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Staff recommends 20% reserve targets for debt service and stormwater funds
Summary
Finance staff proposed declaring a formal 20% minimum reserve for the debt-service fund (about $705,000, ~73 days) and adding stormwater to the policy with a similar 20% target; staff explained contingency and repayment rules would govern any drawdown.
Presenter told the council staff had modeled reserve levels and recommended a 20% target for the debt-service fund, which Presenter said equated to roughly $705,000 and about 73 days of coverage under current assumptions. Presenter also proposed adding stormwater to the policy with a 20% target (around 75 days) and discussed a larger three-month option that would require a higher percentage.
"So it was established at the 20%, which is $705,000," the Presenter said when describing the debt-service target; staff clarified that a one-time draw from reserves for emergencies would ordinarily require council action and that policy language already sets contingency and repayment expectations.
