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Select Board considers using $120,000 in reserves to reduce next year’s tax increase
Summary
At a Jan. 13 special Select Board budget workshop, staff proposed applying $35,000 from a specified fund and $85,000 from the general fund (total $120,000) to lower an otherwise near-20% budget-driven tax increase to about 11.46%.
At a Jan. 13 special Select Board budget workshop in Mount Holly, town staff outlined options to curb next year’s projected tax increase by applying $120,000 in reserve balances to the budget.
Liz Karle, speaking during the continued budget workshop, said shifting $35,000 from a specified fund balance and $85,000 from the general fund balance would reduce the town’s tax burden while leaving roughly three months of operating costs in reserves. She told the board that without applying those funds the year-on-year budget increase would be “almost 20%”; with the $120,000 applied the increase would be about 11.46%.
Jeff Chase asked whether using reserves could force the town to borrow later; Karle characterized borrowing as a “very low risk” if the amount shifted was on the order of $100,000. Mark Turco expressed support for applying the balances to buy down taxes.
The Select Board did not record a final vote on the reserve application at the workshop; the item was part of ongoing budget deliberations. The special meeting was called to order at 5:00 p.m. and adjourned at 6:02 p.m.
