Politics & Government
Town Manager Discusses Debt Service Reserve Fund
Just two weeks after presenting his proposed FY 2013 budget, John Wells presented a plan that will reduce debt service payments while allowing tax payers to save money.
Town Manager John Wells met with council members Monday night to discuss his proposed FY 2013 budget, which was presented two weeks ago.
The budget included a real estate tax rate of 19.5 cents and a proposed total budget of $88.8 million. To make sure the numbers stay on track, Wells went over the town’s financial status through FY 2017 and recommended that that a Debt Service Reserve Fund be put in place.
That money would be saved for a rainy day, he said, and could be used to pay off any debt. Not only could it possibly save tax payers money but it would help to reduce operating costs while allowing the local economy to recover.
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The fund, which would take effect this upcoming fiscal year, would start off with just over $4 million. Money would come from surplus funds, existing reserves that aren’t committed to the town’s 15 percent fiscal policy or Capital Asset Replacement policy, as well as some of the Airport funds, which was .
The goal is to reach $10.2 million in the Debt Service Reserve Fund before fiscal 2017, Wells said, which is currently projected at just under $7 million.
