HomeMy WebLinkAboutP-0170 - School Fund Balance Policy POLICY FOR INSERTION INTO THE POLICY MANUAL
MEETING DATE: 10/21/2008
EFFECTIVE DATE: 10/21/2008
NUMBER: P-0170
REVISIONS: 10/21/2008
POLICY: School Districts Local Current Expense Fund Balance Policy
BOCC Approved
10/21/2008
School Districts Local Current Expense Fund Balance Policy
Joint Policy Between
Orange County Board of County Commissioners
Chapel Hill Carrboro City Schools Board of Education
Orange County Schools Board of Education
1. Guidelines
The School Budget and Fiscal Control Act (SBFCA) establishes accounting,
budgetary and fiscal control guidelines for School Systems. The SBFCA is
codified in G.S. Chapter 115C, Article 31, beginning at G.S. 115C-422. This
act parallels the statutes established for Local Government with a few
exceptions.
2. Definitions
2.1.Total Fund Balance — The difference between a school system's total
assets and its total liabilities at the end of the fiscal year.
2.2.Fund Balance Available for Appropriation —The sum of a school system's
assets held in cash and investments minus the sum of the school system's
liabilities and encumbrances at the end of the fiscal year as outlined in G.S.
115C-425 of the SBFCA.
2.3.Designated Fund Balance — The amount of the available fund balance that
has been appropriated for the budget year through budgetary action of the
School Board.
2.4.Undesignated Fund Balance - The difference between Fund Balance
Available for Appropriation and Designated Fund Balance.
3. Policy
3.1.Fund Balance for Cash Flow Purposes — Each school district will make a
good faith effort to maintain a level of undesignated fund balance that will
ensure sufficient funds are available to address its cash flow needs. The
following levels are to be maintained for cash flow purposes only:
3.1.1. Chapel Hill Carrboro City Schools - The targeted level of
undesignated fund balance for cash flow purposes will be at a
minimum of 5.5 percent of budgeted expenditures.
3.1.2. Orange County Schools — The targeted level of undesignated fund
balance for cash flow purposes will be at a minimum of 3 percent of
budgeted expenditures.
BOCC Approved
1012112008
3.2.Accumulated Fund Balance Above Cash Flow Purposes - In the event
that either school district accumulates more than the percentage amounts
allowed for cash flow purposes, the respective Boards of Education will
develop a plan in place for spending the accumulated fund balance surplus
for non-recurring purposes. The Board of Education will share that plan with
the Board of County Commissioners
3.3.Fund Balance Appropriation Occurring Outside the Normal Annual
Budgeting Process — Appropriation of fund balance is a budgetary action
that rests with elected bodies of each school system. It is highly desired that
fund balance appropriations be limited to non-recurring expenses. Both
school districts have historically appropriated fund balance as a part of their
normal budgeting process, and this practice will remain until additional
revenue is available to eliminate the use of fund balance. The Board of
Education should note and explain significant deviations in the normal
budgetary appropriation as a part of the budget narrative accompanying the
recommended and adopted budgets.
If the Board of Education finds it necessary to appropriate fund balance,
outside the normal annual budgeting process, the Board of Education shall
highlight the appropriation in their next fiscal year's budget request. The
County Commissioners are not obligated to increase local current expense in
order to fund recurring items for which the Board of Education appropriates
fund balance outside of the normal budgeting process.
4. Undesignated Fund Balance — Undesignated fund balance may be allowed to
accumulate above the cash flow percentages under certain circumstances.
School Boards will develop a detailed plan for future use of accumulated fund
balance. Boards of Education are to use undesignated fund balance to address
unforeseen events or opportunities. In these instances, it is the responsibility of
the Board of Commissioners to work with the School Boards to address the
extraordinary issues.
5. Extraordinary Emergency Needs — There may arise a time in the future when
one or both school district(s) experience(s) an unforeseen extraordinary
uninsured event that greatly compromises how the district(s) serve(s) children.
In such instances, there may be a need for the school district(s) to use some or
all of its fund balance. In such instances, the Board(s) of Education is(are) to
take appropriate action to correct the problem, and following necessary
budgetary action by the Board of County Commissioners, the County will
reimburse the School Board(s) for the necessary expenditures.
