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Howard board adopts 2027 budget calendar and discusses lowering General Fund balance policy
Summary
The Village Board approved the 2027 budget calendar and policies; staff recommended lowering the minimum General Fund balance while trustees raised concerns about potential effects on bond ratings and compared practices elsewhere.
Director of Administrative Services Chris Haltom presented the proposed 2027 budget calendar and recommended some adjustments to the Village's fund balance policy ahead of next year’s budget process. Haltom said preparation depends on state financial figures arriving later in the year and "recommended reducing the General Fund balance policy, stating that the Village has consistently maintained a healthy fund balance and has rarely needed to draw from it." Trustees discussed the trade-offs between keeping higher reserves and minimizing borrowing costs.
Trustee Ray Suennen asked whether lowering the minimum fund balance could affect the Village's bond rating and whether other municipalities have similar policies. Haltom responded that rating agencies generally prefer higher fund balances but that he had not compared the Village’s policy to others. Trustees voted unanimously to adopt the proposed budget policies and calendar as presented by staff.
