FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
title
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:
titleendFor 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:
(type text here)
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 ?
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.