Discussion and possible action to commit the General Fund’s fund balance in compliance with Government Accounting Standards Board Statement Number 54 (GASB No. 54) and the Texas Local Government Code Sec. 111.070 emergency budget amendment for FY 2026 for the County’s Capital Improvement Program; and any other matters incident thereto.

County Capital Improvement Plan to utilize the following projects from General Fund’s fund balance:
Water Utility Fund acquisition of municipal water rights - $16,000,000*
County land and building acquisition project - $10,500,000
County Fairgrounds improvements series 2020 fund - $35,000,000

* The County Bond Counsel and Bond Advisors are preparing a reimbursement resolution for the acquisition of these municipal water rights.
 
Issue: The County’s Capital Improvement Program requires General Fund’s fund balance to be committed to acquire or complete the County’s capital improvement program in compliance with GASB No. 54, while the County adheres to the minimum twenty-five percent unassigned General Fund’s fund balance.   

Solution: Commit the General Fund’s fund balance to acquire or complete the County Capital Improvement Projects.

Result: The County Capital Improvement Program will continue as planned to meet capital projects.

The audited FY2024 General Fund’s fund equity balance is $106M with an anticipated increase of $6M.  

The County approved a minimum General Fund’s fund balance of twenty-five percent