Municipal leaders press for finance tools, caution on detailed planning language in H.397 flood bill

Representatives of the Vermont League of Cities and Towns and the Vermont Bond Bank told the Senate Government Operations Committee on Friday that H.397, a miscellaneous package tied to emergency and flood response, should include expanded municipal finance authorities and technical assistance to help towns recover from recent floods.

Josh Henford, director of intergovernmental affairs for the Vermont League of Cities and Towns (VLCT), and a co‑presenter described three principal municipal finance proposals in the bill: (1) allow municipal legislative bodies greater authority to retain and reassign unassigned fund balances (commonly called rainy‑day or reserve funds) without returning to a town vote when funds are already reserved or obligated; (2) lengthen the term for emergency borrowing from the current one‑year maximum to either five years or to match the useful life of the asset being financed in declared all‑hazard emergencies; and (3) add a level‑debt‑service option (a flat annual payment over the life of a bond) in addition to the current amortization method.

Henford said these tools would make municipal budgets more resilient in the face of delayed FEMA reimbursements and expensive short‑term…