Orange County NC Website
ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 21, 2008 <br /> Action Agencla <br /> Item No. Lf—1 <br /> SUBJECT: Approval of School Districts Local Current Expense Fund Balance Policy <br /> DEPARTMENT: PUBLIC HEARING: (YIN) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> School Districts Local Current Expense Donna Coffey, (919) 245-2151 <br /> Fund Balance Policy <br /> PURPOSE: To approve.a joint School Districts Local Current Expense Fund Balance Policy <br /> between Orange County Board of County Commissioners and Chapel Hill Carrboro City and <br /> Orange County Schools. <br /> BACKGROUND: At a joint meeting on September 25, 2008, the Orange County Board of <br /> County Commissioners and the Boards of Education for Chapel Hill Carrboro City Schools and <br /> Orange County Schools agreed to the attached School Districts Local Current Expense Fund <br /> Balance Policy. As a final step, elected officials agreed at the September 25, 2008 meeting that <br /> each elected board would officially approve the policy at a regularly scheduled open meeting. <br /> Both Boards of Education are scheduled to approve the attached policy at upcoming meetings. <br /> FINANCIAL IMPACT: Per the attached policy, each school district will make a good faith effort <br /> to maintain a level of undesignated fund balance that will ensure sufficient funds are available <br /> to address its cash flow needs. The targeted level of undesignated fund balance for cash flow <br /> purposes will be at a minimum of 5.5 percent of budgeted expenditures for Chapel Hill Carrboro <br /> City Schools. For Orange County Schools, the targeted level*of undesignated fund balance for <br /> cash flow purposes will be at a minimum of 3 percent of budgeted expenditures. <br /> While the Boards of Education have authority to appropriate fund balance, it is highly desired by <br /> County Commissioners that fund balance appropriations be limited for non-recurring expenses. <br /> Should either Board of Education appropriate fund balance, the District should note and explain <br /> the allocation in their normal annual budgetary appropriation as a part of the budget narrative <br /> accompanying the recommended and adopted budgets. <br /> RECOMMENDATION (S): The Manager recommends that the Board approve the attached <br /> School Districts Local Current Expense Fund Balance Policy. <br />