AGENDA DATE: 9/7/2022
TITLE:
Title
Financial Management Policies Update
BODY
SUBJECT/PROPOSAL/REQUEST: Consider revisions to the County's Financial Management Policies
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Rosenberg, Birch, Sumner, Bowman
PRESENTER (S): Birch
LEGAL REVIEW: Not Required
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: According to the Government Financial Officers Association (GFOA) guidelines and the County's financial advisors, financial policies should be reviewed periodically to ensure they are current and effective. The County's Financial Policies were initially adopted by the Board of Supervisors on October 5, 1994, with the last update on January 6, 2021.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Staff has conducted a review of the County's Financial Management Policies and recommends several updates. These recommendations have been reviewed by the County's financial advisors, Davenport and Company, LLC. and are attached (Attachment A). In addition to the proposed changes, Attachment A provides explanations for each specific change. In general, these changes are due to the following:
1. The Budget Stabilization Reserve is recommended to increase from 1% to 2% to help ensure the organization's and community's financial foundation and resilience. The revision in Attachment A also updates language to clarify the intent that:
a. It is intended to be among the strategies available in a difficult budget year or unanticipated situation.
b. It is not meant to be an ongoing source of funding for the operating budget and balances utilized should be replenished as quickly as reasonably possible.
c. It may be used for operating or capital expenses.
2. The current policy and related calculation for sharing revenues amo...
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