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Dalton board to use FEMA reimbursements to replenish paving fund and boost equipment reserves
Summary
SelectBoard members agreed to present warrant articles that would use roughly $377,500 of FEMA reimbursements to replenish the paving capital reserve and allocate $11,400 to highway equipment, with remaining FEMA funds held in the general fund; the board will finalize wording after DRA review ahead of Thursday's budget hearing.
Chair opened the SelectBoard working session and led a lengthy discussion over how the town should allocate approximately $1,026,000 in FEMA reimbursements.
The tax collector said the town had received $1,026,000 in FEMA reimbursements and proposed replenishing the paving capital reserve with about $377,500 and placing $11,400 into the highway-equipment capital reserve fund. She said the balance would remain in the general fund, available to roll into fund balance at year end.
The board debated several scenarios for using the FEMA money, including one-time $100,000 boosts to the highway and fire equipment capital reserve funds to reduce future borrowing. “If we put an extra $100,000 into both of these, then those trucks, the equipment, you pull together and you’re prepared down the road,” a SelectBoard member said.
Another member warned about the tax impact of large one-time additions and urged caution: “I would rather see as much money as possible go into fund balance because it gives us the opportunity, hopefully, if we are good with our spending this year, it gives us the opportunity to go back and make a difference when we set the tax rate for 2026.”
Board members agreed on a working plan to present at the budget hearing: replenish paving with $377,500 from FEMA reimbursements, put $11,400 into the highway equipment capital reserve, and leave the remainder in the general fund. The Chair said Janette will confirm with the state Division of Municipal and Property Assessment (DRA) that the proposed allocations are permitted and will update warrant language accordingly.
The board framed the proposal as a recommendation for town meeting; final approval rests with voters. The Chair said the plan would be posted and explained at the Thursday budget hearing so residents can provide feedback before any warrant language is finalized.
