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 exceeding this cap, specifically the amounts between fifteen percent and eighteen percent, will be redirected 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 introduces new legal language that specifies the adjustments to the Budget Reserve Fund and the creation of the Municipal Infrastructure Renovation Fund, while no existing legal language is deleted. The overall aim of the bill is to enhance municipal funding for critical infrastructure and one-time expenditures, thereby promoting better financial management and investment in local government needs.