Joint Board Matter…
September 22, 2015
Discussion of the County Executive’s Methodology for Allocation of Carryover Funds

Madame Chairman:

On March 25, 2014 the Board approved and adopted the report of the Infrastructure Financing Committee (IFC) which called for a ramp up over 3-5 years “until the Boards reach a funding level of 20 percent of the unencumbered Carryover balance of both the County and Schools budget not needed for critical requirements. 

On June 19, 2015 the County Executive issued a memorandum to the Board titled “Proposed Methodology for Year-end Balances. A copy is attached. That memorandum divided potential carry over items into five categories, which were listed in the order of preference:

(1)   Encumbered and Unencumbered items.

(2)   Funding for items of a critical nature.

(3)   After critical items have been addressed, 60 percent of the remaining balance would be allocated to Capital Infrastructure (20 percent) and Reserve Requirements (40 percent).

(4)   Additional items as recommended by the County Executive.

(5)   Remaining balance to be applied to the future annual budget.

The proposed methodology does not meet the spirit, at least, of the IFC report. Too many expenditures that are categorized as “items of a critical nature should not take precedence over the infrastructure funding outlined in the IFC report.

I believe that the following prioritization better reflects the spirit of the IFC report:

(1)   Encumbered and Unencumbered items.

(2)   Items that are truly of an emergency nature and beyond staff control, or a safety item that must be addressed. Example – repairs as a result of the derecho. (Formerly a component of item #2.)

(3)   Of the remaining balance 20 percent is to be applied to Capital Infrastructure, 40 percent to Reserve Requirements.

(4)   Additional items as recommended by the County Executive. (Formerly a component of item #2, as well as item #4).

(5)   The remaining balance is reserved for future one-time needs or to address future budget needs as determined by the Board of Supervisors.

However, this is a matter that requires a full Board discussion before action is taken. Therefore, I would ask that this matter be placed on the agenda of a future Budget Committee meeting.