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Henniker board moves to use $400,000 in fund balance to stabilize 2025 tax rate
Summary
At a workshop, town staff recommended using $400,000 of unassigned fund balance to lower the preliminary 2025 tax rate; board members discussed a $469,000 reserve tied to a PSNH/Eversource legal case that could restore funds if the town prevails.
A staff member for the Henniker board told members at a workshop that using $400,000 from the town's unassigned fund balance would lower the preliminary 2025 tax rate to about $7.19 per $1,000 of assessed value, down from an earlier projection of $7.55.
The staff member said the recommended draw would temporarily reduce the town's unassigned fund balance below the board's stated 6 percent goal but described the change as short‑term. He noted that $469,000 was currently moved from unassigned to assigned as a reserve for an Eversource/PSNH case and that, if the town ultimately prevails, those funds could be returned to unassigned balance.
Board discussion focused on whether the temporary dip below the 6 percent target was acceptable. One board member said the $469,000 reserve “is still aside” and “it's not impacting what we're talking about tonight,” while the staff member said the town's 10‑year fund balance history and the Government Finance Officers Association recommendations supported the approach.
The staff member explained why the tax-rate estimate fell: updated property valuations and higher-than-estimated revenues. He told the board the valuation used in early estimates was about $749,000,000 and that later, higher values and revenues reduced the per‑$1,000 rate.
A motion to use $400,000 of unassigned fund balance to achieve the targeted rate was moved and seconded during the meeting. The transcript records the motion (
