Village staff proposes fund‑balance policy and six reserve funds to stabilize budgeting

A village staff member working on finance and administration presented a proposed fund‑balance policy and a package of six reserve funds intended to improve long‑term fiscal planning and support capital needs.

The proposed policy would set an unrestricted general‑fund balance target between 15 percent and 30 percent of the next fiscal year’s general‑fund expenditures, and a 20 percent–35 percent range for the water fund. The staff member said those ranges follow New York State Comptroller guidance and can help the village avoid audit questions and support future bonding applications.

Separately, staff proposed creating six reserve funds in the chart of accounts: a capital fire equipment reserve (to help replace two fire trucks), a general capital equipment reserve, a contingency and tax‑stabilization reserve, a snow & ice removal and road repair reserve, an employee benefit accrued liability reserve and a retirement contribution reserve for NYSLRS payments. The proposal would establish the reserve accounts in the ledger now but not allocate money to them immediately; funding could come from end‑of‑year surpluses, budget transfers or mid‑year adjustments.

Staff explained the state chart‑of‑accounts numbers that will identify each reserve and said funding decisions would occur during the '27 budget process or via year‑end transfers if surplus funds are available. The board did not vote on appropriations at the meeting; staff asked for guidance on whether to create the reserve accounts now and return later with funding recommendations.

Next steps: staff will place the reserve‑fund accounts in the chart of accounts and bring funding recommendations as part of the upcoming budget discussion.