Eaton County commissioners voted to adopt a formal fund-balance policy that sets a minimum unassigned general-fund balance of 10% of annual budgeted expenditures.

The policy requires the board to adopt a recovery plan in the subsequent fiscal-year budget if the unassigned balance falls below the goal, with a maximum three-year period to restore the reserve. It also directs the county to consider dedicating any amount above the target toward capital improvements, pension stabilization and a budget-stabilization ("rainy day") fund.

County Comptroller (title given in meeting) presented the policy draft and told commissioners the measure is aimed at long-term stability and improving the county's bond-rating profile. "When we have a due-diligence call, one of the things they ask is: what is your fund-balance policy?" the comptroller said during the meeting.

Commissioners discussed percentages and implementation details at length. Multiple speakers said the county has historically used informal margins and that adopting a written policy provides public accountability and a predictable planning framework. The board's motion adopted the 10% minimum as the initial target and left a larger (10'15%) long-term goal under review.

The comptroller and finance staff said the policy will be reviewed during the annual budget process and applied to other funds (special revenue and millage funds) going forward. Staff warned the policy does not remove the board's discretion to use fund balance in emergencies, but any deviation from policy must be presented and justified to the public.

Commissioners signaled the policy is a first step toward broader fiscal reforms, including planned capital investments and attention to personnel costs and pension obligations.

The board approved the policy by voice vote.