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08/27/2019 01:49 PMWith the approval of a number of budget transfers at their Aug. 21 meeting, the Board of Finance (BOF) can close the books on the 2018-’19 fiscal year. Of approximately 500 line items in the budget, 23 came in over budget, amounting to a total overage of more than $20,000, requiring the BOF’s attention.
First Selectman Mike Freda said that, though the town had greater expenses than it anticipated in those items, the remaining line items all came in under budget or at budget, and that town revenues were higher than anticipated.
“It does not mean the town overspent its budget. In fact, the town balanced the budget and delivered another surplus,” he said. “It’s just an accounting reconciliation.”
By town charter, the BOF is required to approve transfers for all line items that exceeded more than $20,000 of their budgeted amount.
The town spent $58,364 more on the transfer station and recycling haulage and $53,064 more on maintenance of central facilities.
The town had an overage of $177,348.88 relative to personnel policy expenses and $57,805.62 in legal fees.
“It’s impossible to have in a 500-line item budget to have every one [accurate],” Freda said. “You’re going to have some unexpected things.”
Among the budget discrepancies, Freda said, was some good news: The town took in about $533,000 more than it expected in revenues. The extra funds came from unanticipated building permit fees, town clerk fees, and others fees that contributed to town income.
“We had a very good year, revenue wise,” Freda said.
Though the BOF was required to make 23 budget transfers, Freda said the town still came in with $1.1 million less in expenditures than it had predicted.
Freda said these savings came from reduced energy costs and leaving positions open that had been vacated, among other things.
Freda said that the town is pursuing future savings over a two-year period by refinancing the callable bonds—bonds that can be paid off prior to their date of maturity—it had taken out for construction projects like the new elementary school building, the new fire houses, and the new police department. This move, Freda said, will save the town $527,000 in debt service payments through 2022.
At its Aug. 21 meeting, the BOF also voted to recommend an increase to the bid threshold. Currently, the town is required to go out to bid for any capital project that would cost the town greater than $7,500, a number which an outside accountant suggested was low at a prior meeting.
The new number, subject to an as-yet unscheduled town meeting, would be $25,000.