Memorandum
Date: July 16, 2024
To: The Honorable Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Stephen L. Carter Jr., Assistant County Administrative Officer
Jenavive Herrington, Auditor - Controller / Clerk
Patrick Sullivan, Treasurer-Tax Collector
Subject: Consideration of Debt Management Policies and Actions: A) Rescind Prior Fund Balance Policy, and Approve Fund Balance, General Reserve, and Debt Management Policy; B) Approve Lake County Debt Advisory Committee Policy; C) Consideration of Two Options for Financing the Armory Repurposing Project (Lake County Sheriff's Headquarters), and Direction to Staff, as appropriate; D) Direction to Staff to Bring Back Final Bond Issuance Agreement for Approval; E) Authorize the County Administrative Officer to Sign All Applicable Documents Prior to the Final Bond Issuance Agreement
Executive Summary:
Before your Board today are two policies required before the County can move forward with any type of debt financing for capital projects:1) the Fund Balance, General Reserve, and Debt Management Policy; and 2) the Lake County Debt Advisory Committee Policy.
Further detail regarding the Fund Balance, General Reserve, and Debt Management Policy is provided here, as background for your Board, and for public inspection:
Fund Balance
The Fund Balance aspect of the first policy applies to the County General Fund, only, and was prepared in consistency with Governmental Accounting Standards Board Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). If the actual Fund Balance Available is greater than estimated (i.e. there is Excess Fund Balance), the County Auditor-Controller may be given specific direction, generally to fund one of the following:
a. Debt Service Payments.
b. Pension and Other Post-Employment Benefits, as directed and approved within the long-term financial plan and the annual budget resolution - priority will be given to those...
Click here for full text