Meeting Transcript

All right, we'll call the finance and taxation committee to order, or the clerk please take the roll call. Alder True Hart? Here. Alder Tolman. Here. Alder Schaefer? Here. And Alder McGuire. Here. Are there any corrections of the May 11th, 2026 minutes? Hearing none, those will stand as written. Our first order of business is discussion and possible action regarding the City of Monroe comprehensive finance policy section 5.8 fund balance policy. Says Administrator Rindy, and through some discussion in the process of the 2025 audit with Baker Tilly and Bauman Associates, we decided there was probably some language that could be a little cleaner in our comprehensive finance policy, specifically in this the general fund balance section. And so and we will be having the audit presentation at next week's council meeting. So thought this would be kind of timely to at least begin that conversation. And so when you hear them discuss it too, then you'll also kind of be considering this as well. So our current policy with the general fund balance is that with a city must maintain or commit 25% of our expenditures as like what we call has always been what referred to as almost like a rainy day fund. Um so you look at the prior year expenditures and must in that detail take 25% of that to then make sure that we're committing going into the next year so that if there was some sort of say sudden shift in funding or catastrophe or something, that we have some funds available to kind of get through. The state recommends maintaining a minimum of 16.7 percent, which I think like correlates to maybe two months typically, and that's that's why. Um, but we have the policy of 25 percent. Um where this could change is kind of coming from, they're pretty minor changes, but it's still keeping that same percentage, but clarifying that it's our operational expenditures and not including our debt service or capital outlay, which are kind of funded differently and outside of that. Um, and then also the other change was there was a statement where we would determine that by February 28th and then adjust it if needed through the audit. The audit you always happens kind of that first week of March, so we thought why have a 28th and maybe amending it again later, just after the completion of the audit, we finalize what that amount is. Um so and this comes forward because of last year. We made a determination to use some of that general fund balance to support that investment into the expansion of our industrial park. So it really is kind of a one-time, very large capital truly investment into purchasing land. So we didn't think that that that one and a half million shouldn't be factored into our overall expenditures in 2025 of the amount that we need to maintain for for operational needs if anything shifts, and so clarifying that it's more of those operational expenditures. That's clear if you have questions. I guess I'll pause there. I think that makes perfect sense to me. Any any questions or comments or anybody else have no? I guess I always look at it as just taking a liquid asset and putting it in a something that's not so liquid, but it's still there. All right, we don't have any um other discussion. Do you need a motion to approve this? Yep, I'll make that I'll make that motion. Second motion is sectioned, second. Any final questions? Otherwise, we'll take a roll call vote, please. Alder True Hart. Aye, Alder Tolman. Alder Schaefer. Hi. And Alder McGuire. Aye. Uh item D B is there any business by members. If not, I just need one more motion. Motion to adjourn. Second. All in favor?