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Finance committee adopts $2.2 million fund‑balance floor with inflation adjustment; supplemental transfer to be considered May 5
Summary
The finance committee recommended a general fund balance floor of $2,200,000 with a 3–5% annual inflation adjustment; committee members said the guideline will be reviewed annually and warned that the fund depends on timely property‑tax collections. A supplemental transfer will be brought to council on May 5.
Members of the finance committee reported they had finalized a general‑fund transfer guideline that sets a fund‑balance floor of $2,200,000 and adds a 3–5% annual inflation adjustment. The committee agreed to review the floor annually during the budget process and instructed administration to present supplemental material at the next council meeting.
The committee also emphasized that the floor and any future supplemental transfers depend on property‑tax collections and warned future councils that delays or reductions in tax receipts could quickly deplete the fund. Committee members moved to adopt the guideline with amendments; the committee chair said the final copy is on council members' desks and that administration will provide requested calculations.
Council was advised that a supplemental transfer ordinance will appear on the May 5 agenda for council consideration.
