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Budget staff seek $6.14 million in free-cash transfers to shore up reserves and cover deficits
Summary
Finance staff asked the committee to forward a $6,137,126 package of transfers from free cash to reserves and deficit accounts, including OPEB, snow-and-ice, workers' comp and stabilization accounts; the committee approved forwarding to full council.
On July 11 the Lawrence City Budget and Finance Committee voted to forward to the full City Council a package of free-cash transfers totaling $6,137,126 to shore up several reserve accounts and clear deficits.
Finance staff described transfers including a $500,000 deposit to the Other Post Employment Benefits (OPEB) trust to help begin addressing retiree health liabilities, a $500,000 transfer to a compensated-absences reserve, $200,000 to workers' compensation reserves, and $1,665,848 to cover the city's snow-and-ice deficit (an account that may legally run negative). The package also included transfers to stabilization reserves — including debt-service stabilization and a fiscal stability reserve created under the Acts of 1990 — and funds for litigation and judgments.
The finance presenter explained the city's actuary reported an OPEB liability near $300 million and that the city is incrementally funding the OPEB trust. Committee members asked for the detailed quarter statements and the finance presenter said the department provides a quarterly summary that lists beginning balances, additions, deductions and ending balances; staff agreed to distribute the supporting sheet to councilors.
A motion to send the free-cash transfer package to the full council with a favorable recommendation was made, seconded and approved by voice vote. The transfers require final council approval before funds move to the specified accounts.
