The Free Press, Mankato, MN

Local News

September 23, 2013

North Kato considering budget reserve policy

(Continued)

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.”

 

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