Council hears analysis showing constrained cash after restricted balances and reserve targets

Kevin Thomas, introduced by Mayor Eric Aroma Woods, told the City Council that Liberty’s three main funds include several restricted balances that reduce spendable cash and recommended setting reserves aligned with GAO guidance.

Thomas said restricted items include approximately $243,000 set aside for road maintenance, about $101,000 earmarked for purchase of solid-waste collection trucks and roughly $242,000 in the hospitality-tax fund. He reported a water and sewer cash balance of about $2.1 million with $815,000 in restrictions. Using a six-month operating reserve benchmark, Thomas said the general fund reserve would be roughly $1.38 million and the water/sewer reserve around $1.82 million, which he said would leave the city with about $500,000 in available cash after those targets and restrictions.

The presentation cited GAO guidance as a rule-of-thumb for months-of-expenditures benchmarks and noted that monthly revenue timing for the water/sewer fund differs from the general fund. Council members asked procedural questions about bank accounts and future capital purchases, including the timing for buying solid-waste trucks. Thomas said many municipalities maintain multiple bank accounts and that restricted funds must be used for their designated purposes.

The council did not take formal action on reserve policy at the meeting; members discussed scheduling follow-ups and gathering more specific budget details before adopting any formal target.

The council’s next budget- or reserve-related step was not decided at the meeting.