See my prior analysis. However, the "refund" of $2.7M last year came from money originally budgeted (conservatively) to accomplish the 18 month change in the fiscal year that was ultimately not spent ($2.0 million) plus $750,000 that should have gone back to taxpayers in the prior year but was held by the Board of Selectmen who had hoped to set up a Capital Reserve account for a down payment deposit on a potential Community Center, to show public support. This was Warrant Article #8 in the FY22 Town Meeting that was not passed, so this taxpayer money was then available to return as a reduction in the tax rate.
Money used to offset the tax rate.....December 2021 = $2.0 Million
December 2022 = $2.7 Million
December 2023 = $ 0
There are lots of theories out there as to how this "Unassigned Fund Balance" should be used. I subscribe to the theory that all excess funds should go back to the taxpayers and not held in a kitty. Taxpayers fronted the money for the budget and if the town does a good job in under-running the costs or if there were delays in hiring, or if revenues come in stronger than anticipated, etc .etc., then the money gets returned the next year and all new fiscal year expenses stand on their own at Town Meeting....kind of like pay as you go. Others think this money should be held in a kitty to offset certain expenses at Town Meeting instead of charging the tax rate and that certain items may be easier to get through Town Meeting if the funds are coming from this account instead of taxation.
In reality, both theories end up at the same place as long as you do it consistently. But I think when people see any expense is coming from Taxation that it brings closer attention than from some kitty.
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