2020-03-25-AC-ATM-rpt - Laserfiche WebLink

Browse Search

APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020 Appendix C: Revolving Funds Ordinarily,revenue received by any municipal department must be deposited in the General Fund and can- not be expended for any purpose without further appropriation by Town Meeting.A revolving fund allows Town Meeting to dedicate in advance a specific source of anticipated revenue from fees and charges,on an ongoing basis and without the need for further appropriation,to pay expenses for rendering the services for which those fees and charges are collected. Revolving funds managed by municipal departments are generally governed by G.L.c.44, §53E1/2. (There are also a number of revolving funds managed by the School Department, such as the School Lunch Fund, which are governed by other statutes and are not within the control of Town Meeting.) Under Section 53E1/2, a municipal revolving fund can be established only by vote of Town Meeting. That authorization must be renewed prior to each succeeding fiscal year. The authorization must specify: • the purpose(s)for which monies deposited in the fund may be used • the source(s) of funds to be deposited • the board, department or officer authorized to expend monies from the fund • a limit on the total amount that may be expended from the fund in the ensuing fiscal year Expenditures may not be made,nor liabilities incurred, in excess of the balance of the fund. If a revolving fund is reauthorized,any balance in the fund may be carried over to the next fiscal year. If a revolving fund is not reauthorized,or if the purposes for which the money in the fund may be spent are changed,the balance in the fund reverts to the General Fund at the end of the fiscal year unless Town Meeting votes to transfer the funds to another duly established revolving fund. 56