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Council reviews surplus fund options; staff suggests reserving funds for possible county library partnership
Summary
Town staff told council the unassigned general fund balance is above policy (about 75.37% vs a 65% ceiling) and presented options — sewer repairs (~$1.4M), Cane Creek Greenway extension, loan principal paydown, or tax-rate reduction — recommending reserving money while exploring a county library partnership and grant funding.
Town staff reported the town’s unassigned general fund balance is well above policy and presented four options to return to the adopted fund balance range: one-time capital expenditures, continued funding for the Cane Creek Greenway extension, paying down loan principal on town-center loans, or reducing the tax rate.
Staff said auditors calculate the unassigned fund balance after the audit and that the town is approximately at 75.37% of general fund expenditures versus a 65% policy ceiling; equalizing to policy would require roughly $943,000, staff said. The staff presentation listed a wastewater/sewer capital project (Westfeld, North Hudson, Dogwood Terrace) with an estimated cost near $1.4 million as a candidate one-time expenditure.
Council and staff discussed a possible county partnership to host a new, larger library on town-center property. The council flagged reserving a portion of surplus funds in the capital-project fund while the town explores a memorandum of understanding with the county, citing the county library commission’s reported visit count of about 40,000 for the existing branch as part of the partnership rationale.
Council did not adopt a final spending plan at this meeting. Staff recommended either tabling immediate allocation decisions or moving surplus funds into the capital project fund while joint planning with the county proceeds. Staff also said it will continue seeking grant opportunities to support the sewer and greenway projects.
Next steps: staff will continue outreach with county partners and legislators, monitor the potential library partnership, and return with additional recommendations and budget calculations at future meetings.
