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Council directs staff to prepare amendment setting a 40–50% general-fund balance target range
Summary
Finance staff recommended moving from a fixed 50% reserve target to a 40–50% general-fund balance range to provide flexibility; council directed staff to prepare formal amendments for future adoption.
Finance staff told the council that, after consulting with bond counsel and auditors, a 40–50% fund-balance target range for the general fund would give the city more flexibility while retaining a conservative reserve. "Staff is recommending that policy be updated to maintain a 40 to 50% fund balance range," the finance presenter said.
Council members discussed whether an upper bound should be removed to allow higher reserves during growth; staff clarified that ending above 50% would not create a compliance problem but the range is a guiding metric. Council voted to ask staff to prepare the formal amendment to the financial-management policy for future consideration and adoption.
