Calculated Risk
Reserves are crucial for a government’s fiscal stability, especially when facing increasing uncertainties. Risk management for local government, therefore, necessitates a thorough assessment of the appropriate reserve levels. This article presents a risk-based reserve framework developed by GFOA to assist local governments in determining the appropriate level of reserves required based on their risk exposure. A case study of the Goleta Water District (GWD) is included to illustrate the application of this framework.
Publication Date: August 2025
Author: Thao Pham
