When are budget transfers between appropriation reserves permitted for a given budget year?

Budget transfers between appropriation reserves are permitted during the first three months of the succeeding year to ensure that any unspent funds from the previous budget year can be reallocated effectively. This period allows for the closeout of the fiscal year and provides the necessary time to assess remaining balances and priorities before the new budget is fully implemented.

Permitting transfers during this time helps municipalities manage their finances efficiently by allowing them the flexibility to adapt to unforeseen changes in expenditures or revenues that may have occurred in the previous fiscal year. It facilitates a smoother transition between fiscal years while maintaining accountability and ensuring that funds are used as intended for public services.

The time frames specified in the other options do not align with standard budgetary practices. For example, permitting transfers throughout the entire budget year would complicate financial oversight and planning as decisions would need to be made continuously without closure on prior years. Allowing transfers only at the end of the fiscal year could hinder timely financial decision-making and flexibility in fund usage as municipalities prepare to start the new fiscal cycle. Similarly, limiting transfers to the last month would not provide enough time for a comprehensive assessment of needs and unspent allocations.