Zuckerman-backed ordinance would require Mandeville to maintain unrestricted General Fund reserves equal to at least 20% of annual operating expenditures
Mandeville projected to end fiscal year with reserves at roughly 67% of operating expenses
MANDEVILLE — The City Council is set to consider an ordinance that would formally require the city to maintain minimum unrestricted reserves in its General Fund, codifying a fiscal policy championed in recent months by Councilman-at-Large Jason Zuckerman.
Proposed Ordinance 26-16 — slated to be introduced at the May 14 meeting — would establish a new “Unassigned Fund Balance Policy” in the city code requiring Mandeville to maintain unassigned General Fund reserves equal to at least 20% of annual operating expenditures.
Using the city’s 2025 figures, that would equal roughly $4.4 million. However, the city’s projected ending fund balance is about $14.8 million, or roughly 67% of annual operating expenses. 
Under the proposal, the city could not adopt a budget that would reduce unrestricted General Fund reserves below that threshold.
The ordinance defines “unassigned fund balance” using standards established by the Governmental Accounting Standards Board, commonly known as GASB. The policy excludes restricted funds, capital project money, encumbrances and other designated balances from the calculation, focusing only on reserves that are fully available for general governmental operations.
The measure also excludes several nonrecurring expenditures from the formula used to calculate the 20% requirement, including capital outlay, transfers to project funds, prior-year encumbrances and carry-forward appropriations.
The ordinance states that the policy is intended to preserve “financial stability and long-term fiscal health” while ensuring the city maintains sufficient liquidity to respond to emergencies, economic downturns and revenue fluctuations.
The proposal cites guidance from the Government Finance Officers Association recommending that governments maintain unrestricted General Fund reserves equal to no less than two months of operating expenditures.
The ordinance follows months of discussion within the council’s Income Strategies Committee concerning Mandeville’s long-term budget structure, employee costs and reserve practices.
During those meetings, Zuckerman repeatedly argued that the city should formally establish reserve targets and guardrails as part of broader fiscal planning discussions.
Debates over reserves became increasingly prominent during recent budget discussions as officials examined the distinction between the city’s total cash position and the amount of money that is legally unrestricted and available for routine governmental operations.
Supporters of the ordinance have argued the policy would create a long-term safeguard against depletion of operating reserves and provide clearer financial benchmarks for future councils.
The ordinance does not authorize new spending, reduce spending or raise taxes. Instead, it would establish a binding budgetary policy governing the minimum level of unrestricted reserves the city must maintain.
The proposed ordinance is listed on the council’s May 14 agenda for introduction only. No debate or vote is scheduled at that meeting, with public discussion and final consideration possible as early as the council’s May 28 regular meeting.
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