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Commission adopts revised financial-reserve ordinance clarifying PILT segregation and minimum reserve baseline
Summary
The Board unanimously adopted Ordinance No. 2024-02, revising the county financial-reserve rules to require a segregated reserve account and to state that the 2/12 benchmark is a minimum baseline, with other clarifying changes.
The Commission adopted Ordinance No. 2024-02 to supersede the 2020 Financial Reserve Ordinance, aiming to improve clarity on how Torrance County tracks and holds reserve monies in relation to PILT (Payments in Lieu of Taxes) and other revenues. County Finance Director Misty Witt and county financial advisor Mr. Burpo described four principal changes including explicit wording that the 2/12 reserve level is a minimum baseline and creation of a segregated Reserve Fund within the General Fund so funds are not commingled. "There are four changes," Mr. Burpo explained, and he reminded the Commission of the statutory floor: "You are required to have 3/12 of your General Fund in the Reserve Fund and 1/12 of your Road budget in a Reserve Fund."
Commissioners said the rewrite made the ordinance clearer and more useful for future budget planning. The measure passed unanimously after a public hearing and roll-call vote. County staff and the finance office said they would implement the new accounting line item and update internal controls to support the segregated Reserve Fund.
