Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
City finance director reports sales-tax uptick; council advances contingency-reserve ordinance to first reading
Summary
Finance Director Tom told the Greenwood City Council that January distributions showed city sales and use tax up 4.46% and county distributions up 1.04%, producing roughly $700,000 in taxable sales growth year-to-date; council debated a fiscal performance policy and approved a contingency-reserve ordinance for first reading with a draft 15% target.
At the Feb. 2 Greenwood City Council meeting, Finance Director Tom presented January distribution figures and a package of fiscal policy proposals, telling council that the city’s sales and use tax distribution for January (reflecting November collections) rose 4.46% while county sales tax rose 1.04%.
Tom cautioned that rebates and timing distort single-month comparisons — he noted a rebate receipt of $11,335 that affects net distribution — and urged council not to treat one month as a definitive trend: "what you're about to see is something that we haven't seen in quite some time...what you're going to see does not a trend make," he said. After adjusting for rebates, he said the growth equates to about $699,000 in additional taxable sales for the period shown and that all-funds cash balances began 2026 at roughly $12.1 million.
Tom also presented a draft Fiscal Performance Policy that would formalize reserve and contingency triggers and capital/debt guidelines. The draft illustrated a 15% contingency-reserve target for this budget year (noting that Government Finance Officers Association guidance would equate to roughly 15.4% for the city's approved budget). Council members discussed the policy’s trigger points and preferred routing of language through the codification committee to avoid needing ordinance changes for annual percentage adjustments.
Council voted to place an Ordinance establishing a general-fund contingency reserve on first reading by title only. The presented ordinance would restrict use of contingency funds to declared emergencies, unanticipated expenditures, temporary revenue shortfalls and allow the mayor to authorize emergency expenditures with subsequent council ratification. Council asked staff to refine wording on replenishment timing and the definition of "emergency" ahead of later readings.
Separately, the council adopted a resolution to establish a restricted virtual account under the street fund to isolate state turnback (municipal aid) revenues and transferred related budget line items into the new subaccount. The resolution was adopted by roll call.
Tom told council he will return with ordinance language changes suggested by the codification committee and with a plan for how quickly reserves would be replenished if used.
