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Commissioners set new fund-balance target; policy language adopted for 40–50% range
Summary
The Board adopted revised language for the county’s fund-balance policy, establishing a 40–50 percent unassigned fund-balance range and amending the motion to specify a minimum within that range; commissioners debated fiscal prudence and long-term sustainability.
Montcalm County commissioners voted to revise the county’s fund-balance policy to set an unassigned fund-balance target range of 40 to 50 percent.
Controller Brenda and several commissioners said the higher range would provide three to six months of operating reserves and give the county time to respond to unexpected state funding changes or economic shocks. Commissioners noted the county’s fund balance was substantially higher than the old target and that the range would serve as a minimum benchmark for budget planning.
Discussion included whether the range should be a minimum or a target; the original motion proposed a 40–50 percent range, and commissioners later amended the motion to specify a “minimum of 40 to 50 percent” before approving it. Some members warned future boards might alter the policy but said a clear benchmark helps guide budget decisions.
Action: The board voted to adopt the fund-balance policy language with the 40–50 percent specification; the motion passed by roll call/voice vote.
Ending: The revised policy will guide FY2026 budgeting and provide a clearer reserve target for county leadership and auditors.
