UPDATED: "Healthy" fund balance & HRBRRD back taxes

Question: I understand that Mr. Tomlinson has suggested that the Board use the $475,000 coming to B-P from the Hudson River-Black River Regulating District be used to replenish the fund balance. My question, in "good economical times," what was considered a "healthy" fund balance? What is the fund balance now? Also, Northville will be using some of the back taxes to cut the tax levy for their residents. Since these owed taxes were one of the issues, among others, brought up in the past to justify the hefty tax increases in the district, would the Board be as considerate as Northville, and pass on a cut to their taxpayers as well?

Answer: People have different opinions about what constitutes a "healthy" fund balance. Most of the bond rating agencies – Moody’s, Standard & Poors, and Fitch – recommend a fund balance between 7 and 13 percent of a municipality’s total budget. Other agencies recommend maintaining enough fund balance to cover up to three months’ worth of expenses, which would amount to 25 percent of a municipality's total budget – for B-P, this would be $7.25 million. In general, 5 percent is considered the absolute minimum.