Chatham Area Transit recently took an additional step towards ensuring long-range financial stability, with the CAT board’s approval of an operating reserve fund policy.
The policy adopted by the CAT Board on April 27 requires CAT to develop and maintain a level of unrestricted fund balance equivalent to at least three months of budgeted expenses or a minimum of 30% of budgeted expenses as set by the CAT board. The policy goes beyond the Government Finance Officers Association’s recommendation that governments maintain an unrestricted budgetary balance of at least two months of operating expenses.
It is in CAT’s best interest to maintain a higher level of fund balance to mitigate the current and future risks of the agency, said interim CEO Valerie Ragland.
”I’m so excited that the Board has committed to become more fiscally responsible by setting this policy that will promote stability and financial sustainability,” Ragland said. “The support of the board, as I’ve served in this position, has been an invaluable asset to me in my service to the agency.”
The policy’s adoption comes as CAT finalizes the budget for the coming 2022 fiscal year, which begins July 1. A budget workshop has been scheduled for 11 a.m. on May 4. The workshop will be held remotely due to the COVID-19 pandemic and can be viewed live on CAT’s YouTube page at .