Narrowsburg News

Jane Luchsinger
Posted 8/21/12

Lately, the subject of the Main Street deck replacement is something talked about by many of us in Tusten. Inevitability part of the conversation becomes the cost associated with the work. If you are …

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Narrowsburg News

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Lately, the subject of the Main Street deck replacement is something talked about by many of us in Tusten. Inevitability part of the conversation becomes the cost associated with the work. If you are able to attend town board meetings, you will note that when the subject of money comes up the terms “reserve funds” and “unallocated funds” are often heard. Because these terms confused me at first, I thought I’d take this opportunity to explain them.

Each year during the budget process, the town board, highway superintendent and water and sewer superintendent estimate the expenses for the coming year for each of a number of departments: highway, water, sewer, lighting district and the general expenses of the town. Reserve funds are budgeted in each department for emergencies and unanticipated expenses. A budget is then prepared that determines our town taxes. When tax money is received by our town clerk, Nicole Peters, it is divided as budgeted and deposited by the bookkeeper, Karen Valenti, into the savings accounts of the budgeted areas mentioned above. As a budgeted expense arises, Valenti transfers money from the department savings account to the fund checking account so that a bill may be paid. If at the end of the year funds remain in reserve funds, the money carries forward, remaining in the designated department, thereby building the reserve funds as years pass.

Should we not spend all the other budgeted funds, the remaining funds are carried over as “unallocated funds” and remain in the savings account of the respective departments. When the taxes are received they are added to these, usually small savings.

Each month our bookkeeper prepares a financial report showing the balances in all of the town funds. If there were any outstanding loans this would also be reported monthly, but fortunately we are debt free. All financial information is available in town hall should you wish details. Hope this helps.

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