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Commission debates formal fund-balance policy as finance staff warns of audit risk
Summary
Commissioner Alford asked the commission to study a permanent fund-balance policy; finance staff said most funds meet or exceed the 15% benchmark and cautioned that raising a policy target to 20% could trigger audit findings in years the threshold is missed.
Commissioner Alford asked the Bradley County Commission to put a permanent fund-balance policy on a future agenda, saying the county needs a clear, consistent standard for how much each department should keep in reserve. "I just wanna try to make some kind of permanent thing where that stands," Alford said, urging staff to report back on how far each fund is above or below the current targets.
Finance staff replied that most funds are at or above the existing 15% target but cautioned against raising the written policy to 20% even if the mayor aims for that level when budgeting. The finance official said a formal policy set to 20% could generate audit findings in years the number falls short. Mayor Davis summarized the pragmatic approach: "Leave it 15, shoot for 20," meaning continue to target a stronger reserve in practice while retaining the 15% policy floor.