6. Policy Review - The School/County Collaboration Work Group shall review this
policy every 18 months to determine if changes to the policy are necessary.
< d
4
The Board considered an application from Howard H. McAdams, Jr., for certification as
qualifying farmland within the High Rock/Efland Voluntary Agricultural District.
Dave Stancil summarized the abstract. This designation is a voluntary, non-binding
conservation agreement to keep the farm as farmland for a ten-year period. McAdams Farm is
on 191 acres on Efland-Cedar Grove Road, and it meets the criteria to become a participating
farm in the High Rock/Efland Voluntary Agricultural District.
He showed some pictures of the farm.
A motion was made by Commissioner Gordon, seconded by Commissioner Nelson to
certify the McAdams Farm as qualifying farmland and designate it as the second farm within the
High Rock/Efland Voluntary Agricultural District.
VOTE: UNANIMOUS
4. Consent Agenda
A motion was made by Commissioner Gordon, seconded by Commissioner Nelson to
approve those items on the consent agenda as stated below:
a. Minutes
The Board approved the minutes from September 9 (5:30 and 7:30 p.m.) and September 16,
2008 as submitted by the Clerk to the Board.
b. Appointments — None
c. Motor Vehicle Property Tax Release/Refunds
The Board adopted a refund resolution, which is incorporated by reference, related to 49
requests for motor vehicle property tax releases or refunds in accordance with North Carolina
General Statutes.
d. Work First Block Grant Local Plan
The Board approved the two-year Work First Plan for 2009-2011.
e. Forest Service Contract for Fiscal Year 2008-09
This item was removed and placed at the end of the consent agenda for separate
consideration.
f. Small Business and Technology Development Center (SBTDC) Contract Renewal for
FY 2008-09
The Board renewed a contract with the Small Business and Technology Development Center to
continue support of small business development services for Orange County business and new
& existing entrepreneurs as stated in the Economic Development Strategic Plan adopted May
14, 1996, and reaffirmed by the Economic development commission in its new strategic plan,
Investing in Innovation: 2005-2010 and authorized the Manager and the Clerk to the Board to
execute the contract.
g_ El Futuro, Inc. Request for Funding: Mental Health and Substance Abuse Services
This item was removed and placed at the end of the consent agenda for separate
consideration.
h. Change in BOCC Regular Meeting Schedule for 2008
The Board amended its regular meeting calendar for 2008 by adding a BOCC Mini-Retreat on
Friday, November 14th from 10:00 a.m. —4:00 p.m. — Location TBD.
i. Approval of School Districts Local Current Expense Fund Balance Policy
The Board approved a joint School Districts Local Current Expense Fund Balance Policy
between Orange County Board of County Commissioners and Chapel Hill Carrboro City and
Orange County Schools.
L Change Order Approval for Construction of Sewer Line to Leachate Pond
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 21, 2008
Action Agencla
Item No. Lf—1
SUBJECT: Approval of School Districts Local Current Expense Fund Balance Policy
DEPARTMENT: PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
School Districts Local Current Expense Donna Coffey, (919) 245-2151
Fund Balance Policy
PURPOSE: To approve.a joint School Districts Local Current Expense Fund Balance Policy
between Orange County Board of County Commissioners and Chapel Hill Carrboro City and
Orange County Schools.
BACKGROUND: At a joint meeting on September 25, 2008, the Orange County Board of
County Commissioners and the Boards of Education for Chapel Hill Carrboro City Schools and
Orange County Schools agreed to the attached School Districts Local Current Expense Fund
Balance Policy. As a final step, elected officials agreed at the September 25, 2008 meeting that
each elected board would officially approve the policy at a regularly scheduled open meeting.
Both Boards of Education are scheduled to approve the attached policy at upcoming meetings.
FINANCIAL IMPACT: Per the attached policy, each school district will make a good faith effort
to maintain a level of undesignated fund balance that will ensure sufficient funds are available
to address its cash flow needs. The targeted level of undesignated fund balance for cash flow
purposes will be at a minimum of 5.5 percent of budgeted expenditures for Chapel Hill Carrboro
City Schools. For Orange County Schools, the targeted level*of undesignated fund balance for
cash flow purposes will be at a minimum of 3 percent of budgeted expenditures.
