FY 2019 Tax Rate Change Scenarios 6/21/2018

Below are estimated changes in fund balance and available fund balance based on various levels of
change in the ad valorem tax rate for Buncombe County. Inputs and Assumptions
Below are variables used for change scenarios. Updates to
Tax Rate Appropriated Change in Total Fund Available Fund Available Fund variables here will also update calculations
Change Tax Rate Fund Balance Fund Balance Balance Balance Balance %
2.00 54.90 1,223,134 (726,041) 78,035,741 55,423,913 17.49%
1.75 54.65 2,155,088 205,913 77,103,788 54,491,960 17.20% FY 2019 Budget Variables
1.50 54.40 3,087,041 1,137,866 76,171,834 53,560,006 16.90% Budget: Total Expenditures & Transfers Out 316,861,799
1.25 54.15 4,018,995 2,069,820 75,239,881 52,628,053 16.61% Actual: Total Expenditures & Transfers Out 316,861,799
1.00 53.90 4,950,948 3,001,773 74,307,927 51,696,099 16.32% Budget: Appropriated Fund Balance 8,678,762
0.75 53.65 5,882,902 3,933,727 73,375,974 50,764,146 16.02% Actual: Net Change in Fund Balance** 6,729,587
0.50 53.40 6,814,855 4,865,680 72,444,020 49,832,192 15.73% Value of 1 Cent 3,727,814
0.25 53.15 7,746,809 5,797,634 71,512,067 48,900,239 15.43% Budgeted in Contingency 1,949,175
0.00 52.90 8,678,762 6,729,587 70,580,113 47,968,285 15.14% FY 2019 Balance Sheet Variables*
-0.25 52.65 9,610,716 7,661,541 69,648,160 47,036,332 14.84% Cash, Investments, and Restricted Cash 69,886,139
-0.50 52.40 10,542,669 8,593,494 68,716,206 46,104,378 14.55% Total Liabilities 12,117,244
-0.75 52.15 11,474,623 9,525,448 67,784,253 45,172,425 14.26% Miscellaneous Liabilities 599,355
-1.00 51.90 12,406,576 10,457,401 66,852,299 44,240,471 13.96% Unearned Revenues 2,471,668
-1.25 51.65 13,338,530 11,389,355 65,920,346 43,308,518 13.67%
-1.50 51.40 14,270,483 12,321,308 64,988,392 42,376,564 13.37% Prior Years
-1.75 51.15 15,202,437 13,253,262 64,056,439 41,444,611 13.08% FY 2017 Year End Fund Balance 77,584,700
-2.00 50.90 16,134,390 14,185,215 63,124,485 40,512,657 12.79% FY 2018 Projected Year End Fund Balance 77,309,700

Summary FY18 Fund Balance Available

These assumptions are heavily dependent on projections for FY18 year end and the FY19 budget. (Calculated for Reference) 54,697,872
Note: The Government Finance Officers Association (GFOA) recommends at a minimum that general-
purpose governments maintain unrestricted fund balance of no less than two months of operating *Default balance sheet liability variables equal to FY17 year end. Default
cash and investments variable equal to FY17 year end. Table
expenditures (16.67%). GFOA Best Practice - Fund Balance Guidlines for the General Fund, pg 2.
calculations adjust cash and investments by subtracting total change in
fund balance based on tax rate.
** Estimates saving contingency amount
FY 2020 Tax Rate Change Scenarios - 2% Expenditure Increase // 2% Ad Valorem and Sales Tax 6/21/2018
Below are estimated changes in fund balance and available fund balance assuming a 52.90 tax rate, a
2% increase in expenditures, a 2% increase in Ad Valorem and Sales Tax revenues, and an additional Inputs and Assumptions
increase in property tax revenues of $8.1M due to the sale of Mission Hospital. Below are variables used for change scenarios. Updates
Tax Rate Appropriated Change in Total Fund Available Fund Available Fund to variables here will also update calculations
Change Tax Rate Fund Balance Fund Balance Balance Balance Balance %
2.00 54.90 (5,264,934) (5,264,934) 75,845,047 53,233,219 16.47%
1.75 54.65 (4,314,341) (4,314,341) 74,894,454 52,282,626 16.18% FY 2020 Budget Variables
1.50 54.40 (3,363,749) (3,363,749) 73,943,862 51,332,034 15.88% Budget: Total Expenditures & Transfers Out 323,199,035
1.25 54.15 (2,413,156) (2,413,156) 72,993,269 50,381,441 15.59% Actual: Total Expenditures & Transfers Out 323,199,035
1.00 53.90 (1,462,564) (1,462,564) 72,042,677 49,430,849 15.29% Budget: Appropriated Fund Balance 2,339,807
0.75 53.65 (511,971) (511,971) 71,092,084 48,480,256 15.00% Actual: Net Change in Fund Balance** 2,339,807
0.50 53.40 438,621 438,621 70,141,492 47,529,664 14.71% Value of 1 Cent 3,802,370
0.25 53.15 1,389,214 1,389,214 69,190,899 46,579,071 14.41%
0.00 52.90 2,339,807 2,339,807 68,240,306 45,628,478 14.12% FY 2020 Balance Sheet Variables*
-0.25 52.65 3,290,399 3,290,399 67,289,714 44,677,886 13.82% Cash, Investments, and Restricted Cash 63,156,552
-0.50 52.40 4,240,992 4,240,992 66,339,121 43,727,293 13.53% Total Liabilities 12,117,244
-0.75 52.15 5,191,584 5,191,584 65,388,529 42,776,701 13.24% Miscellaneous Liabilities 599,355
-1.00 51.90 6,142,177 6,142,177 64,437,936 41,826,108 12.94% Unearned Revenues 2,471,668
-1.25 51.65 7,092,769 7,092,769 63,487,344 40,875,516 12.65%
-1.50 51.40 8,043,362 8,043,362 62,536,751 39,924,923 12.35% Prior Years
-1.75 51.15 8,993,955 8,993,955 61,586,158 38,974,330 12.06% FY 2017 Year End Fund Balance 77,584,700
-2.00 50.90 9,944,547 9,944,547 60,635,566 38,023,738 11.76% FY 2018 Projected Year End Fund Balance 77,309,700
FY 2019 Projected Year End Fund Balance 70,580,113
Summary FY18 Fund Balance Available
These assumptions are heavily dependent on projections for FY18 year end and the FY19 budget, and the (Calculated for Reference) 47,968,285
Board of Commissioners adopting a 52.9 cent tax rate.
Note: The Government Finance Officers Association (GFOA) recommends at a minimum that general- *Balance sheet variables are estimated based on FY2019 estimates.
Table calculations adjust cash and investments by subtracting total
purpose governments maintain unrestricted fund balance of no less than two months of operating
change in fund balance based on tax rate.
expenditures (16.67%). GFOA Best Practice - Fund Balance Guidlines for the General Fund, pg 2.
Assumes additional property taxes of $8.1M from Mission sale

