End-of-Year Budget Surplus? Here's How to Use It Wisely

Many towns find themselves with a modest budget surplus when the fiscal year comes to an end. Whether due to unfilled staff positions, favorable contract bids, or a light winter season, these unspent funds offer a valuable opportunity. But that opportunity is best realized when handled with foresight, not haste.

Here are smart and responsible ways your town government can put a year-end budget surplus to work:

Replenish Everyday Supplies

Before the new budget kicks in, it's wise to stock up on items that are regularly used across departments:

• Office supplies and forms

• Safety and emergency response equipment

• Maintenance tools and cleaning materials

These purchases prevent scrambling at the start of the next fiscal year and can lock in current pricing before potential cost increases.

Upgrade Aging Equipment

Surpluses are a great way to finally address the “we’ve been meaning to replace that” list:

• Computers, printers, or networking hardware

• Tools and equipment for facilities, parks, or recreation

• Small vehicles, trailers, or snow blowers

Investing in modern, efficient equipment improves productivity and reduces maintenance costs down the line.

Tackle Preventive Maintenance Projects

Deferred maintenance is a common issue in local government. Use surplus funds to:

• Service HVAC systems

• Clean out stormwater infrastructure

• Repaint public buildings

• Maintain town vehicles

Preventive work is often the first to be cut when money is tight, this is a chance to catch up.

Invest in Training and Professional Development

Well-trained staff are essential to effective local governance. Surplus funds can cover:

• Leadership development programs

• Financial management or procurement training

• Continuing education for licensing or certifications

• Clerk or code enforcement seminars

Education ensures your team is informed, efficient, and compliant with changing laws and best practices.

Modernize Administrative Processes

Consider using the surplus to streamline operations:

• Adopt digital permitting or records systems

• Implement asset management or work order software

• Improve the town’s website or online payment portal

• Conduct a technology audit or cybersecurity assessment

These upgrades improve service delivery and transparency for both staff and residents.

Support Community Initiatives

Year-end funds can be directed toward small but meaningful public-facing projects:

• Install or replace park benches or signage

• Fund materials for a community clean-up or beautification event

• Improve accessibility in public spaces

• Offer matching funds for a civic grant program

Small gestures can have a big impact on resident satisfaction.

Make It Count – Not Just Spend It Fast

Using surplus funds wisely is a mark of good governance. It’s not just about spending to avoid future cuts. It’s about investing in your town’s future, reinforcing your commitment to service, and laying groundwork for the year ahead.

Whether you choose to reinvest in your staff, your infrastructure, or your operations, let every dollar reflect careful thought and community-minded intent.