Ward 2 Councilman Bret Allphin explains what a budget stabilization fund is during a Marietta City Council Finance Committee meeting Tuesday evening. (Photo by Michelle Dillon)

Marietta City Council discussed creating a fund to help the city with future financial issues on Tuesday.

During a Finance Committee meeting, Ward 1 Councilman and Finance Committee Chair Michael Scales said he wants to get things moving on the creation of a fiscal stabilization fund.

“We need to get this stuff moving,” Scales said at the meeting.

According to Scales he is going to request three pieces of legislation be prepared by the city law director to be discussed at the July 3 regular council meeting.

“I am requesting three pieces of legislation. One, creation of the fiscal stabilization fund and it’s an emergency, suspend the second and third reading. The other one is to put an ordinance into place to fund it long term and it will come from .. our investments (interest), anything over $250,000 we get would go to this fund to start it off to get some cash in there for future purposes … the last one is a transfer, an appropriation of the funds in the account now over $250,000 to this new fund.”

During the meeting, At-Large Councilwoman Cassidi Shoaf asked Scales what the purpose of a budget stabilization fund is.

“The performance audit said in there we need two, three months capital to keep ourselves running … so down the road if something happens we have some funds to take care of business. If we think that if something happens and we can rely on the federal government or the state government I think we shouldn’t think that way.”

Ward 2 Councilman Bret Allphin provided more information about what a budget stabilization fund is, saying it is something separate that is allowed by Ohio state law and that is different from a rainy day fund.

Allphin said that up 5% of the city’s revenue can be put in the fund and the money in the fund can only be appropriated for spending after legislative action by the council.

City Director of Budget and Purchasing Mitch Dimmerling clarified that the 5% is based on the previous year’s revenue.

“We would be able to determine together under what circumstances would we want to make those appropriations,” Allphin said about how the funds could be spent.

Shoaf also asked how much more than $250,000 the city has earned in interest on investments right now.

According to Scales, the amount is $90,000.

Scales said the fund will be a line item under general revenue so that council will know what the fund is and it’s not part of a big pot where it’s mixed with everything else.

After the discussion of the fiscal stabilization fund, council went into executive session at 5:55 p.m. for the purpose of preparing for, conducting or reviewing negotiations or bargaining sessions with public employees concerning their compensation or other terms and conditions of their employment.

Scales said council would not be taking any action after the executive session.

The next regular council meeting will be at 7:30 p.m. July 3 in Room 10 of the Marietta Armory.

There will also be committee meetings today including, an Employee Relations Committee meeting to discuss a water meter setter position and foreman II position at 5:15 p.m.; a Planning, Zoning, Annexation and Housing Committee meeting to discuss potential temporary and future legislation for recreational marijuana at 5:30 p.m.; and a Public Lands and Buildings Committee meeting for an update on the $9.4 million levee project at 5:45 p.m. All the committee meetings will be in Room 10 of the Marietta Armory.