Select Board OKs $1 million internal advance to seed $7.9M solar project fund

The Select Board approved an internal advance of $1,000,000 from free cash into a newly created solar panel fund to provide cash for vendor deposits tied to a planned roughly $7.9 million municipal solar project. Town financial staff said the advance gives the town the ability to make required deposits and pay near-term vendor bills before going to the market for long-term financing.

Town financial staff explained the mechanics to the board: the money will come from ‘‘free cash’’ (unrestricted general fund balances) and be deposited into a solar project fund; the advance is expected to be repaid when the town issues debt, likely in March. ‘‘We're borrowing from ourself, basically, and not paying interest while we don't really know how much we need,’’ said the finance presenter, describing the cash-flow timing and the need to meet federal credit deadlines.

Why it matters: the board has authorized the solar project and related debt in principle; this move provides the necessary cash to lock vendor schedules and deposits without delaying construction. Officials said the full project remains subject to future market conditions and final debt issuance.

What the board voted and next steps: A motion to transfer $1,000,000 from free cash to the solar panel fund passed after a friendly amendment to use the standard form for ‘‘advance of funds in lieu of borrowing.’’ Financial staff said the town will monitor actual project costs, add internal borrowings later if necessary, and repay the advance when permanent financing closes.

Board comment: Select board members framed the advance as a routine cash-management step for a large capital project. The board asked staff to provide a schedule of anticipated deposits and to return with updates if the estimate grows.