HomeMy WebLinkAboutAgenda - 06-16-2016 - 1 - Discussion of Appropriate Level of GF Reserves ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 16, 2016
Action Agenda
Item No. 1
SUBJECT: Discussion of Appropriate Level of General Fund Reserves
DEPARTMENT: County Manager, Finance and
Administrative Services
ATTACHMENT(S):
1. Orange County Board of
Commissioners Fund Balance
Management Policy INFORMATION CONTACT:
Bonnie Hammersley, (919) 245-2300
UNDER SEPARATE COVER Travis Myren, (919) 245-2308
2. PowerPoint presentation-Appropriate Gary Donaldson, (919) 245-2453
Levels of Unassigned Fund Balance Paul Laughton, (919) 245-2152
(To be provided at the meeting)
PURPOSE: To discuss the appropriate level of General Fund Reserves.
BACKGROUND: Orange County's current Fund Balance Policy states that "The County will
strive to maintain an unassigned fund balance in the General Fund of 17 percent of budgeted
general fund operating expenditures each year. The amount of unassigned fund balance
maintained during each fiscal year should not fall below 8 percent of budgeted general fund
operating expenditures, as recommended by the North Carolina Local Government
Commission."
The attached PowerPoint (under separate cover - to be provided at the meeting) includes
recommendations by the Government Finance Officers Association of the U.S. and Canada on
appropriate levels of unassigned General Fund balance and the Rating Agencies scorecard for
assessing state and local governments.
FINANCIAL IMPACT: There is no financial impact related to discussion and receiving
information of the recommended appropriate levels of General Fund Reserves.
SOCIAL JUSTICE IMPACT: There are no Social Justice Goal impacts associated with this
item.
RECOMMENDATION(S): The Manager recommends that the Board discuss the appropriate
levels of General Fund Reserves and provide direction to staff.