Orange County NC Website
Browse       Search
16 <br /> Slide #24 <br /> General Government <br /> • Budget & Finance <br /> • Proposed Unassigned Fund Balanoeand Flow of Funds Policy <br /> f Fund Bslsnce Policy consistent With Govemmeni Flnsnce Officers Assaciaion(GFOA)to mairmin at least um months <br /> working capital and backstop unforeseen needs <br /> r Change from 16%Uneeeigned fund balance to a range of 16-20%of budgeted ge-erel fund operating expenditures each <br /> Ascai year <br /> f Range provides County with the neiadedflexill:ii1it3rdwing pedods ofeconomicand financial expansion oF oDintrBiation <br /> i Unassigned Fund Belenceex€eeding20%,�254,40dirsnsfmwcltoredu€etheCcunly'sCnherPosi-EmploymentBBnefne <br /> (OPEB)Llah,Mlts atfacaled 10 thy*Commid"Fund Balance <br /> f Add anelbalancesexceeding2C%maybeappraprialedbytheBaard1DfundaebtServicereserves,SchoolCapitalNeeds, <br /> County Capelal N*4 t .and c"o-W*Chftiwl*Chtting*Mdlgalle n Eile ts, <br /> GRANGE COUNTY <br /> 24 MO12T[[CAPJDL]NA <br /> Travis Myren said a range could help with the flexibility during periods of economic flux. <br /> Vice-Chair McKee thanked the Manager for bringing this recommendation forward. <br /> Commissioner Fowler asked how this would differ from the current process. <br /> Travis Myren said they currently put $6 million into the debt service fund to reduce the <br /> amount of tax rate increases that might be needed. He said the proposed policy would be for <br /> operating budget purposes. He said if they are facing a recession, they may choose to increase <br /> the fund balance appropriation that would otherwise be a property tax increase or cuts out of the <br /> budget. <br /> Travis Myren said it would never exceed 20% and would become assigned to the next <br /> year's expenditures. <br /> Chair Bedford asked if there were multiple years of fund balance exceeding the need, if <br /> they could continue to add that. <br /> Travis Myren said if fund balance exceeds 20%, $250,000 goes to OPEB liability and the <br /> remainder back to the board for distribution. <br /> Chair Bedford said the concern during her tenure has been getting to the 16% and working <br /> on how they could build fund balance. <br /> Travis Myren said the past two years they have had a surplus. <br /> Bonnie Hammersley said that the concern has not been getting the 16% and that in <br /> previous years of surplus, they have given some to the schools and some was kept for county <br /> use. She said that it used to be 17% but it was lowered because there was a desire to use that <br /> 1% only one time. She said the range will give some opportunity to not have to turn it over right <br /> away. She said that seems to be the practice that most counties do. <br />