Residents rip $750G pilfering of unassigned fund balance to pad reserve accounts

Deputy Finance Director was on the hot seat Tuesday as multiple city residents including Tom Kaczynski and Carol Petrusewicz blasted the practice of taking funds from the unassigned fund balance. (City Council meeting screenshots)

ROCHESTER - Rochester's controversial use of its $38 million unassigned fund balance to fund future capital improvement projects drew more criticism Tuesday night from residents frustrated with the city's socking away "cash" instead of refunding it to taxpayers through property tax relief.
At issue were three transfers of $250,000 apiece to reserve funds for DPW large vehicle purchases, Fire Department apparatus and public buildings.
Carol Petrusewicz of Ward 4 said any large purchases like fire trucks or major improvements to public buildings should be put into annual capital improvement project budgets over which the City Council has final say.
"I love planning for the future," Petrusewicz agreed, "however I feel these funds should be part of the budget and not taken from the unassigned fund balance."
She added that in the midst of huge increases in energy and food costs the proper use of the unassigned fund balance would be to help out Rochester residents who are struggling to make ends meet.
She urged the council to keep 11 percent of the city budget in the unassigned fund balance and return the rest to taxpayers.
"I recommend the city of Rochester apply a credit to our next tax bill notated as unassigned fund balance refund," Petrusewicz said.
State Rep and city resident Tom Kaczynski said the withdrawals from the unassigned fund balance were no more than "mini slush funds."
Taking aim at City Manager Katie Ambrose and Finance Director Tom Sullivan, Kaczynski said, "They want to stash the cash instead of giving it back to the taxpayers. You want to park it in this fund. These vehicles should be part of the regular budget. This isn't a private company here where you can build up cash, this is what's happening and it's dangerous with liberal spenders."
Looking around the council chambers he added, "I've been to many of these meetings and there's very few who ever oppose any spending here. That's the way it is."
Kaczynski added that constantly raiding the unassigned fund balance is no more than a ruse that allows for "sloppy budgeting."
He said it also allows for extravagant city spending like when it grew city personnel pay by 20 percent in their most recent contract.
Deputy Finance Director Mark Sullivan spent much of his time at the podium seeking to defend the practice, which he said keeps it from being part of the regular budget practice that would then raise funds through property taxes.

In other business the Council voted 10-2 to move forward with a new $34 million elementary school on Salmon Falls Road. Those voting against the school included Steve Beaudoin and Skip Gilman.
The up to $34 million price tag would be funded by multiple sources including $15.7 million from the state, $1.2 million from local school building fund, $1.4 million from New Hampshire's adequacy-additional funding, $7.5 million from the city's unassigned fund balance and $8 million in bonding.

It should be noted that no resident who attended the public hearing spoke in favor of either the transfers from the unassigned fund balance to reserve accounts or the new elementary school.