MONROE - Over $5 million in the city's undesignated reserve funds is not all free to be spent.
"There's a bigger issue here," Monroe Mayor Ron Marsh said.
The city's cash on hand for working capital stands at $5.1 million, after taking into account liabilities and required reserves, according to a report Monday, March 1, from financial advisors Ehlers and Associates.
Ehlers recommended the city keep a minimum of $2.5 million in an undesignated reserve funds for unforeseen emergencies and to keep the city's A2 rating by Moody's Investment Service.
Monroe Common Council approved spending about $950,000 of the money Tuesday for construction of a west-side fire station and related expenses later this year.
That leaves the city potentially with less than $1.7 million to spend.
"The city's total annual budget, with water, sewer and stormwater utilities, is $17 million plus," Marsh said. "If you lay that $1.7 next to $17 million, that's not a big number."
Marsh said the city should not go to the minimum $2.5 million in reserve.
"Any kind of storm and it wouldn't take long to eat up that kind of money," he said.
The city approved spending $950,000 of the money for a second fire station, after halting the sale of general obligation bonds, which council approved Feb. 17.
The move saves the city an estimated $654,000 in interest costs that were expected over the life of $950,000 in 20-year general obligation bonds issue, as well as about $50,000 in sale expenses.
The savings does not take into account 35 percent of the interest costs, which would have been subsidized by the U.S. Treasury, under the Build America Bonds program, and about $50,000 in lost interest revenues from investing the money.
"We would not have looked at (funding) the fire station, if not for the money savings incurred ... well over $400,000," Marsh said. "It makes sense to do what we're doing."
Marsh also noted that funding the fire station out of reserves also saves property owners from an increase in taxes for debt service, or about 9 cents per $1,000 of equalized property value, or $9 on a $100,000 home, per year.
"I don't want any more money set aside or not being properly invested (than necessary), because that's a not a burden we want to put on our property tax payers," Marsh said. "This administration has never spent money unless needed for services rendered."
"There's a bigger issue here," Monroe Mayor Ron Marsh said.
The city's cash on hand for working capital stands at $5.1 million, after taking into account liabilities and required reserves, according to a report Monday, March 1, from financial advisors Ehlers and Associates.
Ehlers recommended the city keep a minimum of $2.5 million in an undesignated reserve funds for unforeseen emergencies and to keep the city's A2 rating by Moody's Investment Service.
Monroe Common Council approved spending about $950,000 of the money Tuesday for construction of a west-side fire station and related expenses later this year.
That leaves the city potentially with less than $1.7 million to spend.
"The city's total annual budget, with water, sewer and stormwater utilities, is $17 million plus," Marsh said. "If you lay that $1.7 next to $17 million, that's not a big number."
Marsh said the city should not go to the minimum $2.5 million in reserve.
"Any kind of storm and it wouldn't take long to eat up that kind of money," he said.
The city approved spending $950,000 of the money for a second fire station, after halting the sale of general obligation bonds, which council approved Feb. 17.
The move saves the city an estimated $654,000 in interest costs that were expected over the life of $950,000 in 20-year general obligation bonds issue, as well as about $50,000 in sale expenses.
The savings does not take into account 35 percent of the interest costs, which would have been subsidized by the U.S. Treasury, under the Build America Bonds program, and about $50,000 in lost interest revenues from investing the money.
"We would not have looked at (funding) the fire station, if not for the money savings incurred ... well over $400,000," Marsh said. "It makes sense to do what we're doing."
Marsh also noted that funding the fire station out of reserves also saves property owners from an increase in taxes for debt service, or about 9 cents per $1,000 of equalized property value, or $9 on a $100,000 home, per year.
"I don't want any more money set aside or not being properly invested (than necessary), because that's a not a burden we want to put on our property tax payers," Marsh said. "This administration has never spent money unless needed for services rendered."