Select Board members on June 10 reviewed a town meeting warrant article that would establish a nonlapsing reserve account for the Lab Rec Center at the Winthrop Federal Credit Union and debated whether to transfer an additional $10,000 into that account before the town meeting.

Board members said the warrant article, if approved by the town, would establish a reserve account and allow the select board to spend from it for Lab Center operations and capital needs with further town approval. Several board members cautioned that the town may lack legal authority to move the $10,000 now and recommended waiting for the town meeting vote and a legal opinion before authorizing any transfer.

Why it matters: the discussion concerns donor and program revenue that the board said had been collected for Lab Rec Center programs but currently sits in town accounts without a designated reserve. Establishing a named, nonlapsing reserve account would change how those funds appear in the town’s financial statements and could affect how future contributions are treated.

Town staff reported account balances in payments and reimbursements related to the Lab Rec Center and other special revenue accounts; the board noted possible discrepancies in accounting reports and asked staff to resolve them with the town’s financial system (Trio) and town counsel. Select Board members suggested alternative ways to accomplish the request: if the town meeting authorizes the reserve account, the town could ask the Lab Rec Center’s charitable donor to split future installments so a portion can be routed to the new reserve while keeping operating funds available.

No motion was made to transfer the additional $10,000 at the meeting. Board members instructed staff to leave the existing warrant article as written, to seek legal clarification on the town’s authority, and to return with recommended next steps after the town meeting and after counsel responds to the board’s questions.