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Purchasing Policies and Procedures

Purchasing Policies and Procedures PDF

Fund Balance Policy

General Fund:
The General Fund undesignated fund balance will be maintained at a level sufficient to provide for the required resources to meet operating cost needs, to allow for unforeseen needs of an emergency nature, and to permit orderly adjustment to changes resulting from fluctuations of revenue sources. Given that current property tax collections do not begin until the fourth month of the fiscal year, and based on guidance provided by the Government Finance Officers Association (GFOA), Rutherford County will maintain at least Fifteen Percent (15.0%) of the next year’s budget in the undesignated fund balance of the General Fund.

Any amounts remaining in the fiscal year-end undesignated fund balance in excess of Fifteen (15.0%) of the approved subsequent year’s budget will be available for appropriation by the County Commission to cover such items as revenue shortfalls and unanticipated expenditures, and to ensure stable tax rates. The County Commission will attempt whenever possible to avoid appropriating such funding for recurring expenses.

General Debt Service Fund:
The General Debt Service Fund undesignated fund balance will be maintained at a level sufficient to ensure that the county’s obligation to pay legal debt requirements is met, and to permit orderly adjustment to changes resulting from fluctuations of revenue sources. Based on recommendations from financial advisors and bond rating agencies, Rutherford County will maintain at least Seventy-Five Percent (75.0%) of the next year’s budget in the undesignated fund balance of the General Debt Service Fund.

PASSED this 27th day of June, 2002.

Private Acts of 1979 - Administration Budget System (Chapter 49)

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