Barnet Selectboard Approves $2.5M Flood Recovery Credit Line

Key Points

• Barnet’s Selectboard authorised Treasurer Benjamin Heisholt to prepare documents for a $2.5 million line of credit with Passumpsic Savings Bank on 26 January to refinance flood recovery costs from the July 2024 disaster.
• The financing aims to manage the town’s cash flow while awaiting Federal Emergency Management Agency (FEMA) reimbursements for flood-related expenses.
• The board approved the 2026 General Fund budget after reviewing and adjusting various line items, with Board member Benjamin Adams moving approval, seconded by Dylan Ford, and passed by voice vote.
• Heisholt reported that several FEMA projects have advanced to “obligated” status, indicating reimbursement funding should arrive soon; this update occurred during Highway Department discussions, though Road Foreman Mark Chase was absent.
• The board voted to sell a town-owned property on Anderson Street to resident Michael Gibson for $5,000.
• The Anderson Street property sale requires public notice and is subject to petition by voters objecting to the conveyance; Gibson attended the meeting to discuss his proposal.

Barnet (North London News) February 3, 2026 – to refinance costs from the devastating July 2024 floods. This move addresses ongoing cash flow challenges as the town awaits Federal Emergency Management Agency (FEMA) reimbursements. In the same meeting, the board approved the 2026 General Fund budget and greenlit the sale of a town-owned property on Anderson Street.

The decision on the line of credit underscores Barnet’s proactive approach to flood recovery amid delayed federal aid. As detailed in the original coverage by Northstar Monthly, the financing will bridge immediate financial gaps caused by the disaster’s extensive damage. Board members emphasised the necessity of this step to sustain town operations without further strain.​

What Did the Selectboard Authorise for Flood Recovery?

The core authorisation centred on Treasurer Benjamin Heisholt’s role in advancing the $2.5 million line of credit. According to the meeting minutes reported by Northstar Monthly, the Selectboard on 26 January directed Heisholt to prepare all necessary documents for Passumpsic Savings Bank. This credit line specifically targets refinancing expenses tied to the July 2024 floods, which inflicted significant infrastructure damage across Barnet.

Heisholt’s involvement highlights his pivotal position in the town’s fiscal strategy. The board’s unanimous support reflects confidence in this mechanism to stabilise finances. No dissenting votes were recorded, signalling broad consensus on the urgency.

This financing does not represent new borrowing but a restructuring to optimise cash flow. Town officials noted that FEMA reimbursements remain pending, making interim solutions essential. The July 2024 event’s scale necessitated such measures, with recovery efforts spanning multiple departments.

Why Is the Line of Credit Necessary for Cash Flow?

Barnet faces persistent cash flow pressures due to upfront flood recovery outlays. The $2.5 million line of credit serves as a temporary lifeline while FEMA processes reimbursements. As per Northstar Monthly’s account, this approach allows the town to cover ongoing expenses without depleting reserves.

FEMA’s reimbursement timeline often lags behind local needs, a common challenge in disaster recovery. Heisholt’s report during the meeting reinforced this, noting several projects reaching “obligated” status. “Obligated” status means federal funding approval, with payments expected imminently, though exact dates remain fluid.

The bank’s selection, Passumpsic Savings Bank, aligns with local financial partnerships. No alternative lenders were discussed in the session. This decision prioritises liquidity, enabling Barnet to maintain services like road repairs and public safety without interruption.

Highway Department matters dominated related discussions, despite Road Foreman Mark Chase’s absence. Heisholt filled the gap by updating on FEMA progress, linking flood recovery directly to departmental budgets. The board’s focus remained on practical fiscal tools rather than long-term policy shifts.

How Was the 2026 General Fund Budget Approved?

The Selectboard’s approval of the 2026 General Fund budget followed detailed line-item reviews. Board member Benjamin Adams proposed the motion to approve the amended version, with Dylan Ford seconding it. A voice vote carried the measure unanimously, as reported in Northstar Monthly.

Adjustments addressed various budgetary pressures, including flood-related overruns. The process involved scrutinising expenditures to ensure fiscal prudence ahead of the new year. This approval sets Barnet’s spending framework from 1 July 2026.

