Swansea trustees delay ordinance to raise financial reserve to six months after extended debate

Swansea's board of trustees debated but did not adopt an ordinance to raise the village's required financial reserve to a minimum of six months.

The mayor opened the discussion, saying he supported a six-month minimum and suggested that once reserves hit seven months any trustee could bring forward proposals for the board to consider. "I just wanna say right now that I am in favor of the 6 month minimum reserve fund," the mayor said.

Trustees and staff exchanged questions about how the proposed change would work in practice. Finance staff reported the village's year-to-date general fund balance and explained that a previously projected $403,962 deficit had swung to a $213,004.26 positive variance year-to-date, a roughly $600,000 difference. Trustees asked staff to identify the drivers of that variance, noting capital purchases and unfilled personnel positions as likely factors.

Several trustees urged caution before enacting an ordinance without clearer guardrails. One trustee said the board should plan explicitly how any excess beyond a reserve would be spent and suggested public review before locking a permanent rule into ordinance language. Another trustee described past years when irregular state funding and unexpected equipment losses made reserves critical to day-to-day operations.

After discussion, a motion to adopt the ordinance was brought to a roll call. Multiple trustees expressed concern and voted no or abstained; the mayor withdrew the motion and the ordinance was not adopted at this meeting. The mayor said he would return with an amendment and the issue will be discussed again at a future meeting.

What happens next: Trustees asked staff to prepare more detailed budget and reserve calculations, to propose possible caps or earmarks for funds above the six-month level, and to give the public additional opportunity to review proposed ordinance language before a subsequent vote.