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urn; wv ~hc~ COUNTY OF LEE FINANCIAL POLICIES RESOLUTION WHEREAS, stability in fiscal affairs is a desirable objective but a difficult goal for counties to attain because of many factors some of which are the relationship of the various units of government, mandates, the changing economies and the limited authority of local government; and WHEREAS, the Board of Commissioners is of the opinion that the statement of minimum standards of fiscal policy would help present and future boards and staff to adapt to the changes that occur and help them to attain a reasonable measure of fiscal stability; NOW, THEREFORE BE IT RESOLVED, that the Lee County Board of Commissioners does hereby adopt the following financial policies: Debt • Debt service will not exceed 159/0 of general fund expenditures. In any year where the debt service is less than or equal to 14% of general fund expenditures at least 1% of the operating budget will be transferred to capital reserve. This contribution will only be made if available fund balance is at 15% or greater of general fund expenditures. • Payout of aggregate principal outstanding shall be no less than 50% repaid within 10 years. • The County will strive to maintain its net bonded debt at a level not to exceed two percent of the assessed valuation of taxable property within the County. Fees and user charges • As part of the budget process, the County shall annually review the fees and user charges. All changes to the schedule of fees and charges must be approved by the Board of Commissioners. • The County should charge other fees when it is allowable, when a limited and specific group of beneficiaries can be identified, when it is feasible to charge beneficiaries for the services rendered, and when there is no reason to subsidize the service wholly or in part. To the extent possible, fee levels should be set to recover the full costs of the services provided, unless it is deemed necessary or desirable to subsidize the service. • Factors to consider in deciding whether a subsidy is appropriate include the burden on property tax payers, the degree to which the service benefits a particular segment of the population, whether beneficiaries can pay the fec, and whether the service provides a broader benefit to the community. Fund Balance • The County wiil maintain as a floor an available fund balance equal to 14% of the General Fund budget at the end of each fiscal year, however, the County will strive to reach a tareet of 18%.