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From YouTube: Buncombe County's Financial Update
Description
At the November 7th, 2017 Board of Commissioners' Regular Meeting, Finance Director Tim Flora presented on Buncombe County's financial stability, our financial outlook, and issues that can occur on our horizon.
A
So
tonight
we're
gonna,
look
at
three
areas:
financial
stability,
financial
outlook
and
then
some
horizon
issues.
We
have
out
there.
So
this
first
section
financial
stability
will
be
the
part
that
I
sort
of
will
be
taking
on
the
road
and
I
apologize.
One
of
the
things
I
meant
to
do
tonight
was
have
a
list
of
have
some
cards
over
there,
where
you
could
ask
questions
that
we
would
get
to
later,
but
this
is
going
to
be
sort
of
a
broad
overview.
But
ultimately,
what
we'll
do
is
we'll
take
this
to
the
public.
A
So
we'll
start
with
a
financial
stability
and
our
financial
cycle.
Each
year
our
new
budget
is
created
and
adopted.
Continuing
the
cycle
of
earnings,
earning
and
spending
the
financial
cycle.
Fused
fuels
everything
the
county
does
like
spending.
Seventy
five
point:
three
million
dollars
in
education
funding
for
things
like
textbooks
and
funding
teacher
supplemental
pay
to
spending
sixty
three
point:
seven
million
for
public
edge
table
key
activities
like
fueling,
our
patrol
cars
and
ambulances
to
our
biggest
investment,
paying
employees,
salaries
spending
to
the
tune
of
nearly
130
million
dollars.
Last
year.
A
All
these
activities
rely
on
money
being
there
when
it
is
needed.
So
how
do
we
know
that
our
finances
are
healthy?
To
start?
We
should
look
at
how
well
we
work
within
our
budget.
At
the
end
of
last
year,
spending
came
in
four
point:
five
percent
under
budget,
so
that
was,
we
spent
two
hundred
ninety
nine
point:
five
million
dollars
of
a
three
hundred
thirteen
point:
six
million
dollar
budget.
A
So
how
does
that
look
over
time
for
perspective?
Our
spending
has
come
in
an
average
of
three
point:
nine
percent
under
budget
for
the
past
ten
years.
This
is
an
indicator
of
financial
health
and
financial
discipline,
but
what
about
the
future?
How
do
we
know
we
have
enough
resources
moving
forward,
Buncombe
County
keeps
track
of
all
its
regular
earnings
and
spending
in
the
general
fund.
This
is
like
the
county's
checking
account.
Money
is
constantly
flowing
in
and
going
out.
A
Last
year,
revenues
came
in
over
three
hundred
point:
five
million
dollars.
At
the
same
time,
we
spent
two
hundred
ninety
nine
point:
five
million
dollars.
These
cash
flows
are
very
different
at
any
given
time.
For
example,
we
had
nine
thousand
deposits
last
year,
but
we
wrote
68,000
checks
so
just
like
trying
to
use
a
straw
to
drink
directly
from
a
spigot
having
a
reservoir.
To
balance.
This
out
is
crucial.
A
More
than
fifty
four
percent
of
our
revenues
are
received
in
just
three
months,
and
those
three
months
are
November,
December
and
January.
Any
idea
what
that
revenue
is
Thanks
property
taxes,
that's
right.
So
last
year
we
received
one
hundred
and
sixty
million
dollars
in
that
period
of
time,
which
is
about
ninety
percent
of
our
total
tax
levy
compared
to
revenues.
Spending
is
more
evenly
distributed
throughout
the
year.
A
The
difference
between
the
two
creates
cashflow
gaps
that
must
be
balanced
out.
The
way
to
balance
that
out
is
by
using
fund
balance.
The
money
that
is
available
on
hand
and
represented
by
the
glass
is
what
we
consider
are
available
fun
balance
by
measuring
this.
We
can
see
if
our
checking
account
balance
is
too
low
or
even
too
high,
and
this
is
the
common
measure
used
by
the
state
and
others
to
gauge
financial
sufficiency,
so
available,
fund
balance
is
commonly
measured
as
a
percentage.
A
This
lets
us
compare
year
over
year
and
also
with
other
counties.
The
ratio
is
simple:
it's
just
taking
available
fund
balance,
dividing
it
by
the
total
expenditures
which
will
give
us
our
percent
available
percentage
of
available
fund
balance.
The
state
requires
us
to
have
at
least
eight
percent.
This
is
about
one
month
worth
of
operating
expense.
The
board's
policy
is
to
have
at
least
fifteen
percent
available
fund
balance,
and
this
is
about
two
months
worth
of
operating
cost.
