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Council raises alarm as town fund balance drops; board to revisit drawdown policy
Summary
Councilman Boudreau said the town's fund balance fell from about $1.07 million in 2022 to roughly $525,000, proposed restoring a minimum of $700,000 and ending reliance on reserves to balance budgets; the board agreed to continue the discussion at the next meeting.
Councilman Adam Boudreau told the board that rising costs and repeated use of reserves have reduced the town's fund balance from approximately $1.07 million in 2022 to about $525,000. He urged the board to stop using fund balance to balance budgets and proposed setting a minimum target of $700,000 with the longer-term goal of restoring $1 million in reserves.
Councilman Owen Littlefield noted that the town spends roughly $1 million every six months and said a common recommendation is maintaining reserves equal to about six months of operating expenses. The board discussed the trade-offs and agreed to continue the conversation at the next meeting; no formal policy was adopted at this session.
The discussion included public questions and emphasized that restoring reserves will likely require both halting drawdowns and increasing annual contributions.
