Select Board discusses realistic plans for GMNGC debt
By Curt Peterson
The Killington Select Board called a special meeting on Friday, Feb. 19, to discuss the 2020 audit, which corrected an expected surplus in the town budget.
William Hall, of RHR Smith & Co., reported to the board regarding the FY2020 audit for the town of Killington.
At the end of a long and detailed review of spread sheets for the town and Green Mountain National Golf Course (GMNGC), the bottom line was that the expected surplus of $74,000 from the draft budget was, in actuality, a net deficit of $14,000. GMNGC’s debt to the town also increased compared to the draft calculations, and tax receipts were less than the town’s books had indicated before the audit.
Hall attributed the change in prospects to “many journal entries,” (auditor jargon for corrections — additions or omissions).
The $74,000 surplus had been expected to reduce tax rate calculations, Town Manager Chet Hagenbarth explained.
Selectman Jim Haff suggested for the next five years the board use “zero” for any carryover, “regardless of projections.”
The town’s general reserve account, which might become very important if the town suffers another unforeseen disaster like Tropical Storm Irene, Haff told the Mountain Times, should be at about $1.2 million, but is currently $500,000.
To correct this, Haff suggests budgeting funds annually to building the reserve fund over five years, starting in FY2023 as the FY2022 budget is already warned and can’t be changed at this point.
Haff doesn’t think the board can count on GMNGC contributing to the general reserve by paying down its $352,000 debt to the town.
“I think we should begin writing off a certain amount every year until it’s all forgiven,” Haff said, “starting with $60,000 written off in FY2023.”
He said the voters approved buying the golf course 20 years ago, knowing the town might get hurt, and the board doesn’t need their approval to write off the GMNGC debt now.
Grant funding for rec study
Another topic discussed Friday, was an application for a $50,000 recreation grant. Sarah Newell, director of the Killington Recreation Commission, asked the board to approve a resolution guaranteeing the town will provide $7,500 if the Better Connections Program grant is awarded. Funds will finance a study regarding ways in which safety and convenience on the existing trail system can be designed where trails will intersect with roads and highways.
The board voted unanimously to approve the grant application, which has already been vetted by the Rutland Regional Planning Commission. Board chair Steve Finneran signed the application, which also requires Planning Commission chair Vince Wynn’s signature.
Newell told the selectmen the trails will be designed to be “inter-modal,” for use by bikers, hikers and skiers.
“The grant will fund just the study,” Newell said, “not the actual work of building the trails.”
The Better Connections grants are funded through the Agency of Transportation in cooperation with multiple other state agencies.
