Allenstown board debates moving emergency‑services revolving fund into capital reserve; chief asked for CIP details

A majority of the Allenstown Select Board discussed on June 29 whether to ask voters to discontinue the emergency‑services revolving fund and transfer its balance into a capital reserve account, but members agreed they need more detail from the fire department before placing a warrant article on the ballot.

At the meeting, a board member proposed drafting an article that would discontinue the revolving fund, transfer an amount determined by a capital improvement plan (CIP) into a capital reserve account and return any excess to taxpayers. The proposer said the change would “put control back in the voters’ hands” by making future contributions explicit rather than allowing revenues to accumulate without annual voter oversight.

Fire Chief John Sarelli cautioned that an abrupt change without a clear plan could force layoffs or reduce ambulance coverage. “If we take the revolving fund away … I still have to add to the proposed budget another 100,000 to it to pay for those two items,” the chief said, describing daily staffing strain and nights with multiple back‑to‑back calls. He warned the department could be unable to staff an ambulance full time if funding were removed without replacement.

Board members and staff discussed technical budget effects: revolving‑fund revenues are counted when the town’s tax rate is set, and moving revenues into a voter‑controlled capital reserve could smooth year‑to‑year tax swings but would require careful wording to ensure operational readiness. One member recommended wording that would first fund identified CIP needs (for example, $500,000 if justified) and transfer only the remainder back to taxpayers.

Members asked Chief Sarelli to return with a detailed CIP that lists equipment replacements, expected timing and estimated costs; that information would inform whether and how to draft a warrant article. Town staff also noted the town’s unassigned fund balance was reported at about $2.3 million for 2024 (reported at the meeting as “2.299.3 million”), which factors into overall fiscal planning.

The board did not vote on placing a warrant article; instead members reached consensus to request the fire chief’s CIP and to continue the conversation after the department presents quantified needs and spending plans. The board also discussed phasing options so that critical emergency equipment and staffing would be preserved during any transition.

Next steps: the fire chief will prepare and present a CIP and a list of items the revolving fund currently supports so the Select Board can draft precise warrant‑article language or other budget options for voter consideration.