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Committee adopts recommended fund‑balance guidelines and asks staff to draft a multi‑year capital plan
Summary
Claiborne County’s finance committee approved recommended (non‑mandatory) fund‑balance guidelines, endorsed changing the document’s name from “policy” to “guidelines,” and asked the Finance Director to work with Buildings, Grounds & Personnel to draft a five‑ to ten‑year capital improvement plan to inform budget decisions.
The Claiborne County Financial Management Committee unanimously adopted a set of recommended fund‑balance guidelines and directed county staff to change the draft’s name from “policy” to “guidelines” to avoid audit risk. The committee also recommended that the Finance Director coordinate with the Buildings, Grounds & Personnel Committee to prepare a multi‑year Capital Improvement Plan.
Why it matters: The guidelines establish recommended minimum fund‑balance ranges (not binding mandates) for major funds—examples discussed include a 17–20% recommended range for the General Fund, 25–30% for the Sanitation Fund, and 15–20% for the Highway Fund. Finance staff and the Committee said treating the document as guidance (rather than a binding requirement) avoids potential audit findings from the State Comptroller.
Committee action: After State Audit input was described in the meeting, Ronnie Pittman moved and Meredith Arnold seconded a motion to adopt the draft as recommended guidelines; the motion passed unanimously. The committee separately approved a motion directing the Finance Director to collaborate with Buildings, Grounds & Personnel to draft a five‑ to ten‑year capital plan to identify future borrowing or project timing needs.
Context and fiscal position: Finance Director Eric Pearson showed multi‑year fund‑balance data for FY2018–FY2025 and said that, following a strong FY2025, Claiborne County’s unassigned General Fund balance exceeded the recommended 17% minimum (23.6% at the beginning of FY2025). The guidelines are intended to inform Commission and Budget Committee decisions about withdrawals from fund balance during the budget process.
Next steps: The Finance Director will produce the capital plan draft and the schedules the guidelines require (projected fund balances and comparisons to recommended minimums) for Budget Committee and Commission review.
