Goochland audit and finance committee recommends lowering assigned fund-balance target to 35%

The Audit and Finance Committee of the Goochland County Board of Supervisors recommended lowering the county's assigned fund-balance policy from the current 60% threshold to a 30–40% range with a 35% target and asked staff to bring that recommendation to the full Board of Supervisors for action.

The committee's review, presented by committee staff, examined the policy set in December 2023 that established a 60% available fund-balance target (assigned plus unassigned fund balance measured as a percentage of the next year's budget). "We first put it in front of the board of supervisors ... which set a threshold of 60% for the reserves," said Mr. Parker, a county staff member who led the discussion. He told the committee the higher threshold had been set to demonstrate conservatism to bond raters but that consultants later advised the 60% level was not required to maintain the county's top credit rating.

Why it matters: committee members said the 60% threshold limited the county's flexibility to use fund balance for capital improvement projects (CIP) and other one-time needs, while staff and advisers said…