Item:
Title
Amendments to Durham County Finance Policy - Fund Balance Provisions
Body
Date of BOCC Meeting: May 11, 2026
Request for Board Action:
Agenda Text
The Board is requested to amend the County's Fund Balance Policy to revise the General Fund Balance guidelines within Sections 1.04, 1.07, and 1.08 of the policy. The proposed amendments update the County's fund balance target ranges and reserve guidance to better align with the County's historical financial trends, operational needs, and long-term fiscal planning objectives.
The proposed amendments update the County's fund balance guidelines to better reflect historical financial performance, current operational practices, and long-term financial management objectives. The revisions are intended to maintain strong reserve levels while continuing to support the County's overall financial stability.
The revisions include updates to the County's target ranges for both Unassigned General Fund Balance and Total Fund Balance to provide a more practical reserve framework consistent with the County's historical trends and financial position.
The amended policy also clarifies the allowable use of fund balance amounts exceeding established policy targets for one-time or nonrecurring expenditures, including pay-as-you-go capital projects, OPEB obligations, and other strategic funding priorities. Additionally, the policy includes language recognizing the importance of maintaining reserves within the Debt Service Fund to support debt-related projects and obligations.
Further revisions clarify the County's guidance regarding the OPEB portion of Total Fund Balance to help maintain reasonable proportionality within the County's overall reserve structure.
Alignment with Strategic Plan: This item aligns with Strategic Plan - Financial Stewardship
Resource Persons: Crystally Wright, Chief Financial Officer and Claudia Hager, County Manager
County Manager's Recommendation: The County Manager recommends that the...
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