Four years ago, in January 2021, members of Norwich’s Finance Committee resigned en masse, stating that their work felt “pointless” due to the Selectboard’s disinterest in their input. Since that time, the Selectboard has not addressed the underlying issues that prompted this exodus. Nor has the Town had a Finance Committee since then, because residents were uninterested in serving
That changed recently when three well-qualified residents volunteered to serve. Their appointment at the March 26 Selectboard meeting established a quorum, giving the Finance Committee life. However, just two weeks later on April 9, the Selectboard voted to replace the Committee’s “charge,” significantly limiting the body’s scope.
Under the new directive, the Finance Committee may only act when specifically invited or “as requested” by the Selectboard. That is a substantial change from its previous independent advisory role, which included a charge to advise voters about the Town budget in advance of Town Meeting.
The basis for this change was a memorandum by Board member Marcia Calloway (“Memorandum”) that mischaracterized the Finance Committee’s existing role. The Memorandum quoted an unofficial staff summary of various Position Descriptions, as if it were the actual charge adopted by the Selectboard. See End Note, below. It ignored the detailed charge adopted by the Selectboard in June 2018 and published on the Town’s website.
During the April 9 meeting, both senior Selectboard members expressed uncertainty about the role of the Finance Committee. In addition, the Board showed little interest in scheduling a definitive meeting with the newly formed Finance Committee to discuss possible work. New Board member Matt Swett suggested the Finance Committee could investigate how other towns utilize similar committees. Though that proposal had the support of a majority of the Selectboard, no one made a motion to direct the Committee to undertake this task.
In times of rising property taxes and economic uncertainty, an independent voice becomes even more crucial for Norwich residents.
Losers: Good Governance and Voters
The losers are the voters and good governance. The prior official charge said the Finance Committee should “in advance of Town Meeting” provide “facts and analysis the Committee deems to be helpful and necessary for voters to evaluate the budget.” The change in the charge has now eliminated that service to voters.
Voters would undoubtedly appreciate an analysis by a public body that is not the same one proposing the budget. Without this independent voice, residents lose a valuable tool for making informed decisions. Good governance requires checks and balances.
Calloway Memorandum
Good governance is also affected because the Selectboard made its decision to alter the charge based on misstated information in the Memorandum authored by Calloway..
In brief, the Memorandum mistakenly quoted an unofficial staff summary as the actual charge binding on the Finance Committee. As a result the Board was informed that the Committee historically acted “as requested” when that was not accurate. The Memorandum did not quote the detailed charge adopted by the Selectboard in June 2018. That charge created an independent Finance Committee. See End Note, below. It also ignored the expired memorandum of understanding (“MOU”) adopted by both the Norwich Selectboard and School Board in October 2020. Without School Board approval , the authority of the Finance Committee only extends to the Town budget. See Selectboard minutes of June 13, 2018 (“The current proposal limits the FC to commenting only on the Town budget, not the school’s budget”).
When contacted about the missing documents on April 4, Selectboard member Calloway, a retired attorney, acknowledged that she was quoting from the “Norwich Position Descriptions,” copying Chair Mary Layton and Town Manager Brennan Duffy on her reply email. Despite this advance warning, member Calloway did not make any meaningful disclosure at the April 9 meeting to alert Board members or the public of the discrepancy. She merely made quick passing mention of the staff summary and the MOU. Chair Layton also said nothing, even though she served on the Selectboard when the Selectboard adopted the Finance Committee charge in 2018 and the MOU in 2020.
The timing of this action raises questions as the Selectboard alredy has a heavy schedule. The legal concerns expressed in the Memorandum seem manufactured, since they don’t apply to the detailed, official June 2018 Charge. Additionally, the replacement charge, adopted on April 9, creates a mess, placing the current Finance Committee in limbo. The replacement charge does not specify if the Committee has any members or their terms.
