AG 1998 07 13 - Laserfiche WebLink

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622 DRAFT continually monitored throughout the budget year by individual departments and Finance staff. 2. Current operating expenditures will not exceed current operating revenues. 3. Budgeted funds will only be spent for categorical purposes for which they were intended. The annual operating budget ordinance defines staff authorization for operating budget adjustments. No appropriations of the proceeds of a debt instrument will be made except for the purpose for which such debt instrument was issued or payment of debt principal and interest. Donations will be spent only toward the intent for which they were given. 4. For continuing contracts, funds will be appropriated in the annual budget ordinance to meet current year obligations arising under the contract, in accordance with G.S. 160A-17. 5. Payroll will be in accordance with the requirements of the Fair Labor Standards Act. Overtime and benefit payments will be made in accordance with the County's Personnel Ordinance. Reserve Policy 1. In accordance with state statute appropriated fund balance in any fund will not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts. 2. The County will maintain an undesignated fund balance that exceeds eight percent (8%) in accordance with the North Carolina Local Government Commission's (LGC) recommendation. For a County our size a recommended target goal of fifteen percent (15%) should be maintained for the following purposes. These funds will be used to avoid cash-flow interruptions, generate interest income, eliminate the need for short-term borrowing, assist in maintaining an investment-grade bond rating, and sustain operations during unanticipated emergencies and disasters. I III. CAPITAL~I~LICY ] A. Capital Improvements Plan 1. The County will update and readopt annually a five-year capital improvement plan (tIP) which projects capital needs and expenditurss and details the estimated cost, description and anticipated funding sources for capital projects. 2. The first year of the five-year CIP will be the basis of formal fiscal year appropriations during the annual budget process. If new project needs arise during the year, a budget amendment identifying both the funding sources and project appropriations will be utilized to provide formal budgetary authority for the subject projects. The tIP will generally address those capital assets with a value of more than $100,000 and a useful life of over one (1) year. 3. The County will emphasize preventive maintenance as a cost- effective approach to infrastructure maintenance. Exhausted capital goods will be replaced as necessary. 4. The County will acknowledge pay-as-you-go financing as a significant capital financing source, hut will ultimately determine the most appropriate financing structure for each capital project on an individual basis after examining all relevant factors of the project. B. Capital Formation 1. Fund balances in excess of aforementioned Local Government Commission (LGC) guidelines may be used as a capital source for pay-as-you-go financing. Debt Management. 1. Capital projects financed through the issuance of bonds or lease financing agreements will be financed for a period not to exceed the expected useful life of the project. 2. The County will strive to maintain a high reliance on pay-as-you- go financing for its capital improvements. 3. The general obligation debt of the County will not exceed the legal limit of 8% of the assessed valuation of the taxable property of the County. 4. Total general fund debt service will not exceed the limits imposed and recommended by the Local Government Commission. "A~ a guide, formulas established by the LGC and rating agencies will be closely monitored and appropriately applied. 5. The County will seek the best financing type for each financing need based on the following considerations: Flexibility to meet