The Unused Override Funds of Falmouth May Turn Into Free Cash

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The Unused Override Funds of Falmouth May Turn Into Free Cash
Own work/ Wikimedia

In Falmouth, voters agreed on a proposal, with about two and a half overrides, to raise nine hundred seventy-one thousand five hundred seven dollars ($971,507) to employ eight extra firefighters.

However, all of the budgets should not be given in 2021 Fiscal Year. The amount of the allocation will just depend on the date extra firefighters are officially hired.

During a board discussion on January 4, Jennifer Mullen, the Finance Director, announced about what is their plan about the unused budget. Ms Jennifer Mullen stated that a part of the allocated amount might be used to pay the costs in August and July. However, the remaining money should be considered as free cash.

Ms Mullen also said that in times when you have some unspent budget that comes from the operating allocation, whoever’s money that may be, gets closed out in the fiscal year’s end.

They cannot spend the money anymore because it is gone, it is unspent, and it is sent back as free cash. The free money signifies your real revenues on top of your unspent funds and estimates.

Samuel Patterson, a board member, said that free money has a vital role. He wanted to emphasize that the role of free cash is to fund their capital budget.

He also said that it does not evaporate anywhere, but it may actually be utilized as their town’s investment. He assured the public that the amount would not be distributed as a salary for anyone aside from those eight firefighters.

Although another board member disagrees that free cash should not just be tracked that way, other board members generally agree to this proposal.

Lastly, Samuel Patterson also announced some capital items such as a fire truck that costs $800,000, and the citizens should see in their own eyes how free cash actually gets utilized for rescue and fire.

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