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It is the policy of the BOCC to maintain a reserve in the County’s General Fund according to the following calculation:

Reserve Category Policy Calculation

Meet Cash Flow Requirements
(maintain working capital)

Maintain minimum reserve equal to 1/13 of the next year’s budgeted payroll in the General Fund (the equivalent of one payroll, including fringe benefit costs)

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 10% of next year’s budgeted sales tax revenue in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 20% of next year’s budgeted compensating use tax revenue in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 25% of next year’s budgeted mortgage registration fee revenue in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 25% of next year’s budgeted investment income in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 10% of next year’s budgeted intergovernmental revenue in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 3% of next year’s budgeted Ad Valorem Tax Property Taxes in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 10% of next year’s budgeted charges for services in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 10% of next year’s budgeted miscellaneous revenue in the General Fund

Provide contingencies for unpredictable revenue sources
(maintain working capital)

Maintain minimum reserve equal to 10% of next year’s budgeted motor vehicle taxes in the General Fund

Provide contingencies for emergencies
(maintain working capital)

Maintain minimum reserve equal to 5% of next year’s budgeted General Fund expenditures, excluding intrafund transfers, cost allocation, and grant expenditures

Meet debt service covenants/requirements

 

Maintain minimum reserve equal to 25% of next year’s budgeted General Fund lease payments to the Public Building Commission

The dollar amount of the reserve for the General Fund will vary each year according to the policy calculation. As a general guideline, the policy calculation is expected to generate a reserve amount that ranges between 20% and 25% of estimated annual General Fund net revenues.

Any General Fund reserve amounts in excess of the policy calculation are one-time revenues and shall be used according to section 120.6 Use of One-time and Unpredictable Revenues.

If the County’s General Fund reserve falls below the minimum policy calculation, the County Manager shall submit a recommended plan to the BOCC, as soon as practical but not to exceed 90 days following receipt of notice from the Director of Budget and Financial Planning, to rebuild the reserve to the minimum level.

Definitions:

The Public Building Commission (PBC) is a separate legal entity which issues lease purchase revenue bonds for the purpose of acquiring, constructing, and renovating facilities. When bonds are issued, the County enters into a lease agreement with the PBC for the use of the facilities and makes an annual lease payment to the PBC. The Board of County Commissioners serves as the governing body of the PBC.

General Fund net revenues are the total annual budgeted revenues for the General Fund which includes grant revenue but excludes intrafund transfers and cost allocation expenditures budgeted in the General Fund.

Resolution No. 122-02
Revision Number: Original
Date of Last Review: Adopted 12-19-02 Revised 02-28-13

Policy Number: