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Uxbridge finance committee transfers $75,000 from reserve to cover unanticipated legal costs tied to uncollected cannabis impact fees
Summary
The Town of Uxbridge Finance Committee approved a $75,000 reserve‑fund transfer to the town legal account after staff said new Cannabis Control Commission rules and a delayed settlement left impact‑fee revenue short for FY25; townwide legal spending totaled about $266,000 this year.
Finance Committee members voted to transfer $75,000 from the committee’s reserve fund into the town’s legal services line to cover unanticipated legal costs and shortfalls in impact‑fee revenue.
The finance director told the committee the transfer is needed because the town collected no cannabis impact fees during fiscal 2025 and could not use those receipts to offset legal spending. “We’re looking to, essentially use the full, Fincom reserve fund transfer of $75,000 to essentially, move into legal line,” the finance director said. Staff attributed the missing revenue to two issues: a customer in a settlement over odor‑mitigation work that has not paid, and a change in rules from the Cannabis Control Commission requiring invoices and CCC approval before impact fees can be paid to the town.
Committee members pressed staff on the magnitude of legal spending. The finance director said townwide legal costs for the year were about $266,000, retainer included, and noted there is a statutory requirement to true up departmental deficits at year end. Members said the repeated overspending on legal suggests the town should improve quarterly tracking and consider billing developers or applicants for legal review costs rather than charging the general fund.
Staff said they are exploring options to require developers to provide funds up front for legal review—similar to existing practices for some infrastructure work—and to add legal lines to enterprise funds (water and sewer) so those operations pay their legal costs directly. The committee approved the reserve transfer by roll call vote; the finance director said the transfer, plus reallocation across other general‑government lines, will cover the shortfall.
The committee did not adopt a formal new policy at the meeting but asked staff to return with options for charging applicants for legal review and for tighter quarterly oversight of the legal budget. The joint Select Board and Finance Committee vote on related FY25 transfers also approved the other budget moves discussed at the meeting.
The Finance Committee recessed after the vote and reconvened later for reorganization and other business.
