Finance Committee recommends $120,000 transfer to cover town legal expenses

The Finance Committee on Feb. 10 recommended transferring $120,000 from the AFC reserve to pay legal services, citing higher-than-expected litigation costs. Town Manager Christy Williams told the committee the request covers bills incurred to date and anticipated expenses through town meeting, including an outstanding October invoice of about $58,000 and litigation-related charges that in one month exceeded $30,000.

"We're asking for $120,000 for expenses incurred to date plus anticipated expenses through town meeting," Williams said, explaining that the town budgets for typical legal activity but cannot reliably predict litigation-related spikes. She identified the town's outside counsel as KP Law and said the finance office can provide a breakdown showing litigation-related charges separate from routine legal work.

Committee members asked for more detail about which charges reflected active litigation versus routine counsel and whether any costs should be budgeted in future fiscal years. Williams said the finance team maintains internal categorizations and offered to share recent-year breakdowns with the committee.

Member McMahon moved to recommend the transfer; the motion was seconded and carried. The committee recorded its recommendation to transfer the funds so the town can pay outstanding invoices and fund anticipated legal work through the next town meeting.

The committee also discussed options to replenish AFC reserves later in the fiscal year, noting a placeholder warrant article to restore the AFC reserve from free cash if needed. No additional policy changes were adopted; the committee limited its action to the fund-transfer recommendation.