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Finance staff: agencyfund balance is $713,000 on paper but usable reserve drops to about $27,000 after liabilities
Summary
County finance staff told the board that while the agency's statement shows an unrestricted fund balance of roughly $713,000, once pension, OPEB and other long-term liabilities are accounted for the amount practically available for budgeting falls to about $27,000; the board was advised to treat $27,000 as its planning 'bogey.'
Finance staff briefed the board on the agency—inancial statement and long-term liabilities, recommending a conservative planning approach for the coming budget.
Chair introduced Glenn Murray and Sam Riddle from county finance. Glenn explained the agency—inancial statements show an unrestricted cash reserve (fund balance) of about $713,000, but that required accounting for noncurrent liabilities would reduce funds effectively available. Tim Love, assistant county manager, said the larger number "turns out there's a restricted future liability" and recommended recognizing the $27,000 figure as the practical available balance for budgeting.
Board members asked whether it is appropriate to use the fund balance as a budgeting 'bogey' and whether the $713,000 is actual cash. Finance staff explained GASB reporting requires governments to disclose their share of pension and other long-term liabilities even if those obligations are funded by state trusts or other mechanisms; those accounting entries can make fund-balance comparisons misleading for short-term budgeting. County staff said the more conservative planning figure is $27,000 and that budgeting should emphasize projected revenues from permit fees and grants and closely track monthly cash flow.
Why it matters: The discussion re-frames how much contingency the agency can safely assume in its budget and could affect fee-setting and operations planning for FY27 and beyond. The board indicated it will use the lower planning figure when preparing the next budget.
Next steps: Finance staff offered follow-up support for budgeting and said the agency should reassess fee schedules later in the year as part of the budget cycle.
