HomeMy WebLinkAboutAgenda - 05-09-2017 - 2. Financial Policies Discussion (General Fund Balance and Debt Management) ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 9, 2017
Action Agenda
Item No. 2
SUBJECT: Financial Policies Discussion (General Fund Balance and Debt Management)
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
1. Fund Balance Policy Gary Donaldson, 919-245-2453
2. Debt Management Policy
3. PowerPoint Presentation (To be
provided under a separate cover at
the meeting)
PURPOSE: To provide update on the status of the County's Financial Policies.
BACKGROUND: On April 5, 2011 the BOCC adopted a series of financial policies including:
General Fund Balance Policy:
• The County will strive to maintain an unassigned fund balance in the General Fund of
17% percent of budgeted general fund operating expenditures each fiscal 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.
Debt Management Policies:
• The County will maintain its net bonded debt at a level not to exceed 3% of the assessed
valuation of taxable property within the County.
• The County will strive to maintain its annual debt service costs at a level no greater than
15% of general fund revenues, including installment purchase debt. This is a
recommended "best practice"from the Government Finance Officers Association.
It is a recommended practice to provide regular updates to the BOCC regarding the County's
Financial Policies as a means to communicate the County's financial status.
FINANCIAL IMPACT: There is no financial impact from this work session presentation.
SOCIAL JUSTICE IMPACT:
There is no Orange County Social Justice Goal Impact associated with discussion of this item.
RECOMMENDATION(S): The Manager recommends that the Board accept this work session
presentation.