Philomath council adopts reserve policy and updated water conservation plan

Philomath — The City Council voted unanimously on Jan. 12 to adopt a policy governing financial reserves, contingencies and unappropriated ending fund balances (Resolution 26‑01) and to adopt an updated water management and conservation plan (Resolution 26‑02) that staff said already met state standards.

Finance staff summarized the reserve policy’s structure: a target ending fund balance approach for self‑supporting funds (streets, water, wastewater), transfers into a land/building/equipment (LBE) account for capital, and a 10% general‑fund target with a 4% contingency line for the first year. Staff said the reserve for future expenditures would be considered a "sunny‑day" fund and likely funded only when budgetary conditions allow.

A motion by Councilor Salsas (moved) and seconded by Councilor Erwin (second) put Resolution 26‑01 on the floor; council adopted the measure unanimously. For the water plan, staff noted the updated plan had been submitted to and approved by the state; council moved and unanimously adopted Resolution 26‑02 as presented.

Councilors asked for transparency in the budget book so residents can see the allocation to LBE (land, buildings, equipment) and transfers out. Staff said the policy and reserve accounting will be reflected in the mid‑March budget documents and that the finance and administrative committee will review annual reserve decisions.