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Revision to Budget Policy 29-01 Regarding Capital Expenditures for Reserve Calculations
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BRIEF OVERVIEW
During previous BOCC meetings, the Board discussed whether capital projects should or shouldn’t be included in the calculation of reserves. This update provides clarification derived from that discussion, along with other minor formatting and updates to the document.
There is also a separate reference that departments may maintain a value within a project expenditure line item as a contingency value for applicable projects to align with the Procurement Policy update.
FINANCIAL IMPACT
The financial impact is associated with the perceived value of reserves derived from how that calculation is quantified. Similarly, the contingency value impacts the budget amount being maintained for projects within a specific line item, while maintaining less reserves associated with not including capital outlay in the reserve requirement calculation. It is a policy decision that impacts reserve and contingency values.
LEGAL NOTE
The Board is authorized to act on this matter pursuant to Chapter 125, Florida Statutes.
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RECOMMENDATION
It is recommended the Board review and approve the revisions to Board Policy 29-01, and provide feedback on any additional changes desired.