Duplin County commissioners unanimously adopted a formal set of financial policies on July 14 that set the county’s unassigned general fund balance floor at 25% of annual general fund expenditures and outline debt and investment limits. Ty Wellford, a financial adviser with Davenport & Company, presented the policy document and described it as a “starting point” aligned with Government Finance Officers Association best practices.

The policy lays out four core areas: budget development, a reserve policy that sets the 25% minimum unassigned general fund balance, debt policies that cap certain leverage measures, and cash-management and investment rules. Wellford told commissioners the county currently “is sitting at about 50% unassigned fund balance,” and the proposed 25% floor places Duplin County “right in the middle of where your peers would be.”

The document says the county should not use one-time dollars to fund ongoing operations; budget amendments must come before the board; the board will receive quarterly financial reports; and investment maturities will not exceed five years, consistent with state statute referenced in the packet. On debt, the policy sets three numerical guideposts: debt as a percent of tax base not to exceed 2.5%, annual debt service not to exceed 15% of the budget, and repayment of at least half of debt within 10 years.

Commissioners asked how the policy could be amended in the future; Wellford said the policy can be changed by formal amendment and that the document provides flexibility to go above or below metrics if a plan is adopted to return to target levels. He noted that if the county anticipates drawing below the 25% floor, “a plan will be put in place to try and get back in compliance within the next three years,” or a reasonable alternative schedule would be set.

The board voted to adopt the policies by voice vote. A motion to adopt was made by Commissioner Dapp and seconded by Commissioner Garner; the chair called for the ayes, and the motion carried. The adoption was framed by presenters and commissioners as codifying existing practices and improving transparency for residents.

The policy document includes an appendix with the calculation methods for the metrics and states that the county will strive to follow North Carolina law referenced in the presentation.