Article 43: Distribute to General Fund the Balance of Fund 21, Rescinded in 2007

Shall the Town of Hampton vote to distribute to the general fund all remaining funds that are left in Fund 21 that was created through Article 41 of 1996 Annual Town Meeting for the improvement of Town owned infrastructure located in the Hampton Beach Precinct from 20% of the parking fees collected from Town parking lots by the Town under such authority was rescinded by Article 45 of the 2007 Annual Town Meeting and then to close such account, the remaining funds total $41,616.19 plus any additional interest earned thereon? (Majority vote required)

What it means: Fund 21 was established in 1996 to set aside 20% of the revenue from the beach parking meters to offset infrastructure costs within the Hampton Village District.  In 2007, a successful petitioned Warrant Article rescinded this provision, and put forward a corollary 2007 Article that diverted those same funds to the Parks and Rec Fund, used every year to update the playgrounds, etc.  (See 2019 Article 34.)

Meanwhile, Fund 21, which was rescinded in 2007 still had funds left in it, but the mechanism for receiving or disbursing money had been removed by the Warrant Article, which was passed by the voters.  The remaining funds were thus “stranded”.  Approval of this Article would take the money out of the fund and put it into the General Fund, and remove the account.

Those in favor say: Auditors have questioned why Fund 21 is still on the books, despite the fact that it has no mechanism for additions or subtractions. A “yes” vote allows the Town to take care of this housekeeping matter.  Any additional initiatives regarding the parking lot revenue (See “Those against say” below) could be pursued whether Fund 21 is still dormant on the books or has been resolved.

Those against say: A “no” vote gives the town the option to re-establish (via another Warrant Article) the fund for the purpose it was originally established – beach infrastructure and improvements.

Fiscal impact: No tax impact.