The project will use up to $1.5 million from the Town’s undesignated fund, but isn’t that supposed to be our rainy day fund?
There is over $10 million in the town’s undesignated fund and use of this fund is governed by a long-standing policy. This policy sets aside funds to cover two months of the town’s operating expenses in case of emergency. “Emergency” in this context means the loss of a major property taxpayer, for instance, if Bath Iron Works went out of business in Bath, or if LLBean pulled out of Freeport. Falmouth has no such large single source of property taxes. But even if we did, and we lost it, the policy allows the town to recoup only 20% of the loss each year over five years. This “rainy day” portion of the undesignated fund accounts for about two thirds of the total amount.
Related Questions
- If the Foundation successfully establishes an endowment fund to take care of the Park will the town cease to support the Park financially?
- Can I partially fund a project? What happens if the remainder isn’t funded by other supporters?
- Can Focus on the Family help fund my Christian project or missions trip?
