Mister Fearborn, a city staff member, told the Raymore City Council at its Aug. 4 work session that staff will bring a resolution next week to reduce the restricted fund-balance percentage across operating funds from 20% to 17.5%.

Fearborn said the 20% figure has been set by council resolution since 2016 and that the Government Finance Officers Association (GFOA) recommends general reserves in the 5–15% range depending on a municipality’s financial condition. "Every single year since 2016, we've withheld that 20%," he said. "For the last several years, as things have been going well ... I think I am comfortable recommending ... that we reduce that 20% to 17 and a half percent."

The reduction, Fearborn said, would increase available fund balance for one-time projects. Using preliminary numbers for the coming year, he said the general fund would have about $361,000 more available for projects and the parks fund about $52,480; he emphasized the figures are preliminary. "In the general fund ... we could put to projects" the difference between the restricted and available balances, he said.

Council members asked whether the change would be short term or permanent. "Are you thinking this will be short term while we kind of know we're in a place where we need to fix roads ... or are you thinking long term?" Council Member Sonia asked. Fearborn replied he viewed 17.5% as a long-term level he would feel comfortable with while remaining conservative and cited the city’s recent road spending plans as the intended use of the available funds.

Several council members raised concerns about the public safety sales tax fund, which is an operating fund and therefore subject to the same percentage calculation. Mayor (unnamed in the transcript) and others stressed the public safety sales tax remains dedicated to police and public safety purposes. "That shouldn't even enter into this particular conversation, should it? Because that is dedicated toward public safety," one council member said; staff responded that the fund would still hold a 17.5% restricted balance and that any available dollars in that fund would remain for public-safety uses such as one-time equipment or officer-related expenses.

Fearborn said the two-month reserve benchmark (recurrent operating expenses) equates to about 16% under his calculations, so the 17.5% proposal sits above that threshold and above the 15% top end of the GFOA range he cited. He asked for council feedback and said he would bring a formal resolution to cancel the earlier resolution and establish 17.5% if the council gave him the go-ahead.

No formal council vote on the proposed percentage took place at the work session; staff said they would present a resolution for council action at the next meeting.

The discussion also noted two other operating funds (enterprise fund and the public safety sales tax fund) would be affected by the percentage change and that council has previously prioritized using available fund balance for roads.

Looking ahead, Fearborn said he expects staff to present a resolution next week if council members indicated support during the session. "Next week, if you all give me the thumbs up, I'd like to bring a new resolution to you all, canceling out the first resolution and establishing 17 and a half percent in the operating funds," he said.

Details such as the preliminary dollar amounts and the final text of any brought resolution were described as preliminary and subject to formal action at a future meeting.