Article 7. Restore Balances Closed to Free Cash

ARTICLE 7. To see if the Town will transfer from available funds, the sum of $519,696 to the Insurance Reserve and $429,095 to the Salary Reserve; or take any other action relative thereto.

Article Explanation

At the close of Fiscal Year 2024, there were two accounts that were closed from the budget that should have been encumbered or transferred at year end. The salary reserve account ($755,000) was budgeted to include funds for the new Non-Union Merit Pay program, however the payments to employees were still being calculated after the books were closed for June 30, 2024. The distributions were made in August for work done in the previous fiscal year but charged to the FY25 reserve. Similarly, the FY25 non-union merit pay earnings were charged in FY26. This leaves the balance in the FY26 account $429,095 short for FY26 obligations payable in June 2026. 

Under Article 22 of Annual Town Meeting 1987, the Town voted to adopt a bylaw allowing the Town to establish an Insurance Reserve Fund and to transfer the balance of any appropriation for insurance purposes. At the end of FY24 there was $519,696 available to transfer to the reserve that instead closed to Free Cash.

Article Motion

Ms. Wasoff moves to transfer from Free Cash $519,696 to the Insurance Reserve and $429,095 to the Salary Reserve, for a total appropriation of $948,791.