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Port Orange council narrows fund-balance target to 23%–28% after storm-cost debate
Summary
The City Council set a new general-fund reserve policy of 23%–28% after debate about hurricane recovery costs, audit guidance and borrowing options; the measure passed 4-1.
The Port Orange City Council voted to set a new general-fund reserve policy of 23% to 28% on a 4-1 vote, replacing the council's prior target range of 30% to 35%.
Council members said the change is intended to free up some unallocated dollars for capital needs while maintaining a buffer for storms and other emergencies. City Manager Wayne Clark told the council the city's financial picture has changed since the policy was first adopted a decade ago and that the new range would still exceed basic guidance from the Government Finance Officers Association.
The council discussed how recent storms and debris-removal expenses shaped the decision. Clark and other staff outlined the recovery timeline for state and federal reimbursements and said debris collection has been returned more quickly in recent storm cycles because of improved contracting and documentation. Council members and staff also noted that the state maintains an emergency loan program the city could access as a backstop.
Mayor Stoltner and several council members questioned how quickly the city could be reimbursed after a major storm and what a realistic reserve should accomplish. One council member said a reserve should cover the likely immediate costs of debris removal and other near-term expenses while not 'stockpiling' taxpayer dollars that could be invested in deferred capital work.
By council direction, staff will revise the administrative reserve policy to the new 23%'to'28% range and return with implementation details in writing. The change is administrative policy and will be applied when the finance team closes the fiscal year and counts actual year-end balances.
Council vote: 4 in favor, 1 opposed.
Why it matters: The reserve policy is the city's primary defense against short-term revenue shocks and disaster-related expenses. Council members cited recent hurricanes and the $4 $7 million range in debris-removal costs seen in recent storms when framing the new target range.
What happens next: Finance staff will update policy documents and present options for how any funds above the new maximum should be allocated (capital projects, one-time maintenance, or other purposes). Staff said they will continue to pursue reimbursements from state and federal programs for past storm costs.
