Hales location budget approved; commissioners recommend reserve for student tuition uncertainty

The board opened a public hearing on the Hales location budgets and voted to approve the municipal and school budgets on Jan. 30. Director reported the Hales municipal budget at $183,061, the Hales school budget at $190,745 and estimated revenue at $88,635; the vote to approve followed public discussion.

Residents and selectmen asked procedural questions about the timing of delegation review, separation of duties between the tax collector and selectmen’s office, and how student tuition and adequacy aid would affect the school budget. Commissioners and town representatives discussed options to use undesignated fund balance and a capital reserve to absorb unexpected tuition costs if new students arrive during the year. Director noted Hales location currently shows about $291,121 in undesignated fund balance (about 71.19%), well above typical guidance of 8–20%.

Commissioners suggested a hybrid approach: create a capital reserve for tuition (example discussed: $50,000) and retain a smaller undesignated fund balance (example discussed: $25,000) so the town maintains flexibility to address other needs. They also discussed arranging a periodic review or a one‑time accounting review in lieu of a full audit; staff said a review could be performed at lower cost than a full audit and would bring the town’s financial records up to date.

The board approved the Hales location budgets as presented and set the next procedural steps: staff will prepare options for capital reserve formation and bring fund‑balance proposals back to the town and commissioners before the next meeting.

Budget totals approved: Hales town budget $183,061; Hales school $190,745; estimated revenue $88,635.