Trustees Meeting 2/9/26

Web version

SWANTON VILLAGE BOARD OF TRUSTEES

SWANTON VILLAGE MUNICIPAL COMPLEX

120 FIRST STREET

SWANTON, VT 05488

PUBLIC HEARING &

REGULAR MEETING

Monday, February 9, 2026

6:00 P.M.

PRESENT: David Winchester, Village President; Adam Paxman, Trustee; Neal Speer, Trustee; Suzie Kelleher, Trustee; William “Bill” Sheets, Village Manager; Lynn Paradis, Assistant Village Manager; Dianne Day, Village Clerk; Brian Savage, Town Administrator; Nick Brosseau, Selectman; Steve Bourgeois, Selectman; Earl Fournier, Selectman; Joel Clark, Selectman & Chair; and Damon Broderick. Via Teams: n/a.

1. Call to Order:

Joel Clark, Town Chair and Selectman, called the Public Hearing on Local Option Tax to order at 6:03 p.m.

2. Discussion on Local Option Tax:

Brian Savage, Town Administrator, explained that a local option tax provides a way for municipalities in Vermont to raise revenue by assessing a 1% tax in addition to certain state tax types. He showed the three different types of LOT:

• 1% local option tax on sales, in addition to the State’s 6% sales tax rate
• 1% local option tax on meals and alcoholic beverages, in addition to the State’s 9% meals tax and 10% alcoholic beverage tax rates. If adopted, both meals and alcoholic beverages must be subject to LOT. A municipality wishing to adopt a LOT on meals must also adopt the LOT on alcoholic beverages, and vice versa
• 1% local option tax on rooms in addition to the State’s 9% rooms tax rate

For example, a LOT on sales applies only to sales of items that are subject to the Vermont sales tax. Note: LOT does not apply to the sale or rental of motor vehicles, as they are subject to Purchase and Use Tax.

Brian went on to show that Municipal officials should consult residents and business owners to ascertain the benefits and consequences of adopting a LOT. He said in order to adopt a Local Option Tax:

1. The Selectboard must recommend the local option tax by majority vote.
2. At either an annual meeting or a special meeting called for this purpose, the majority of the municipality’s voters who attend the meeting and vote must approve the local option tax.
3. The municipality must give the Department at least 90 days' notice before the quarter start-date of a newly effective local option tax.

Brian then talked about the administration of a local option tax. He said when a municipality votes to implement a LOT, all businesses authorized to collect taxes in Vermont are required to collect from customers and pay to the Vermont Department of Taxes all LOT for applicable sales that occur in or are delivered to the participating municipality. As part of the review process, the Department verifies that businesses have collected and paid LOT correctly.

After retaining the fee, the Department sends 75% of the LOT collected to the municipality on a quarterly basis. The remaining 25% is sent to the PILOT Fund. Money in the PILOT Fund is used to compensate municipalities for State property located in the municipality that is exempt from property taxes. Brian then discussed that the Local Option Tax is a destination-based tax, meaning it’s based on the location where the purchaser takes possession. Brian gave some examples of this showing if a Swanton resident ordered something from Highgate, but it was delivered to them in Swanton, they would be charged the LOT.

Brian went on to show what happens after a Municipality elects to adopt a Local Option Tax. As noted above, the municipality must give the Department at least 90 days’ notice before the quarter start-date of a newly effective LOT. Upon approval by the Department, businesses shall begin collecting the LOT on the first day of the quarter that begins after the required 90-day notice period has elapsed. During this period, the Department sends a correspondence to every business taxpayer in the municipality with further instructions, including:

• How to determine when to charge a LOT
• Tools to help determine where LOT applies
• Electronic filing requirements

The Department also provides similar information and guidance to every business taxpayer in towns adjacent to the LOT municipality.

Brian then showed some data on sales and meals from 2024 and 2025 in Swanton. He said if there was a LOT already in place the Town of Swanton would have received $255,559 and the Village would have received $76,336 in 2024. Those numbers for 2025 were Town - $252,960 and Village - $75,559. Brian said the two boards have decided to use the same split they use for the Fire Department budget and that is by using the Grand List. He said the Town would receive approximately 77% and the Village would get 23% of LOT collected. The two boards also agreed that these funds would be used for capital projects and capital repairs. They said if they know they have a culvert replacement job that’s needed they could save this LOT money and use it for that specific job. Both boards also agreed that there would be plenty of projects and repairs and feel this is an excellent way to raise additional funds without raising taxes.

Brian then showed the article that voters will decide on March 3 from 7 a.m. to 7 p.m.: Article 11: Shall the Town of Swanton assess a one percent (1%) tax on sales, room, meals and alcoholic beverages pursuant to 24 V.S.A. 138(b), to be used for capital projects and capital repairs?

3. Public Comment:

Steve Bourgeois asked if they could borrow money for one of these projects, then use the LOT funds to pay it back. Brian said yes that could be done. Damon Broderick asked if the Power Point Presentation would be uploaded to the Town/Village website. Brian said yes it would be.

4. Adjourn Public Hearing:

Steve Bourgeois made a motion to adjourn the Local Option Tax Public Hearing at 6:32 p.m. Earl Fournier seconded the motion. Motion carried.

5. Call Regular Board Meeting to Order:

David Winchester, Village President, called the Regular Board of Trustees meeting to order at 6:35 p.m.

6. Pledge of Allegiance:

Everyone in attendance stood for the Pledge of Allegiance.

7. Agenda Review:

None.

8. Public Comment:

None.

