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Board adopts revised reserve policy and sets capital‑asset management plan effective July 1
Summary
Supervisors approved a change to the county reserve policy that alters the base used for calculating reserves and lowers the minimum threshold to 16.7% (two months). The board also adopted a new capital asset management policy effective July 1, 2025, with staff directed to prioritize creating an inventory and funding plan.
The Mariposa County Board of Supervisors on Feb. 18 approved two interrelated fiscal policies designed to improve budget discipline and begin a multiyear capital program.
Finance Director Lee Westerlund told the board staff proposed recalculating the general‑fund operating reserve on the basis of expenditures minus capital and certain grant‑covered expenses (rather than subtracting transfers) and lowering the minimum threshold from 22.7% to 16.7% of the base (equivalent to two months of operating expenditures).
Westerlund said the county previously removed roughly $4.6 million from reserves during the FY25 budget process, had replaced about $1 million, and proposed directing the replacement over multiple years — with a portion held for capital needs.
On a separate but related item, the board adopted a capital asset management policy to create a prioritized inventory of capital needs, raise capitalization thresholds, and begin disciplined contributions to a capital fund. Staff recommended an effective date of July 1, 2025 to grandfather the current asset roster and begin the new capitalization regime for FY26 budgeting.
Supervisor votes: The reserve‑policy revision and the capital‑asset management policy each passed unanimously (5–0).
Next steps: staff will inventory capital needs, identify potential funding sources (including reallocations and earmarked fund contributions), and propose a multi‑year capital budget timeline for board consideration.
