2014-07-10-AC-min - Laserfiche WebLink

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7/10/14Minutes Reserve Fund: The Appropriation Committee controls the use of funds in theReserve Fund thatcan be used to cover line item deficitsthat result from unanticipated expenses.The current balance of the FY2014 Reserve Fund is approximately $900,000. Salary Adjustment Account: Some salaries arenot finalized at the time of the Annual TownMeeting. With BoS approval,fundsfrom this account can be transferred to the appropriate line item for the finalized salaries. 3% Transfer: The “3% transfer rule” 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 Appropriation Committee and the BoS must approve these transfers. Mr. Addelsonreviewed the recommended amounts to be transferred, the sourcesforthose funds, and the purpose for the transfers as outlined in thehandoutthatincluded the FY2014 Proposed Year End Budget Adjustments.TheBoS has approved/endorsedthe proposed transfers from all three sources, although two of the amounts have increased since they voted.They will be asked to revote, as follows: To increase the Salary AdjustmentAccount transfer by $12,000. This will allow a50-50 split between the budgets for the two fiscal years that are included in the first payroll check each year.Past practice used a 60-40 split. To increasethe transfer authorized by the “3%transferrule” by $6,700 to cover Legal Services associated with the current contract negotiations for the solar panels. Based on Mr. Addelson’srecommendations, the following votes were taken: A motion was made and seconded to approve the transfer of $76,000from the Reserve Fund to cover unanticipated expenses for unemployment insurance and property insurance, as discussed and as outlined in the handout. The motion passed. VOTE: 8-0 A motion was made and seconded to approve the transfer, under the 3% rule,of$110,370, which includes the $6,700 discussed above,asoutlined in the handout.The motion passed. VOTE: 8-0. A motion was made and seconded to endorse the transferof $128,400, which includes the $12,000 discussed above, from the Salary Adjustment Account for salaries in specific departments, as recommended above andas outlinedin the handout. The motion passed. VOTE: 8-0. Mr. Addelson’shandout also identified a Snow and Ice FY14 budget deficit of $652,712. He explained that the deficit would likely be funded, without the need for further Town Meeting action, from the following sources: $300,000from the set-aside in the FY15 budget for FY14 snow and ice removal, a mechanism that is allowed by state regulation. 2