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45 33 <br /> Chair Carey said that this document has already been adopted, but the Board can amend <br /> it later. <br /> d. Fund Balance Policy <br /> Laura 8|ochnlon said that since 1S86the school avotemna have maintained ofund balance. <br /> The CHCCG has maintained 5.596 and OCS has maintained 2.7%. She said that there have <br /> been nochanges implemented inthe policy since 138O. This ioonthe agenda for discussion to <br /> see ifchanges need tobomade tothis. <br /> Dennis VVhidin0said that this may be something the school collaboration group can look at <br /> for review and/or updating. <br /> Superintendent Pedersen said that CHCCS is using $500,000 from fund balance for <br /> Elementary School#10 and $500,000 for startup costs for Carrboro High School. Hesaid that <br /> there has been a struggle with the budget for Carrboro High School, and they have identified <br /> $500,000 for one-time purchases for startup programs for the new school. <br /> Chair Carey thanked Superintendent Pedersen for making the Board aware of this for the <br /> first time. Hathinks that the County Commissioners would like kJthink this over. <br /> Superintendent Pedersen said that there is a need for cash reserves to cover payroll when <br /> the school system ianot collecting any district taxes. Hasaid that CHCCGhas looked tothe <br /> Board of County Commissioners for assistance in the past when this has happened. He said <br /> that he is comfortable with the 5.596 fund balance. <br /> Commissioner Gordon said that if either school board has anything to mention about their <br /> fund balances, then please let the County Commissioners know, such as if the targets are not <br /> right, what bJuse itfor, etc. She said that there has been olot ofmisunderstanding about this <br /> issue. <br /> Dennis Whitling said that in OCS, the creation of a fund balance is a savings from year tm <br /> year that accumulates. He said that he understands the concept Ofusing fund balance for non- <br /> recurring itomns. He said that when their operation budget is not fully funded, then money must <br /> bataken from the fund balance. |1imalso ajudgment that the school board has tomake about <br /> funding programs or waiting. <br /> Debbie PiociteUisaid that when spending occurs between now and the end ofthe fiscal <br /> year, this can make people upset, and this should be addressed. <br /> Commissioner Jacobs said that the larger the County's fund balance, the better the bond <br /> rating, and they want to build back their fund balance to increase the bond rating. Hesaid that <br /> when schools need money, the County takes itout ofits own fund balance. Hesaid that oolong <br /> aothe County has ogood fund balance, everyone has agood fund balance. <br /> Ted Triebel asked about a target goal for the County and Donna Coffey said that the Local <br /> Government Commission recommends O96. The County's internal target io15Y6' but ithas not <br /> been this large iD a long time. <br /> Jean Hamilton asked about the County's bond rating and it was answered Triple A. Choir <br /> Carey said that the bond rating agencies do not tell entities what they need to boost or lower the <br /> bond rating. <br /> Laura Blackmon said that bond natana aro looking for consistency. <br /> Chair Carey said that the school collaboration work group will discuss this topic. <br /> e. <br /> Fair Funding/Equity <br /> Taura Blackmon said that the joint boards had looked at this topic last year. Attachments <br /> EAE-2. and E-3 were the minutes from the Fair Funding Work Group meeting inMay 2OO6. <br /> the recommendations, and the goal statement with regards to the recommendation of the Fair <br /> Funding Work Group. <br /> Commissioner Gordon said that the school collaboration work group should take this topic <br /> up. <br />