The Trustees of the Trust Funds convened to review capital reserve fund disbursements, discuss new financial procedures, and receive updates on the town’s borrowing capacity and Capital Improvement Program (CIP). The meeting highlighted efforts to formalize financial processes and plan strategically for future town needs.
The Trustees opened by approving the minutes from their June 12th meeting (link).
Formalizing Capital Reserve Fund Procedures
A significant portion of the meeting was dedicated to establishing more formal procedures for expenditures from Capital Reserve Funds (CRFs) (link). The town’s financial administrator presented a new draft procedure manual and tracking form designed to bring CRF management into closer alignment with New Hampshire RSA requirements.
Under the new process, department heads submit requests to the Select Board, which serves as the agent to expend. The Select Board must approve each expenditure, confirm it aligns with the original warrant article language, and record the vote in the meeting minutes. The request then proceeds to the Trustees, who conduct a final review to verify the expense is allowable under the relevant warrant article and directed to the correct CRF. The Trustees retain the final authority to approve or deny the request.
The financial administrator also offered to distribute a comprehensive reference tool detailing all current CRFs, their specific warrant article language, and guidance on allowable expenditures (link).
It was clarified that if the Trustees decline to approve an expense already paid from the general fund, that cost would remain a general fund expense — underscoring the importance of the new pre-approval process (link). A suggestion was made to add a brief justification or memo field to the new form to provide clearer context for each request.
Capital Reserve Fund Disbursement Approvals
The Trustees reviewed and approved three disbursement requests:
- Curious George Cottage Repairs ($9,060): Approved to cover roof, porch, and gate repairs completed earlier in the year. The total included an initial $3,000 deposit (link).
- Solid Waste Truck Repairs ($2,650.09): Approved for specific mechanical repairs to the existing solid waste truck. The financial administrator confirmed that all items were verified as allowable under the CRF’s warrant article language, and that certain items initially submitted did not meet the standard and were excluded. The fund holds a balance of $77,396.09 (link).
- Streetlight Repair and Replacement ($33,796): Approved for the purchase of five new solar streetlights from the town’s established vendor. The Director of Public Works confirmed the lights are 100% solar and carry a 10-year warranty. Two lights will replace existing non-operational units — one at the corner of Valley Road and Packard’s Road, and one at the Valley-Village intersection near the golf clubhouse. Three additional lights will be installed along Snow’s Brook, from the conference center to Village Road, to address safety concerns about a particularly dark stretch of town (link). The purchase also includes a one-time control system cost that will allow town staff to remotely manage the lights and benefit all future installations. The streetlight repair fund carries a balance of $52,319.76, sufficient to cover the expenditure (link).
The Director of Public Works noted that the existing grid-connected streetlights in town are at end-of-life, and the local electric cooperative has indicated it will no longer replace them with the current lantern-style fixtures. The town’s direction from Town Meeting is to transition to solar replacements as lights fail. Trustees suggested this solar transition could make a compelling story for the next Town Meeting, particularly if projected electricity cost savings can be documented.
Future Capital Reserve Considerations
The Assistant Town Manager noted an upcoming potential expense: repairs to man-doors at the Fire and Police bays, and possibly the side and front doors of Town Hall (link). A warrant article authorized $10,000–$15,000 for the Fire and Police bay doors. If quotes for all four doors exceed that authorization, Municipal Facilities CRF funds may be used to offset the difference. The plan is to share vendor quotes with both the Trustees and the Select Board before any purchases are made.
Town Borrowing Capacity
The financial administrator presented a document outlining the town’s current and projected borrowing capacity, which prompted a substantive discussion about the importance of continued CRF contributions (link).
The analysis showed that the town’s non-water/wastewater borrowing capacity currently stands at approximately $9 million and remains relatively flat through 2040, constrained by long-term bonds issued over the past 10–15 years. Total borrowing capacity is estimated at approximately $11 million through 2040, with some debt beginning to fall off around 2042. The projection includes the $2.55 million authorized but unissued for road projects from the 2026 Town Meeting, which will need to be borrowed at either the January or July bond sale.
A member suggested incorporating a modest, conservative valuation increase — on the order of 1–2% annually — into future projections rather than holding the valuation flat, noting that a flat assumption may draw skepticism from the public and distract from the more important message about constrained borrowing capacity (link). Others agreed the town is largely built out, with meaningful new development limited to potential Tyrell projects, and that the rapid property value growth of the past five to six years is unlikely to continue at the same pace. A figure of 2–3% was suggested as defensible. The group agreed the borrowing capacity analysis should be shared with the public in advance of Town Meeting to encourage informed discussion.
Capital Improvement Program Update
The CIP Committee provided an update on its work, which involved gathering input from department heads and town administration (link). Funding sources under consideration include general taxation, existing CRFs, and proposed new CRFs. The Select Board member serving as ex-officio on the CIP Committee has been actively engaged throughout the process. A first public meeting was held approximately two weeks prior, with limited attendance but productive discussion. The committee is scheduled to present to the full Select Board on October 7th.
Proposed new CRFs for 2027 include:
- Cemetery CRF ($25,000 requested for 2027): For drainage improvements and future changes at the town cemetery.
- Public Works Equipment CRF ($50,000 requested for 2027): To fund new equipment purchases and reduce the need for annual warrant articles.
- Britton Property Rehabilitation CRF ($10,000 requested for 2027): Seed funding for future plans related to the town-owned Britton property.
- Bridge Maintenance CRF ($10,000 requested for 2027): Proactive set-aside for ongoing bridge upkeep.
The committee also discussed establishing revolving funds for Police Details ($5,000 requested for 2027) and Ambulance services ($5,000 requested for 2027) (link). The Town Manager explained that revolving funds allow the town to invoice sooner, accept revenue directly, and pay expenses without drawing on the general fund first — reducing the operating budget line for those activities. The financial administrator added that, once properly established through warrant article language, revolving funds do not require annual re-approval and can be structured to return a percentage of revenue to the general fund. In larger communities, accumulated balances in police detail revolving funds have been used to purchase major equipment such as cruisers and emergency gear.
A key procedural clarification arose regarding the renaming of CRFs: if the legal purpose of a fund changes, the fund cannot simply be renamed. Instead, the existing CRF must be closed — returning its balance to the general fund — and a new CRF created with the desired purpose, funded from the general fund (link).
The next meeting of the Trustees of the Trust Funds was scheduled for Tuesday, December 15th, at 12:30 p.m. (link).