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Board presses town for clarity after $1.04M ITC grant recorded as town revenue
Summary
District finance staff told trustees an $1,040,000 ITC grant from an ESG energy project was recorded as town revenue and not allocated to BOE accounts; board members asked for reconciliation of multiple energy credits and noted the Capital Reserve is $2,263,806.
The New Milford Board of Education spent a portion of its April 28 meeting pressing town officials for clarity after finance staff identified an $1,040,000 investment tax credit (ITC) recorded as town revenue related to an ESG energy project.
Anthony Giovannone, director of fiscal services, told trustees the district’s Purchase Resolution D-805 and requested budget transfers tie to items that did not make it into next year’s budget and said the Capital Reserve balance is $2,263,806. During a review of measurement-and-verification material for the ESG project, Giovannone said the district received demand-response credits totaling about $6,000 in 2024–25 and just over $7,200 in 2025–26, but several other credits listed in his memo — including an $1,040,000 ITC grant — were reconciled on the town side and have not been recorded to BOE accounts.
"The district was not informed by the town," Giovannone said, describing that some credits were applied on the town ledger. Board members urged transparency and asked whether certain credits should instead offset the district’s lease payments and project costs. "If the district is liable for two-thirds of the expenses, then two-thirds of the revenue that comes in should be allocated to the district," said Mr. Tom O'Brien.
Board members and the finance director discussed that some credits were needed to cover year-one project delays and to pay the ESG consultant; other credits, they said, should be applied to reduce the overall payments. Mrs. Wendy Faulenbach said the district had not been aware of the $1,040,000 ITC grant and noted the Mayor had been invited but did not appear to speak at the meeting.
Giovannone also corrected a separate memo error noting the amount transferred to the BOE Capital Reserve was $1,218,617 (not $1,318,617) and updated the board on the first Excess Cost Grant payment, which was lower than expected because reimbursable expenditures were below projections.
Why it matters: The allocation of large one-time credits and grants can materially affect the district’s capital planning and lease payments; trustees said they want town reconciliation of credits that were recorded on the municipal side but not passed through to BOE accounts.
What happens next: Board members requested further reconciliation of ESG/ITC credits with town finance staff; no formal enforcement action or reallocation was recorded at this meeting.
