County board approves $50,000 GFOA contract for fund balance reserve study amid conflict-of-interest questions

The Jefferson County Board of Supervisors authorized a $50,000 contract with the Government Finance Officers Association (GFOA) to conduct a fund balance reserve study, approving the resolution by voice vote with one supervisor recorded as voting no.

Supervisor Mark Jones introduced the resolution explaining the county seeks a tailored assessment of its reserve needs and risks. The study will review internal and external risk exposures, insurance coverage and alternate funding sources and deliver a recommended reserve amount and an accompanying risk model, Jones said. The GFOA proposal quoted a total fee of $50,000, which County staff said is divided into three phases.

When asked how GFOA arrived at the $50,000 fee, county staff (Mark, finance director) said the proposal is an estimate based on projected hours and three phases: kickoff and preliminary risk analysis ($15,000), a full risk‑model analysis ($25,000) and a final report with an Excel risk model ($10,000). The proposal included an optional on‑site presentation for an additional $5,000; staff told the board the county declined the optional on‑site presentation.

Supervisor Lund questioned whether hiring GFOA — an organization that issues best‑practice guidance and also would be paid for providing the study — posed a conflict of interest. The finance director responded that GFOA's best practices are voluntary and the county sought an independent, tailored assessment to defend current reserve levels to taxpayers. The finance director said he expects the study could recommend a reserve level somewhat less than the county's current goal but said the intention is to have defensible, risk‑based guidance.

The Finance Committee had recommended the contract. The board approved the contract by voice vote; Mr. Gulick was recorded as voting no.