Council to decide on Monday what to do with $175,000 that was not spent this fiscal year

LACONIA — City Manager Scott Myers will recommend that City Council transfer some $175,000 in unexpended appropriations to three accounts designed to stabilize expenditures for employee benefits and winter maintenance when the council meets on Monday night.
For the fiscal year that ends June 30, the city accrued balances of $70,000 for health insurance, $100,000 for workmen's compensation and $5,000 for winter maintenance.
Myers proposes to transfer $70,000 to the health insurance stabilization account, which is intended to limit annual increase in the city's share of employee's health insurance premiums to not more than 9 percent or less. The $100,000 would be transferred to the accrued compensated leave stabilization account, which funds payments to employees for unused vacation and sick days when they retire. Finally, $5,000 would be added to the winter maintenance stabilization account used to offset increases in plowing and material costs due to unusually severe winters.
When Myers signaled his plans to councilors at their last meeting, Councilor Bob Hamel (Ward 5) suggested a portion of the unspent money might be added to revenue to trim the increase in the 2013 tax rate, projected at 39 cents per $1,000 of assessed value. ($97.50 on a $250,000 house.)
Myers said that since the $175,000 balance was not anticipated and unlikely to recur, rather than incorporate it into the budget, with no assurance that an equal amount would be available for the following budget, he preferred to apply to reserve accounts to offset unforeseen increases in expenditures in the future.