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23 <br /> monitor them. She said that it is important to recognize that this is a tool to use in combination <br /> with other information. She said that it all will work together. She said that she knows that any <br /> decision must include social justice, environmental impacts, and fiscal impacts. She said that as <br /> they bring projects forward, they will include this data. <br /> Chair Price asked if the model can be adjusted to consider changes in lifestyles since <br /> pandemic, including types of jobs and how people are working. <br /> Julie Herlands said that it can be and that as behaviors start to evolve, the market will <br /> change, and the data can be updated to reflect those behaviors. She said that since sales tax <br /> collections have changed, and as they continue to change, the data will continue to evolve. <br /> b. Long-Term Financial Planning Operating and Debt Models <br /> The Board received and reviewed information on the two County financial models — 1) <br /> Operating Model and 2) Debt Model — that the Finance and Administrative Services Department <br /> utilizes in providing forecasts of revenues and expenditures to the County Manager, Deputy <br /> Manager and 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 <br /> through the COVID Recession and maintaining the Board Adopted Unassigned Fund Balance <br /> Policy of 16%. <br /> County staff regularly uses these two models to formulate recommendations on both the <br /> Operating Budget and Capital Investment Plan. <br /> Gary Donaldson, Chief Financial Officer, reviewed the background information for this <br /> item and gave the following PowerPoint presentation: <br /> Slide #1 <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> Long-Term Operating and Debt Models <br /> Gary Donaldson, Chief Financial Officer <br /> February 17, 2022 <br />