Officials warn budget omissions risk violating town charter and USDA covenants

During questions, a resident and a Commissioner raised compliance concerns tied to the omission of depreciation and lack of dedicated reserves. A Commissioner noted that town charter requirements and lender covenants require sufficient reserves: "You also have a separate problem with compliance with 17 8 of the Charter, which requires that we have sufficient money set aside and a reserve fund to deal with expenses as they come due," the Commissioner said.

Officials responded that the books and audit were accurate but the budget presentation did not clearly disclose reserves or depreciation; they said the goal is to update the budget to make reserves and depreciation transparent and avoid violating charter or lender covenants. Staff emphasized that the town must avoid deferred maintenance, preserve reserve accounts and ensure rates support obligations.