Special Finance Committee approves year-end transfers, moves ARPA revenue into capital fund

The Kingston Special Finance Committee unanimously approved six year-end internal budget transfers during a special meeting called March 24, including a transfer that moves American Rescue Plan Act (ARPA) revenue from the general fund into the capital fund to match expenses.

The transfers were presented as routine year-end reconciliations to close out 2024 accounts. Committee members voted on transfers for Parks and Recreation, the Department of Public Works (two transfers), and multiple transfers recommended by the comptroller’s office for the sewer fund, the general fund, and a large general-to-capital movement tied to ARPA accounting rules.

Comptroller staff member Don explained the accounting behind the largest transfer, saying ARPA revenue must first be recognized in the general fund and then transferred to the fund where the expense is recorded. “The revenue we're transferring from a revenue account over to transfer the capital, where, we recognize the expenses,” Don said. He also told the committee that the transfer used most of the city’s project reserve this year and that there remain outstanding vendor payments awaiting submission to the comptroller’s office.

Don provided a breakdown of the small financial impacts associated with closing projects: $13,595 was drawn from reserves this year to reduce bonding needs for previously authorized projects, and $2,006.39 represented minor overages on closed capital projects. He also said his office still shows “a million plus in vendor payments that are outstanding that haven't been submitted yet.”

Committee members did not ask for additional detail on most items and moved each transfer forward by voice vote. The meeting included brief discussion about Parks and Recreation usage following recent construction; committee members said the renovated facility appears to be seeing more use, and staff were asked to provide operational and rental information in the future.

Votes at a glance: all motions passed unanimously - Parks and Recreation: year-end internal transfer of $649 to reconcile department accounts. Motion by Steve Shep; second by Sarah Casti; approved unanimously. - Public Works (sewer fund): internal transfer of $17,956 to cover year-end shortfalls. Motion by Drew; second not specified in transcript; approved unanimously. - Public Works (general fund): internal transfer of $66,916 to cover year-end shortfalls. Motion by Sarah Cassidy; second by Steve Shabbat; approved unanimously. - Comptroller (sewer fund): City Hall sewer fund transfers totaling $344,970 to close out 2024. Motion by Drew; second by Steve (last name not specified); approved unanimously. - Comptroller (general fund): City Hall general fund transfers totaling $728,350 to close out 2024. Motion by Steve Shadditt; second by Drew Andrews; approved unanimously. - Comptroller (capital fund): general fund transfers totaling $11,000,009.77 (ARPA amounts appear on both sides of the transfer) plus smaller items; the transfer reduces reserves and shows a $16,234 reported financial impact. Motion (mover not specified); seconds by Drew and Sarah were recorded; approved unanimously.

What this means: Committee members said accountants will continue to close out remaining vendor retainages and finalize project accounting. The comptroller’s explanation that ARPA revenue must be recognized in the general fund before being transferred to the capital fund explains why the large sum appears in both the revenue and the transfer lines for 2024.

The meeting adjourned after the last vote. Committee members asked staff to provide more detail on rentals and usage at the renovated Parks and Recreation facility for the upcoming season.