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Deephaven council reviews draft fund balance policy to protect reserves
Summary
Councilmembers discussed a draft Fund Balance Policy on May 18, focusing on reserve targets for the General and Enterprise funds, the Wastewater Fund’s current status, and the role reserves play in maintaining the city’s AAA bond rating. Staff will revise the draft and return it for more review.
Deephaven — The City Council reviewed a draft Fund Balance Policy at its May 18 meeting, emphasizing the need for healthy reserves to cover emergencies, manage cash flow and support the city’s AAA bond rating. City Administrator Dan Madsen explained where Deephaven stands compared with neighboring cities and outlined proposed target levels for the General Fund and Enterprise Funds.
Council members pressed for clarity on how the Wastewater Fund’s current status would affect policy targets. The discussion was preliminary; Madsen told the Council staff will update the draft based on feedback and return with a revised policy for additional review. No formal action or vote was taken on the policy at the meeting.
The conversation follows standard municipal practice of balancing reserve goals against service needs and capital plans. Council discussion noted that reserve policy changes can affect long-term planning and borrowing costs, but the draft preserves flexibility to respond to local circumstances. The item remains under staff review and will be scheduled for further consideration in a future meeting.
