Farmville’s $400,000 budget deficit & statute-breaking money transfers

Town of Farmville fiscal year 20/21

$400K deficit in General Fund after transfers and reimbursements

Electric Fund operated at deficit past three years

Town of Farmville went over legal limit for transfers from Electric Fund to General Fund for at least past three years – money used for economic development

Farmville’s Finance Director correctly calculated maximum amount allowed by NC law to transfer from Electric Fund to General Fund for 20/21 – Town manager and/or commissioners came back on top of that and budgeted $82.5K for economic development, which put town $54K over legal limit

Undesignated fund balance went down from $2.1M in previous year to $1.4M

Fund balance went down from 46% in previous year to 23%  (Local Government Commission calculated it as 33%.)

$480,333 made as first annual payment of fifteen for BB&T’s $5M loan to construct new library

(Total cost for demolition and construction of new library was $5,314,497 – total amount brought in for construction from fundraisers, grants and sale of the small business incubator was approximately $968,902

Not in these figures – $119,519 Farmville paid for furnishings and technology or $350K USDA grant for furnishings and technology, making combined total $469,519)

Commissioners voted unanimously to pay $340K to pave and light Walnut St. parking lot/area owned by private individual in exchange for 14 months rent for temporary library

Construction of much-needed new fire station put on hold due to finances

Town of Farmville fiscal year 21/22

July 2021 Farmville paid $470,533 for second annual payment on library loan

First two yearly loan payments plus library construction going $314K over budget depleted money in town’s library fund (from fundraisers, grants and sale of the small business incubator)

Starting July 2022 Farmville will make 13 yearly payments out of taxpayer money to pay the remaining total of $5.2M for library construction

(BB&T Payment Schedule : July 2020 $480,333, July 2021 $470,533, July 2022 $460,733, July 2023 $450,933, July 2024 $441,133, July 2025 $431,333, July 2026 $421,533, July 2027 $411,733, July 2028 $401,933, July 2029 $392,133, July 2030 $382,333, July 2031 $372,533, July 2032 $362,733, July 2033 $352,933, July 2034 $343,133)

Construction of new fire station scheduled to begin – financing to be determined

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