Pacific Mayor Herb Adams expanded his practice of creating contingency funds to be available for emergencies or unexpected opportunities for city operations.
When Adams returned to office in 2006, he learned that the city had used all the previously acquired rainy day fund and established a practice of budgeting small amounts each year into a rainy day fund, which has grown to a current balance of $1 million.
Adams said the contingency funds are essential as a set aside against budget shortfalls or emergencies.
When the city began to collect tourism taxes, Adams insisted that a small portion of the tourism tax dollars go into a contingency fund to be available for unexpected opportunities.
At the Feb. 18 board meeting, the mayor asked aldermen to create a road improvement contingency fund with a $50,000 initial allocation, taking the funds from the sale price of the city museum building.
Acknowledging that the city had received a $135,000 check for the purchase of the former Wolf family residence, which housed the city history museum building, Adams asked that a portion of the funds be allocated to a road improvement fund.
The city purchased the former Wolf family residence, 206 W. Union, in 2005 for $155,000 when former mayor Jeff Titter said he wanted to build a new city hall on the site. Titter asked that the building be loaned to the history museum, which opened there in July 2006.
The city sold the property, which includes two lots in the original city, to the Father Edward Berry Knights of Columbus Council.
Adams said it’s appropriate to return part of the funds to the general fund because that’s where funds to purchase the property originated.
But, he added, that he and other city officials had been discussing a road improvement contingency fund and the sale of the property created the right timing to initiate the fund.
In asking aldermen to create each of the three funds, Adams said they give the city flexibility in dealing with unknown opportunities and a safety net in dealing with unexpected emergencies.