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3 <br />As best practice, local governments should only appropriate fund balance for non-recurring <br />purposes such as capital. While it is preferable to be able to achieve the fund balance goal in <br />order to meet needs in time of fiscal stress, the use of the fund balance to meet non-recurring <br />priorities is understandable. It would be prudent to not let the fund balance fall below 11 % in <br />order to provide for cash flow as well as maintaining the County's excellent bond rating. Once <br />funding the shortfall is completed, it is recommended that steps be taken to rebuild the fund <br />balance of the General Fund. <br />FINANCIAL IMPACT: The financial impact of the recommended action is the projected <br />reduction of the fund balance of the General Fund to as low as 11.1 % of projected FY 2009-10 <br />expenditures. <br />RECOMMENDATION(S): The County Manager recommends that the Board approve the two <br />year funding plan which includes: 1) Appropriating $3.5 million from the fund balance of the <br />General Fund for transfer to the School Capital Project Fund and County Capital Project Fund; <br />2) Include the remaining appropriation of $2.4 million from the fund balance of the General Fund <br />needed to complete the correction of the shortfall in the Fiscal Year 2009-10 budget; and 3) <br />Direct staff to take those actions necessary to reallocate available funding to correct the project <br />shortfalls and to bring back to the Board the budget amendments necessary to implement this <br />plan. <br />