Wyoming City Council Revises Equipment and General Fund Reserve Policies

The Sheridan City Council convened on August 18, 2025, to discuss significant updates to the city's financial reserves, specifically focusing on the equipment reserve and the general fund reserve. The meeting aimed to clarify the regulations surrounding these reserves and propose new guidelines to enhance fiscal responsibility.

The discussion began with an overview of the equipment reserve, governed by Wyoming statute 16-4-105. Currently, the city code allows this reserve to be utilized for depreciation of fixed assets, including buildings, vehicles, and infrastructure. The proposed changes to city code 2-9-1 would limit the use of the capital equipment reserve to fleet or equipment purchases, with a cap set at 10% of the city’s total revenues for the fiscal year. This adjustment aims to ensure that funds are specifically allocated for essential equipment needs.

Next, the council reviewed the general fund reserve, which is crucial for managing the city’s finances. The existing policies, outlined in city code 2-9-2 and resolution 17-14, stipulate that the reserve should cover emergency expenditures and maintain a balance equivalent to six months of annual expenses. The proposed revisions would establish a new requirement that the general fund reserve must be maintained at 25% of the general fund's expenditures for the fiscal year. If the balance falls below this threshold, the city would need to replenish it annually as budget allows.

The council emphasized that any transfers from the general fund reserve that would reduce the balance below 25% must be approved by the governing body and justified as emergency expenditures. These emergencies could include unexpected revenue decreases or urgent maintenance needs.

In conclusion, the meeting underscored the city council's commitment to maintaining a sustainable financial framework. The proposed changes to the equipment and general fund reserves are designed to enhance fiscal discipline and ensure that the city can effectively respond to emergencies while managing its resources responsibly. The council plans to finalize these proposals in upcoming sessions, ensuring that the community remains informed and engaged in the decision-making process.