City of Elkhart Adopts Cash Reserve Policy to Strengthen Financial Stability

Elkhart, Ind. — The City of Elkhart has formally adopted a Reserve and Liquidity Policy designed to strengthen long-term financial stability, protect against economic uncertainty, and reinforce responsible fiscal management.

The City has a long-standing practice of maintaining strong cash reserves and with the cash reserve (savings) policy will continue to provide additional transparency, resilience, and long-term fiscal sustainability.

Given the uncertainty of municipal revenue since the State’s adoption of SEA 1, this policy establishes clear saving targets for the City’s major operating funds and minimum savings levels for other key funds. It also sets guidelines for how year-end budget surpluses will be allocated — prioritizing savings replenishments and capital investments.

In addition, the policy outlines standards to maintain adequate cash flow to meet operational expenses, debt obligations, and unforeseen financial challenges. For example, at least 15% of General Fund expenditures must be maintained in cash to ensure liquidity.

City leadership will review reserve levels annually and may adjust the policy as needed to remain aligned with financial best practices and state law.

"This policy signals the City’s continued commitment to strong financial stewardship and should be noted that we already meet all of the reserve policy standards that were adopted today. My administration has increased the city’s reserve fund balances every year since 2020." said Mayor Roberson.