On July 8, 2026, just five weeks into the new fiscal year, the Board of Trustees passed Resolution No. 4326/2026 to make massive budget transfers out of contingency accounts.

After months of budget workshops, public hearings, and time to review every line item before adoption, the board is already shifting hundreds of thousands of dollars. Here is what was passed—and why an upcoming vote on July 29th makes this even more concerning.

1. General Fund: Draining Emergency Contingency for Salaries ($32,951.96)

The board transferred $32,951.96 out of General Fund Contingency (AA-1990-400):

• $29,120.00 to Safety Inspection Personal Services (AA-3620-110): It appears this transfer restores a position the board previously eliminated during the budget process, only to realize weeks later that the position is necessary.

• $3,831.96 to Clerk Personal Services (AA-1410-100): This salary increase remains unexplained in the resolution.

Contingency accounts exist to handle unforeseen emergencies over a 12-month period. Draining nearly $33,000 from General Contingency in Month 1 for basic payroll leaves taxpayers with less protection for the remaining 11 months.

2. Water Fund: A $392,428 Accounting Error Turned Slush Fund

The resolution states that debt service for an EFC State loan was “inadvertently included twice” in the original adopted budget.

• The Impact: Double-budgeting these debt payments artificially inflated total Water Fund expenses by $392,428.00 when the budget was adopted. Water rates and user fees were set based on these inflated numbers.

• Where the Money Went: Instead of reducing water rates or issuing a credit to water customers who are paying for this mistake, the board transferred the entire $392,428.00 directly into Water Fund Contingency (FF-1990-400).

• The Result: Moving nearly $400,000 into contingency creates a massive, unitemized spending pot that was never detailed or debated during public budget hearings.

3. The Timing: Removing Citizen Oversight on July 29th

This $392,428 transfer becomes even more alarming when paired with what the board has planned next.

On July 29th, the Board of Trustees is scheduled to vote on eliminating the appointed, independent Water Board.

If the board votes to dissolve the Water Board, they will effectively remove the last line of citizen oversight standing between local government and utility revenues. If this legislation passes, the Board of Trustees will start off with direct, unchecked access to a newly created $392,428 slush fund—all funded by water rate payers.

A Pattern of Missing Oversight

Double-budgeting debt schedules and miscalculating baseline staffing needs point directly to the management and oversight deficiencies continuously highlighted in State Comptroller reports.

Because Resolution No. 4326/2026 was passed without public explanation, these represent the most reasonable conclusions based on the official record. If the Mayor or Board of Trustees has a different explanation, correction, or insight regarding these transfers and the dissolution of the Water Board, public clarification is welcome. Taxpayers and water customers deserve full transparency.