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Board considers moving FEMA reimbursements into reserve to pay imminent mitigation invoices
Summary
Officials warned the town will face roughly $500,000-plus in mitigation construction costs this summer that will be reimbursed later; members discussed moving part of FEMA reimbursements into a reserve so contractors can be paid on time.
Town finance and select board members discussed using part of recently received FEMA reimbursement funds to create a reserve to cover contractor invoices that arrive before the federal reimbursement is paid.
The board was told contracts for five mitigation projects move to construction in July and August, creating a town cash exposure the transcript described as "roughly $500,000 plus." A presenter reminded the board that FEMA reimbursements are reimbursements—payments come after eligible expenditures—so the town needs cash on hand to pay contractors while it awaits federal reimbursement. "We won't get reimbursed for those until quite a ways down the road," the Moderator said.
Transcript discussion included a reported FEMA payout figure (discussed in the meeting as approximately $657,000) and other state grant and interest items that together left the town in a positive revenue position. Board members asked the finance officer to return with a recommended reserve dollar amount once outstanding invoices are clearer; no transfer or appropriation was adopted at the meeting.
Separately, the board approved payroll and warrants for the reporting period (total $69,591.85) and noted a largest payment to Conners Custom Building for $15,947.38 and a vestibule first payment of $8,024.12.
