FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
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MOTION to appropriate and transfer $157,133 from Account #10188210-59300 (Transferred Funds) to Account #22570101-58250 (BOE CNR Reserve Fund);
In addition, appropriate $157,133 to Account #225670101-58250 (BOE CNR Reserve Fund) end.
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Background:
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Finance Committee Meeting 10/15/2025: The Finance Committee ask School Superintendent Mr. Hartling to submit a Prioritized List of Capital Projects for the use the additional $157,133 Impact Aid Funding that was received for Fiscal Year 2024/2025.
For the Fiscal Year 2024/2025 the town budgeted $1,050,000 to be received as revenue in the General Fund from the Impact Aid Grant.
However, the town received $157,133 more than the budgeted amount as a result of the Federal Government annual appropriations process and the number of eligible claims submitted.
The Board of Education is requesting that the overage of $157,133 that was received be transferred from the General Fund to their BOE CNR Reserve Fund to support capital needs projects identified for Fiscal Year 2025/2026 that currently lacked funding. (please see attached).
Department Comment/Recommendation:
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Finance Director Comment/Recommendation:
I disagree with this request. Most of the revenue lines in the budget are based off estimates. There should not be an expectation that because actual revenues exceed a budget estimate, the revenue overage is available and owed to the department. It sets a bad precedent and could create an incentive to under budget revenues. Are we clawing back funds when budgeted revenues fall short ?
I would also remind the committee/council that already in FY 26, we utilized $375,000 of undesignated capital funds to purchase a new chiller for Gales Ferry School.
Mayor Comment/Recommendation:
I do not support this request. The impact aid funds are received in part to cover the tax loss associated with MPTN and military impacts- as such these funds should remain with the Town.