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Committee weighs higher reserve target, cites disaster risk; accountant flags $9.7M unlevied tax revenue
Summary
Committee member Jessica Farno proposed adopting a 30–40% general fund balance target because of Louisiana's disaster risk; the city's senior accountant reported more than $9.7 million in voter-approved property tax revenue remains unlevied and governmental fund balances exceed $60 million.
At the March 9 Income Strategies Committee meeting, Jessica Farno, committee member, urged the committee to consider a higher general fund balance target because of the frequency of natural disasters in Louisiana. Farno said the Government Finance Officers Association (GFOA) guidance suggests a minimum of roughly two months of operating expenses (about 16–17%), but she proposed a 30–40% target range and presented a sample resolution to establish a formal general fund balance policy.
During public comment, Kathleen Sides, senior accountant, provided financial figures aimed at informing that discussion. Sides said the city has more than $9.7 million in voter-approved property tax revenue that remains unlevied and uncollected, that governmental fund balances exceed $60 million, and that roughly $30 million could be rededicated from restricted funds. Sides also noted recent changes to the pay scale, including a reduction from 30 steps to 25 and a reduction in the percent between steps from 2.5% to 2%.
Committee members discussed report formats and graphs in a brief exchange but took no formal vote on a fund-balance policy at the meeting. The sample resolution presented by Farno was entered for committee consideration and staff follow-up; no adoption or implementation timeline was specified at the meeting.
