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Clifton council reallocates $45,000 from dormant IDA to town general fund, approves legal invoice and treasurer's report
Summary
At its Dec. 1 meeting the Clifton Town Council approved the treasurer's report, authorized payment of a $1,150 legal invoice, and voted to transfer $45,000 previously allocated to the Clifton Industrial Development Authority to the Town's general fund; council also reviewed CARES Act balances and upcoming CD maturities.
The Clifton Town Council on Dec. 1, 2020 approved routine financial measures and moved $45,000 from the Clifton Industrial Development Authority to the town's general fund.
Mayor William Hollaway moved to approve the Town Treasurer's report for the period ending Nov. 30, 2020; the motion, seconded by Councilmember Darrell Poe, passed by poll 6-0. The council then approved payment of a Town Attorney invoice for $1,150 on a roll-call vote recorded as Hollaway: Aye; Effros: Aye; McDonald: Aye; Poe: Aye; Screen: Aye; Pline: Aye.
In a separate motion, Councilmember Steve Effros moved to reassign $45,000 previously held in the Clifton IDA to the Town's general fund on the grounds that the IDA is no longer active; Mayor Hollaway seconded and the motion passed by roll-call with all six members recorded as Aye.
Nut graf: The votes completed the council's regular financing housekeeping for November and addressed lingering allocations from the Clifton IDA while the Treasurer's report gave members an updated view of cash balances, CARES Act funds and upcoming certificate-of-deposit maturities that will require reinvestment decisions.
Details: Town Treasurer Marilyn Barton submitted the Nov. 30, 2020 financial statements showing total town funds of $1,323,745.53 and multiple United Bank certificates of deposit maturing in early December with a combined maturing value noted in the report at about $820,000. The Treasurer noted that the Town's municipal deposits are secured under the Virginia Security of Public Deposits Act and that reinvestment of the maturing CDs will follow the approval the council previously gave on Nov. 4.
The Treasurer's materials also summarized CARES Act funding the Town received through Fairfax County: $51,433 was allocated for FY20, with $40,000 passed through to Clifton IDA grants; a return of one grantee's $10,000 grant was recorded, and the Treasurer reported FY20 CARES-related expenditures and a deferred balance of $49,766.01 carried into FY21. The CARES detail tabulation showed COVID-related payroll for two temporary positions through Oct. 31 totaling $5,580 and CARES-eligible expenses from July through November totaling $38,463.33, leaving $11,302.18 identified as remaining funding to be returned to Fairfax County at the close of the grant period unless legitimately expended on eligible costs.
Councilmembers flagged that the reinvestment of maturing CDs and the closeout of CARES funds would require follow-up with the Treasurer and possibly with auditors to confirm accounting treatment; the Treasurer indicated final payment and reporting to Fairfax County would be processed after grant closeout and auditors were to be consulted where accruals affect FY20.
Next steps: There were no motions requesting additional spending from the newly reassigned IDA funds at the meeting; council directed staff to proceed with the normal reinvestment plan for maturing CDs and to return unused CARES funds to Fairfax County per the grant rules. The council adjourned at 9:28 PM.
