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16 <br /> 1 Slide #24 <br /> General Government <br /> * Budget &BudgetFinance <br /> Proposed Unassigned Fund Balance and Flow of Funds Policy <br /> f Fund Belence Policy consistent Mfih GavemmeniFinanceOfficersAssoin(GFCA)ta ff. ha®risin at leaettw Tnonthis <br /> working cap"end backetop unfoeeeen neede <br /> Change from 16`fi'o UnessigT*d fund balexe to a renge of 16-ZD%of budgetedgeanarel fund operafiW expenditures each <br /> llscal y*ar <br /> . Rengeprovides CrwKym*hMeneededf*mbilitydxrargperiadsofecanorracandfinencielexpw onc•cofirectoon <br /> r Lhia&sagneclFtmclBelsnceemceeding20%,5250,r}pdtrensf&aredtoaedd€etheCouuWsCnherPcst-Er•plogmentB.enefAa <br /> (OPE Bl Liakrmlles a mocatod 1a task Commided FwW Balance <br /> . AdcNonelbalanceseaxeeding20%meybeapprapnWedbythe BoLwdtofund Debt Serviceaeseavres,School Capita IWede, <br /> Covmy Ca0al kl*,eds,aited oft-Woe Caws,Owle,Molgailedi Efle is <br /> ORANGE COUNTY <br /> 4 itis}RTI l CAROLINA <br /> 2 <br /> 3 Travis Myren said a range could help with the flexibility during periods of economic flux. <br /> 4 Vice-Chair McKee thanked the Manager for bringing this recommendation forward. <br /> 5 Commissioner Fowler asked how this would differ from the current process. <br /> 6 Travis Myren said they currently put $6 million into the debt service fund to reduce the <br /> 7 amount of tax rate increases that might be needed. He said the proposed policy would be for <br /> 8 operating budget purposes. He said if they are facing a recession, they may choose to increase <br /> 9 the fund balance appropriation that would otherwise be a property tax increase or cuts out of the <br /> 10 budget. <br /> 11 Travis Myren said it would never exceed 20% and would become assigned to the next <br /> 12 year's expenditures. <br /> 13 Chair Bedford asked if there were multiple years of fund balance exceeding the need, if <br /> 14 they could continue to add that. <br /> 15 Travis Myren said if fund balance exceeds 20%, $250,000 goes to OPEB liability and the <br /> 16 remainder back to the board for distribution. <br /> 17 Chair Bedford said the concern during her tenure has been getting to the 16% and working <br /> 18 on how they could build fund balance. <br /> 19 Travis Myren said the past two years they have had a surplus. <br /> 20 Bonnie Hammersley said that the concern has not been getting the 16% and that in <br /> 21 previous years of surplus, they have given some to the schools and some was kept for county <br /> 22 use. She said that it used to be 17% but it was lowered because there was a desire to use that <br /> 23 1% only one time. She said the range will give some opportunity to not have to turn it over right <br /> 24 away. She said that seems to be the practice that most counties do. <br /> 25 <br /> 26 <br /> 27 <br /> 28 <br />