Council reviews financial management policy rewrite; staff proposes 25%–45% reserve rule and grant‑match approval triggers

Stonecrest staff presented a rewritten financial management policy to the council on March 10 that simplifies fund definitions, centralizes procurement references, sets reserve targets, and proposes clearer grant‑application rules.

Finance staff said the draft clarifies standard budget definitions — for the general fund, special revenue funds and capital project funds — using guidance from the Government Finance Officers Association and the Georgia Municipal Association. The presentation removed procurement language that had appeared in multiple policies and directed readers to the purchasing policy and P‑card policy for procurement procedures.

Staff proposed a reserve policy that sets a minimum fund balance of 25% and a maximum reserve target of 45%; once reserves exceed 45% staff said departments may submit capital project proposals to the city manager for approval and subsequent council consideration. Finance staff also explained the budget development process: departments meet with finance staff, the draft is reviewed by the finance committee, and a combined document is presented to council for review and adoption.

On grant administration, the council asked staff to add explicit language that staff must obtain council approval before applying for grants that would require the city to provide matching funds. Staff said smaller grants without matching obligations may be applied for at the department level with city manager review, but grant awards will continue to be presented to the council for acceptance.

Councilmembers praised the simplification and asked staff to include charter budget calendar references and to add itinerary and documentation language where relevant. Staff will return the revised financial management policy for council consideration at the next regular meeting.