Charter §
C4-9 requires the unrestricted surplus to be no greater than 8% and for any excess fund balance to be restricted equally for capital and open space purposes. The Town Charter is silent on how implementation of this section should be accomplished.
As used in this article, the following terms
shall have the meanings indicated:
FUND
As relates to capital and open space, a restriction of the
General Fund's fund balance and not as a separate accounting fund.
UNRESTRICTED SURPLUS
The audited General Fund cumulative unreserved fund balance
surplus at the end of each fiscal year.
Upon completion of the draft annual audit, the
auditors and the Town Finance Director shall compute the amount of
unreserved General Fund fund balance. Should this amount exceed 8%
of the General Fund expenditure current year (not audited year) operating
budget, the excess above 8% shall be equally allocated to reserved
General Fund balance accounts for open space and capital.
Should the unreserved General Fund fund balance
be less than 8% at the year end and should there be balances in the
reserved General Fund balance accounts for open space and capital,
then the balances sufficient to restore the unreserved General Fund
fund balance to 8% shall be transferred in equal amounts from the
reserved General Fund balance accounts for open space and capital.