. 16% is a standard, but it does not apply in all situations. A steady <br />history of revenues might enable a jurisdiction to deviate from that standard. The bond rating <br />firms are more interested in your history and how you are planning for your future than they <br />are in the specific policy. The fact that you have a policy is very good, but the level at which <br />you set that policy is dependent upon your organization. <br />• Ms. Ramaglia added that the County's other financial policies would also be taken into <br />consideration by the bond raters. For instance, if you lower your 16% general fund balance <br />standard then the rating firms might want to see how your policies enable your other funds <br />to be self - supporting. <br />• Commissioner Dorosin said that the property tax is the only progressive source of revenue <br />the County has access to. Fees are more regressive. There are social justice aspects to <br />these options that we should take into consideration. <br />• Discussion as needed to clarify "budget drivers" for FY18 -19 <br />• FY 18 -19 Budget Exercise: "What do things cost, and how might we prioritize across new <br />budget items in FY18 -197" <br />Following a short break, Travis Myren, Deputy County Manager, gave a presentation and <br />led a discussion on "FY2018 -19 and Beyond." <br />Travis Myren presented the PPT below: <br />ORANGE COUNTY BUDGET PLANNING <br />FY2018 -19 and Beyond <br />Board of Orange County Commissioners Retreat <br />January 26, 2018 <br />