OCEAN CITY — Just how much reserve fund balance is the right amount and at what point should some of the town’s reserve be returned to the taxpayers was the subject of a philosophical debate among resort leaders this week.
The Mayor and Council had before them on Monday a rather routine vote on a proposed fiscal year 2020 budget amendment, an essential process during a budget cycle when funds are reallocated due to projected revenues or expenditures changing slightly during the course of the year. Before the vote was taken, however, former City Councilman Vince Gisriel, as he done often in the past, raised the issue of the town’s growing reserve fund balance.
It has been the town’s stated policy for years to maintain a reserve fund balance, or a rainy-day fund of sorts, of 15% of the general fund balance. However, during recent strategic planning sessions, the stated goal was to increase fund balance to 20%, which provides a nest egg in the event of an emergency such as a major storm, for example, to ensure the town can continue to operate and provide essential services.
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4 comments:
SO what is OC doing to prepare for a season of Coronavirus potentially keeping people home this summer?
They should be sure to remain completely unprepared to respond to a hurricane.
They have to increase this rainy day fund to compensate for the lost revenue from driving out different public activities along with piss poor Management.
What? Give money back to the taxpayers? Have they lost their minds? That's not what taxing authorities do.
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