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7/10/13 Minutes funds to offset thesedeficits.Mr. Addelson explained the “3% transfer rule,” which allows the town to transfer unused funds from a departmental budget to cover deficits in another part of the budget. The transferred funds cannot be more than 3% of the budget of the department from which they are transferred. The transfers under the 3% rule together with funds from SalaryAdjustment Account and the Reserve Fundwill cover the deficits.The Appropriation Committee’s approval is onlyneeded to transfer funds under the 3% rule and from the Reserve Fund.The Board of Selectmen has approved the proposed transfers from all three sources. AfterMr. Addelson explained the nature of the deficits incurred by the Liberty Ride, by the Town Clerk’s office to fund the conduct of the special election for the vacant U.S. Senate seat, for certain property and liability insurance premiums, and for FY2013 snow and ice removal, the Appropriation committee took the following votes: a)To help fund the retirement of a snow and ice deficit of approximately $350,000for FY2013and unanticipated costs of $3,350 for the special election, amotion was made to approve the transfer of $210,350from the Reserve Fund to the DPW Personal Services, the DPWExpenses, the ClerkPersonal Services and the Clerk Expenses2013budget lines.The motion PASSED by a vote of 6-0.The balance of the snow and ice deficit will be covered by surpluses of approximately $150,000 that are available in the existing DPW budget. $300,000 that was set aside in theFY2014 budget to cover potential FY2013 snow and ice deficits will be released and become part of the Town’sfree cash balance as of July 1, 2013. There have been no other draws in FY2013 on the Reserve Fund, which was originally funded at $900,000, so the balance of approximately $690,000 left after funding the snow and ice deficit will also flow to free cashas of the end of FY2013. b)A motion was made to approve the transfer, under the 3% rule,of$21,839 in surplus funds fromthe health benefits budget to cover:a $9,800deficit in property and liability insurance premiums,and a $12,100deficit inEconomic Development expenses related to the Liberty Ridecarried over from the prior fiscal year (the Liberty Ride operated in the black in FY2013).The motion PASSED by a vote of 6-0. c) A motion was made to endorse the Selectmen’s transfer of Salary Adjustment Account fundsto coverincreased salary costs of$271,626 in various personal services accounts.The motion PASSED by a vote of 6-0. Increase the FY2013 spending limit for the Public/Educational Government Program 4. (PEG)Revolving Fund –Rob Addelson reported that the spending limit originally established for the PEG Revolving Fund for FY2013 was $450,000.The Town Manager is proposing to increase that limitto $508,000. The additional funds are needed to cover costs associated with the Town’s lease with Avalon Bay for Kline Hall and theinstallation of digital signage in various Town office buildings. The PEG Revolving Fund has more than adequate revenues and reserves to cover this spending increase. The Board of Selectman has already approved the transfer, but approval of the Appropriation Committee is required as well. A motion was made to approve increasing the PEG Revolving Fund spending limit to $508,000. The motion PASSED by a vote of 6-0. 2