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Council hears monthly financial report; FEMA grants to fund electric mitigation
Summary
Council received a monthly finance report showing the general fund near budget and expected receipts of roughly $2 million later this month; staff said FEMA reimbursements and a new mitigation award totaling about $1.8–1.9 million will help restore electric system losses and fund pole replacements.
Carl delivered the monthly financial report, telling the council the town’s general fund is tracking close to projections and that several large receipts are expected later this month that will complete the budget.
“We are basically operating break even like our budget said we would,” Carl said, summarizing revenue and expense positions through April. He said property-tax revenue may be about $50,000 over budget and business-license receipts were roughly $50,000 ahead of last year.
Carl said the town submitted FEMA claims for hurricane-related electric damage and that the electric submission totaled $1,409,000. “FEMA has looked at us and has offered us a mitigation plan on the electric system for another an additional 1.4 million to replace the wooden poles with metal or composite poles,” he said, adding FEMA’s mitigation would cover about 85 poles and that, combined with other mitigation funds, the town expects roughly $1.8–1.9 million in assistance.
Council members pressed for clarity on how FEMA reimbursements would affect a reserve described in the budget as the rate-stabilization fund. Carl said the electric reimbursement will be returned to the rate-stabilization account; he noted prior withdrawals of about $1,425,000 and estimated the fund’s post-reimbursement balance would exceed $4 million if no further transfers are made.
The report also noted a pending large payment from the municipal association insurance brokers and a final payment on the fire contract with the county; together with fees expected from C&NGA, staff estimated roughly $2 million in receipts later this month that would complete the general-fund picture.
The council acknowledged a new permit clerk has started and is handling construction permitting work, easing staff workload.
What happens next: staff will return with any formal budget transfers or requests to use the rate-stabilization fund (for example, to replace water-treatment filters) for council approval.
