After some discussion, Bow’s Board of Selectmen voted 3-1 to apply $300,000 worth of their unreserved fund balance toward the 2008 property tax rate.

According to Finance Administrator Bob Levan, the town saved about $400,423 from what was appropriated at Town Meeting.

“That comes from a combination of things, primarily, from warrant articles, where we were able to get work done for less than it cost,” said Town Manager Jim Pitts.

Levan delivered his financial report and suggestions for applying the fund balance to the tax rate at the Board of Selectmen’s meeting on Wednesday, Sept. 25.

“I think this is a great report, and one would hope it would set a standard in town for the School Board and other boards in terms of transparency for seeing where dollars are spent and savings are made,” said Selectman Thomas Keane. “As a citizen, I’ll be looking to the School Board to see if they have that kind of offset this year.”

Levan suggested applying $362,256 toward the tax rate for 2008, which will be set in the next several weeks. Levan used that amount of fund balance in his calculations to project Bow’s estimated 2008 tax rate at $22.60 per $1,000 assessed property value.

In applying only $300,000, for tax relief, that estimated rate will change before the rate is set.

“The $362,256 is an estimate. By the time we get around to actually setting the tax rate, some of the numbers will change,” said Pitts, depending on how the reduced fund balance application and the funding the town and school get from the federal government affects the numbers. “When they are made final, that will cause a change.”

The state and county also have yet to solidify their numbers for tax calculations, namely the rooms and meals tax, Pitts said, which will also change the tax rate.

Pitts suggested selectmen approve just $300,000 to allow a buffer in case the town and school do not get all the funding they anticipate.

“When we go to Town Meeting, any additional fund balance can be used to offset one or more of the warrant articles,” said Pitts.

Bow is the first town in the state to submit its paperwork to the Department of Revenue Administration, which will set the rate as early as possible, Levan said.

“The town’s financial condition as of June 30, 2008, is excellent,” said Levan.

The town’s long-term debt is well below the maximum recommended by credit rating agencies, he said, and there are significant amounts of money for equipment and infrastructure improvements in capital reserve funds, amounting to about $3.92 million.

“There is sufficient funding to take care of facilities, equipment and infrastructure without really spiking debt or property taxes,” said Selectmen Chairman Leon Kennison

Keane was the no-vote in the motion to approve applying the $300,000 toward the tax rate, saying he’d like to see most or all of the $400,423 in surplus at the end of the fiscal year go to offset the 2008 tax rate.

“I just think we have a lot of money in capital reserve. If we’re going to give them back what we saved them, this is the year to do it,” said Keane.