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Selectboard approves using garage reserve to pay bridge-loan interest and first payment
Summary
The board approved drawing $53,982.57 from the town garage reserve to pay bridge-loan interest and an additional $12,000 first payment related to the new garage purchase; members discussed the need to rebuild the reserve during future budget seasons.
The Fair Haven selectboard approved the use of the town garage (highway garage) reserve fund to pay $53,982.57 in interest on a bridge loan and to make the $12,000 first payment related to the new garage purchase on Airport Road. Staff explained the reserve was originally set aside to relocate and support the town garage and that the current withdrawal matches the fund’s intended purpose.
Several members urged that the board take steps in future budget cycles to replenish the reserve so it is available for maintenance and emergencies, but acknowledged the current payment obligation is due and that the reserve is an appropriate source. One member noted that if the board did not use the reserve, the payment would otherwise come from the town’s fund balance, an option they preferred to avoid. The motion passed by voice vote.
What happens next: staff will effect the transfer from the reserve fund to satisfy the interest payment and first loan installment; the board asked staff to consider ways to rebuild the reserve during the next budget cycle.
