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.

Council members asked for the complete project and asset list behind the sinking fund recommendation so they can evaluate alternatives. Staff agreed to circulate the spreadsheet and noted the council retains discretion about how much to fund from the carryover.