Greer council amends financial policies, cuts contingency from 5% to 1% and adds ethics language

Greer — The City Council on July 14 approved a set of updates to Greer’s financial policies that include adding an ethics and integrity section, redefining material weakness/deficiency language to match audit terminology, reducing the contingency policy from 5% to 1% of the general fund, and adding guidance on installment purchase revenue bonds and formal RFP cycles for banking and audit services.

Mister Klein (finance) told council the contingency change was proposed after a review of five years of expenditures showing an average of roughly $30,000 spent annually from that contingency. "Five percent of a $60,000,000 budget would be set at $3,000,000," he said, and staff concluded the amount could be better utilized; 1% would equate to about $600,000. Klein said the city’s general fund policy already targets a 35% fund balance, which exceeds typical recommended minimums.

Council members asked how the changes would affect procurement and previously problematic project timing. Klein and staff said they added a capital projects fund to allow multi-year project accounting and will require periodic RFPs for banking services (every five years) and audit services (every four years) to provide stronger procurement controls.

Supporters described the changes as clarifying and largely technical, while some council members asked for continued oversight and confirmation that the city would not reduce its overall fiscal resilience. Staff said the change is a reclassification of reserve strategy rather than an immediate reduction in available reserves.

Council approved the resolution by roll call. Staff said the updates do not change existing obligations and that any future budget or personnel changes would return to council for approval.