Torrington Board of Finance approves centralizing capital-reserve funds for city facilities

The Torrington Board of Finance voted on Aug. 19 to reallocate existing capital reserve balances for building and facility improvements into a centralized city real estate (facilities) capital-reserve account and to develop a policy requiring quarterly reports to the board.

The move follows a reconciliation of capital-reserve accounts through June 30, 2025 that showed approximately $9 million in reserves across multiple departmental accounts. Erica, the city’s budget manager, told the board the reconciliation allowed staff to see which funds had been earmarked for building repairs and to propose moving those line items into a single facilities account under the city real estate department.

The board emphasized the goal is not to spend funds immediately but to reclassify existing capital-reserve balances so the facilities director can track and prioritize needs across city-owned buildings. The reconciliation identified line items earmarked for the fire headquarters and North End Station boilers, generators, diesel exhaust systems, parking lots, police maintenance, a public works roof, the former Southeast School balance and other building-specific funds. For one parking-lot fund the staff recommended transferring oversight to the city parking authority because it falls under that agency’s purview.

Board members said a centralized account will make it easier to rank repairs, plan for likely five-year spending, and reduce the risk of leaving tax-funded reserves unspent for long periods. One member noted bond counsel’s guidance that tax-funded reserves should be reasonably spent within about five years.

The board approved a motion authorizing staff to reallocate facility-related capital-reserve balances from department-level accounts into the new city real estate/facilities line item and to return with a proposed policy for quarterly reporting to the Board of Finance; the motion passed unanimously (motion made by Lorraine Pesky; seconded by Wendy Traub). The board also asked staff to present a final listing after the reallocations are complete.

Officials said the reclassification will remain within capital reserve (no funds will be removed from the capital-reserve pool as part of this action) and that staff will return with a follow-up report showing final account balances and any minor adjustments staff made as part of the setting-up process.

City staff said the new centralized account will also be considered for future capital-planning discussions for the Board of Education accounts and the city’s non-lapsing educational fund, where the board signaled interest in consistent reporting across city and school holdings.

The board did not set a final reporting frequency policy at the meeting but indicated a preference for not less than quarterly updates. Staff said they will prepare account setup and a schedule for the board to review at a future meeting.