Post date: Oct 30, 2019 7:1:19 PM
We have 2 revolving funds - Gas & Plumbing Inspection and Public Library. Prior to 2018, these were annually authorized (in their entirety) and had the spending limit set at Annual Town Meeting. With the Municipal Modernization Act, from FY19 forward, the guidance from DLS was that "revolving funds are to be authorized by by-law or ordinance rather than an annual legislative body vote." At Town Meeting 2018, we established the Revolving Funds per this new guidance, with a spending limit set in a separate article. Even though the bylaw eliminates the requirement that the funds be reestablished every year, the spending limit does need to be set - technically, at the beginning of each fiscal year it is reset to $0. The options for setting the spending limits are Town Meeting article or they can be increased with the approval of the Select Board and Finance Committee. This year, we opted to use that approach. To that end, the Finance Committee approved at their last meeting setting the spending limit for the Gas & Plumbing Revolving Fund at $65,000 and the Library Fees and Fines Revolving Fun at $25,000, both unchanged from prior limits. The request for the Select Board is to approve the same spending limits. These two actions will authorize the use of the fund for the current fiscal year.
In hindsight, the Modernization Act didn't necessarily enhance the efficiency of this process since an annual action is still needed. In all likelihood, we will revert to the Town Meeting approach next year given the expectation of some continued use of the consent agenda.
If you're looking for additional background, skip forward to 15:30 in the FinCom meeting. Anna joined me at that meeting and provided a good explanation.