Rising Sun amends FY2022 budget to finance town vehicles
February 08, 2022 | Rising Sun, Cecil County, Maryland
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The Rising Sun mayor and board of commissioners on Feb. 8 approved a budget amendment to record new tax‑exempt financing for town vehicles and passed a companion reimbursement resolution to cover prior purchases.
Town Administrator Calvin said the town had not included a loan line item when the FY2021–22 budget was adopted and proposed amending the budget to reflect a 60‑month, roughly $88,000 financing package for three vehicles. "We did not put any loan line item in there to purchase a police vehicle," Calvin said, explaining staff wanted the amendment to make the financing transparent in the town’s records.
Judy, the finance/town manager present for the budget presentation, walked commissioners through numbers showing available capacity in debt‑service projections. She said the final payback on an existing street‑repair loan will be $89,565, leaving a combined surplus (including a previously identified debt‑service surplus) sufficient to absorb the new annual payment. Calvin and Judy said the new loan would create an additional annual payment of about $19,584.30 for the three vehicles but that the town’s current surplus would cover that cost without affecting bottom‑line fund balances.
The hearing record shows the town had already paid for the code‑department vehicle and the dump trailer; the board passed Resolution 2022‑02, a reimbursement resolution the administrator said is required under IRS rules when expenditures are paid before loan proceeds are received. Calvin told the board the police car was not included in the reimbursement resolution because it remains backordered and the lender will pay for it when it becomes available.
A commissioner moved to approve Resolution 2022‑01 to amend the budget; the motion was seconded and approved by voice vote. The board then approved Resolution 2022‑02, the reimbursement resolution, again by voice vote. The minutes record the outcome as "passes" after an affirmative voice vote.
Next steps: the budget amendment and reimbursement resolution were entered into the town record; staff said they will finalize loan documents with Tax Exempt Leasing Corporation and update accounting records to reflect the new financing.
The meeting adjourned after additional routine business.
Town Administrator Calvin said the town had not included a loan line item when the FY2021–22 budget was adopted and proposed amending the budget to reflect a 60‑month, roughly $88,000 financing package for three vehicles. "We did not put any loan line item in there to purchase a police vehicle," Calvin said, explaining staff wanted the amendment to make the financing transparent in the town’s records.
Judy, the finance/town manager present for the budget presentation, walked commissioners through numbers showing available capacity in debt‑service projections. She said the final payback on an existing street‑repair loan will be $89,565, leaving a combined surplus (including a previously identified debt‑service surplus) sufficient to absorb the new annual payment. Calvin and Judy said the new loan would create an additional annual payment of about $19,584.30 for the three vehicles but that the town’s current surplus would cover that cost without affecting bottom‑line fund balances.
The hearing record shows the town had already paid for the code‑department vehicle and the dump trailer; the board passed Resolution 2022‑02, a reimbursement resolution the administrator said is required under IRS rules when expenditures are paid before loan proceeds are received. Calvin told the board the police car was not included in the reimbursement resolution because it remains backordered and the lender will pay for it when it becomes available.
A commissioner moved to approve Resolution 2022‑01 to amend the budget; the motion was seconded and approved by voice vote. The board then approved Resolution 2022‑02, the reimbursement resolution, again by voice vote. The minutes record the outcome as "passes" after an affirmative voice vote.
Next steps: the budget amendment and reimbursement resolution were entered into the town record; staff said they will finalize loan documents with Tax Exempt Leasing Corporation and update accounting records to reflect the new financing.
The meeting adjourned after additional routine business.
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