Pepperell Selectmen Call Emergency Town Meeting to Fix Sewer Fund Accounting Error

PEPPERELL — December 5, 2011 — Pepperell selectmen called an emergency special town meeting for December 20 to fix a sewer enterprise fund budget error before a holiday blackout period closes the window for action. The board voted unanimously at an 8:03 a.m. session to authorize the meeting, contingent on a Department of Revenue determination that a formal vote is required. The problem arose after bond counsel ruled within the past month that roughly $172,000 in unexpended borrowing proceeds from a prior sewer project cannot be applied to that project's existing debt — contradicting guidance the sewer department said it had received from the town's accounting office during a period when the town lacked a full-time accountant. The fix would raise the draw on the Betterment account from $100,000 to $272,000, with no general-fund money involved. Town Administrator John Moak said a DOR representative told staff she had "no problem" with the Betterment draw, but the town's auditor believes DOR will insist on amending the specific motion language approved at the spring town meeting. Selectmen said failure to certify the tax rate before year-end would delay the first tax collection from February to May, compounding municipal cash-flow problems.