While the Boards of Education have authority to appropriate fund balance, it is highly desired by
County Commissioners that fund balance appropriations be limited for non-recurring expenses.
Should either Board of Education appropriate fund balance, the District should note and explain
the allocation in their normal annual budgetary appropriation as a part of the budget narrative
accompanying the recommended and adopted budgets.
RECOMMENDATION (S): The Manager recommends that the Board approve the attached
School Districts Local Current Expense Fund Balance Policy.
BOCC Approved
!Q/2lf2008
School Districts Local Current Expense Fund Balance Policy
Joint Policy Between
Orange County Board of County Commissioners
Chapel Hill Carrboro City Schools Board of Education
Orange County Schools Board of Education
1. Guidelines
The School Budget and Fiscal Control Act (SBFCA) establishes accounting,
budgetary and fiscal control guidelines for School Systems. The SBFCA is
codified in G.S. Chapter 115C, Article 31, beginning at G.S. 115C-422. This
act parallels the statutes established for Local Government with a few
exceptions.
2. Definitions
2.1.Total Fund Balance — The difference between a school system's total
assets and its total liabilities at the end of the fiscal year.
2.2.Fund Balance Available for Appropriation —The sum of a school system's
assets held in cash and investments minus the sum of the school system's
liabilities and encumbrances at the end of the fiscal year as outlined in G.S.
115C-425 of the SBFCA.
2.3.Designated Fund Balance—The amount of the available fund balance that
has been appropriated for the budget year through budgetary action of the
School Board.
2.4.Undesignated Fund Balance - The difference between Fund Balance
Available for Appropriation and Designated Fund Balance.
3. Policy
3.1.Fund Balance for Cash Flow Purposes — Each school district will make a
good faith effort to maintain a level of undesignated fund balance that will
ensure sufficient funds are available to address its cash flow needs. The
following levels are to be maintained for cash flow purposes only:
3.1.1. Chapel Hill Carrboro City Schools - The targeted level of
undesignated fund balance for cash flow purposes will be at a
minimum of 5.5 percent of budgeted expenditures.
3.1.2. Orange County Schools — The targeted level of undesignated fund
balance for cash flow purposes will be at a minimum of 3 percent of
budgeted expenditures.
BOCC Approved
1012112M
3.2.Accumulated Fund Balance Above Cash Flow Purposes - In the event
that either school district accumulates more than the percentage amounts
allowed for cash flow purposes, the respective Boards of Education will
develop a plan in place for spending the accumulated fund balance surplus
for non-recurring purposes. The Board of Education will share that plan with
the Board of County Commissioners
3.3.Fund Balance Appropriation Occurring Outside the Normal Annual
Budgeting Process — Appropriation of fund balance is a budgetary action
that rests with elected bodies of each school system. It is highly desired that
fund balance appropriations be limited to non-recurring expenses. Both
school districts have historically appropriated fund balance as a part of their
normal budgeting process, and this practice will remain until additional
revenue is available to eliminate the use of fund balance. The Board of
Education should note and explain significant deviations in the normal
budgetary appropriation as a part of the budget narrative accompanying the
recommended and adopted budgets.
If the Board of Education finds it necessary to appropriate fund balance,
outside the normal annual budgeting process, the Board of Education shall
highlight the appropriation in their next fiscal year's budget request. The
County Commissioners are not obligated to increase local current expense in
order to fund recurring items for which the Board of Education appropriates
fund balance outside of the normal budgeting process.
4. Undesignated Fund Balance — Undesignated fund balance may be allowed to
accumulate above the cash flow percentages under certain circumstances.
School Boards will develop a detailed plan for future use of accumulated fund
balance. Boards of Education are to use undesignated fund balance to address
unforeseen events or opportunities. In these instances, it is the responsibility of
the Board of Commissioners to work with the School Boards to address the
extraordinary issues.
5. Extraordinary Emergency Needs — There may arise a time in the future when
one or both school district(s) experience(s) an unforeseen extraordinary
uninsured event that greatly compromises how the district(s) serve(s) children.
