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Committee amends fund-balance policy for health-care campus to direct excess to capital improvements
Summary
The committee approved a policy change that will, after the fiscal year closes, move excess health-care campus fund balance beyond a 10% retained reserve into the county capital improvement plan (KIP) rather than pre-budgeting an amount to debt service.
Ken described a proposed change to how the county budgets transfers from the health-care campus to other funds. Instead of pre-budgeting an arbitrary amount for debt service, the new policy would calculate the campus’ unassigned fund balance at year-end, allow the campus to retain 10% (in recognition of operating needs), and move the remainder to the county's capital improvement plan (KIP) or another designated purpose. Ken said the intent is to avoid guessing at a figure in advance and to align transfers with actual annual performance.
Supervisors discussed whether 10% is the right retention level, potential depreciation impacts that can skew operating numbers, and how the mechanism could incentivize good fiscal performance by the campus. Ken said staff would come to the board each August with recommended allocations derived from the year-end balances. The committee moved and approved the resolution adopting the new policy.