A
A
A
In
total
we
have
56
million
dollars
in
available
fund
balance
and
while
56
million
dollars
may
seem
like
a
big
number,
we
have
already
allocated
some
of
that
amount
for
balancing
next
year's
budget.
Each
year,
Buncombe
County
uses
appropriated
funds
to
balance
next
year's
budget,
always
with
the
plan
to
save
this
amount
instead
of
using
it
and
so
for
fiscal
year.
2018
this
year
we
appropriated
fifteen
point
four
million
dollars
to
budget
our
to
balance
our
budget.
So
how
does
this
measure
up
with
other
counties?
A
Bunkum
available
fund
balance
is
lower
than
the
average
compared
to
the
ten
largest
NC
counties,
so
this
year
we're
at
eighteen
point
eight.
The
average
of
the
top
ten
counties
is
about
25
percent
statewide
you'll
see
a
pretty
wide
spread
between
the
hundred
counties.
You'll
see
that
it's
the
lowest
is
nine
percent
all
the
way
up
to
sixty
five
percent.
A
The
spread
is
much
smaller,
with
our
peer
group
that
being
counties
with
populations
over
two
hundred
thousand,
and
where
do
we
fit
our
status?
We
are
the
lowest
of
our
peer
group
actually,
and
so
these
numbers
are
2016
numbers
because
we've
just
finished
it
up
this
year,
but
we
are
the
lowest
17
percent.
17
point
three:
eight
percent
the
highest
is
34
percent,
which
is
Mecklenburg
County.
We
are
in
good
company,
Wake
County
is
I,
think
17.7%.
So
just
right
above
us.
A
So
we're
on
the
lower
end,
but
this
is
not
necessarily
a
bad
thing.
We
were
able
to
do
this
because,
with
stable,
diverse
economy,
a
geographic
location
that
is
lower
risk
of
natural
disaster,
and
we
have
solid
financial
and
solid
financial
history
and,
from
my
perspective,
I
believe
that
we
have
the
right
balance.
A
What
are
some
other
things
that
we
monitor?
So
the
budget
and
finance
teams
are
always
tracking
financial
indicators,
policy,
adherence
projections
and
every
dollar
we
spend,
and
so
we
have
many
financial
indicators
that
we
look
at
on
a
regular
basis
and
we
really
strive
to
adhere
to
our
policies
or
many
are
we
do
strive
to
adhere
to
all
our
policies,
investments,
debt
policies,
our
fund
balance
policies.
We
also
look
at
key
financial
indicators.
A
A
Another
good
indicator
of
financial
stability
is,
through
our
credit
rating
agencies
and
in
January
of
2017
Moody's
evaluated
and
upgraded
us,
giving
us
the
highest
credit
rating
possible,
and
that
now
gives
us
the
highest
credit
rating
triple-a
ratings
from
both
of
our
credit
agencies
and
I
will
add
that
of
the
650
to
North,
Carolina
cities
and
counties.
There
are
only
17
of
those
governments
that
have
both
triple-a
ratings
from
both
of
those
agencies
which
puts
us
in
the
top
3%.
A
All
of
this,
in
my
opinion,
points
to
Buncombe
County
having
a
solid
financial
position
that
will
support
our
core
services
and
perrault
and
priorities
for
our
community
now
and
in
the
future.
So
looking
for
looking
at
next
year,
so
next
year
we
have
a
budget
of
about
330
plus
million
dollars
and
if
you
just
look
at
expenditures
evenly
destroyed
evenly
distributed,
we've
spent
so
far
at
the
end
of
October,
one
hundred
and
five
hundred
six
million
dollars.
A
If
you
extrapolate
that
out-
and
you
look
at
averages
over
the
last
five
years,
roughly
we
project
that
this
year,
we
will
end
the
budget
year
with
expenditures
of
right
around
three
hundred.
Sixteen
million
dollars-
I
will
say
this
is
really
q1
projections
almost
at
this
point,
this
early
in
the
ball
game
were
kind
of
spitballing
it,
but
based
upon
a
five-year
trend
of
how
we've
spent
things
in
the
past,
we
sort
of
feel
like
that.
We're
gonna,
we'll
land
somewhere
around
three
hundred
sixty
million
dollars.
A
A
A
Actually,
while
you
would
think
it
would
go
up,
actually
the
available
fund
balance
number
we
are
projecting
to
actually
go
down
to
between
seventeen
and
eighteen
percent,
and
a
lot
of
that
is
gained
is
because
of
that
formula
where
you
have
to
divide
the
available
fund
balance
by
the
size
of
the
budget.
So
it's
that
denominator
that
is
affecting
that
calculation.
