Six weeks after commissioners bitterly clashed over the fate of a multimillion-dollar rainy-day fund, Worcester County will all but drain the account to bolster its mandatory reserve ahead of several big-ticket bond issues.
The county will move approximately $14.5 million from the $15.2 million Budget Stabilization Fund, leaving roughly $700,000 behind.
“I think this is a great use of the money in the slush fund,” said Commissioner Joe Mitrecic, who proposed setting aside even more than county staff had requested.
The higher reserve requirement took effect with the Worcester County Commissioners’ unanimous vote Tuesday. The money was slated to be transferred this week.
The decision increased the county’s reserve requirement to 20% – above the 17% minimum recommended by the county’s bond consultant, Davenport. Each percentage point requires about $2.9 million, according to Deputy County Administrator Candace Savage.
Before Tuesday’s vote, county policy required officials to hold the equivalent of 15% of annual general fund spending in reserve and replenish the account within two years if its balance fell below that threshold. The commissioners last raised the requirement in 2023, going from from 12% to 15%.
The money is not being spent, only moved. Under county policy, commissioners determine when emergency or contingency conditions justify tapping the account.