TUPELO, Miss. (AP) - The Tupelo City Council has authorized separating city reserves from the money needed to pay operational expenses like payroll, fuel and supplies.
The Northeast Mississippi Daily Journal reports (https://bit.ly/Txz3VN ) the city has $18.5 million in reserves but will keep $5 million in the general fund as a cushion to ensure it never has to worry about bouncing a check.
Mississippi state law began permitting creation of municipal reserve accounts - also called “rainy day” accounts - in 1999.
City Clerk and Chief Financial Officer Kim Hanna says separating savings from tax dollars used to pay ongoing city bills also will create better oversight and monitoring of monthly expenses.
Along with keeping a better eye on savings, the change will also allow city leaders better monitor monthly expenses.
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Information from: Northeast Mississippi Daily Journal, https://djournal.com
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