Assumes 2% increase in sales and property taxes

Assumes 2% growth in expenditures

FY 2020 Tax Rate Change Scenarios - 1% Expenditure Increase // 2% Ad Valorem and Sales Tax 6/21/2018
Below are estimated changes in fund balance and available fund balance assuming a 52.90 tax rate, a
1% increase in expenditures, a 2% increase in Ad Valorem and Sales Tax revenues, and an additional Inputs and Assumptions
increase in property tax revenues of $8.1M due to the sale of Mission Hospital. Below are variables used for change scenarios. Updates
Tax Rate Appropriated Change in Total Fund Available Fund Available Fund to variables here will also update calculations
Change Tax Rate Fund Balance Fund Balance Balance Balance Balance %
2.00 54.90 (7,604,741) (8,433,552) 79,013,665 56,401,837 17.62%
1.75 54.65 (6,654,148) (7,482,959) 78,063,072 55,451,244 17.33% FY 2020 Budget Variables
1.50 54.40 (5,703,555) (6,532,366) 77,112,479 54,500,651 17.03% Budget: Total Expenditures & Transfers Out 320,030,417
1.25 54.15 (4,752,963) (5,581,774) 76,161,887 53,550,059 16.73% Actual: Total Expenditures & Transfers Out 320,030,417
1.00 53.90 (3,802,370) (4,631,181) 75,211,294 52,599,466 16.44% Budget: Appropriated Fund Balance -
0.75 53.65 (2,851,778) (3,680,589) 74,260,702 51,648,874 16.14% Actual: Net Change in Fund Balance** (828,811)
0.50 53.40 (1,901,185) (2,729,996) 73,310,109 50,698,281 15.84% Value of 1 Cent 3,802,370
0.25 53.15 (950,593) (1,779,404) 72,359,517 49,747,689 15.54%
0.00 52.90 - (828,811) 71,408,924 48,797,096 15.25% FY 2020 Balance Sheet Variables*
-0.25 52.65 950,593 121,782 70,458,331 47,846,503 14.95% Cash, Investments, and Restricted Cash 63,156,552
-0.50 52.40 1,901,185 1,072,374 69,507,739 46,895,911 14.65% Total Liabilities 12,117,244
-0.75 52.15 2,851,778 2,022,967 68,557,146 45,945,318 14.36% Miscellaneous Liabilities 599,355
-1.00 51.90 3,802,370 2,973,559 67,606,554 44,994,726 14.06% Unearned Revenues 2,471,668
-1.25 51.65 4,752,963 3,924,152 66,655,961 44,044,133 13.76%
-1.50 51.40 5,703,555 4,874,744 65,705,369 43,093,541 13.47% Prior Years
-1.75 51.15 6,654,148 5,825,337 64,754,776 42,142,948 13.17% FY 2017 Year End Fund Balance 77,584,700
-2.00 50.90 7,604,741 6,775,930 63,804,183 41,192,355 12.87% FY 2018 Projected Year End Fund Balance 77,309,700
FY 2019 Projected Year End Fund Balance 70,580,113
Summary FY18 Fund Balance Available
These assumptions are heavily dependent on projections for FY18 year end and the FY19 budget, and the (Calculated for Reference) 47,968,285
Board of Commissioners adopting a 52.9 cent tax rate.
Note: The Government Finance Officers Association (GFOA) recommends at a minimum that general- *Balance sheet variables are estimated based on FY2019 estimates.
Table calculations adjust cash and investments by subtracting total
purpose governments maintain unrestricted fund balance of no less than two months of operating
change in fund balance based on tax rate.
expenditures (16.67%). GFOA Best Practice - Fund Balance Guidlines for the General Fund, pg 2.
Assumes additional property taxes of $8.1M from Mission sale

Assumes 2% increase in sales and property taxes

Assumes 1% growth in expenditures