Emmitsburg approves FY24 budget transfers, conditionally directs staff to develop emergency fund plan

The Town of Emmitsburg’s board approved FY24 budget transfers to move excess FY24 funds into capital projects and match requirements for grants and repairs, including paving, the Rainbow Lake parking lot and the concession stand. The transfers were presented as allocations of excess FY24 revenues and unspent budget lines to complete projects and cover unanticipated repairs.

During discussion commissioners focused on the broader principle of building a formal emergency or rainy‑day fund. Several commissioners said they wanted a mechanism to hold unassigned fund balance for unplanned events rather than immediately spending all excess on projects. Town Manager Miss Willets and staff explained that creating such a reserve requires code changes, auditor guidance and board policy decisions.

The board approved the transfers with a condition. "Approve the budget transfers as requested with the condition of town staff to schedule with the board an agenda item to discuss the creation of an emergency/rainy‑day fund no later than December 2025," a commissioner moved; the motion was seconded and carried 5–0. Commissioners asked staff to begin conversations with auditors and counsel and to present options for establishing the fund (amounts, annual allocation, and governance) ahead of the next budget cycle.

Next steps: staff will prepare a formal agenda item and background for the board to decide on structure, timing and target annual contributions to the proposed fund before the end of calendar year 2025.