Council weighs using $426,000 carryover for sinking fund to avoid deferred replacements

Staff recommended allocating $426,000 of available carryover to the sinking fund to make up for prior-year underfunding and to support near-term capital replacements. Budget director Melissa Hernandez explained the sinking fund calculation is based on a town-maintained asset list that assigns replacement lifespans and estimated costs; if the sinking fund is not replenished, the town could be left with only about $39,000 in sinking-fund balance at year end and would have to defer routine replacements or seek a two-reading council action to transfer funds later.