Wolfeboro manager outlines $1.27 million gap between proposed and default 2025 budgets, offers transfer package and items for selectmen review

Town Manager Jim Zardy told the Wolfeboro Board of Selectmen on March 26 that the town faces a $1,270,000 difference between the budget approved at the deliberative session and the 2025 default budget and outlined proposed transfers and discretionary items to close most of the shortfall.

Zardy said the town’s total proposed operating budget (including general fund, four enterprise funds and capital outlay) was $35,943,677 and that the default operating budget signed by the board on Jan. 27 is $33,000,006.50. He told the board he and department heads identified $750,679 in line‑item transfers they expect the board can approve and noted an additional $243,232 in items that he believes require selectmen action.

Why it matters: the default budget is now the town’s operating budget. Zardy said the differential between the deliberative session number and the default is concentrated in the general fund; the deliberative session approved $20,334,000 for the general fund while the default is $19,064,000, creating a $1,270,000 gap that the administration cannot fully close without “negative impacts” to enterprise funds or staff levels.

Zardy outlined specific funding needs he recommends the board consider: $149,306 to fully fund the assistant town manager line; $1,501,047 for contracted ambulance services (which he later said is not included in the default); $84,819 for parks administration part‑time wages moved to full time; $25,129 for a groomer lease the board previously authorized; and approximately $110,000 estimated for nonunion wage adjustments. He summarized: “When I say make up some of the shortcomings, we’re not going to make them all up. There’s no physical way.”

On the ambulance appropriation, Zardy said the town’s attorney advised that a 2024 warrant article seeking a one‑time ambulance appropriation appears to be a one‑time expenditure and “does not appear to be directly connected to the legislative body approving a contract for service,” and therefore should not be included in the 2025 default budget. Zardy said the attorney’s opinion was dated Jan. 7, 2025 and that the administration has followed that guidance.

The manager presented a long list of proposed reductions and transfers by department. Examples he cited: reverting a chamber‑subsidy line (part‑time wages) for the visitor/information booth ($12,553 plus $843 Social Security), trimming milfoil treatment back to the proposed budget ($5,900), reducing cemetery/gravestone restoration ($15,326), and lowering beaches and programs lines (beaches reduced by $50,000, programs by $30,000) based on five‑year averages.

Zardy said enterprise funds (electric, water/sewer, Pop Whelan Arena and a fourth enterprise) are currently in a position to operate for the year but may need intra‑fund transfers later if weather or other events cause overages. He told the board many of the capital outlay projects were removed from the proposed budget to cover base operations.

What the board must decide: Zardy asked selectmen to approve the $750,679 in transfers at their April 2 meeting and to consider the remaining $243,232 of items requiring deliberation on April 16. He singled out the groomer lease and a possible fourth‑quarter fire truck lease as items that could be deferred to year‑end if necessary.

Next steps and context: Zardy said the administration will prepare detailed transfer documents for the board packet on April 2 and expects further research on several discretionary items before a final decision. The Selectmen did not take a final vote on line‑item transfers during the March 26 work session.