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Council directs staff to draft streets reserve policy after $100,000 transfer
Summary
Council agreed staff should return with an amended reserve policy to earmark fee-in-lieu and year-end excess for streets; finance staff noted $100,000 has already been moved into a street reserve and recommended keeping a contingency of about $60,000.
Council discussed creating a formal streets reserve so year-end surpluses and fee-in-lieu collections could be stockpiled for larger projects, mobilization costs or non-SCA maintenance. Finance staff said, “Because we in the budget this last year, we transferred a 100,000 and... a $100,000 in a street reserve fund right now,” and recommended keeping a higher-than-normal contingency while setting policy parameters for what excess flows to reserves.
Councilors and staff debated reserve targets and how to use the funds: options included earmarking excess above a 35% contingency into the reserve, using the reserve to reduce mobilization inefficiencies when paired with SCA awards, and retaining a minimum balance for emergencies. Staff will bring back an amended reserve fund policy for council adoption and suggested using the annual streets report to identify candidate maintenance projects for reserve spending.
