Gardner senior center warns council action needed after utility overrun and revolving-fund rules threaten program dollars

At a Gardner Senior Center board meeting, staff reported that energy and utility costs were materially above budget through May and said an order to the Gardner City Council asking for a $3,500 appropriation has been submitted and is expected to be voted on that night.

The center’s finance presenter said “Energy and utilities were at $16.03 99 through May 30” and added the center had spent “another about a thousand dollars” in the last week, pushing the line roughly $5,500 over budget, staff said. The presenter told the board an order asking the city council to appropriate $3,500 primarily to offset utility expense “has been submitted to the city council for consideration.”

The report matters because of how revolving-fund carryover is handled under state law and local practice. Board members were told the center’s revolving fund beginning balance was about $79,008.33, with May receipts of $1,004.59 and May expenditures described in the packet; after accounting for outstanding purchase orders staff calculated roughly $31,113 in immediately available cash. Staff warned that, under current rules, any revolving-fund balance above the council-approved carryover cap would be returned to the city’s general fund at fiscal year-end. The center is asking the council to increase the carryover cap from $40,000 to $60,000; without that change staff said roughly $16,000 could be swept back to city free cash rather than remain available for senior-center programs.

Board members discussed end-of-year journal entries and transfers staff use to zero out grant and revolving accounts. The presenter explained that some line items shown in the packet are provisional “purple” entries used to document transfers that will be finalized on June 30 — a bookkeeping process staff runs annually to move expenses into the correct fund before closing the fiscal year.

The board voted on the financial report by voice. The chair called “All in favor?” and members replied “Aye.” Staff noted the city council review of revolving funds is required under state law and that the council’s vote on the revolving-fund cap and the appropriation for utilities would affect the center’s final available balance.

Next steps: the presenter said the center’s FY25 year‑end accounting will be completed in June and that the board will not meet in July or August; a final June 30 financial report will be presented at the September meeting. The city council’s actions that night — the appropriation and the revolving-fund cap change — will determine whether the senior center retains the funds for programs or if excess balances revert to the general fund.