City’s Reserve Fund Boosted, Reorganized

The City Council voted Monday to boost its $6.2-million reserve fund and refine the way it keeps track of how the rainy-day money can be spent.

The city formerly kept a single general-fund stabilization reserve, for emergencies and unanticipated expenses. But now the $104-million budget will contain four reserve accounts, each with specific purposes.

Contingency reserves would be spent to deal with emergencies such as natural disasters or structural failures. Accounting reserves will include money set aside for items such as funding for a contract awarded in one year but not completed until the following year.

Designated reserves are those set aside for expected events, such as the replacement of systems or equipment. And stabilization reserves are designed to smooth unpredictable fluctuations in city spending or revenue from year to year, such as changing prices for utilities or fuel, or the amounts paid into the Public Employee Retirement System.

The council approved the changes 7 to 0.