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Hammond council introduces unassigned fund‑balance policy after public questioning on targets
Summary
Councilman Kip Andrews introduced an ordinance to adopt an unassigned fund balance policy and asked members to review draft targets over two weeks; a resident asked why the draft cites a GFOA reference of 16.7% but shows provisional targets in the 50% range and staff said the numbers are placeholders to be adjusted.
Councilman Kip Andrews introduced an ordinance to adopt an unassigned fund balance policy, saying the measure grew out of recent budget discussions and is intended to formalize how the city holds reserves.
Resident Stanley Campbell asked why the draft cites the Government Finance Officers Association recommendation of 16.7% while the draft establishes a target in the 50–57% range. "Why does the ordinance cite the GFOA recommendation of 16.7% yet it establishes the target between 57.55%?" Campbell asked. Council staff said the figures in the draft are illustrative placeholders and that the council should discuss and tighten the targets during the review period.
Staff explained the broader policy goal is to build a reserve sufficient to cover roughly two months of operations in the event of a major emergency; an auditor recommendation cited an amount close to $5,000,000, and staff said the city currently has about $3,000,000 in emergency funds and is trying to reach the recommended level over time.
Council voted to introduce the ordinance and asked members to review the language and proposed numbers over the next two weeks before final consideration.
