With all the discussion happening across Florida about local government budgets, Alachua County is joining the conversation through this series: Cents & Sensibility: Alachua County’s Budget in Eight Chapters.
Ch. 6: Reserves - Planning for Rainy Days
One of the fundamentals of responsible fiscal management is maintaining strong policies for holding money in reserve for unpredictable and uncontrollable events. By establishing reserves, local governments create a financial safety net against the unexpected, such as natural disasters and economic downturns. Reserves also provide a tool for capitalizing on unforeseen opportunities that may arise outside of the budget process.
Credit analysts look for solid, well-managed reserves when rating counties, which helps maintain strong credit and lower borrowing costs.
When a hurricane hits, the economy changes, or if funds from federal and state governments are reduced, Alachua County still has to continue serving its residents by keeping ambulances running, firefighters and sheriff's deputies responding, roads clear, and the government operating. Reserves help ensure that there are no sudden service cuts.
Read Ch. 6 in full.
Catch up on previous chapters:
Ch. 5: Why Budgets Grow Over Time
Ch. 4: Unfunded Mandates
Ch. 3: Understanding Property Taxes
Ch. 2: What is the General Fund?
Ch. 1: Public Influence & the Budget
For more information, contact Alachua County Communications Director Mark Sexton at 352-264-6979 or msexton@alachuacounty.us.
