Bow Selectmen adopt 8%–14% unassigned fund-balance policy

The Bow Board of Selectmen voted to adopt a formal fund-balance policy setting an unassigned fund-balance target range of 8% to 14% of the town’s commitments, the board decided at its Sept. 23 meeting.

Finance Director Cheryl presented the town’s end-of-year figures and led a discussion about an appropriate reserve. Cheryl told the board that operating revenues finished at about 93% of budget and expenditures were roughly 95.7% of budget, and described a revolving-fund snapshot and expected surpluses prior to final auditor adjustments.

The board debated whether to set a single target or a range and considered past volatility tied to large assessment events, including a power-plant revaluation that once drove balances near zero. Selectwoman Colby said a range provides flexibility; another selectman recommended a minimum to protect taxpayers from sudden tax-rate shocks. After deliberation, a motion to adopt an 8%–14% unassigned fund-balance policy was made, seconded and approved by voice vote.

The policy is intended as a guideline for budget planning and tax-rate stabilization; the board and staff said the policy would not preclude using reserve funds in an emergency or repurposing portions of fund balance after public discussion and a vote. The finance director said staff would return with any recommended implementing language and reporting detail during the budget cycle.

The board’s action formalizes a recommendation staff had described earlier in the meeting and sets a public target the selectmen can use during upcoming budget deliberations.

Ending: The board closed the fund-balance discussion by instructing staff to draft the formal policy document and related reporting language for a future agenda and budget-season materials.