Many of this year’s Articles are listed with costs, yet zero tax impact. That’s usually because there is loan forgiveness, or a grant offset, or in many cases, it is because the cost will be drawn from the Unassigned Fund Balance. This brief explanation is drawn from the Town Finance Director’s discussion in the Annual Reort:
In private industry, the Unassigned Fund Balance is referred to as “Retained Earnings” and is adjusted annually by the net income (income minus expenses). Examples of items that contribute to the Unassigned Fund Balance are receipt of federal grants; expenditures lower than budgeted and appropriated; interest on deposits higher than anticipated; income from the Real Estate Trust higher than anticipated; etc. The estimated 2019 Unassigned Fund Balance is $8.8 million. This is above the DRA 2019 suggested minimum balance level, and above the Municipal Association guidelines. There are 11 Warrant Articles that will utilize these excess funds. If all of these are approved, $1.3 million will be used from the fund, and that will still leave a balance higher than that recommended by either DRA or the Municipal Association.
Articles # 19, 22, 24, 31, 32, 33, 34, 36, 37, 38 and 39 are being offset by withdrawal from the Unassigned Fund Balance, and will have a “UFB” designation in the title of the discussions below.