Marlene Feist, Public Works Director of Strategic Development, 509.625.6505
Wednesday, August 1, 2018 at 11:34 a.m.
Even when the economy is in good shape like today, the City of Spokane’s elected leaders haven’t forgotten the importance of savings to prepare to handle future challenges.
“Putting taxpayer dollars to work to benefit the community is critically important, but so is ensuring that we can weather downturns or unexpected events,” says Mayor David Condon. “I’m pleased to support the action to invest in our reserves.”
This week, the Mayor signed an ordinance adopted by the City Council earlier in July that added $2.5 million to the City’s revenue reserve, officially called the revenue stabilization account. This is the second time this year that the City added money to its reserves; another $697,000 was added earlier, bringing the total amount in that account to about $3.9 million.
The revenue reserve is one of two major reserve accounts designed to help keep the City’s General Fund healthy. The second is the contingency reserve that helps to cover unanticipated increases in expenditures or to take advantage of opportunities that help advance operational efficiencies. The balance in the contingency reserve currently is nearly $14.6 million.
The General Fund includes the major departments and functions of the City outside the utilities. That includes police, fire, streets, libraries, parks, permitting, neighborhoods, and housing and homelessness assistance.
Citizens should expect more investment into reserves in coming years as the City works toward a goal of having the equivalent of 3.5 percent of General Fund expenditures in the revenue reserve—or about $6.6 million.