The city loses credibility with its residents when it stockpiles cash without explanation. In fact, the city has so much money in its reserve fund that it is danger of breaking the law.
Reserve funds are an important part of the cash flow operation of any local government.
Grand Island must come up with local matches to federal and state spending. The reasoning of the former city administrator is sound. If Grand Island accumulates money for these projects, rather than borrow the money, the community will save thousands of dollars in interest. However, the explanation is short on specifics. Now the city has given the impression to supporters and detractors alike that it simply is collecting money in a reserve fund without reason.