Minutes 01-26-2018 Retreat - Laserfiche WebLink

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