Jefferson County approves $50,000 contract with GFOA for fund balance reserve study

The Jefferson County Board of Supervisors approved a resolution authorizing the county administrator to contract with the Government Finance Officers Association (GFOA) to perform a fund balance reserve study at an estimated cost of $50,000.

The study will use a risk-based approach, the board heard, to recommend an appropriate county fund balance reserve level based on an assessment of risks, insurance coverage and alternate funding sources. Supervisor Jones, who sponsored the resolution, told the board the county adopted a fund balance policy in 2010 that set a minimum of two months of general fund expenditures, with a goal of three months; the GFOA study would tailor a recommendation to Jefferson County’s risk profile.

Nut graf: County staff said the $50,000 proposal is broken into three phases: a $15,000 project kickoff and preliminary risk analysis, a $25,000 detailed risk analysis and modeling, and a $10,000 final report and Excel risk model. An optional on-site presentation for an additional $5,000 was declined. Finance staff said the proposal is based on GFOA’s estimated hours and a quoted $300-per-hour rate.

Discussion and dissent: Supervisor Lund raised a potential conflict of interest, noting the GFOA both issues best-practice guidance and would receive the contract. County staff responded that GFOA’s best practices are optional and that the county sought a qualified provider; the sponsor said the expected result may be a recommended reserve lower than the county’s current goal, but the purpose is to be able to defend reserve levels to taxpayers. The resolution passed in a voice vote; Mr. Gulick recorded a “no.”

Ending: Staff will proceed with contracting if the administrator executes the agreement; the county previously approved a $50,000 budget adjustment on Dec. 10, 2024, to fund the work.