Monday, November 25, 2019

Without Inquiry, Selectboard Approves Use Of 'Designated' Funds For Non-designated Purpose

When can designated funds be used for non-designated purposes? To my consternation, no public official gave the question much thought, at least publicly at the [Norwich, VT] Selectboard meeting on November 20, as seen on CATV.  I was hoping for somewhat better oversight of taxpayer money.

Police Chief Frank at Norwich Selectboard meeting on November 20. Source: CATV screen shot.
At the meeting, Police Chief Jennifer Frank made a compelling case for the Police Department to purchase new computers for the station and for the four police cruisers, without waiting for the next budget cycle.

The expense is not the issue, but rather the funding source. The Police Chief sought, and the Selectboard okayed, funding for the purchase from the remaining balance in the "Communication Study Designated Fund", about $16,000. Not a peep from any Selectboard member, Treasurer, or Town Manager about whether this was an appropriate use of that Designated Fund.
Residents may recall that the Communication Study Designated Fund was established to study options for building the emergency communication tower. After the tower was built, a balance of over $28,000 remained in Communication Study Fund.  At Town Meeting in 2018, voters approved using the balance in that fund to pay down bond debt regarding the tower.

Excerpt from Minutes of the Annual Meeting, March 5, 2018 Town of Norwich, Vermont, 2018 Norwich Town Report at I-6.

I wish a town official had asked these three questions at the November 20 Selectboard meeting, even if just to keep the public informed.
  1. Isn't voter approval required to use 'designated' funds for non-designated purposes? The Selectboard thought so in 2018. Then, the Board asked voters for approval to use the Communication Study Designated Fund to pay bond debt. See Article 10 above. Three Selectboard members as well as the current Town Manager held office at the time the Article was placed on the ballot. Prior practice in Norwich is to the same effect. Voter approval was sought at Town Meeting in 2009 to move money from the Fire Training Facility Designated Fund to the Tracy Hall Designated Fund. See 2009 Town Report at I-5 (Minutes of Annual Meeting). I don't know the answer to this question but past practice indicates voter approval is the preferred course. I also don't know if the Selectboard even considered the issue before approving the Police Chief's request.
  2. Why not use money in designated funds earmarked for the police department? The Town has at least three designated funds set aside for police department expenditures. According to information in the Selectboard packet for that meeting, they are (and the balances in each): Police Cruiser ($80,754), Police Special Equipment ($12,385), and Police Station ($10,630). No Selectboard member asked why those designated funds were not being used to fund these police department purchases.
  3. Isn't the money in the Communication Study Fund already spoken for? As noted in Article 10, voters approved the speeding of "any remaining" funds in the Communication Study Designated Fund to "reduce" Communication Tower Bond debt. Apparently, that debt has not yet been retired. A preliminary iteration of next year's proposed budget has $30,738 allocated for "DEBT SERVICE ON TOWER BOND". If the debt is outstanding, it would seem the voter mandate is not satisfied.
Questions 1 and 3 go to the legitimacy of the Selectboard approval. Perhaps the Board will address the topics at its next meeting, before releasing the funds.

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Originally posted on HereCast on November 24, 2019.

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