DBDB – Fund Balance

The Board recognizes its responsibility to maintain a fund balance in an amount sufficient to:

1. Provide prudent reserves to meet unexpected emergencies and protect against catastrophic events;
2. Meet the uncertainties of state and federal funding;
3. Protect the Jefferson County ESD (ESD) from unnecessary borrowing in order to meet cash-flow needs;
4. Help ensure a credit rating that would qualify the ESD for lower interest costs and greater marketability of bonds that may be necessary in the construction and renovation of ESD facilities.

Consequently, the Board directs the Superintendent to propose the annual budget with a minimum of 15% of total General Fund revenue as unappropriated ending fund balance.

In determining the unappropriated ending fund balance to approve, the Board will consider a variety of factors including the predictability and volatility of its revenues and expenditures; the availability of resources in other funds as well as the potential drain upon general fund resources from other funds; liquidity; and designations. Such factors will be reviewed annually during the budget planning process.

END OF POLICY

Legal Reference(s):

• ORS 294.311(18)
• ORS 294.398
• ORS 334.125(7)