Treasurer flags budget gap; board discusses a new local agreement tax for veterans exemptions

Treasurer presented the May financial report and said the general fund shows a budget deficit of $73,235 and that FY26 budgeted revenues are about $100,000 short, a gap that corresponds closely to delinquencies totaling about $92,498. She noted the highway fund is in surplus ($108,378) and that total cash on hand is $905,310—of which $527,301 is FEMA-restricted funding that may need to be returned pending final FEMA reconciliation.

The treasurer said the town should prepare for detailed budget review in late June and noted she will deliver an end-of-year review and an updated capital equipment plan next month. Board members agreed to begin line-by-line budget discussions and consider options to trim costs before tax-setting.

On tax-policy matters, the treasurer explained a municipal accounting requirement commonly called a "local agreement tax rate": because Woodbury offers town-level veterans property exemptions that the state does not recognize, the town must establish a separate rate to recover the state education tax associated with that exempt value. Using last year's grand list numbers, she estimated the amount would be spread across the tax base and translate to roughly $1–$2 for an average taxpayer (about $1,400 total spread across the town), but said the board should discuss whether to include it in the upcoming tax-setting process for transparency.

The treasurer also raised a personnel-policy matter: under Vermont leave law, temporary employees who work more than 12 weeks should accrue sick leave (1 hour per 52 worked); she said she will begin tracking eligibility. The board asked whether the accrual is retroactive and the treasurer said she is reviewing guidance and will follow up.

The board did not adopt the local agreement tax at the meeting but agreed to discuss it during tax-setting.