In such instances, there may be a need for the school district(s) to use some or
all of its fund balance. In such instances, the Board(s) of Education is(are) to
take appropriate action to correct the problem, and following necessary
budgetary action by the Board of County Commissioners, the County will
reimburse the School Board(s) for the necessary expenditures.
6. Policy Review - The School/County Collaboration Work Group shall review this
policy every 18 months to determine if changes to the policy are necessary.
~~LI~Y F0~ II~~ERTI~N INTp THE ~~LI~Y MAI~UA~,
r
'~ HEETIN ~A~ ~'bru~~ 1~ 1~ NUBERi ~.~~7~
EFFECTIVE ~TE~ F~~~uar ~~ 1~ ~EVI~I~1~:
`~~
~~LI~Y
~H~~T F~ BALANCE ~~I~I~
~~AN~E OU~iT~ HCCT~ sh~~l begin ~~~h final y~a~~ t~~ ~~~
~~~n~ ~~s~ibl~, pith fund bal~n~ ~Vai~~~l~ ~u~
un~~~'~~~iat~d in ~~ ~~~al ~r~~nb ~~~n~~ fund ~ha~ i~
gual ~~ no mars ~har~ .7 ~f the ~udg~~~d ~~~ndi~ur~~ in
ghat fund fog ~~ ~`~ar; and
CI~iA~ET HILT~,~ ~HCCL sha~.l begin ~~~h fi~~al ~~,~ ~ t~
t~,~ ~c~an~ pa~~ib~~, ~itY~ a find b~lan~ av~i~a~~~ bud
un~~~~o~~i~~~d ~~ ~h~ 1~~-1 ~u~~~r~~ ~p~n~ fund ~h~t i~
~qu~l t~ n~ m~r~ ~~ar~ ~i~ ~f t~ budg~~~d ~~~ndi~~r~~ in
~h~,~ find fq~ ~h~~ ~~~~`.
T~~ ~~~~~~ ~~ard~ ~i~l r~~u~n ~~ t~~ Bird ~f C~mi~si~nr~
~~ ~~~~ap~ia~ian~ ~f fund b~lan~ ~Va~il~bl~ u~
un~~~~`~ria~~d i
of lire ].~a~e~l$t~iy Werth ~~ i~g ~t~'eet t~ the r~hoie south of brio
~~xeet ~~ au~~tly o~~ria~ded and ~ann~t ta]c~ any ~~dYt~o~al ~io~a Pram
the ~xogosed ~fland ~~w~r ~y~t~m~
lei ~ ~ ~~~~~~ ~~x~ ~~~~ F~~IY
Motion ~~~ ~~~e ~~ ~om~ssion~~ ~~~~~ ~~con~~~ ~~ ~~m~issioner
M.~r~h~li to a~~xo~e the ohoo~ Furry Bi~r~e Paii~ ~~ stated below ar~~ to
ino~.u~~ in the ~~ ~ ghat ~~~ ~oh~~l ~o~r~~ w~.ll r~t~x~ to the ~~~~~. ~ ~
~o~mis~~.~ner~ ~~~ any ~,~~~opriations of fund ]~~~.ano~ available but
~n~~px~~i~te~~
"~R~iN~E ~~N'T~ B~IO~~S b~ix~ eaoh fisoal y~d~`, to the et~nt
~~~~ihle, ~ th fund b~~~no~ availa]~1~ but u~rappropriat~d in the ~ooal
~~rx~n~ e~nse fund that i~ equal ~~ r~~ ~or~ th~~ ~ . ~ ~~ the ~OUd~eted
exp~~iditux~~ i~ th.~~ f un~ far that year ~ ~n~;
~H~L I~~I~-~~B~1~0 ~~F~I begin ~aoh fisoal year, to the
. exte~rt boas 1~1~, r~ith ~ fund h~l~n~e ~~~i1~]~1~ bt~t una~p~o~r~.~te~ i~ ~e
~ o~~l oux~l~t eaens~ fur~~ ~.h~t i ~ equal to ~~ ~ax~ than ~ . ~ ~ a f the
hud~~ted een~itures i~ that fund ~~~ t~ia~t year. ~'
V~T$ ~ IM~~J~
"-~. ~E=I~~~F~I~ ~RTI~~ ~F ~~TI~1~ 8 H~~TIN~ ~~5~'~AN~~
~~~~lEi~T~ P~~~ i~iL ~~I~[~T1~]~S C~I~T~AT
~I~tior~ etas made ~~ ~omm~~~i~nex~ ~arl~al1 ~ ~~~~~ded ~~
~o~m~eaio~~x ~ioyd to approve t~~ re~~lutiori ~ st~t~~ h~l~w~
~E~~~UTI~~ ~iVT~~~I~IN ETI~N
~F A~ ~i-TNU~,~, ~~NT1IBi~~'I~N ~1~T~A~`I'
Where~l~ r the o~~~C~~ Caunty ~uu~i~~ authority ~h~r~in o~rll~d the '' ~~~ ~
prop~~es to enter fr~t~ an n~ai ontx~.butions ~o~.t~act ~h~~~in pall tk~~
"~~~~~~~" w~.th the ~nite~. states of ~a~rioa, ~e~a~~~t ~f ~~u~i~g an~1
urban ~ev~lop~aent therein galled the "~~vex-e~t"~.
