At the Sept. 14 meeting of the Conservation Commission, members reviewed its finances with the start of budget season, uncovering an unexpected discovery while researching past land acquisitions and a long-standing cash flow account.
“You guys bought land off of the Barretts Hill subdivision and I was curious, having seen the cash flow accounts, one over and over again said it had $830,000, and that $91,700 spent on buying the land and hiring a lawyer was never reflected in the account. I finally went down to the Finance Department and asked them to update this, and I thought that would be a very easy process,” explained Civil Engineer Don Kirkland. “As it turns out, they started going back years, half a decade, and the good news is money that was spent on land, and money that would come into the cash flow account from the Land Use Change Tax had never, at least in six years, had never been reflected in this account. Thankfully, as it turns out, a lot more money had come in than went out.”
Following a full audit of Conservation funds, the Finance Department found that the long-reported $830,000 account actually contained around $2.2 million. The revelation delighted commissioners, with Chair Carl Murphy calling the news a “pleasant surprise” and Commissioner Kathryn Griswold describing it as “awesome.”
“More money from the Land Use Change Tax should have been dropped into those account every year. I think some of those years, especially maybe 2022, 2023, and 2024 where over $400,000 was coming in every year, I’m not sure those were standard years,” said Kirkland. “In 2005, it was decided that 50 percent of the local Land Use Change Taxes (LUCT) would go into this fund. In 2019, it was decided that 75 percent would go into this fund, with 25 percent going into the general fund.”
As of June 30, the Conservation Commission’s capital reserve fund holds another $733,000, though that money can only be spent with voter approval – a restriction that does not apply to the cash flow fund.
“Pertaining to that fund we can use, would that just be a case-by-case thing when we go to the town for approval? Do we go to the town, or directly to voters?” asked Alternate Makaela Murray.
Selectman Liaison Dillon Dumont confirmed that use of the capital reserve fund requires voter approval through a warrant article.
The state’s LUCT is a 10 percent tax charged when a parcel is removed from Current Use. Land designated as forest, farm, or open space typically receives lower property taxes, but development triggers the tax. The construction of Eagles Nest Estates was cited as an example, where the tax was assessed each time a house was built on former open space.
No immediate plans were made for how to use the newly discovered funds, though Griswold reiterated that large Conservation balances are usually earmarked for land acquisition. Commissioners agreed to continue monitoring undeveloped private land for future purchase opportunities.