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Eau Claire County Board adopts fund balance policy with $15 million target; clarifies contingency separation for 2026
Summary
Supervisors approved a fund balance policy that sets a target based on levy and local sales tax, formalizes purposes for the unassigned fund balance and separates contingency as a distinct item for 2026; the resolution passed 27–0–2.
The Eau Claire County Board of Supervisors approved a fund balance policy that establishes a target unassigned fund balance—discussed by staff as $15,000,000—and clarifies how those reserves should be used. The board approved the resolution (identified on the agenda as 25-26/006) by a recorded vote of 27 yes, 2 absent.
Supervisor Pagonis explained that the policy was developed iteratively, beginning with text from Supervisor Zook and then refined with input from the finance director and county attorney. Pagonis said the county treasurer requested a $15,000,000 fund balance for cash-flow purposes and urged the board to finalize the policy to avoid ad hoc use of reserves. “She says it's necessary for cash flow,” Pagonis said of the treasurer’s recommendation, and he summarized the policy as intended to “avoid removing money from the fund balance” for routine shortfalls.
Supervisor Zook outlined the policy’s functions: to provide working capital, stabilize operations through revenue fluctuations, improve credit standing and set aside funds for future capital projects and pay-as-you-go needs. Director Szymanski confirmed that contingency, which historically had been part of fund balance, will be separated for the 2026 budget cycle; for 2025 contingency remained part of fund balance. In response to a question about tapping reserves for an urgent need (for example, a $600,000 SNAP-related shortfall), supervisors and staff said such requests would be reviewed by the finance director and referred to the Finance and Budget Committee; use of the unrestricted fund balance for budget amendments would still require a two-thirds board vote.
Supervisor Schneider asked how an urgent departmental need would be funded; staff said contingency or a budget amendment process would be used depending on timing and the year in question. After discussion, the board voted to adopt the fund balance policy by a roll-call vote of 27 yes, 2 absent.
The policy sets clearer rules for when fund balance may be used and aims to reduce what supporters described as past “habitual” draws on reserves. The board’s approval formalizes the target and procedures ahead of the next budget cycle.
