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 aims to enhance municipal financial resources by reallocating surplus funds from the Budget Reserve Fund to address critical infrastructure needs and other significant expenditures. By doing so, it seeks to provide municipalities with the necessary support for capital projects and initiatives that can improve local services and infrastructure.