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6 <br /> <br /> <br /> <br />Transfers to OPEB Trust account for high amounts ($3M in FY 2012‐13, $3M in FY 2013‐14, <br />and $1.5M in FY 2014‐15) <br />• Assumes Efland Sewer ($145K) ends FY 2019‐20 <br />• Assumes Affordable Housing ($812K) continues at 2% growth <br />• Assumes Grant projects ($56K) continue at 2% growth <br />• Assumes Sportsplex ($168K) continues at 0% growth <br /> <br />Fund Balance <br /> <br />Baseline Forecast <br />Assumes property tax rate remains at current $0.8377 (see below for key property tax <br />assumptions) <br />• Before any corrective actions <br />• Results in structural shortfall leading to net deficit by FY 2022‐23 <br />• 16% reserve is County policy, while 8% is Local Government Commission's minimum reserve <br />requirement <br /> <br />Sample Option A <br /> <br />Property Tax levy raised by $0.0576 in FY 2018‐19 (8.7% increase) and maintained at that <br />same rate thereafter regardless of assessed valuation growth <br /> 8% increases in FY2021‐22 and FY2025‐26 due to reappraisal years <br />• Requires no reduction in expenditures <br />• Meets 16% reserve goal in out‐years mostly with unassigned balance alone <br /> <br />Sample Option B <br />Property tax levy increase of $0.0576 phased‐in over a 3‐year period, with fixed rate thereafter <br />• Meets 16% reserve goal in near‐term and out‐years with combined state required reserve and <br />unassigned balance <br />• Potential expenditure reductions required in mid‐2020's to comply with County's 16% reserve <br />policy <br /> <br />Sample Option C <br />Property tax levy increase of $0.0576 phased‐in over a 3‐year period, with 2% tax levy growth <br />thereafter (rate floats up or down based on assessed value changes, to net 2% revenue growth) <br />• No change in expenditure levels <br />• Property tax revenue is inadequate to prevent future deficits <br /> <br />Sample Option D <br />Option D includes a series of expenditure reductions (eventual 6% total cut) to close the <br />remaining revenue gap from Option C <br /> $10M reduction in FY 2021‐22 <br /> $2M reduction in FY 2023‐24 <br /> $3M reduction in FY 2025‐26 <br />• Total reductions of $15M are ongoing; assumes 2% annual growth in value of avoided costs <br /> <br />Observations <br />Financial Sustainability and Best Practices <br /> <br />Structurally balanced budget