Rochester funds solar array as city councilors take heat for $38M fund balance

ROCHESTER — City councilors were taken to task Tuesday night over why the city's unassigned fund balance is $38 million and for the way they are spending money.

Rochester residents had learned about the funds in a city Finance Committee meeting the previous week, when it was proposed $7.5 million from the fund be used to offset a $15 million bond for construction of a new elementary school on Salmon Falls Road.

The $38 million unassigned fund balance came up again Tuesday night came during a public hearing on expending $546,000 for a solar array at the James Foley Community Center. Most people had no objections to a solar array for the building, but it became the catalyst to discuss the perceived large amount of money in the unassigned fund balance, with some residents accusing the council of using the money as a slush fund.

"My concern regarding this appropriation is that we just did the (city's annual budget)," said resident Ray Barnett. "Why was this not included? We are two months in, and I know this was in the works already. Solar is a good thing. My objection is the way you do business. The unassigned fund balance is mad money for you."

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Following the public comments, the council approved the expenditure for the solar array, 11-1, noting the city will get back $164,000 as a tax credit.

Following the meeting, Mayor Paul Callaghan said the city manager will prepare a breakdown of the unassigned fund balance. He said they will present it at the next Finance Committee meeting so people understand where the money comes from.

City Manager Katie Ambrose said Wednesday, "The fiscal year 2023 balance is currently an unaudited estimate. The Finance Committee is continuing to discuss, and data on the major contributors specific to fiscal year 2023 will be prepared and presented to the committee at their next meeting on Oct. 10."

Barnett said he feels the council should wait until next year for the solar array, putting it into the city's capital reserve fund items.

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State Rep. Tom Kaczynski Jr., R-Rochester, said he also opposed the expenditure.

"I agree with Ray," he said. "This is just another supplemental expenditure because you have wads of money, $38 million to spend. I find the amount in this fund shocking. Is this the Rochester Bank and Trust, or maybe the Rochester Bank and No Trust? You want to use $7 million for a school in a swamp, another $3 million for vehicles and now this. This fund is not government money. This is the taxpayer's money. I say this is over taxation, and it's unacceptable. I think this money would be appreciated by the taxpayers, who need it for expenses."

Resident Susan Rice said $38 million is excessive.

"It is supposed to be a fund in case of emergencies," said Rice. "There are people living here who cannot afford an emergency fix for their home, can't afford an extra $500."

Barnett, the Rochester resident, said he does not believe the city is using the money wisely.

"You guys love to spend money," he said. "Why not take $5 million and use it to offset property taxes? Instead you want to spend $7millin for the school and now another half million here. Well God bless you."

Kaczynski said he believes people are brainwashed to think solar saves money, but he thinks it really goes to the grid, with rate payers paying the difference.

Deputy Finance Director Mark Sullvan said that is not true. He said the solar array will power about 25% of the community center's needs. He also said the expenditure was not included in the budget because the city was not ready to move forward at the time the budget was prepared.

Public Works Director Peter Nourse agreed. He said they had originally looked at doing the entire community center roof which would have taken care of 100% of the center's electricity needs, but learned the current roof would not support that.

"So we are just looking at doing the area over the gymnasium, which will give us about 25% of the electrical expenditures."

This article originally appeared on Fosters Daily Democrat: Rochester NH City Council criticized for $38 million fund balance