Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Reserves topic
No spam. Unsubscribe anytime.
Lacey council debates reserve designations; staff to bring ordinance Dec. 16 after minor allocation swap
Summary
Finance staff reviewed city cash balances and proposed how to commit roughly $11.4 million of available cash into categories such as budget-policy reserves, capital asset preservation and an economic development investment reserve; council agreed to shift $500,000 from economic development to capital maintenance and asked for final numbers after year‑end close.
City financial staff presented a multi-fund review of cash balances and a staff proposal for committed reserves at the Dec. 9 work session, offering council direction ahead of an ordinance planned for Dec. 16.
Acting Financial Services Manager Chelsea Knight began with a snapshot of cash balances as of Dec. 31, 2024, and explained the staff process: remove restricted reserves and policy-driven operating cushions, then identify available cash for council-directed committed reserves. Staff estimated roughly $11.4 million available for council designation after removing restricted and operational holdings.
Staff proposed allocations including replenishing a $3 million budget policy reserve, $2.0–2.5 million for capital maintenance and asset preservation, $2.5 million for economic development strategy and investment, and the remainder for capital facilities priorities and smaller buckets (innovation, human/social services, catastrophic event and sustainability).
Councilmembers discussed the prioritization and recommended a modest adjustment: shifting $500,000 from the economic development allocation into capital maintenance and asset preservation to address near-term infrastructure needs. Members asked staff to return with more detailed descriptions of what each category would fund and noted the numbers are preliminary pending the 2025 year-end close.
Staff will draft an ordinance reflecting the agreed categories and updated amounts for the Dec. 16 meeting and plan a more detailed allocation exercise in Q1 once 2025 actuals are closed.
Next steps: staff to present the committed-reserve ordinance Dec. 16, then refine allocations and project-specific prioritization in Q1 2026 after closing the year-end financials.
