The Finance Commission reviewed trust funds, revolving funds and the town’s compensated‑absences balances at its Jan. 16 meeting, emphasizing accounting constraints and policy limits on principal spend-down.

Staff explained that many long‑standing trust funds restrict use to interest only; several small trusts hold nominal balances while three trusts exceed $100,000 — the town’s OPEB trust, cemetery perpetual‑care funds and a conservation fund. John Chantirulo was credited for prior work locating documentation on several trusts.

Revolving funds were discussed in conjunction with the extended‑day program. The commission noted a prior Town Meeting authorization to seed an extended‑day revolving account and that a $400,000 appropriation approved at Town Meeting had not yet been transferred; staff said the remaining $312,000 balance will be formalized and appropriated to the extended‑day account so parent‑paid tuition will continue to support that program.

Compensated absences: staff reported approximately $2,100,000 currently in the compensated‑absences account and a preliminary total liability near $4,000,000 (auditors will finalize the number). Commissioners discussed whether to add more free cash to the account during budget season to reduce future volatility and noted the fund functions like a revolving vehicle for payout of accrued leave when employees separate service.

Why it matters: trust‑fund restrictions, revolving‑fund authorizations and compensated‑absences liabilities affect long‑term fiscal flexibility and the town’s free‑cash planning. Commission members asked for clearer documentation and proposed a future consolidation or public accounting of small, undocumented trusts to determine whether some could be merged or reclassified.

Follow-up: staff will continue reconciling trust documentation, identify trusts with missing or unclear authorizing documents, and return with recommendations on reporting and possible consolidation of de minimis trusts.

No formal votes were taken on trust changes at the meeting.