Committee considers moving excess fund balance into capital projects fund; asks staff for project estimates

Beaufort County finance committee members spent a substantial portion of their Aug. 7 meeting discussing the district’s fund-balance policy and a proposed transfer of excess tax revenue into the Capital Projects Fund.

Staff said the district expects an addition to fund balance of about $8.7 million this year because of under‑spending on salaries and vacancies; their proposal was to hold general‑fund reserves at the board’s target (about 20% of next year’s budget) and transfer roughly $4.7 million of the excess into the Capital Projects Fund, raising that fund’s balance to approximately $14.8 million.

The CFO explained the purpose of the reserve: it provides cash flow between tax receipts in December–January and normal monthly payrolls, and serves as an emergency cushion for hurricane season. A board member who identified themself as Colonel Guy warned that the board must be cautious not to overcommit the funds, citing past years when the district borrowed short‑term at high interest rates.

Several members asked staff to return with an informal list or estimate of likely capital projects before completing any transfer so the board could avoid making irreversible commitments; staff said the transfer could be reversed later if necessary and that auditors would be informed of an anticipated journal entry when the trial balance is submitted. Members also discussed the option of retaining a slightly larger reserve (about 21%) and moving a smaller amount to the capital fund to preserve flexibility.

No formal vote was taken on the transfer at the meeting; staff said any actual journal entry and budget transfer would require a vote later. The committee requested staff provide the informal capital‑needs estimate and a proposed journal‑entry timeline before the next finance meeting.