Orange County Mulls Policy to Establish Minimum Fund Balance

A first-ever county policy setting a minimum fund balance was unanimously passed by the Orange County Legislature Ways and Means Committee on Jan. 23. Per the policy, the county shall maintain an unassigned fund balance in its main operating fund, also known as the general fund, at no less than 15 percent of its annual expenses. If one thinks of the county government as a household, it is similar to a family having a savings bank account large enough to cover 15 percent of annual spending. “This has been something that has been talked about prior to me coming to this post,” county finance commissioner Kerry Gallagher told the committee members on Jan. 23, noting that credit rating agencies would often ask for such a policy during their evaluations....