So,
even
though
we
may
project
an
increase,
the
available
fund
balance
percentage
as
projected
could
go
down
slightly.
A
So
I've
always
had
the
goal
to
providing
quarterly
financial
information,
but
never
really
the
chance,
and
so
with
the
county
managers,
welcomed
emphasis
on
more
open
and
available
information.
Tonight,
I
would
like
to
commit
to
you
that
moving
forward,
we
will
be
providing
you
and
the
public
with
quarterly
financial
updates.
A
It
is
my
belief
that
these
recurring
updates
will
provide
more
useful
information,
will
be
better
able
to
see
how
our
projections
improve
from
quarter
to
quarter
and
ultimately
be
providing
you
better
information,
because
it
is
our
belief
that
better
information
will
lead
to
better
decisions.
So
this
is
something
that
I've
discussed
with
the
budget
departments
to
discuss
with
the
county
manager,
something
I'm
kind
of
excited
about
that
we
will
be
preparing
preparing
quarterly
updates.
A
These
will
be
updates
as
well,
that
we
will
plan
to
publish
on
the
website
and
finally,
some
of
the
horizon
issues
that
we're
looking
at
so
we're
constantly
looking
at
looking
what's
out
there,
what
threats
we
might
have
to
our
revenue
streams,
and
so
just
want
to
share
a
few
things
that
we
were
keeping
our
eye
on
one
issue.
Short-Term
issues
is
some
piece
at
funding,
which
is
our
public
safety
answering
point
currently
from
our
nine
eleven
eleven
million
dollars
a
year
in
reimbursements
for
our
dispatch
operation
for
infrastructure.
A
They
are
looking
at
redefining
the
way
we
look
at
a
dispatch
center,
and
so
there
are
potential
threats
of
cutting
our
reimbursement
by
up
to
two-thirds.
We're
not
at
this
point
overly
concerned
about
that.
But
it
is
something
on
a
horizon
that
we
we
are
wanting
to
take
a
look
at
and
just
make
sure
we're
monitoring
and
working
hard
to
take
care
of
that
classroom.
Size
mandates,
certainly
something
that
we
are
definitely
interested
in
education.
Spending
in
our
offer
fund
really
is
25
to
30%
of
our
budget.
A
So
any
changes
the
state
may
make
in
in
regards
to
that
mandate.
Will
affect
could
affect
majorly
that
revenue
stream,
and
that
is
the
the
seventy
five
point-
three
million
dollars
that
we
spent
last
year
that
it
really
was
just
operating,
that's
not
to
say
the
effect
it
it
could
potentially
have
on
our
capital
funding
as
well
long
term
we're
looking
at
health
care
costs,
post
employment
benefits.
We
all
know
that
health
care
costs
continue
to
increase
and
I
will
say
that
last
year
we
actually
had
a
slight
decrease
in
the
claims.
A
However,
we
are
self-insured
and
while
we
got
a
slight
decrease
last
year,
that
was
almost
an
anomaly.
We
are
anticipating
that
being
a
trend
and
considering
the
issues
we
have
right
now
continuing
to
go
on
with
our
Blue
Cross
Blue
Shield
a
mission
hospital.
We
are
certainly
keeping
an
eye
on
where
our
health
health
care
costs
will
be
going
also
long-term
federal
tax
reform.
Just
this
past
week
we
got
some
new
proposals
out
there.
A
One
of
the
things
is
eliminating
advanced
refunding
''s,
which
is
our
ability
to
refinance
some
of
that
debt,
and
so
we
actually
were
looking
at
some
potential
net
present
value
savings
of
about
10
million
dollars
on
some
refinery
fundings
if
that
law,
if
those
laws
pass
those
reforms
pass
and
that
option
is
no
longer
available,
and
so
when
I
say
10
million
dollars,
net
present
value,
that
is,
that
equates
to
about
two
or
three
hundred
thousand
dollars
a
year
in
savings.
So
also
a
part
of
our
plans
is
to
continue
to
promote
our
transparency.
A
We
want
to
continue
developing
new
dashboards
and
informational
tools.
We
have
lots
of
ideas
and
lots
of
things
and
the
hopper
that
we're
trying
to
work
up
and
get
out
there
to
the
public
we
are
are
we're
in
our
third
year
of
a
three-year
implementation
of
a
new
financial
software
system.
The
system
we
have
now
is
12
13,
14
15
years
old.
So
there
are
many
limitations
with
that
system.
We
are
looking
forward
to
the
new
financial
system.
We
think
it's
going
to
allow
us
to
do
a
lot
of
other
things
also
on
the
list.
A
In
a
yield
to
mr.
Elton,
we
are
still
having
an
online
checkbook
in
the
works.