9. Approve and Accept Minutes from Monday, January 26, 2026 meeting as presented:

Adam Paxman made the motion to approve the minutes from the Monday, January 26, 2026 meeting as presented. Neal Speer seconded the motion. Motion carried.

10. Approve and Accept Village Warrants through Thursday, February 5, 2026:

Suzie Kelleher made the motion to approve and accept the Village Warrants through
Thursday, February 5, 2026 as presented. Adam Paxman seconded the motion. Discussion: None. Motion carried.

11. Approve 2026 Water Budget as Presented:

Adam Paxman made the motion to approve the 2026 water budget as presented. Neal Speer seconded the motion. Discussion: Lynn Paradis, Assistant Village Manager, stated that she added in the Gallup Court and Dewey Street water line replacement jobs to the budget. Motion carried.

12. Discussion on Highgate Water Line Rates for Habitat for Aviation and EAA at Highgate Airport:

Discussion will be tabled until further notice as Habitat for Aviation and EAA didn’t show up.

13. Approve 2026 Signors for the Vermont Bond Bank Bonds:

Suzie Kelleher made the motion to authorize Village President David Winchester to certify that William Sheets, Lynn Paradis and Dianne Day are Vermont Bond Bank signors for 2026. Adam Paxman seconded. Motion carried.

14. Orman E. Croft Hydroelectric Generating Facility Dam Repair Update:

The Request for Qualification (RFQ) for the alternatives analysis assessment was issued on Friday January 9th. We had several interested engineering firms who specialize in Hydro who came and completed site visits. The deadline for their submissions is on February 23^rd, and we will use an internal committee to select the top three qualifying firms by March 2^nd. Those three firms will be asked to extend beyond concept and include approximate costs.

Those concepts and cost estimates will be part of a package to present to the Trustees for consideration. On April 13^th, our Representative will be here to present to the Trustees.

On a parallel track we are in the process of evaluating the prioritization of our powerhouse, utilizing the grant we secured. Working with Velergy (Celeste Fay) we will also provide proposed solutions for powerhouse upgrades.

HYDRO Operations: We are dealing with several concurrent issues.

Unit 1 remains a workhorse and operates to standard.

Unit 2 is down due to a vibration at about the 60 percent mark. As part of the assessment, we were asked to start the unit, which was a reasonable request. In doing so the process went smoothly until we noticed that Unit 2 Exciter was smoking. We had to shut it down and evaluate the exciter, which was a known vulnerability (except the smoking part) for units 1 – 4 based upon the age of the exciters.

Unit 3 is having issues after the discovery of a cracked sheath on the shaft. This needs to be replaced, along with the wooden blocks which need to be replaced.

Unit 4: The new high lift motor has been installed; we are awaiting the arrival of new filters and oil and  once that work has been completed the unit should be ready to go. The concern about the amount of water required to fully maximize this unit remains.

Unit 5 is our unit at the dam site and had not been operating for several months. This unit is now operating 24/7 at approximately 40 percent. The unit is sensitive to the restricted flow and shuts off when you attempt to maximize power.

Root cause: Based upon the current state of our hydro the main issue is the lack of water entering the penstock and this will be a focus of interim solutions examined by all parties involved.

15. Village Manager Update:

Electric: The Vermont Public Power Supply Authority (VPPSA) has completed and submitted our latest Integrated Resource Plan (IRP) to the Vermont Public Utility Commission (PUC). This Plan is required every three years, and part of that requirement is notification to our customers that we have submitted the IRP. We are including mailers in electric bills and posting notices on our website and Facebook page.

Public Works: The team continues to be active with winter weather, out over the weekend with the latest small storm. They continue to complete water meter pit installation when time and conditions allow with the goal of completing all of these by this spring.

Grants: Heidi was able to secure a grant for temporary lighting. We were the sole recipient of a grant from the State of Vermont for $10,000 for the 2025 Municipal Lighting Award Program. This will supplement our current temporary tower to provide the lighting we need to operate during low light or dark conditions more safely for water and sewer breaks. The actual costs will be a few thousand dollars above $10,000 and I recommend that we utilize a small amount of what was the historical ARPA funding. More details to follow in March when we have exact amounts following bid requests.

Water: The team is working with the manufacturer of the new chemical pumps to finalize a solution where they work properly with the control system. The team continues to complete routine winter maintenance to include painting the interior of the facility.

Wastewater: We are seeing continued progress on the final, major part of the project, which is the filter building. Work has been slowed by the recent cold snap, but the siding work continues and work inside the building is progressing. We still anticipate a spring project completion, and we will hold an early summer open house.

16. Any Other Necessary Business:

Suzie Kelleher said she has been working with Nicole Draper at the Recreation Department on a 5-year plan focusing on the Village Green, Marble Mill and the Swanton Beach. She said once they have more information put together, she would let the board know. Suzie said they are looking for grants to fix the Goddess of Liberty statue and the bandstand in the Village Green. She also said they are doing a fundraising for the Swanton Beautification Committee selling sourdough bread and rolls. Suzie said order forms can be picked up at Bees on Broadway and they plan on having pickups available right before Easter.

17. Proposed Executive Session if Necessary:

None.

18. Adjournment:

Adam Paxman made the motion to adjourn the Regular Meeting of the Board of Trustees at 7:04 p.m. Suzie Kelleher seconded the motion. There being no further business at hand, David Winchester, Village President, adjourned the meeting at 7:04 p.m. Motion carried.

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David Winchester, Village President                  Date

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Dianne Day, Village Clerk                                 Date