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Lake Forest Park council committee debates using reserves and strategic fund to lower potential levy; keeps 16% reserve target
Summary
Council members at a March 26 special Committee of the Whole meeting signaled consensus to keep a 16% general fund reserve (re-basing it on expenditures rather than revenues), asked staff to draft a policy update, and discussed using one-time balances for a budget stabilization fund and a strategic opportunity fund to reduce future levy pressure.
LAKE FOREST PARK, Wash. — At a special Committee of the Whole meeting Thursday, Lake Forest Park council members continued a detailed discussion of how to steady the city’s finances and shape messaging ahead of any future levy.
Council members and staff restarted work on a spreadsheet of six-year projections and focused on three questions: whether reserves should be calculated on revenues or expenditures; what reserve percentage to hold; and how to divide one-time balances between a budget stabilization fund and a strategic opportunity fund. Finance Director Vaughn noted the city’s comprehensive financial management policy already targets a 16% reserve and said many municipalities prefer an expenditure-based approach.
“We follow a GFOA best practice at 16%,” Finance Director Vaughn said, referring to the Government Finance Officers Association guidance, and offered to adjust the policy language to reflect the…
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