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Finance committee approves new fund-balance guidance, recommends village board adoption after brief edits
Summary
The Waunakee Finance Committee voted 6-1 to recommend revisions to the village fund-balance policy that would direct excess reserves above 30% of the budget to the equipment replacement fund and allow amounts above 25% but below 30% for one-time uses or one-time property-tax relief with board approval.
The Waunakee Finance Committee voted to recommend that the Village Board adopt revised fund-balance policies that clarify how year-end surpluses should be used.
Renee (Finance Director) proposed keeping the unassigned fund balance floor at 20%–25% of the next year's expenditure budget and adding guidance for how to treat amounts in excess of that range. Under the revision, amounts above 25% but below 30% would be available for board-approved one-time expenditures or one-time property-tax relief; balances of 30% or greater would be transferred to the equipment replacement fund for capital and fleet needs.
Committee members debated the wording of the policy, with several expressing concern about the phrase "conservative but realistic" in the policy's budget-request language and asking for the phrase to be struck or reworded. One member said the village's conservative budgeting practice had produced significant year-end surpluses in recent years and asked for a clearer, transparent process for how surpluses are spent.
After discussion and a brief amendment to clarify that "tax relief" means "one-time property-tax relief," a committee member moved to approve the draft policy and recommend it to the Village Board. The motion passed on a 6-1 vote.
The committee directed staff to bring the recommendation to the Village Board; the finance committee's vote was a recommendation, not final adoption by the village.
