City’s Reserve Funds Are ‘Better’ Than In The Past

The city of Wills Point closed out the fiscal year on September 30 with reserves funds of $234,921. That amount, while an improvement over the city’s past finances, only represents less than five percent of the city’s annual budget.

"A healthy city needs to maintain three months of operating funds, and our reserves represent less than one," said city manger Jim Stephens. "A three-month reserve gives you a better bond rating and allows you to borrow money at a much better rate."

The year-end report, which will be presented to the city council at the next council meeting, will also show funds in accounts that normally begin the year with a zero balance.

Deposits were made into both the General Sinking Fund and the Water Sinking Fund, which are both accounts restricted for bond payments.

"We normally start those accounts with a zero balance every year," said director of finance Tracy Ingram. "The only instruction from our previous audit was to have cash reserves in those restricted accounts, and we were able to do that."

The General Fund Sinking account will begin the 2010 fiscal year with a balance of $9,475.12, and the Water Fund Sinking account will begin with a balance of $69,649.81.

The city begins the new year with a total of $796,791.64 in its various accounts, though $561,870 is dedicated to budgeted expenses and bond payments.

"Our department heads and employees have done a great job staying within their budgets," said Stephens. "And our Director of Finance (Ingram) has done a tremendous job of watching the purse strings.

"I feel like we’re in a better cash position, and will be able to complete some projects that are long overdue."

One of the possible projects on the horizon is a new city hall.

"We are hoping we can build a new city hall," Stephens said. "We’re going to begin preliminary discussions with the council at the next meeting."