New financial policies will soon be introduced to the Jefferson City Council for consideration, but most discussion is likely to center around the question of how much should be kept in reserve funds.
Two council committees, the Finance Committee and the Council Committee on Administration, have heard presentations on the draft policies, which seek to provide guidelines on everything from one-time revenues to long-term financial planning. The bill is expected to go to the full City Council for introduction Monday and any discussion likely will focus on how much the city should try to keep in its fund balance.
The proposed policy states the city should keep its fund balance at a minimum of 17 percent of the adopted general fund budget, which is based on the recommendation of the Government Finance Officers Association. Bill Betts, director of finance and information technology, said that association recommends the fund balance should have enough to operate the city for two months, which equates to roughly 17 percent.
As of Sept. 9 financial reports, the city's fund balance was at 15.88 percent with $4.55 million.
At the last Finance Committee meeting last month, some council members indicated they would like a range to be set instead of one set number, because the fund balance often fluctuates as supplemental appropriations are drawn out and unexpected revenues are put in.
But at the Council Committee on Administration, other council members indicated a range would simply make the lowest figure the minimum.
"The range is silly," said 1st Ward Councilman Jim Branch.
And while City Administrator Steve Crowell is comfortable with a 17 percent fund balance, he said a 20 percent fund balance would be very healthy.
"There's not a right or wrong answer," Crowell said.
At a previous Budget Committee meeting, some council members questioned whether the city should keep a fund balance that high at all. Third Ward Councilman Bob Scrivner has said the city has survived incredibly tough budgets throughout the last few years with a smaller fund balance and questioned whether the city may be trying to save too much, noting that funds above 12 percent could be used for one-time purchases when needed.
"We just had three years of what I would call catastrophe, and our fund balance ... was adequate," Scrivner said. "To feel like you need 18 percent is probably more cautious than I really feel the need for."
The bill is expected to be introduced to the City Council on Monday.
In other business, Human Resources Director Gail Strope told the Council Committee on Administration the city was waiting to make appointments to the recently created public transit advisory committee as only two applicants have come forward since the committee was created last month.
The committee is supposed to consist of seven members: one from the Jefferson City Area Chamber of Commerce, one who regularly uses public transit, one who is employed by a public or private school or by a not-for-profit organization, and four members of the general public. Strope said it may take a while before the city is able to find volunteers who fit the requirements of the committee.
Strope said applications for the committee are available online, at jeffcitymo.org, and at City Hall.