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Board moves forward ordinance to require six months of financial reserves
Summary
Trustees considered an ordinance amending Section 36.032 of the Swansea Municipal Code to set a minimum financial reserve of six months and to clarify revenue/expenditure language. The judiciary forwarded the proposal and it was read for first reading at the board level; one trustee opposed the committee motion.
The judiciary committee introduced an ordinance to amend Section 36.032 of the Swansea Municipal Code to require a financial reserve maintenance level of no less than six months and to clarify language regarding revenues and expenditures.
A committee member said the change is intended to provide clarity for future boards and for the public. "6 months is important because we don't know what may happen," the committee chair said, listing potential financial downturns or emergencies as reasons to secure a reserve.
During committee discussion a trustee questioned whether a change was necessary given the village attorney's prior opinion that existing actions were legal and asked why the public or staff should not be more involved. The committee chair replied the amendment clarifies that the reserve is "no less than 6 months" to help future boards and improve public understanding.
The judiciary moved to forward the ordinance to the board; the motion passed in committee with all ayes and one opposed. At the board meeting the ordinance was read for first reading and scheduled for further consideration.
Next steps: The ordinance was presented as a first reading at the Feb. 2 board meeting; trustees indicated they would continue discussion and the measure will return for subsequent consideration.
