Hartland Council news: Year-end transfers address deficit, council ammends fire truck funding motion

by | Jan 13, 2025

Council approves year-end reserve transfers to address deficit 

Hartland Council approved two year-end reserve transfers during a special Dec. 31, 2024 meeting. The first transfer was to increase the budgeted water cost transfer from the utility operating fund to the general operating fund of $20,000.  

A second motion was passed to transfer $70,000 from the general capital reserve fund to the general capital fund to pay complex capital project costs. 

Hartland Treasurer Tina Pelkey said through conversations with auditors in the week before the holidays, the town learned all expenses in 2024 are part of the project’s cost, affecting the overall surplus deficit in the town’s general operating fund. 

“What we’ve attempted to do in the last couple of weeks is try to narrow down with our project management team what expenses are yet to be incurred both known and unknown, best estimates for what to do,” said Pelkey. 

After going through figures for the complex, Pelkey noted the town has a deficit of $318,000 after taking debentures, donations and expenses into consideration. 

Pelkey said the current surplus in the town’s general budget is approximately $300,000. 

The treasurer noted that from 2022 and earlier, the town always transferred $60,000 from its general operating fund for water costs, but in 2023, that number was reduced to $25,000, which stayed the same for the 2024 and 2025 budgets. 

“It is definitely impacting our water and sewer,” said Pelkey. “This is part of the reason why we are operating in a deficit and we can’t seem to pull our way back up out of it.” 

Pelkey recommended a $20,000 increase in water cost for 2024 to bring the number to $45,000. 

For the second recommendation, Pelkey suggested hedging bets by transferring $70,000 and reversing the move in 2025 if the town sees a surplus. 

Hartland Council amends motion to apply for fire truck funds 

Hartland Council amended a previous motion for an application to the Municipal Capital Borrowing Board to purchase a new fire truck. 

The amended motion proposes submitting an application to borrow $200,000 over 10 years, in addition to $185,000 in interim financing for three years. 

Pelkey told council staff that the province informed them that if going for long-term borrowing and interim borrowing, then there needed to be two separate pieces in the motion. 

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