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Irondale council adopts new purchasing policy and fund-balance targets
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Summary
The council adopted Ordinance 2026-16 to update the city's purchasing policy to align with GFOA best practices and approved a fund-balance policy setting minimum, target and ceiling reserve percentages (minimum ~16.7%, target 25%, ceiling ~41.7%).
The Irondale City Council voted to adopt a rewritten purchasing policy and a new fund-balance policy intended to modernize procurement and strengthen fiscal reserves. Mayor James D. Stewart Jr. said the purchasing-policy rewrite applies GFOA (Government Finance Officers Association) best practices, updates thresholds to match state changes, and documents the city's purchasing processes.
Councilmembers moved ordinance 2026-16 to immediate consideration, suspended the rules and approved the ordinance by roll call. The mayor said the fund-balance policy sets three targets: a minimum reserve (16.7% of projected annual revenue), a preferred target (25%), and a ceiling (approximately 41.7%). He reported the general fund balance was about $11.7 million as of March 31 and noted an earlier escrow for a Costco development reduced the fund balance earlier in the fiscal year.
Council members asked procedural questions about contract renewals and how surplus reserves would be spent if the city exceeded the ceiling. The mayor said staff will bring a strategic plan to the council recommending projects or uses for amounts over the target ceiling so the council could approve reallocations. Because the item was treated as an ordinance on the regular agenda, the council completed the ordinance process and adopted the update.
The council indicated the changes aim to position the city for future awards and to provide clearer thresholds for bidding and contract actions. Staff will follow up with any implementation guidelines and reporting as required by the new policy.