NSW, THE, ~~ IT S~L~I~D by the 1~ ~~ f~ilows:
~e~tion 1. Thy ~~ntraot' numbered C~ntx~~t ~T~. ~-~03, is h~x~b~
~~~x~v~d ~~~ ~~epte~ both ~~ to f~~tr aid sub~tar~~e grid the ~~~ix ~f ~d,
~~ ~omrn~s~i~~er~ i~ hereby ~uthoriaed ar~d dix~te ~~ exeoute paid
~ont~act in txi~l~.oate on b~h~1f of the CIA, d the C1'~ to the ~d. of
~ommissioner~ i~ h~~eby ~utho~i~eal d ~~.r~~ted t~ inrpxess and ~tt~~t the
of~ici~]~ ~~.al of the ~~, on each ~u~t~ oounteart ar~rl t~ foxward said
ee~ut~d oauntaxts to the ~ovex~ment togeth~x with ~u~h ~the~' do~u~~r~t~
evider~~.~~ the ap~~~v~l ~~d ~~tthorizi~~ the eeoution thereof as gay b~
xe~uir~ed by ~ government .
seotion ~ . The bounty manager is h~ry ~.uthnriz~d to file with the
v~rr~m~nt from time to timer as ~aonies ~r~ ~quixed, requis~tiarrs
t~g~th~x Stith the n~o~ss~~y su~portinc~ document ~ f~~ ~~y~rerrt un~.er the
cantx~~t.
etion 3~ 'his Resolution shali taste affect ~mmediat~ly.
~~~~ : U~~iNI~iO~l~
sumn~~xy ~ ire the ~erm~nent agenda file in the ler]t' ~ ~ffioe~ .
~vur~t~ M~~aq~x ~~n~ih i~. Thom~s~~ pr~~ented for consideration ~f
appx~ral the ~~rrtral Fiedmomt er~ioe delivery ~~~~ fob Txair~in~ flan
a~`y fox Prram dear 1~~~~~~.
tio~ was m~~e by ~ommissionex~ Ll~ydr ~eo~rided by ~ommissa.oner
ax~y t~ ~ppxo~e ih~ ~un~ary fox program yew 1~~G-S7 as prese~t~d*
ATE : iJ~iIII~Q~ .
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~~~~~~~ Pa~i~y vn ~'~und Balan~~ ~- . ' ~l~DN~ rxU~~I~~C~ ~ - ~lIL~:~~t~GH ~ ~~`~~•~~$~
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'~i~RP~~: It ~~~ d~ci~ed at the ~a~t 'b+~~~et yen fir 19$5-~G thnt $ pali~~ ~~ - .
d~vel~p~d ie~~r~.iq~ tie l~~re~ a~l;fun~ ba~~n~e av~il~bl~ ~~t npp~~pr~te~
. - tb~t- .sha~ld be ~aa.intain~d by the • twa s~h~a1 systems.. ~~.~ atta~Yled re~anld~ -
1 ~Iti~~. is_ a f~lla~w-np ~ta that de~~sia~. - - ` , ` • '+
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~~~L~: Fach ~w.~r du~isig Che budget del~.be~s.~f~n~, the quest~:on $~~.ses ~' t~ tI~ ' -
- $~ppraprx~t~ a~aunt a~ ~~iri~ bslar~~ ~.veilable but unapprt~pris.ted tt~t ae~~
.. • e~~iaa~ ~y~tem sl~~uld ma~~t~~.n. _~ pr~determi~.ed 1eve~ ths.t ~ beep $~re~d
- u~an b~ the ~aunt~ ~Ga~ari~~~~n~rs .std t~~ _~oard~ ~f Educatia~. u~~ si11~y.
