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East Troy trustees reassign reserves, set aside $40,000 for payroll overrun
Summary
Trustees approved fund-balance designations for the 2024 audit, moving $40,000 to cover anticipated administration wage overages and leaving $170,007.21 in the general fund; they also undesignated several capital reserves for future projects.
Eileen (staff member) told the Village Board on Feb. 18 that the village reviewed its 2024 fund balance designations as part of the audit process and recommended shifts to reflect last year’s operations and upcoming capital needs.
The change approved by the board would designate $40,000 in the general fund to cover anticipated administration wages that may exceed the 2025 budget because of overlapping clerk positions and payouts of unused paid time off; it would leave $170,007.21 in the general fund and move older capital-designated balances into undesignated capital for future prioritization. Trustee (unnamed) moved the measure and the motion carried unanimously.
Eileen said the village’s general fund balance decreased by $95,000 from 2023 to the end of 2024 primarily because surplus was transferred to capital projects. She told trustees the village recorded an operating surplus of about $151,000 in 2024 and that the village’s financial policy calls for keeping a minimum of 35% of the current-year operating budget in the general fund. Under the recommended designations the village would remain above that 35% threshold.
The board discussed two existing designations left over from earlier boards: roughly $194,000 tied to a prior community service project and a community-beautification fund created from a reserve license. Staff recommended undesignating those amounts and moving them into undesignated capital so they can be considered during upcoming capital prioritization.
Trustees asked whether specific projects such as a splash pad, a salt shed, or updated holiday decorations could use the funds; Eileen said those and other projects could be funded from undesignated capital through the regular budget process. One trustee asked to hold $40,000 for the community development authority (CDA) until the board sees this year’s facade grant applications; the board approved leaving flexibility and finalizing the audit sheet for auditors.
The motion approved: designate $40,000 in the general fund for anticipated administration wages, leave $170,007.21 in the general fund, and undesignate the identified capital fund balances for future prioritization. The board voted to send the finalized fund-balance worksheet to auditors with those designations unchanged for the audit report.
