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Treasurer reports $967,000 undesignated fund balance and projects cash-flow gaps through next tax receipts
Summary
Town Treasurer Lynn told the board that, as of June 30, the town's undesignated fund balance totaled $967,000 after standard reserve deductions; staff reviewed bank positions, a short-term CD for a fire-truck fund, and a cash-flow projection that shows seasonal gaps before September tax receipts.
The treasurer presented a comprehensive year-end financial update, explaining the calculation for the undesignated fund balance and noting a June 30 undesignated balance of $967,000 after reserve deductions. She explained the calculation follows the MMA recommendation (median of three methods) and highlighted that some funds (for example road-reserve dollars) are carried forward as dedicated reserves and not available for general use until properly reclassified.
The treasurer described changes made to banking and treasury products that increased interest earnings (positive-pay/analysis product requiring a $160,000 operating minimum) and noted a short-term CD set aside for the fire truck purchase will mature in mid-July.
She presented a cash-flow projection for the coming fiscal year based on a three-year average and showed the town's largest inflow is in September when tax receipts are due; she warned of cash-flow pressure between April and October and said staff had run stress tests for road-construction timing. The treasurer and board discussed that some line items are reserved and do not lapse to undesignated balances, clarifying the timing of transfers and the meaning of balances on June 30 versus amounts available during the fiscal year.
Board members asked clarifying questions about whether certain reserve moves had been processed on July 1 and discussed the effect of road-construction timing and invoice timing on cash flow and the town's ability to pay contractors before the next major tax receipt period.
The board took no immediate fiscal action beyond approving routine warrant-related policies earlier in the meeting; members asked for continued monitoring and more detailed cash-flow reports when awarding near-term contracts.
