The proposed bill, General Assembly Proposed Bill No. 6805, seeks to adjust the cap on the Budget Reserve Fund to fifteen percent. Additionally, it stipulates that any funds that would typically be deposited into the Budget Reserve Fund between the fifteen percent and eighteen percent threshold will instead be allocated to a newly established Municipal Infrastructure Renovation Fund. This fund is intended to support municipal capital expenditures that require local contributions, as well as one-time non-reoccurring expenses such as additional pension payments, early retirement incentives, professional development opportunities, and technology improvements.

The bill aims to enhance municipal infrastructure by redirecting funds that would otherwise contribute to the Budget Reserve Fund, thereby providing municipalities with the necessary resources for critical projects and expenditures. The adjustments made in this bill reflect a strategic shift in financial management, prioritizing immediate municipal needs while still maintaining a reserve fund for future stability.