Harrenstein said bong rating agencies like governments to show that they’re prepared to pay their bills. Moody’s downgraded some of the city’s debt in March.
A strong fund balance also allows the city to be resilient and flexible when unbudgeted costs arise, such as lawsuits and equipment replacements.
The council gave a tentative thumbs-up to the policy at a recent work session.
Mayor Mark Dehen noted that auditors have long recommended the city create such a policy.
Councilman Bob Freyberg agreed: “Yes, we finally answered the suggestions.”