‘Watchful spending’
According to Moran, budget projections for the remainder of 2011 indicate that the general fund will have an unexpended balance of $428,291 at the end of the year, as a result of expenditures amounting only to 90.56 percent of the total budgeted amount. He attributed the apparent savings to revenues that are projected to exceed expectations and “watchful spending,” among other factors.
A general-fund shortfall in the current year’s budget, resulting from erroneous transfers of funds at the end of 2010, has been accounted for, said Moran, yielding the projected unexpended balance. The tentative budget includes an appropriation of $162,700 from the unexpended balance to the 2012 general fund. The tentative budget’s highway fund also contains an appropriation of $135,000 in unexpended funds from 2011.
In an October 5 interview the supervisor noted that the Town Board might decide to reject the proposed $162,700 appropriation, choosing instead to bolster the town’s ongoing unexpended balance and provide for unspecified future contingencies. To compensate for the shortfall that would result in the 2012 general fund if the board took that step, said Moran, the council members could elect either to make further cuts in the tentative budget, which could include reductions in the town’s workforce, or adopt a local law that would override the tax cap.
“As always, the unappropriated fund balance figure is an estimated guess, and the Town Board may wish to contemplate further reductions in expenses in order to provide the town with an unappropriated fund balance that is closer to $450,000, representing 10 percent of the budget,” said Moran. “Although there is no law requiring a specific percentage, the Office of the State Comptroller recommends a figure of 6 percent to 8 percent, and, given the difficult economic climate, would prefer that a balance of 10 percent be maintained by (a) municipality.”
In the current year the highway fund, like the general fund, had a deficit resulting from a misguided transfer of unexpended funds to capital reserves at the end of 2010. In order to avoid similar problems in the 2012 budget, the current Town Board plans to refrain from making similar transfers to capital reserves. That option will be left to the next Town Board — three of the council’s five seats, including the supervisor’s, will be filled in the upcoming election — which will have the benefit of determining from the town accountant’s year-end report whether unexpended funds are available for transfer.
