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Andover posts $372,000 general‑fund increase; unassigned fund balance remains below GFOA target
Summary
Auditor reported a $372,000 increase in the general fund for FY2024 and a favorable budget variance of roughly $407,000; the town’s unassigned general‑fund balance stood at about $1.6 million, roughly 13.1% of appropriations (about 1.6 months), below the GFOA two‑month guideline.
The town reported favorable fiscal‑year 2024 results, with an increase in general‑fund balance of approximately $372,000 and a favorable budgetary variance of about $407,000, the auditor said.
Michael Van Deventer said revenues and other financing sources were roughly $227,000 more than budgeted, driven by stronger state aid collections and higher interest on short‑term investments. Expenditures were about $625,000 less than budgeted, aided by an education surplus that was transferred to the two‑percent non‑lapsing fund and the school capital reserve fund.
Combined ending fund balances for governmental funds were approximately $5.1 million, an increase of roughly $1.1 million from the prior year, Van Deventer said. The town’s general fund held about $1.8 million assigned for specific uses; the unassigned general‑fund balance was roughly $1.6 million, which the auditor said represented approximately 13.1% of general‑fund appropriations — approximately 1.6 months of expenditures. He noted the Government Finance Officers Association (GFOA) recommends about two months of reserves.
Van Deventer also reported capital reserve fund balances of about $1.7 million (an increase of about $655,000), and a few small fund deficits: a transportation/transfer‑station item (small), an equipment reserve fund deficit of roughly $64,000 and a building‑maintenance reserve deficit of roughly $13,000; Eric said the deficits were timing issues and transfers were planned in FY2025 to cover them.
Board members discussed whether to set a formal fund‑balance target. Rob, a finance member, said he prefers a higher reserve target and asked members to consider specific targets before a future meeting so the board can set policy.