`the p~a~es~ to r~~t~ranine tl~~ ~a~t~~~'s ~pp~ap~rfati4ns Paz tY~e ~cl~~a~s.
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~'~ C'~'1'{•"~- `' ~ r -r T ~~' ~ ~ ' ~d.vpt the pQli~y as outline. in tb~ attaad ~~~~end~~~a~:
1 c5.~. s
FINANCE DEPARTMENT
~~
ORANtiE COL'~TTY
~~'N ~. ~
Tu : Ctp Co~ie~f ~~~~~
~'~am: Fin~noe Diotor
~ub,~e~t+ ~a~ded Pali~p an ~d Bal~a~e of ~ ~ch~ol 9~~t.
Date: P~b~uar~r l~, 1~~~
rig t1~ ~.9~5-~~ lwd~et pro~e~s, xt wea derided tlant ~ pallcp ~hau].d b~
deveZope~ r~rdiag the ~p~~opriate a~~tat a~ ~ lane ~a~l~ble but
pp~~pri~t~~ that each hoa1 ~~~~ should maint~in~ ~h p~li~p would
~~ ~~r~~d upon ~y the aunty ~a~ie~io~ers cad the herds of ~dnaat~an.
This r~oo~mre~d~d pali~p regarding the fu~r~d ~~.l.a~ ~pplfes to ~]~ la~al current
ponce fund and sddreeeee the mac a~ou~t of fund bal~u~~ ~~t~i1~~1e but
~~roprf~t~d tl~t each }stem should eve at the h~gaing a~ ea,uh fi~~
pears
The s~1~ao1 apske~ sha+~l.d tafn Delp ~~~ fund balance neae~sarp ~a t their
~a~h ~1a~ .n~ed~ Bpd to ma1~ relativ~lp ~.iaar ad~u~ts i~ their 1~~~pri~t~Lon~
du~ri the pear
The c~-1 ~;a~r~nt ~m~s~lon moaitar~ ~h~ find balance of tt~e a.~xal end of
X11 t leiag u~,t~ of ~~e~t ~ North C~~ca ~ T~i~~r ~av~ ~sblf~l~d a
p~li~y Chet ~uoh u~it~ o~ go~et~e~t ~ho~l~ ~ai.iotai.n eaoh fiscal pear a Gener~~.
Fug fuu~d balance avaf ~b1e ~n a~ amount equ~1 to at lot ~ a~ the tit
pef~ur~~ of tt~e n~t~ Futid for the per. ~.e ~oditures an ieb th~.~
~~ ~~ ~'~ed ~~u~~~ ~ ~Cy f ~ ~~~~~ ~~~ the s~t~oo1 ~p~t' ~.0,~,
current expen~~ ~~ well as far tl~~ir capita, outlay. Thus, in etfng the f~~~l
Ga~rern~nt ~~~fotL~ ~ ~in~mum ~taard ~f 8~, the ~~unty ~ ~ fwd b~7,~ ~~ai~,~
~b1e far the Gea~rel Fund in~lr~d~~ ~ a~ab~t~nt~1 ant that f~ relates to pen-
ditures far the school ~p~tems ~ The ~,aoal G~vernt ~f~si ~o~s ~ i~~e
such a min ststidard far tb~ school ~y~t themselves, 4ae cen conclude
ir~m th~.s that they r~~ an the cauntf~ to ~.~.nt~ia an adequate fund. ~a]~.ace
~.svel for the school spst~
~ superintendent a~ the f i~.nce dirtax for Orange aunty uh~als have
e~p~c~ss their de$ire to mild the fund balance svsilable bud u~pp~ropriated
in the lac~l current e~per~se fund to a lsl air $1~~, This mount Mould
equal ~pprat~ly ~.~~ ~~ the br~d~eted uxpeaditures i~ this fug for Z9$5~g~
as ariginal~.y edopt~d. Based an the ~t th~.t grange ~t~ chua~.s recef~e
the ~~~r portion of their ~,aca~ current esn ~ce~t~e frame tie ~~nty in
an equal smart eh Month, ~ using a County' ~ $~ m~. stnndsrd a~ a
gauge, a ~.7~ food ~alanca ~.s~r~1 ahauld bs adeq~~ts.
