09/12/06
Surplus goes toward artificial
turf replacement fund
KidsTurf got a little closer to scoring an artificial turf field for Cape
Elizabeth.
The Town Council on Sept. 11 agreed to designate $50,000 of undesignated
surplus to a special revenue fund for replacement of the artificial turf
in 12-15 years.
The designation brings KidsTurf, the independent organization raising funds
for the new field
(http://www.kidsturf.org), that much
closer to their fund-raising goal of $650,000.
"It's not giving the money to KidsTurf, but it is in essence reducing the
amount they have to raise from $650,000 to $600,000," said Town Manager Michael
McGovern.
In the five months since KidsTurf first approached the School Board about
raising funds for an artificial-turf field, the group has pledges of $440,000
toward its first goal, to install a 90,000-square foot artificial playing
surface at the lower High School field.
Michael Ott, who spearheaded the campaign, told councilors that field lights
were installed this past weekend by the Army National Guard. The lights are
the result of a separate private fund-raising effort.
Funds for installing the turf and related site work is only part of the overall
project. A second fund-raising phase for a snack shack, bleachers and other
amenities is expected to cost $300,000.
"The Town's participation would be $50,000 -- little more than 5 percent
of the overall cost," McGovern said. "I think it would be a good impetus
to complete the fund-raising," McGovern said.
Initially KidsTurf hoped to have the field in place this fall, but has extended
their fund-raising efforts through the fall and early winter. "If we cannot
install the field this spring, we're going to return people's money," Ott
told members of the Town Council. "We feel it's only fair. We don't want
to hold people's money that long without successful installation of the field,"
he said.
The funds from undesignated surplus would remain Town funds, but be placed
in an interest-bearing account to be used to replace the turf at the end
of its useful life. KidsTurf expects that time to be 12-15 years.
"There is no risk to the Town if the project does not move forward, as the
Town is retaining the $50,000 in its own accounts," McGovern said in a memo
to Town councilors. "As evidenced by the total amount given, this is a priority
project for many residents in the town," he said.
In June of this year, the Town Council established an ad hoc committee to
work with KidsTurf on several aspects of the project. One of the committee's
tasks was to plan for raising and securing funds to replace the turf field
at the end of its useful life.
The council's action authorizes the Town to save for turf replacement, rather
than requiring the funds to be raised privately, McGovern said.
Ott said KidsTurf has $250,000 in the bank.
As of June 30, 2006, the Town and School's undesignated surplus fund was
$2,451,347, $81,412 above the Town Council target of $2,370,065 (one month's
Town and School revenue).
More surplus moved to debt stabilization fund
In another budget matter, the council authorized an additional transfer of
$68,520 to the debt stabilization fund.
The stabilization fund is used to reduce the tax impact when the Town experiences
a sharp increase in debt service. In fiscal year 2008 the Town will experience
a spike in debt service due to borrowing for the drainage/roadway improvement
projects.
"In the past, the creation of the debt stabilization fund was done during
the carry-forward process at the end of the fiscal year," McGovern said in
a memo to the Town Council. "Due to the uncertainty of statewide imposed
fiscal restraints that may take place in the next calendar year, it is
recommended that the Town Council make the appropriation at this time," he
said.
McGovern said the debt service for that spike year could use all of the municipal
spending increase allowed by the Taxpayer's Bill of Rights Rights referendum
if it passes this fall, barring any citizen override.
"It seems prudent to budget now out of designated surplus that spike for
one year," McGovern said at the Sept. 11 meeting.
The debt service requirement is $1,204,233 for this fiscal year; $1,272,753
for next fiscal year; and, $1,186,990 for fiscal year 2009, McGovern said.
The amount declines each year after that.
The move of $68,520 from undesignated surplus to the debt stabilization would
bring the undesignated fund balance to $37,108 below the council's target,
but McGovern said that could be made up by overlay, which is the result of
property valuation coming in higher than expected when the tax rate was set.
Overlay is used to fund tax abatements when warranted. Overlay for 2007 is
$257,000, McGovern said.
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