- April 24, 2024
-
-
Loading
Loading
Flagler County staff proposed a $393,000 increase to the 2010 reserve fund contribution.
According to Flagler County Board of County Commission policy, an amount equal to 15% of the total budget should be contributed to the reserve fund annually. For the past half-decade, however, that number has come up short.
At the June 25 budget session, faced with a proposed $393,000 increase to 2010’s $7.3 million reserve contribution — a 9% addition — the policy’s merit was questioned.
“I’m not willing to make any increase in the current reserve level,” said Alan Peterson, board chairman.
This year’s reserves budget, presented by County Administrator Craig Coffey, included all of last year’s items, plus $168,000 to fund-balance reserves, $100,000 to fuel reserves and $125,000 for helicopter replacement.
“All we’re doing is stockpiling money, in the idea that maybe we’ll need it,” Peterson said.
He suggested matching last year’s amount, saying that if funds are required in the event of extenuating circumstances later in the fiscal year, those funds can be borrowed.
Coffey said it’s not stockpiling — the reserves are used for operations. “We’re budgeting tighter and tighter every year,” he said. “Our capacity to replenish those reserves is getting lower and lower.”
About $300,000 of emergency reserves were wiped clean in a matter of months this fire season, Coffey reminded the board, with an extra $200,000 taken out of general/contingency funds to account for the excess. A handful of fires are still burning. Hurricane season is on the way. And if the half-cent sales tax is not renewed in the future, that would be another shortfall to account for.
“I’m trying to prepare not just for this year but for where we’re headed,” Coffey said.
Commissioners discussed the merit of the initial 15% reserves contribution goal.
“Until this board changes its policy,” commissioner Millissa Holland said, “I think it’s irresponsible for us to reduce our reserves.”
Nate McLaughlin agreed.
“I don’t look at this as an increase to reserves. I look at this as a replenishing of reserves,” he said. “If we change our policy, then we’ll have that discussion at that time.”
Regardless, 15% is “a ridiculous number,” Peterson stated.
A consensus was reached to waive the $125,000 toward helicopter replacement, but maintain the other additions.
A new helicopter, with a lifespan of about 30 years, could cost $2 million, Coffey said. Flagler’s current helicopter is about 12 years old, and has been well maintained.
“We anticipate to keep it for several more years,” he said.
The board agreed by consensus on a total $262,000 increase to its prior year’s reserves contribution.
