Meeting Type: BCC Regular Meeting
Meeting Date: 4/2/2024
Item Status: New
From: Roger H. Rendleman, County Administrator
Submitted by: Kristen M. Rawson, Assistant Administrative Services Manager
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ITEM TITLE
Title
Resolution #2024-100 - Establishing Reserve Fund Balances
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STAFF RECOMMENDATION
Recommendation
Take the following actions:
1) Instruct staff to discontinue the practice of designating cable franchise fees for costs associated with the broadcasting of County Commission meetings and release the funds currently set aside for such purposes; and
2) Adopt Resolution #2024-100 which establishes the reserve fund balances in accordance with Policy #8.22 - Financial Management Policy.
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BACKGROUND INFORMATION
Background: With the adoption of the amendment to the Reserve Balances Policy Section of Policy #8.22 Financial Management Policy, the County Commission needs to adopt a plan by resolution to replenish the reserve fund balances.
Currently, the General Fund has a projected reserve fund balance need of $38,833,342. The current reserve fund balance in the General Fund is $12,481,734; therefore, an additional $26,351,608 is required to meet the 30% objective.
At the May 4, 1999, County Commission Meeting, “The Commission requested that staff record the Cable TV Franchise fees in the internal services fund and pay the Video taping charges from this source.” Since then, the cable franchise fees have been used for costs associated with the broadcasting of County Commission meetings. Any funds not used each fiscal year are accumulated in a designated fund balance line. Considering that the costs of broadcasting the meeting has significantly decreased with advancement in technology and the franchise fee revenue has increased with the growth of the County, we now have $2,903,987 in the designated fund balance as of the end of Fiscal Year 2023.
With the discontinuation of that practice, the $2,903,987 designated fund balance can be used to aid in reaching the 30% objective. We would then need an additional $23,447,621 of unassigned fund balance to meet the 30% objective. Based on the current fiscal year projections, there is sufficient unassigned fund balance to move to the reserve fund balance in order to meet the 30% objective. The remaining unassigned fund balance would be $7,995,561 or 6.18%, which would also meet the minimum target range of the new Unassigned Balance policy.
Currently, the Highway Fund has a projected reserve fund balance need of $10,572,589. The current reserve fund balance in the Highway Fund is $4,333,935; therefore, an additional $6,238,654 is required to meet the 30% operational and $2.5M capital objective. Based on the current fiscal year projections, there is sufficient unassigned fund balance to move to the reserve fund balance in order to meet the Highway Fund objective. The remaining unassigned fund balance would be $3,308,377 or 12.29%, which would also meet the exceed the target range of the new Unassigned Balance policy.
Previous Commission action/date: N/A
FINANCIAL IMPACT
Total cost of recommendation: N/A
Budget line item(s) to be used: N/A
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
N/A
Reviewed/approved by: N/A
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: Administration, Finance and Budget Departments
Action required (list contact persons/addresses if documents are to be mailed or emailed): Administration to email Budget and Finance Departments copy of resolution and Commission action notification.
Additional instructions/notes: Upload resolution.