This
is
something
that
we
have
been
looking
at
for
some
time.
The
old
financial
software
system
did
the
old
financial
software
system
really
didn't.
Allow
us
to
do
it.
There
is
a
state
law
out
there
that
requires
us
to
do
this.
I
will
say,
though,
that
most
all
governments
across
the
state
are
having
troubles.
Implementing
this.
There
are
some
redaction
and
sensitivity
issues
with
some
information.
A
That
is,
we
are
not
able
to
publish
and
just
the
way
some
of
those
systems
have
been
set
up.
It
is
just
hard
to
get
that
stuff
redacted
before
we
get
it
out
there,
and
so
even
the
state
of
North
Carolina
hasn't
hasn't
got
there
yet,
but
we
are
hopeful
that
within
the
next
year,
so
we
are
gonna
have
something
out
there
that
will
publish
all
of
our
checkbook
activity,
also
plans.
Our
plans
are
to
be
more
accessible.
We
want
to
better
communicate
with
our
departments.
A
We
want
to
be
more
accessible
one
on
one
availability
with
you,
the
commissioners,
you
know
I
work
for
you,
I
need
to
be
a
resource
for
you
me
and
my
staff.
We
look
forward
to
working
with
you
and
engaging
with
you
to
hear
what
your
knees
and
your
concerns
are
to
make
sure
that
we
can
address
those
and
then
as
well,
providing
you
that
quarterly
financial
update
for
the
board
and
the
public
and
finally
or
as
well,
we
want
to
engage
in
new
ways.
A
We
feel,
like
the
finance
department,
really
wants
to
take
a
more
active
role
in
many
of
the
programs
we
we
are
currently
working
with
that
the
county
is
currently
involved
with.
We
want
to
provide
more
support
for
economic
development.
We
want
to
advise
and
assist
with
capital
projects.
Finance
is
just
not
a
once
and
done
kind
of
thing.
It
is
something
that
we
should
be
involved
in
at
the
beginning,
during
and
at
the
end
of
a
project
process.
A
So
so
we
we
really
plan
to
engage
more
in
those
activities
and
also
we
also
want
to
develop
better
ways
around
our
education
funding.
Again,
it's
such
a
huge
part
of
our
our
funding
and
sometimes
I
just
feel
like.
We
don't
give
it
the
the
attention
that
it
deserves
and
finally
I
want
to
just
share
some
additional
financial
resources
out
there,
where
you
can
continue
to
get
more
in
Meishan,
like
I
said
earlier,
our
annual
financial
report
will
be
out
probably
finalized
within
the
next
couple
weeks.
I
say
it's
going
to
be
published.
A
Probably
within
the
month,
I
will
say
there
at
the
bottom,
the
public
record
site
public
records,
Buncombe,
County,
org
fin
report.
You
can
go
to
that
site
if
you
all
are
ever
interested.
We
have
every
audited
financial
statement
since
1922
listed
on
that
site,
with
the
exceptions
of
I,
believe
it's
1936
and
1965,
so
great
information,
great
reading
material.
A
If
there
is
anyone
out
there
who
might
have
happened
to
have
that
1936
or
1965
financial
statement,
I
would
really
appreciate
if
you
would
pass
that
along
to
me,
I
want
to
also
promote
our
transparency
site
stuff
that
we're
continue
to
put
things
out
there.
We've
got
great
information
on
the
budget,
our
debts,
salaries,
the
org
charts
our
capital
project.
So
welcome
you
to
visit
that
site
and
finally,
one
of
the
other
things
I
would
like
to
highlight
is
the
local
government.
A
Commission
of
the
North
Carolina
state
treasurer's
department
has
a
fiscal
analysis
tool
that
is
really
useful
for
the
public
and
for
you,
the
board,
where
you
can
go
all
of
the
information
that
we
do
from
our
financial
statements
has
to
be
posted
at
online,
and
so
we
have
to
submit
information
in
a
standardized
format
to
the
state
they
take
all
of
that
information
and
they
have
a
giant
database
up
there
and
at
any
you
can
go
online
and
for
any
year
I
think
I
know
it's
been
around.
You
can
go
back
at
least
five
years.
A
I
know
that,
but
you
can
compare
any
government
to
another
government
up
to
I
think
five
governments
at
a
time,
but
that
is
a
really
useful
tool.
So
I
really
would
encourage
you
to
go
to
and
use
that
so
a
resource
if
possible.
If
you
don't
know
how
to
use
it
and
you
need
to
sit
and
talk
through
how
it
works
I'm
more
than
happy
to
sit
with
any
constituent
or
any
board.
Member
or
anyone
who
would
be
interested
in
how
to
use
that
tool.