Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: February 17, 2022 <br /> Action Agenda <br /> Item No. 7-b <br /> SUBJECT: Long-Term Financial Planning Operating and Debt Models <br /> DEPARTMENT: Finance and Administrative Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Financial Models Presentation Gary Donaldson, Chief Financial <br /> Officer, (919) 245-2453 <br /> PURPOSE: To receive and review information on the two County financial models — 1) Operating <br /> Model and 2) Debt Model — that the Finance and Administrative Services Department utilizes in <br /> providing forecasts of revenues and expenditures to the County Manager, Deputy Manager and <br /> the subsequent Manager's Recommended Budget each year to the Board. <br /> BACKGROUND: The County's use of a Long-Term Financial Models was first implemented as <br /> part of the FY 2018-19 Budget Development Cycle. As noted in the attachment, Long-Term <br /> Financial Planning provides local governments an important resource in ascertaining the impact <br /> of changes in economic conditions, recessions and various spending scenarios. <br /> Bond Rating Agencies and the Government Finance Officers Association consider Long-Term <br /> Financial Planning to be an integral best practice for a local government to maintain financial <br /> resiliency. Both the Operating and Debt Models were instrumental in assisting the County through <br /> the COVID Recession and maintaining the Board Adopted Unassigned Fund Balance Policy of <br /> 16%. <br /> County staff regularly uses these two models to formulate recommendations on both the <br /> Operating Budget and Capital Investment Plan. <br /> FINANCIAL IMPACT: There is no financial impact associated with receiving this information. <br /> SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to <br /> this item: <br /> • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY <br /> The creation and preservation of infrastructure, policies, programs and funding necessary <br /> for residents to provide shelter, food, clothing and medical care for themselves and their <br /> dependents. <br /> ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal <br /> impact associated with this item. <br /> RECOMMENDATION(S): The Manager recommends that the Board receive this information and <br /> provide any comments and questions. <br />