Burrillville council adopts 10% fund-balance policy to set fiscal guardrails

Finance Director Lehi McGovern presented a proposed fund-balance policy intended to formalize targets and procedures for the town's reserves, saying the policy establishes a 10% target and suggests 15% as a not-to-exceed level for undesignated funds. McGovern told the council that the town currently sits near combined undesignated balances of about 12.05% and explained the policy would provide guardrails for a new administration and bond counsel review.

Councilors debated whether the 10% target applies to combined undesignated funds or only the general fund; staff clarified the policy applies to the combined undesignated funds (general and library). After discussion, the council moved and approved the policy as presented. Members said the policy helps protect the town's bond rating and provides clearer fiscal guidance.