~~~ EAST 1~AF~~~T LA1~~ ~ ~I~L~B~~~~]G~, ~~T~ C~R~LINA ~ # ~~~~-51~~
161:
Thy ~1~pel ~~.~1-rr~~r~ ~~~i~o1a raly un t~ supplnt~1 ~~hoal d~~tr~.ct t
~~ ~d~itf~u~ ~~ the m~nthlp ~aunt3~ appropr~.atian. ~~ aupplat~ tax is
approximately 1J~ ~~` their ~.~~~~ ~~ur~re~t easy ft~d re,~~n~~~ a i~ reneived
pr~.mazlly during ~l~ mnnth~ of J~au~rq and Fr. ~e~nuae ~~ thla rella~oe
~n the dls~~r~~t tai aid a~.n, ual~ the ~.t~'~ S minim ~t~t~rd ~~ a gauge,
a 5.5 find ba]~noe ~~1 ahuul~ ~~ ade~uat~ for ~~ ~ha~pel ~fllarrbore ~~haa~.~*
~ addf tlo~ to my ~n a~1y~e~ of the wave p~r~enta~~a, I h~ d~.a~u~~~d the
fund be.leno~ 1eve1 aPp~o~pr~.~~~ ~~r aohool s~ste~ with others lA state end
~e~m.~ rya ~r~ familiar ~#th ~chl and ~~.nty f ina~~~~ . ~h~ con~us
as that the fund 6~.1~ ~.~1 fir ~~hool sy~t~a ehvuld b~ eame~rh~t ~r t~~n
~~ of the ~~nty' a 8 ~taa~dd ~d that ~ ~y~t~, r~lyfo,~ on a aupplemt~~ tai
u~~ ~~d ~ higher ~eve1 than otherwise neoesaar~r.
red ~~ m~ ana~.~~ ~~d df~~ua~~.ona, ~ reo~d that the ~o~.lawir~ polioies
~~ e$tab~~shed;
1. ire qty ~~hov1~ big etch ~f~oa1 years to tl~e et~t po~~fb~.~,
with fund ba~.an~e avai~.~b~~ but raprfat~d i~ the 1~1 ~ux~~~t
ex~eaee fund that i~ ~~r, to na more than ~.7~ of tie bu~~eted
~xpenditur~~ ~ that fund far that year, aid;
~. ~hape~ ;arxbor~ 5c1~~~1~ hegi~, .~h fiscal yr, to the extent
possibly, with a find balance avai~.a61~ brit ~Pro~rt~d 1~ ~~~
local t~rre~t ae f~sn,d Chat i~ equ.a~. to no r~ that 5.~~ a~ the
b~~te~ e,~e~uditures in bat fund for that year,
Tt suet ~~ ~~ted th~.t, based ~n t1~~ 1~ca1 ~urreat en~~ bud~ata ~rigllp
adopted for 1~$~-fib, Dry ~nty Sc~hvul~ fund balance ~~ve~. way e~ppro~f:a~.t~l~
~~~ ~ ~Q~ chart ~f the ~.e~el receded in thl~ draf ~ po~.~.cy. ~1a~, C~~el ~i~.1-
r~b~ro ~hools frond balance level way appr~.~aately ~~4 ~ ~~~ ~h~rt of the
reo~ed ~e^~el. ~on~ida~rin,g the fedar~l. ~ut~ha~~ in assistance t~ lo~aZ
~~Y~~ttt~, the ~~utlty should tx~t ~~ expected to ~~i~.d~up tha school sps~ea~
f~~d 6a],~ce ~.egals is ~ fia~al pear ~ 1 racammend that this be ~.~compliehed
~rad,l.1y ~v~r a pa~riad of seral fiscal 9ears•