Lenox council approves first reading of 2024 supplemental appropriations ordinance

The Lenox City Council approved first reading of Ordinance 660, a supplemental appropriations measure that adjusts the city’s 2024 budget to reflect actual revenues and expenditures.

City staff (Nate) explained the ordinance is intended to “true up” year-end accounts. Highlights cited in the presentation included a net gain in the general fund of about $80,000, a $160,000 gain in the water fund, and more than $11,000,000 of inflows to the sewer fund tied largely to an agreement with the Department of Corrections. The recreation fund finished with a net loss of about $9,000, and the ambulance and animal-related funds showed net losses that staff said are typically covered by transfers from sales-tax-derived funds (second penny and third penny) as allowed under state code.

A councilmember asked whether the $150,000 second-penny net loss included a roughly $98,000 ambulance shortfall; staff confirmed the $98,000 is part of that $150,000 figure. Staff said the municipal practice is to transfer fund balances at year-end to make enterprise funds whole and that the city is monitoring reserve levels, aiming to maintain a general fund reserve equivalent to roughly three months of operating expenditures per Government Finance Officers Association guidance.

A motion for first reading of Ordinance 660 was made, seconded and approved by voice vote. The meeting record shows the motion carried; no roll-call tally was recorded in the transcript for the ordinance vote.

Staff told council the timing of the supplemental budget filing this year was later than preferred and reminded members the city had adopted a later schedule for the annual budget process; staff said they expect to begin the next budget process in a few months.