Finance committee debates how to use rising fund balance; staff to present 10-year forecast

The Village of Waunakee Finance Committee spent an extended portion of its July 21 meeting discussing possible changes to budget policies after staff and the auditor showed the villages unassigned general fund ratio at about 28.9 percent. Renee, a village staff member, advised the committee the board previously declined to change its 20-to-25 percent unassigned fund balance policy but asked whether the village should adopt a transparent process for using recurring surpluses. She said the Government Finance Officers Association recommends a clear process; staff offered options including using surpluses for one-time investments, moving funds to capital improvements or equipment replacement funds, or setting aside funds for possible land-acquisition or lease programs. Committee members expressed differing philosophies. Some members, including Tom Wilson and Jack Heinemann, cautioned that using reserves to accelerate projects can shift costs to current taxpayers rather than spreading them across the useful life of assets; others said limited, one-time uses such as buying equipment or moving capital projects forward could be reasonable. Committee members sought more detailed, comparable data on how other municipalities report assigned and unassigned fund balances. Renee said staff would arrange a deeper briefing: Ehlers will present the villages 10-year financial management plan to the finance committee at an upcoming meeting, showing projected levy-limit exposure and long-term impacts. No formal policy change was adopted; the discussion will continue after the forecast is presented.