BERLIN – Municipal officials agreed to transfer $1 million to a capital reserves fund for future projects.
The Berlin Town Council voted 5-0 Monday to transfer $1 million from unassigned general fund balance to the town’s capital reserves fund. The money will go toward town hall renovations and a new public works facility.
“Our fund balances are the highest they’ve been in six years,” Mayor Zack Tyndall said. “That’s good but we have some things that now we need to start paying attention to.”
Tyndall said that last year, the town used its fund balance to set up stabilization and natural disaster funds as well as to set aside capital funds. The town also ended this year in good condition, with $1,166,000 more than the $1 million officials try to keep as an unassigned fund balance. Tyndall said he was recommending the town transfer the additional $1,166,000, primarily to the capital reserves fund. He suggested allocating $500,000 toward renovations to town hall, $400,000 to a new public works facility and $100,000 toward general fund capital projects. In addition, he recommended diverting $166,000 to the stabilization reserve fund.
The town hall renovations would target the former police department space on the ground floor.
“That building has no AC, no heat, it has no climate control at all or ventilation,” Tyndall said. “It has some things that are not aesthetically pleasing and things we probably don’t want to allow to continue.”
As far as public works, Tyndall said the existing cinder block building didn’t meet the town’s needs.
Councilman Jack Orris said he felt the town should consider communication needs, as cellphone service during large special events in Berlin has been inconsistent. Tyndall said that was a good idea but that it would likely be discussed during the budget process.
Councilman Dean Burrell asked where the $400,000 and $500,000 figures had come from. Tyndall explained they were estimates and were meant to send a message to employees that officials were planning for future improvements to working facilities.
When asked whether the former police station space was needed for employees, Tyndall indicated it was.
“We have employees working in closets that are not designed to be offices,” he said.
Resident Carol Rose said she felt the town should consider the need for employee raises when it came to available funding. She also expressed concern about the tax rate.
Tyndall said the town was considering the needs of its employees and had commissioned a salary study.
Councilwoman Shaneka Nichols said she felt a new public works building should be the town’s priority.
“Even if every single dime on this page is spent on public works and then some, I would be smiling every day for the next 20 years,” she said. “Those men that work in that building need this money.”
Rose said $500,000 was a lot of money to set aside when the town didn’t yet have an estimate for the town hall renovations. Councilman Jay Knerr noted that if the projects cost more than the town had set aside, they’d go through another budget process and set aside additional funding when it was available.
“Part of what these monies will allow you to do is move forward with planning,” Town Administrator Mary Bohlen added.
Orris, while not opposed to the transfer, echoed Rose’s concern for the taxpayers during the upcoming fiscal year.
“Let’s keep an eye on our residents and what we can do for them,” he said.
The council voted unanimously to approve a motion made by Councilman Steve Green to transfer $1 million to the capital reserves fund and $166,000 to the town’s stabilization reserve fund.