No specific figures for the total budget were disclosed in the coverage, but amendments suggest targeted trims or reallocations. Adams’ leadership in moving the motion underscores his role in budgetary oversight. Ford’s support indicates cross-board alignment on priorities.

The timing, post-flood recovery talks, ties the budget to resilience planning. Officials balanced immediate needs with future stability, avoiding deficits. Voter input occurs later via town meeting, maintaining democratic checks.

What Progress Did Heisholt Report on FEMA Projects?

Treasurer Benjamin Heisholt provided a key update on FEMA initiatives during Highway Department discussions. Several projects advanced to “obligated” status, a milestone signalling imminent reimbursement delivery. Northstar Monthly noted this as a positive development amid broader cash flow strains.

“Obligated” denotes federal commitment to fund specific recovery work, often following rigorous documentation. Heisholt’s report offered reassurance that aid is materialising, though Road Foreman Mark Chase’s no-show limited on-ground insights. The board absorbed the information without formal action.

This status shift covers multiple flood-impacted areas, from roads to public facilities. Exact projects weren’t itemised, but their advancement eases town finances. Heisholt’s candour reflects transparent governance.

Delays in FEMA processes are typical, yet Barnet’s progress stands out. The line of credit complements this, preventing shortfalls during the wait. Residents can anticipate smoother recovery as funds flow.

What Are the Details of the Anderson Street Property Sale?

The Selectboard authorised selling a town-owned Anderson Street property to resident Michael Gibson for $5,000. Gibson personally appeared to present his proposal, engaging directly with the board. Northstar Monthly covered this as a distinct agenda item.

The sale price reflects assessed value, though appraisals weren’t specified. Public notice is mandatory, opening a window for voter petitions objecting to the conveyance. This procedural safeguard protects community interests.

Gibson’s attendance allowed real-time dialogue, potentially swaying the vote. No opposition surfaced during the meeting. The property, surplus to town needs, aligns disposal with fiscal efficiency.

Post-notice, any petition could trigger a town-wide vote. This mechanism ensures accountability, common in Vermont municipal governance. Proceeds bolster general funds, indirectly aiding recovery.

Who Is Michael Gibson and What Did He Propose?

Michael Gibson, a Barnet resident, proposed purchasing the Anderson Street property for $5,000. His in-person presentation detailed the intent, though specifics like intended use remained undisclosed in reports. As per Northstar Monthly, the board responded favourably.

Gibson’s local ties likely factored into the approval. Direct engagement fostered trust, bypassing written submissions. The modest price suggests a non-commercial asset.

The board noted procedural requirements post-approval. Gibson’s proactive approach exemplifies resident involvement in town affairs. No conflicts of interest were raised.

What Safeguards Apply to the Property Sale?

Public notice precedes the conveyance, alerting residents to potential objections. Voter petitions can halt the sale, mandating a town meeting decision. Northstar Monthly emphasised this as a statutory protection.

Vermont law mandates such steps for municipal real estate disposals. The board complied fully, voting contingent on these processes. This upholds democratic oversight.

Should petitions arise, Gibson’s deal pauses. Absent objections, the transfer proceeds seamlessly. The $5,000 influx supports broader priorities like flood mitigation.

How Does This Fit Barnet’s Broader Recovery Strategy?

These actions form a cohesive recovery blueprint: financing for cash flow, budget approval for planning, FEMA updates for aid, and asset sales for revenue. The 26 January meeting integrated them efficiently.

Barnet’s Selectboard demonstrates steady leadership under Treasurer Heisholt. Flood scars from July 2024 linger, but milestones like obligated projects signal momentum. The line of credit with Passumpsic Savings Bank buys time wisely.

Board members Benjamin Adams and Dylan Ford contributed actively, from motions to seconds. Absences like Mark Chase’s were noted but didn’t derail progress. Michael Gibson’s participation highlights community synergy.

As February 2026 unfolds, Barnet eyes sustained resilience. Federal reimbursements, property proceeds, and prudent budgeting position the town strongly. Ongoing transparency via meetings fosters resident confidence.