Budget committee recommends net position policy to BOMA, approves January minutes

The Spring Hill Budget and Finance Committee voted 3-0 to recommend a draft net position policy to the Board of Mayor and Aldermen and approved its January minutes.

Miss Holden presented the policy, saying it applies to enterprise funds such as water and sewer and follows guidance from the Government Finance Officers Association, the American Water Works Association and GASB statements. "Net position is your enterprise funds... these are just definitions from the GASB statement," she said while outlining unrestricted net-position targets and the relationship to the fund-balance policy.

Committee members pressed on the proposed target range. One member said a three-month minimum would give them "heartburn" for large enterprise funds such as water and sewer; Miss Holden responded that the proposed unrestricted range is three to 12 months and that the comptroller only requires two months. Members also confirmed that emergency spending authority remains governed by the city's purchasing policy rather than the net position language.

After discussion, the committee moved the draft policy to the Board of Mayor and Aldermen for consideration; the chair recorded the committee vote as "passes 3 to 0." The committee also approved the January meeting minutes by voice vote at the meeting's start.

The policy will appear on a future BOMA agenda for final consideration.