Anyone who has attended a town meeting, deliberative session, or a budget committee hearing knows there is a direct relationship between the goods and services provided in a municipality and the resulting tax rate. Because the choices voters make will have a direct financial impact on the real estate taxes they will pay, New Hampshire citizens often have at least a basic understanding of how the budgeting process works in their town or city.
The town’s old plow truck is still running due only to the dedication and considerable mechanical talents of the highway department crew who have so far been able to work miracles to keep the truck on the road. Unfortunately, the town’s best mechanic has just given his notice and is moving south to enjoy semi-retirement in the sun. The selectmen know that without their ace mechanic, the town’s luck in keeping this plow truck running until town meeting probably won’t last.
Capital reserve funds, expendable trust funds and special revenue funds are useful budgeting tools that allow municipalities to set money apart from the general fund for specific purposes. With the passage of Chapter 79, Laws of 2005 authorizing the use of revolving funds for recycling, ambulance and public safety services outside of ordinary details, towns now have a new vehicle for setting money aside.
