Police Special Detail Revolving Fund Policy & Procedure

I.  INTRODUCTION

In 2014 Fremont voters passed Warrant Article 20:  ARTICLE 20:  Shall the Town vote to establish a revolving fund pursuant to RSA 31:95-h for the purpose of police special detail wages, benefits, administrative costs, supplies, equipment, and cruisers and to raise and appropriate the sum of one dollar ($1) to be deposited into the fund.  Further, all revenues received for police special details will be deposited into the fund, and the money in the fund shall be allowed to accumulate from year to year, and shall not be considered part of the Town’s General Fund Unreserved Fund Balance.  The Town Treasurer shall have custody of all monies in the fund, and shall pay out the same only upon order of the Board of Selectmen and no further approval is required by the legislative body to expend.  After payment of police special detail wages, benefits, administrative costs, supplies and other equipment, the fund may also be used for the purpose of purchasing new cruisers for police special details.  Such funds may be expended only for the purpose for which the fund was created.

The Selectmen recommend this appropriation 3-0.  The Budget Committee recommends this appropriation 6-0.  (Majority vote required) (As amended at Deliberative Session)      YES    511                                          NO       355     

II.  PURPOSE

The Article was proposed to change the way the Town accounts for Police special Detail funds.  For many years it had been included as an appropriation item with offsetting revenue, until such time as the passage of this Warrant Article, intended to take any excess (after payment of all wages and appropriate Town expenses) and set that aside to be used toward the future replacement or police cruisers. 

As further background information, the Warrant Article enabling legislation is found in the NH Statute excerpt below:

31:95-h Revolving Funds. –
I. A town may, by vote of the legislative body, establish a revolving fund. Each revolving fund shall be limited to one of the following purposes:
… (c) Providing public safety services by municipal employees or volunteers outside of the ordinary detail of such persons, including but not limited to public safety services in connection with special events, highway construction, and other construction projects, or for any other public safety purpose deemed appropriate by the municipality; owners in an energy efficiency and clean energy district established pursuant to RSA 53-F; or
…
II. If a town establishes a revolving fund for any of the purposes listed in paragraph I, it may deposit into the fund all or any part of the revenues from fees, charges, or other income derived from the activities or services supported by the fund, and any other revenues approved by the legislative body for deposit into the fund. The money in the fund shall be allowed to accumulate from year to year, and shall not be considered part of the town's general surplus. The town treasurer shall have custody of all moneys in the fund, and shall pay out the same only upon order of the governing body, or other board or body designated by the local legislative body at the time the fund is created; provided, that no further approval of the legislative body, if different from the governing body, shall be required. Such funds may be expended only for the purposes for which the fund was created.
III. The legislative body may, at the time it establishes a revolving fund or at any time thereafter, place limitations on expenditures from the fund including, but not limited to, restrictions on the types of items or services that may be purchased from the fund, limitations on the amount of any single expenditure, and limitations on the total amount of expenditures to be made in a year. No amount may be expended from a revolving fund established hereunder for any item or service for which an appropriation has been specifically rejected by the legislative body during the same year.
IV. The provisions of this section shall not preclude the establishment of a revolving fund for any other purpose authorized by law.

Source. 2005, 79:1, eff. Aug. 6, 2005. 2008, 68:1, eff. July 20, 2008; 391:1, eff. Sept. 15, 2008. 2010, 215:3, eff. Aug. 27, 2010. 2013, 9:1, eff. July 6, 2013. 2017, 95:1, eff. Aug. 7, 2017. 2018, 30:1, eff. July 14, 2018; 58:1, eff. July 24, 2018

III. POLICY

The Town has prepared annual statements accounting for Police Special Detail Revenue since initiation of the new Warrant Article creating the Revolving Fund for this purpose.

The goal of establishing the fund was to pay all of the Town’s expenses associated with Police Special Details and have any residual balance set aside in a fund to be used toward the purchase of police cruisers.  

Town’s expenses include:                                                                           Town’s revenue includes:

Detail Payroll wages                                                                                       Income from Special Detail billing

NH Retirement as applicable

Medicare and Social Security taxes as applicable

Cruiser Fuel

Worker’s Compensation Insurance

To that end, the following formulas have been established:

Wages = actual wages paid per hour to officers for detail work

NHRS = actual percentage paid on all wages for eligible personnel

FICA = actual percentage paid on all wages for eligible personnel

Medicare = actual percentage paid on all wages paid

Fuel = annually calculated as a percentage (current year fuel $ expended/total patrol wages expended + call out patrol wages expended) that is multiplied by the $ of detail wage expense

Maintenance = flat 2% multiplied by current year detail wage expense

WC = annually calculated as a percentage (current year WC cost for PD derived by PD WC premium divided by covered PD payroll)

Payroll administration = flat 5% multiplied by total detail wage expense

From that the total expenses (sum total of all above) are deducted from the gross annual revenue from PD Details in that same calendar year. 

Annually once the Town’s audit is completed and the Auditor has indicated concurrence with the annual accounting figures, a check will be cut from the Town’s General Fund payable to the Town of Fremont PD Special Detail Revolving Fund in the amount audited.  This will be included on a Selectmen’s Manifest for payments at such time as the transaction is to be completed.  The Treasurer will then deposit the check into the Checking Account established in the name of the PD Special Detail Revolving Fund.

If in any year there is a shortfall due to the General Fund, no payment will be made, and it will be deducted from the following year’s payment to the Revolving Fund (as applicable).

Witness Fees are not included as those are a direct offset to other PD wage lines, and that total revenue is attributable to the General Fund.

VI.  ADMINISTRATION

The Board of Selectmen is responsible for the administration, revision, interpretation, and application of this Policy.  The Policy will be reviewed and revised as needed.

V.  AUTHORITY

This Policy is adopted by the Board of Selectmen in accordance with NH RSA 41:9.  This Policy shall not alter any policies laid out in other Town Policy.

VI.  AMENDMENTS

This Policy may, from time to time, be amended by a majority vote of the Board of Selectmen at a regularly scheduled Board meeting.

VII.  EFFECTIVE DATE

This Policy shall be effective upon a vote of the Board of Selectmen.  It shall be considered retroactive to account for all Details (via accounting at annual audit) since passage of the Detail Revolving Fund, date stated earlier.

Reviewed and concurred 02/17/2020:  Jon Twiss, Chief of Police

Approved by the Board of Selectmen:  02/20/2020

                Gene Cordes, Chair                         Neal R Janvrin                    Roger A Barham