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Senior center reports tight finances, expense freeze and planned budget transfers
Summary
The Gardner senior center reported rising storm-related overtime, an expense freeze for nonessential spending, and planned transfers and encumbrance cleanups to balance operating and revolving fund accounts. Staff also described a pending FY25 state grant and several purchase-order encumbrances.
The Gardner City Senior Center reported on budget pressures, an interim expense freeze and planned transfers Thursday as staff warned storm-related overtime and encumbered purchase orders will tighten near-term cash balances.
In a briefing to the board, Mike, a staff member overseeing purchasing and contracting, said storm responses in February have driven overtime costs above typical levels and that the center may request a transfer to cover the deficit. The board was told a short-term expense freeze is in effect: “we can't spend any money that's not essential,” a presenter said during the report.
The nut of the briefing was fiscal tightness. The treasurer reported a general fund cash balance of $96,003.94 as of Jan. 31 and noted a $1,000 donation was added to the gift fund. Staff said the revolving fund is listed at about $45,000 before encumbrances, and once outstanding purchase orders are removed the usable balance will be lower.
Staff described several purchase orders and contract encumbrances that constrain available balances and said they plan to cancel some older POs and reissue only what’s needed. The revolving fund is treated as program-generated revenue and staff indicated it is exempt from the citywide “essential expenditure” freeze, giving the center limited flexibility for operating purchases.
Board members discussed accounting treatment for positions split between operating and grant accounts. The outreach coordinator's salary is split 50/50 between the operating account and a grant account, and staff said the operating account has not yet received some grant-related payroll transfers, making some lines look artificially low.
Staff also reported a pending FY25 state grant balance of $83,005.65. Separately, they said some contracted services and purchase orders—examples noted included small balances from Hannaford's tied to holiday meals—remain on the books and will be reconciled in coming reports.
Ending: Staff asked board members to review the detailed budget spreadsheet submitted to the city manager and to raise questions before the center’s presentation to the city’s welfare committee and then to the full council for FY26 budget consideration.
