Cents & Sensibility 6: Reserves – Planning for Rainy Days
Press release from Alachua County
ALACHUA COUNTY, Fla. – With all the discussion happening across Florida about local government budgets, Alachua County is joining the conversation through this series: Cents & Sensibility: Alachua County’s Budget in Eight Chapters.
Ch. 6: Reserves – Planning for Rainy Days
One of the fundamentals of responsible fiscal management is maintaining strong policies for holding money in reserve for unpredictable and uncontrollable events. By establishing reserves, local governments create a financial safety net against the unexpected, such as natural disasters and economic downturns. Reserves also provide a tool for capitalizing on unforeseen opportunities that may arise outside of the budget process.
Credit analysts look for solid, well-managed reserves when rating counties, which helps maintain strong credit and lower borrowing costs.
When a hurricane hits, the economy changes, or if funds from federal and state governments are reduced, Alachua County still has to continue serving its residents by keeping ambulances running, firefighters and sheriff’s deputies responding, roads clear, and the government operating. Reserves help ensure that there are no sudden service cuts.
Catch up on previous chapters:
Ch. 5: Why Budgets Grow Over Time
Ch. 3: Understanding Property Taxes
Ch. 2: What is the General Fund?
Ch. 1: Public Influence & the Budget
“…a tool for capitalizing on unforeseen opportunities that may arise outside of the budget process.”
This can also be read as ‘a means to fund favored projects of local NGOs, commissioners and county management without the oversight of the budget process’. The instant a Commission signals it is willing to fund anything outside the budget process, the NGOs will appear with requests that conform to the new rules.
People in government must always be alert to the fact that the potential funding recipient’s “opportunity” or “investment” is often a “boondoggle” for the taxpayers. And once the money has been allocated, it is exceedingly rare that somebody comes to the County and says “we don’t need the money after all.”
If this so called ‘budget book’ is for Alachua county….please put this book in the library section for fiction.
Roads clear… but not repaved.