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Selectboard authorizes raising tax-stabilization and municipal-facilities reserves in surplus plan
Summary
The Selectboard voted to change surplus-allocation language so the first $25,000 of excess goes to tax stabilization (up from $5,000) and to allow up to $25,000 for municipal facilities; the motion carried 4–1.
The Selectboard voted to revise how excess year-end funds will be allocated. Under the new language the first tranche of surplus would be used to raise the tax stabilization reserve from its current authorization (previously $5,000) up to $25,000, and up to an additional $25,000 would be available for municipal facilities (equipment, garage, transfer station, etc.).
A Selectboard member introduced the motion to change the allocation language and described it as a tiered approach: first top up the tax-stabilization fund, then allocate to municipal facilities reserve, and any remaining surplus beyond those caps would be considered to be returned to taxpayers or otherwise allocated according to policy. The motion was seconded and carried 4–1. Members said the change aims to smooth tax-rate volatility and manage larger capital expenses from dedicated reserves rather than one-time spikes to the tax rate.
Board directions called for staff to ensure the precise warning language reflects the two-step allocation and to identify the statutory limits that apply to reserve-fund caps.
