AG 1999 09 20 - Laserfiche WebLink

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possible $10.7 M unspent at 6/30/99. These projects were rebudgeted in FY 2000 budget, however some budget amendments may be needed to adjust the carry forward amounts correctly. Board of Commissioners Undesignated Fund Balance Policy At 6/30/99 the undesignated fund balance is $30,155,982. The Board of Commissioners policy established 15% of expenditures as a safe retainage balance tbr Cabarrus County. Using the budgeted expenditures for FY 2000 of $105,299,403 retaining a 15% minimum would require $15,794,910. This would make approximately $14 million available for funding priorities and objectives. The calculation is as follows: Undesignated Fund Balance Calculation Undesignated Less Retainage: 15% of expenditures $105,299,403 X 15% $30,155,982 15,794,910 Batance Available for Funding Priorities $14,361.072 Considerations for Use of Available Funds My first consideration was to examine all outstanding debt issues with an outstanding life of less than 5 years. We have 3 issues which are within that parameter but the interest rates we are paying range from 4.03% to 4.58%. Since we are now being paid interest on our investments in a range of 5.50 to 6.00%, theoretically, if the county retains the excessive revenues in fund balance, the spread at which we are earning interest would not make it wise to liquidate that debt. Other considerations which the Board of Commissioners are now pursuing include purchase of land for schools, hiring of architects and borrowing funds thereby incurring future debt service payments. Another consideration would be to move forward some of the county projects identified in the 5 year capital plan or to direct funds to the Capital Reserve Fund for future projects. I know from our discussions that you will be working closely with the Board of Commissioners to guide and assist in the best plan and setting those goals and objectives necessary to accomplish that end.