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Surf City council adopts fund-balance policy, clarifies alcohol rules for special events
Summary
Council adopted a fund-balance policy to maintain about 85% of annual expenditures as unassigned balance (net of transfers) for resilience and adopted clarifying changes to Chapter 12 on alcohol at special events, then approved Oceanfest's request consistent with the ordinance.
Surf City’s town council voted March 3 to adopt a formal fund-balance policy intended to maintain a strong fiscal reserve for emergency response, long-term capital needs and revenue disruptions, and approved clarifying changes to the town’s alcohol ordinance for special events.
Finance staff presented a policy targeting an 85 percent level of unassigned fund balance (after typical annual transfers such as those to beach nourishment), explaining the figure aligns with the town’s historical transfers and ensures flexibility for emergencies and large unplanned expenses. Melissa, the finance director, said the policy provides guardrails and a mechanism for the town to identify steps to restore balances should they fall below the target. "This provides some general guardrails as to how we're going to react to that," staff said.
Council discussion praised staff’s work; following discussion the council voted to adopt the fund-balance policy. Councilmembers said the policy will inform the upcoming budget process and provide a clearer framework for decisions about possible excess funds.
Separately, staff proposed minor clarifying edits to Chapter 12.11 to avoid penalizing attendees who purchase alcohol from an establishment adjacent to a special-event area (for example allowing an unopened container carried through a special-event zone) while reiterating prohibitions on consumption/possession in streets, sidewalks, alleys, parks, sound accesses and municipal grounds. Council adopted the amendment and then approved Oceanfest’s special-event resolution under the clarified ordinance.
Why it matters: the fund-balance policy codifies fiscal discipline and contingency planning for a coastal community that faces weather-related infrastructure risk; the ordinance clarification preserves event flexibility while keeping clear limits on consumption and possession in public and municipal spaces.
What’s next: staff will incorporate the policy into budget planning and bring policy details and potential uses of excess fund balance to future budget sessions; the Oceanfest event will proceed under the clarified alcohol rules.
