Cutler Bay council approves ordinance to raise reserve target to 20% and require investment policy

The Cutler Bay Town Council voted unanimously on Sept. 22 to adopt an ordinance that sets a written investment policy, creates committed reserve categories and establishes a 20% minimum general fund balance target. The ordinance specifies that reserved funds are to be set aside for land acquisition, capital improvement projects, environmental remediation and storm recovery, and requires annual certification by the town manager and the finance director.

The sponsor of the item told the council the change is intended to strengthen the towns financial position and improve long-term flexibility for land acquisition and capital projects. Council members expressed support: "This is something that we have discussed for years and years and years," Council Member Duncan said, adding he was "in full support." External financial advisor Lura Zabertino told the council the towns fund balance is healthy and that memorializing the policy would preserve that position; she said rating agencies typically look for roughly 35% but that a 20% ordinance minimum is prudent for a coastal community.

Council debated subsection K (the transition period), where the draft allowed some transition spending by resolution. Council Member Sillard asked that transition-period spending require an ordinance (two readings and public notice). Administration agreed to the change, and the ordinance was adopted as amended; the council set a second reading for Oct. 21 and said a companion resolution on the investment strategy will follow.

The ordinance requires annual reporting of fund-balance levels, a multi-year historical presentation for transparency, and a five-year review cycle. The council recorded no public opposition during the hearing.