RESOLUTION

A RESOLUTION TO ADOPT A POLICY ESTABLISHING THE MINIMUM LEVEL OF UNDESIGNATED, UNRESERVED FUND BALANCE AND CONTINGENCY RESERVE FOR THE COUNTY’S GENERAL FUND

WHEREAS, the Board of Supervisors adheres to principles of sound financial management, and desires to implement policies that protect the County from unforeseen emergencies, fluctuations in the economy, and other influences that may impact the cost and delivery of services; and

WHEREAS, undesignated, unreserved fund balance is a measure of the financial resources available for future expenditures; and

WHEREAS, maintaining an adequate level of undesignated, unreserved fund balance is an important factor in sound financial management; and

WHEREAS, the bond rating agencies recognize a formalized fund balance policy as a key factor in determining the financial strength of a government, and in establishing a favorable bond rating; and

WHEREAS, a favorable bond rating enables the County to borrow funds for major capital projects at a lower interest rate, thereby reducing costs to the County; and 

WHEREAS, the taxpayers benefit from the maintenance of an adequate and consistent fund balance level through enhanced stability in taxes, delivery of services, and savings on debt; and

WHEREAS, a contingency reserve policy also benefits the taxpayers through the County’s ability to address needs that arise during the fiscal year in a timely manner; now, therefore, be it

RESOLVED by the Fauquier County Board of Supervisors this 21st day of July 2003, That the policy establishing fund balance and contingency reserve requirements for the County’s General Fund is hereby adopted, and effective with the fiscal year ending June 30, 2003 .