County-Administration

Financial policies

Objectives
This fiscal policy is a statement of the guidelines and goals that will influence and guide the financial management practice of Montgomery County. A fiscal policy that is adopted, adhered to and regularly reviewed is recognized as the cornerstone of sound financial management.

Effective fiscal policy contributes significantly to the County’s ability to insulate itself from fiscal crisis and enhances short term and long term financial credit ability by helping to achieve the highest credit and bond ratings possible. This policy also promotes long-term financial stability by establishing clear and consistent guidelines, directs attention to the total financial picture of the County rather than single issue areas, promotes the view of linking long-run financial planning with day to day operations and provides the Board of Supervisors and the citizens a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines.

Revenue policies
The County will establish an emergency reserve to pay for needs caused by unforeseen emergencies, including unanticipated expenditures of a nonrecurring nature, or to meet unexpected small increases in service delivery costs. This general contingency will be budgeted at not less than 1% of the general fund.

Undesignated fund balances at the close of each fiscal year should be at least 8% to 10% of the total annual operating revenue budget of the County. Should the County find it necessary to access these funds in an emergency situation the undesignated fund balance would allowed to fall below the targets described above. Once the undesignated fund balance drops below the targeted level the County will include enough funds in its next budget to increase the undesignated fund balance so that it meets the targeted level.

Investment policies
The County Board of Supervisors recognizes that it is the explicit constitutional responsibility of the County Treasurer to invest County funds in accordance with Virginia Law. It is the desire of the County Board of Supervisors to provide the Treasurer with the most timely information in order to best execute the powers of the Treasurer’s Office. To that end, the following investment polices are intended as a guide for the County Board of Supervisors to facilitate this relationship:
  • The County will attempt to provide a cash-flow analysis of all funds on a continuous basis. Disbursement, collection and deposit of funds will be scheduled to insure maximum cash availability.
  • The County will develop an annual cash-flow budget for County Operations to be reviewed quarterly with the Treasurer.

Contact
Montgomery County
Government Center
755 Roanoke St. Ste. 2C
Christiansburg, VA 24073

Phone: (540) 382-6960
Fax: (540) 382-5783
email | directions

Hours: Mon.-Fri.,
8:30 a.m. to 5 p.m.