Council approves temporary transfer to senior center amid cash‑flow shortfall

The West Warwick Town Council approved a temporary transfer on Feb. 4 to cover an operating shortfall at the town’s senior center while the center awaits an anticipated IRS employee retention credit.

Town staff reported that the senior center director informed officials in mid‑January the center expected to run out of funds by mid‑March because of decreased grant availability and higher-than-expected expenses. Staff said the center expects an employee retention credit of about $541,000 but does not have a firm date for the payment. The immediate request to the council was for roughly $89,000 to carry the center through the remainder of fiscal 2025.

A staff presenter summarized the center’s corrective actions and said the request was intended as bridge funding, not a permanent appropriation. “He anticipates needing approximately $89,000 to get through the rest of this fiscal year,” the presenter said. Council members asked how certain the IRS payment was; staff said the director believed the credit was approved but had not produced a formal IRS confirmation and had pursued an advance through a foundation that did not materialize.

Council members also discussed operational recommendations included in a staff memo, such as consolidating payroll or administrative functions to reduce overhead and noted the center’s director will return to the council in one or two months with a proposed fiscal 2026 budget.

After discussion, the council voted in favor of the temporary transfer. Council members said the town would monitor the center’s cash flow and follow up on the timing of the IRS credit.