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Shenandoah council tables review of 180-day reserve policy after fiscal debate
Summary
Council discussed a staff recommendation to set a 180-day general fund reserve (approx. $276,222) but, after debate over risk, comparators and use of cash, voted to table the item for a future, deeper agenda discussion and risk analysis.
City staff presented a recommendation to set the general fund reserve at 180 days (about $276,222 for FY25'26). Staff said the reserve policy is intended to protect the city against multi-year sales tax shocks and large capital needs. Several council members questioned whether 180 days exceeds GFOA guidance and whether a lower threshold (90'120 days) would free up funds for near-term needs.
Council members pressed for clarity on the risk analysis underpinning the 180-day figure. Finance-related staff (identified in discussion as Lisa) said the 180-day figure was recommended at the time by a council member because the city relies heavily on sales tax and could face multi-year revenue disruption if a major taxable destination were lost. Several council members asked staff to return with comparative analysis showing how Shenandoah's reserve policy compares to peer cities and the fiscal implications of alternate thresholds.
Following extended discussion the council voted to table the item and schedule a future agenda item to examine the reserve target, alternatives and replenishment policy. The motion to table passed by voice vote.
