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Finance director: town in solid position, recommends building targeted reserves
Summary
The finance director said the town appears on track for a year-end surplus, recommended establishing capital and insurance reserves to manage claims and a planned revaluation in 2028, and flagged several one-time and recurring expenses that may affect the final surplus.
The finance director reported June 9 that the town is "in pretty good shape for the year" and that she expects the town to end the fiscal year with a surplus, though the final dollar amount will depend on pending payroll and purchase orders.
She identified two near-term pressure points: legal expenses and a claims-and-judgments line that has grown because of repair costs tied to a vehicle that struck Center Station. The director said the total expenses paid to date on that line are approximately $54,000 and that about $48,000 appears in the claims-and-judgments line in the packet as charged for Center Station repairs, with potential insurance reimbursement still pending.
To manage future uncertainty, she proposed establishing targeted reserves (an insurance reserve or capital reserve) so the town can set aside funds explicitly for deductibles, claims and planned capital needs. She also flagged two planned projects that will require budgeting: a revaluation (reval) in 2028, which staff estimates could cost $50,000 to $75,000 under the town's current approach, and a required update to the town's Plan of Conservation and Development, with preliminary planner estimates ranging from about $20,000 to $100,000 depending on scope.
The director said she will have clearer un-audited numbers by September and that any decisions about moving surplus to reserves would be scheduled after that point and coordinated with the annual audit.
