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Council approves amendment to create 4% annual capital reserve addition
Summary
The council approved a charter amendment to require an annual addition to the capital reserve equivalent to 4% of total appropriations; councilors debated trade-offs between long-term capital funding and near-term operating budgets.
The Foster Town Council voted July 16 to advance a charter amendment that would require an annual addition to a capital reserve equal to 4% of the town’s other appropriations.
During debate a councilor warned that moving the automatic addition from 2% to 4% would act like a long-term operating cut because the town would divert recurring dollars into capital accumulation rather than routine services. “That’s called the time value of money,” one member said during discussion, arguing that a nominal percentage change could compound into lost operating capacity over time.
Other council members and residents said capital planning and predictable capital funding were important to cover long-term infrastructure needs. The council adopted the amendment language in a motion to approve the proposed change; the motion carried by voice vote and will be placed on the ballot for town voters to approve or reject.
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