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Alpena City Council raises minimum unrestricted fund balance to 15%
Summary
The Council voted to update City Council Policy Statement (CPS) No. 55, raising the minimum unrestricted fund balance from 10% to 15% of expenditures and setting a maximum of 25%. City manager Rachel Smolinski said staff supports the change.
The Alpena City Council on June 16 voted to amend council policy to increase the city’s minimum unrestricted fund balance from 10% to 15% of expenditures and to set a maximum of 25%.
City Manager Rachel Smolinski told the council she had revised CPS No. 55 at the mayor’s request to “reflect a minimum unrestricted fund balance of 15% of expenditures to a max of 25% of expenditures,” and that “staff does support this recommendation.”
The change was presented as a clean and a marked-up version of the policy and the revised policy language was incorporated into CPS No. 55. A council motion to adopt the update was made and seconded; the council approved the change by voice vote.
Council members said they had no further questions during the discussion portion, and staff confirmed the updated policy language was intended to provide additional clarity for fund-balance targets.
The policy change will guide the city’s budgeting and reserve practices going forward; council members indicated they expect staff to follow the revised percentages when preparing future budgets and reporting fund-balance status to the council.
Council members voted to adopt the updated CPS No. 55 during the meeting; staff will publish the policy as amended and use it in upcoming financial reports.
