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Board, town attorney and auditor debate procedure for moving school surplus into AES capital fund
Summary
The Board of Finance discussed whether the board followed proper procedure when a school‑year surplus was transferred into the AES capital reserve fund, following concerns raised at a Board of Selectmen meeting.
The Board of Finance discussed concerns June 25 about a transfer of fiscal‑year 2024 school surplus into an AES capital reserve fund after public and selectmen comments questioned whether the transfer followed proper procedure.
Joanne, the Board of Finance chair, said members had asked for the item to remain on the agenda so the finance board could “weigh in” after the matter had been raised at a Board of Selectmen meeting. Michael Van Deventer, the town auditor, said he reviewed the town charter and state statutes and that none of the statutory language “specifically address[ed] this fund.” He told the board he would “revert to state statutes” where the charter lacked guidance and that, in his view, the town should consider the statutory rules that govern capital and nonrecurring funds for municipalities.
Van Deventer said one relevant statute permits, in towns with town‑meeting government, the Board of Finance to make a recommendation and town meeting to approve transfers to capital and nonrecurring funds; he added that an attorney had recommended adopting an ordinance to address the new AES capital fund specifically.
Board members emphasized the transfers were made in good faith and that the funds in question were budget surpluses that taxpayers had already paid. Several finance members and the board’s liaison to capital planning said the town’s capital improvement process (CIP) and prior public discussions had signaled the intended uses. Rob, a finance member, said he expected the board to revise procedures if legal advice shows a different route is required.
Eric, the town administrator, said the Board of Selectmen did not reach the votes required to send the matter to town meeting. He recommended clarifying the process and suggested the town consider an ordinance or clearer procedures; he said capital planning and past practices had left “a lot of procedural work to figure out.”
No formal town‑meeting vote or ordinance change occurred at the June 25 meeting. Board members discussed next steps — including further coordination with the Board of Selectmen, possible town‑meeting approval if required, and drafting clearer procedures for capital transfers — but took no final action at this session.
