Depletion of unassigned fund balance may be in focus at tonight's fincom meeting

The unassigned fund balance comprises money the city has that is not encumbered, often referred to as a "safety net" or "rainy day fund." (Graphic courtesy Raymond Wayman)

ROCHESTER - Among topics that may be discussed during tonight's finance committee meeting is the need to shore up the city's unassigned fund balance, which has dwindled from some $38 million just a few years ago to about $10 million today.
The unassigned fund balance comprises money the city has that is not encumbered, often referred to as a "safety net" or "rainy day fund," noted Rochester Mayor Chuck Grassie on Monday.
Grassie said that it had been depleted over the previous city administration during the tenure of former mayor Paul Callaghan, who all too often used it to offset property tax hikes, according to Grassie.
A common rule of thumb to assess the solvency of a municipality is that it have at least two months of operating costs in the unassigned fund balance.
With the city having an annual operating cost of about $82 million, two months of operational cost would be about $13.6 million, more than $3 million above what the city has left in the fund that is unencumbered.
Grassie said he's determined to shore up the unassigned fund balance by reducing its usage.

"We (the city) may have to scale back on additional residential and commercial projects," he said. "We also may look at putting any Waste Management fees into it."
The finance committee meeting begins tonight at 6 p.m. in City Council Chambers at City Hall.