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Longview council tables reserve-policy increase, approves $5 million seed for fire apparatus replacement
Summary
Councilmembers debated raising the city's minimum unassigned general-fund balance from 10% to 15% and whether to allocate $5 million to a fire apparatus replacement fund. The reserve-policy resolution was tabled for 30 days; the council approved a $5 million ordinance to seed the fire apparatus fund.
City staff on Thursday urged the City Council to increase Longview's minimum unassigned general-fund balance from 10% of budgeted operating expenses to 15% and to seed a new fire apparatus replacement fund with $5 million.
'Our current projected general fund balance is 23,600,000.0. Currently, council policy requires us to maintain a fund balance of 10% of the general fund operating cost, which is about $10,000,000,' Finance Director (presentation lead) Mister McPhee told the council. He said raising the policy to 15% would increase the minimum by roughly $5 million and provide a larger safety net that helps preserve the city's credit rating.
Council debate focused on timing and grant uncertainty. Staff noted the city expects several state grant reimbursements that would reduce the net impact on available funds; one councilmember said a $3 million state payment for a pool project is 'in the bank.' Opponents of an immediate change urged waiting for final grant confirmations before committing the policy shift.
When the council voted on the reserve proposal, Councilmember Moore moved to table the resolution for 30 days; the motion carried and the mayor announced, 'I have 4. Item is tabled for 30 days.'
On a separate item, the council approved an ordinance to amend the FY25'26 budget to allocate $5 million to establish a fire apparatus replacement fund. Council discussion included a projected payment figure discussed in the meeting (one staff member stated 'It's 950,000' in response to a question about payments). Supporters said a dedicated fund would smooth long-term capital costs and reduce pressure for large, unplanned expenditures.
Both the reserve question and the apparatus program were framed as steps to protect the city's fiscal position and to provide predictable funding for public-safety capital needs. The reserve-policy resolution will return for council consideration in 30 days; the newly established apparatus fund will be seeded per the approved ordinance.
