Montgomery County advisers recommend raising reserve target to 13% and adding two named reserves

Jennifer Derrickson, senior vice president at Davenport, presented an updated reserve policy study to the Montgomery County Government Operations and Fiscal Policy Committee recommending changes to how the county holds and uses its fund balance. Derrickson said the county should maintain its current combined unrestricted general fund balance and revenue stabilization fund policy but eliminate the mandatory annual contribution to the RSF and establish two new targeted reserves — a 2% risk mitigation reserve and a 1% capital reserve — bringing the recommended policy level to 13% of adjusted governmental revenues. “The 1 change that we're recommending though for that, particular, fund, reserve is that you'd have this mandatory annual contribution to the RSF. And we're suggesting that that would should be removed,” Derrickson said.

The recommendation is aimed at…