Carroll County adopts operational stability reserve to hold one-time funds for unexpected needs
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Summary
After public comment and debate, the Board of Carroll County Commissioners approved a policy to hold a one‑time operational reserve (5% of ongoing operating revenues) in fund balance to provide short‑term flexibility for unanticipated costs; commissioners cited bond‑rating and budget tradeoffs.
The Carroll County Board of Commissioners voted Nov. 20 to adopt an operational stability reserve policy that sets aside a one‑time reserve — equal to 5% of ongoing operating revenues — as a fund balance account to be used only by appropriation in the county budget.
The policy was explained by county finance staff as a tool to give the county time to respond to unexpected revenue shortfalls, new state or federal mandates, or other one‑off events without immediately cutting services or delaying capital projects. Under the proposed rules, if the reserve is used the policy calls for automatic partial replenishment in future years (one‑third of available surplus) until the target is restored.
During public comment, Josh Wilhite criticized the proposal as unnecessary and said residents did not ask for an additional savings account, noting the county already maintains a 5% stabilization fund. "The public did not ask for this," Wilhite said, and urged commissioners to prioritize impacts such as teacher pay instead of adding another reserve.
Supporters on the board and in staff argued the account differs from the existing stabilization fund: the stabilization account has strict access criteria and has never been used, whereas the operational reserve is intended to provide more flexible, short‑term breathing room. One commissioner noted the county's AAA bond rating and said such reserves can help preserve borrowing costs in times of stress.
After discussion about whether the policy would tie the board's hands during budget season, a motion to adopt the policy was moved and seconded and approved by voice vote.
The policy will be implemented through the budget process; staff said they will provide counts and dollar estimates to the board so commissioners can see the reserve's size and projected effects on the operating budget.