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After the adoption of the FY
2010 budget, the Finance Committee directed staff to develop
proposals that would facilitate the accumulation of funding
for capital projects. In addition, during the course of its
research, staff identified a number of areas where previous
action by the Board of Supervisors had not been codified in
the form of new financial policies. Staff presented two
draft policies to the Finance Committee at its November 5,
2009, meeting, which are included as Attachments 1 and 2. A
diagram summarizing the proposed fund structure changes is
included as Attachment 3. The proposed revisions include:
·
The
establishment of a separate debt service fund to provide for
debt service payments on educational and non-educational
facilities.
·
The
establishment of two asset replacement funds to provide for
cash and grant funding of major maintenance, systems
replacement, vehicle acquisition and renovation projects for
the general government and the school division.
·
New
requirements limiting the Capital Improvement Fund to major
facility acquisitions or total replacement of existing
facilities using a combination of cash funding and debt
financing.
The draft policies would
also codify the Board of Supervisors’ policies regarding
debt issuance and debt capacity, both of which have
previously existed in resolution form. In addition, the
policies provide a single resource describing the County’s
entire fund structure. Staff will provide addition
information regarding the proposed changes at the work
session. |