In an effort to address long-term needs of King George County, the County desires to follow sound financial management principles including guidelines and criteria established by the National Recognized Rating Agencies, bond insurance firms, and the credit markets in general.
Sound financial management principles include the establishment of designated and undesignated fund balances sufficient to maintain required cash flows, provide reserve for unanticipated capital expenditures, and provide funding for future capital needs.
Planning and Performance Compliance with the Capital Improvement Fund balance policy will be reviewed in conjunction with the budget process, audit process and upon changes made to the budget throughout the fiscal year.
Capital Fund Balance
Reservations/Committed per GASB.
Outstanding encumbrances (i.e., purchase orders, contracts and other commitments)at fiscal year-end.
Inventory balances at fiscal year-end which represent amounts invested in inventory and not available for appropriation.
Advances to other funds at fiscal year-end which are currently not available for appropriation.
Unreserved – designated/Assigned fund balance.
Reservations for funding of planned projects in a future period to reduce financial demands placed upon subsequent budgets. These specific designations are to indicate tentative plans for financial resource utilization in a future period.
For so long as the King George Wireless Authority’s 2008 Promissory Note is outstanding, a separate designation of at least $2 million will be maintained as is required in the financing documents for this financing. When this Note is paid off this $2 million will be available for appropriation for one-time needs.
Unreserved – undesignated fund balance
Balance shall be at all times at least equal to the maximum projected expenditures for existing annual debt service or $2,000,000, whichever is greater.