Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Selectmen discuss fund-balance policy, DRA memo; direct staff to attach memo to minutes and schedule work session
Summary
Selectmen reviewed prior warrant articles and a Department of Revenue Administration memo about maintaining unassigned fund balance, asked staff to attach the DRA memo to the meeting minutes and scheduled more work sessions to clarify fund-balance targets and any warrant-article implications.
Wolfeboro — The Board of Selectmen on Feb. 19 revisited town fund-balance policy and a December memo from the New Hampshire Department of Revenue Administration (DRA) that staff said explains the risks of low unassigned fund balance.
What happened: Board members and members of the public discussed a string of warrant articles and past practice about how much unassigned fund balance the town should hold and whether surplus above a target should be used to lower taxes. Multiple selectmen and members of the public cited earlier warrant articles that reaffirmed guidance around a 10% target. The town’s finance staff and the board agreed that some of the language used in prior warrant articles and handouts may have been confusing to residents.
Board direction: The board asked staff to attach the DRA memo (dated Dec. 15, 2023, referenced in the meeting) to the minutes for the current meeting so the information is available to the public. Selectmen also agreed to schedule follow-up work sessions, timed with the annual audit delivery, to review the town’s fund-balance policy (financial policy FIN-007) in context of the audit statements and to present a clear recommendation before the tax-rate-setting process.
Why it matters: Unassigned fund balance is a resource the town can use to smooth tax rates and respond to unexpected costs. Citizens at the meeting said they expect a stable target, while selectmen emphasized the need to balance rainy-day reserves with not over-reserving and shifting costs unnecessarily to taxpayers.
Ending: Staff committed to include the DRA memo with tonight’s minutes and to present comparative information from recent audits and policy options at an upcoming work session so the board and the public can evaluate a formal target and any warrant-article language going forward.
