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Mount Holly officials propose using $120,000 in fund balances to reduce tax increase
Summary
At a Jan. 13 Select Board budget workshop, staff proposed applying $35,000 from a specified fund balance and $85,000 from the general fund to reduce the town's projected year-over-year tax increase from nearly 20% to about 11.46%; board members discussed risk and reserves but took no formal vote.
Liz Karle, staff member, told the Select Board during a Jan. 13 budget workshop that the town could apply $35,000 from a specified fund balance and $85,000 from the general fund balance (totaling $120,000) to reduce the tax burden for the coming year. Karle said using those funds would still leave the town with roughly three months of operating costs in reserve, which she characterized as adequate to operate until the next tax payments are collected.
Karle said the projected year-on-year tax increase would be nearly 20% if the fund balances were not applied; with the $120,000 applied, the budget increase would be about 11.46%. Select Board member Jeff Chase asked whether drawing down reserves could force the town to borrow; Karle described that risk as very low if the town shifted about $100,000. Select Board member Mark Turco said he supported the proposal to "buy down" taxes. The record shows discussion but no formal motion or vote was recorded at this meeting.
