A municipal budget vote granting $3,000 for community beautification might seem to be, in the words of Martha Stewart, a “good thing.” But local government leaders know it can come with a less-sightly flip side.
“It creates a mentality that you have to use it or lose it,” said Thomas Galinat, town administrator in Johnson.
Cue this year’s most blossoming Vermont Town Meeting ballot trend: Requests for reserve fund accounts that let communities bank money for specific purposes long-term.
“The general rule of budgeting in Vermont law is that money not spent in a budget year must be re-appropriated by the voters for the following year as part of the budget approval process at Town Meeting,” the Vermont League of Cities and Towns writes on its Reserve Funds 101 web page. “Creating a reserve fund is the only legally recognized method in Vermont to provide a cushion.”
That’s why more than two dozen communities, from Albany in the north to Whitingham in the south, will seek approval this March to set up reserve funds that would hold surpluses or other money that residents allocate.
Local leaders say a combination of more damaging storms and the need to invest unspent federal American Rescue Plan Act dollars has fueled the trend, according to a VTDigger survey.
Johnson, for example, will consider the creation of a Beautification Committee Reserve Fund, a Johnson Public Library Reserve Fund and a Class IV Road Reserve Fund.
“A lot of times we’re operating with visions that don’t end with the close of the fiscal year,” Galinat said. “This takes the stress out of having to spend before year’s end.”
North Hero is seeking to establish a Contingency Reserve Fund “for the purpose of unanticipated operational and emergency situations,” according to its ballot.
“It’s basically a rainy-day fund, but this is the legalese for that,” North Hero Town Clerk Corinn Julow said. “If we had a surplus in the past, we just held on to it, but it’s not the most transparent way to operate. This makes it clear we have money in reserve, how much there is and what it’s for.”
Plainfield, one of many communities still reeling from record summer rainfall, is set to consider six reserve funds, including ones for disasters, recreation and public arts projects, sidewalks, bridges, culverts and village expansion.
“In our case, it’s the flooding plus trying to plan for the future,” Plainfield Town Clerk Bram Towbin said of the half-dozen requests.
Putney will consider Fire and Emergency Medical Services and Selectboard Unrestricted reserve funds, the latter for “unanticipated expenditures and revenue shortfalls” that “may be caused by economic downturns, natural disasters, and other unforeseen circumstances,” according to the ballot.
Vergennes, for its part, is asking for Parks and Recreation and Burying Ground reserve funds “so that residents, visitors, organizations and foundations may make tax deductible donations,” its two articles state.
Votes on local spending, other municipal matters
As for other March ballot items, Vermont’s 29 cities and towns with at least 5,000 people are set to ask voters for nearly $275 million in capital projects in a collective wish list heavy with water and sewer plans.
In comparison, the state’s 218 communities with smaller populations aren’t asking for as much, although many of their individual requests would improve similar infrastructure.
Killington will vote on a $11.2 million bond for water system upgrades, as well as $490,000 for Town Hall renovations.
Proctor will consider a $5.4 million plan to enhance its wastewater treatment plant.
Chester will weigh spending $2.98 million for a new wastewater pump station, $1.14 million to purchase a solar photovoltaic generation facility located on town property, and $524,000 for a road grader and paving.
And West Rutland will cast ballots on $2.3 million in fixes to its wastewater treatment facility.
Several communities with less than 5,000 people will vote on school requests.
Sharon will ask for $7.1 million to expand its elementary school.
Bethel and Royalton will seek $6.17 million for additions and improvements to its White River Unified School District buildings.
Several other requests have price tags that top $1 million.
Ludlow will vote on $3.6 million for two new fire trucks.
South Hero will consider $2.87 million for a new town hall.
And Vergennes will weigh $1.2 million to buy two used fire trucks and upgrade radio and safety systems.
Many smaller communities are proposing new or expanded local option taxes, joining a list that now includes more than 30 cities and towns.
Bethel, Ludlow, Marlboro, Putney and Whitingham will cast ballots on adding a 1% tax on sales, rooms, meals and alcohol.
Montgomery and Royalton will ask for a 1% tax on rooms, meals and alcohol.
And Westmore, which already has a 1% tax on rooms, will seek to extend it to meals and alcohol.
In other municipal matters, a call to authorize retail sale of cannabis will appear on the ballot in Hinesburg, while a request to limit any more such businesses will be decided in Wilmington.
Rockingham and its villages of Bellows Falls and Saxtons River will vote on a plan to create a single municipal fire and rescue department.
Advisory articles on whether to allow all-terrain vehicles on town roads will be considered in Danby, Fletcher, Highgate and Orwell.
A nonbinding question about exploring the option of closing a building in the Quarry Valley Unified Union School District will be weighed in Poultney, Proctor and West Rutland.
And a citizen-petitioned advisory article on an apartheid-free.org pledge for “freedom, justice, and equality for the Palestinian people and all people” will appear on ballots in Brattleboro, Montpelier, Newfane, Thetford, Vergennes and Winooski.
Read the story on VTDigger here: The Vermont Town Meeting trend you can take to the bank: Requests for reserve funds.