Ulster County closed out 2021 with an $84.9 million unassigned fund balance which is $54.4 million above the County’s current policy limits.
Fund balance is the excess of net revenues over net expenses for the given fund. The fund balance is broken down into non-spendable, restricted, committed, and assigned funds (funds the County has an intended purpose to spend) and unassigned funds (funds for which no restriction has been imposed).
The current Ulster County Fund Balance Policy requires a report to the Legislature by May 1st annually with a plan for addressing any fund balance in excess of the policy limits, but does not specify who should create the report. Fund balance planning can enable the County to plan for contingencies while maintaining a strong bond rating. Prudent use of these funds should enable the County to avoid interest expenses and generate investment income.
