Town of South Berwick, ME
York County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Council of the Town of South Berwick 12-14-2010. Amendments noted where applicable.]
Asset capitalization policy — See Ch. 5.
Cash management policy — See Ch. 8.
Investment policy — See Ch. 22.
Tax payment application policy — See Ch. 45.
The Town of South Berwick recognizes the importance of maintaining an appropriate level of undesignated fund balance. After evaluating the Town's operating characteristics, diversity of tax base, reliability of non-property tax revenue sources, working capital needs, impact on bond rating, state and local economic outlooks, emergency and disaster risk, and other contingent issues, the Town establishes the following goals regarding the undesignated fund balance of the General Fund for the Town of South Berwick, Maine.
The level of fund balance that the Town strives to maintain as undesignated is an amount equal to 10% of the Town's General Fund budget plus an amount equal to one month's operating expenses from the then-current operating budget.
Once the Town achieves its goal of an appropriate level of undesignated fund balance, any excess funds may be utilized for other municipal fiscal purposes, including, without limitation, additional capital improvement needs or tax rate stabilization or reduction purposes. For example, by utilizing excess fund balances for capital improvements, the Town will reduce the need to incur long-term debt and will avoid creating an operating funding gap in subsequent fiscal years.
This policy has been adopted by the Town to recognize the financial importance of a stable and sufficient level of the undesignated fund balance. However, the Town reserves the right to appropriate funds from the undesignated fund balance for emergencies and other requirements the Town believes to be in the best interest of the Town.