The Selectboard certainly has the authority to replace (or even revoke) the charge of the Finance Committee. However, doing so through a misleading process erodes confidence in our local government. The practical consequence is that Norwich now has less independent review on financial matters. Moreover, the Committee is an advisory body. The Selectboard is free to accept, reject or ignore its advice, as are voters.
A Path Forward
If I were on the Selectboard, I would propose a specific motion that the Selectboard:
a. Rescind the April 9 vote replacing the Finance Committee charge because the Board acted on incorrect information.
b. Request that the Finance Committee research how Hanover, NH and selected Vermont towns with town managers utilize a finance committee.
c. Request that the Finance Committee provide the Selectboard with a written report of its findings and recommendations by July 14, 2025.
With that information, the Selectboard could craft a charge that takes into account various stakeholders. These would including the Town Manager and voters.
It’s worth noting that there appears to be an outsized concern that the Committee would interfere with operations by questioning department heads without limit. Having in the past read many internal emails of the Finance Committee from 2020 and 2021, I do not recall any attempt to interview department heads. In any event, the issue seems resolvable.
One task the Finance Committee could immediately undertake is reviewing and proposing revisions to the Town’s outdated financial policies. The press of other business has delayed work on that project by the Selectboard. Additionally, the Committee could assist the Planning Commission in its review of the capital plan. Finally, the Finance Committee could explore what steps are necessary to participate in the Dresden Finance Committee.
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End Note
The Calloway Memorandum, at page 5 of the April 9, 2025 Selectboard meeting packet, states:
Existing Charge of the Finance Committee:
Advisory oversight responsibilities in the creation of annual budgets for the Town of Norwich, Marion Cross Elementary, and together with the Hanover Finance Committee, the Dresden School District.Provides research into financial matters as requested by the Norwich Town Selectboard and renders non-binding advisory recommendations for action or non-action by the Selectboard. See http://norwich.vt.us/wp-content/uploads/2018/10/Finance-Cmtee-Charge.pdf
According to member Calloway, the quoted language comes a three-page document describing 10 appointed positions in Town. It is referenced in the latest flyer advertising Open Positions.
The Finance Committee Charge of June 13, 2018 on the Town website provides in part:
The NFC has three primary tasks:
a. Provide independent advice to the Selectboard on the annual Town budget during the Selectboard’s process for reviewing the budget prior to voter approval;
b. Provide independent advice to the Selectboard from time to time on Financial Policies and their amendment; and
c. Review and offer insight to the Selectboard on quarterly financial statements provided by the Town Manager and the Treasurer’s Investment Reports.The NFC shall research annual budgets, policies, contracts, capital decisions and business practices that affect Norwich town and school finances. lt will render non-binding advisory recommendations to the Selectboard about costs, benefits, and financial options, based on economic factors and the overriding principles of accountability, frugality, and prioritization.
The Selectboard may ask the NFC to review and comment on other financial issues as it deems necessary and appropriate from time to time.
It is up to the voters to decide whether a proposed Town budget be adopted. Accordingly, the NFC should provide a statement to voters in advance of Town Meeting on the town budget,providing whatever facts and analysis the Committee deems to be helpful and necessary for voters to evaluate the budget.
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Thanks for reading! Contact me at norwichobserver[at]gmail.com.
Thank you for this information. I hope the Selectboard will consider your proposed motion. Basing a decision on misstated information by member Calloway should be publicly corrected.
The 3 Norwich residents who volunteered to be on a finance committee are uber-qualified….even though they didn’t actually have much information as to what their charge would be when they volunteered.
I think it is a red-herring for the Selectboard to say that the committee might take up too much time of department heads! The finance committee volunteers are professionals and I give them the benefit of the doubt that they could bring meaningful insight and advice about Norwich budgets, without being a burden to department heads.
Ultimately, voters and even the Selectboard, could benefit from more information, not less. Let these bright finance committee members help the Selectboard and the voters.
Well said.