The Londonderry Town Council spent part of its Jan. 21 meeting discussing how to handle potential legal expenses tied to an investigation involving the Leach Library – a cost that Town Manager Shaun Mulholland warned could strain the municipal budget if not addressed proactively.
Mulholland told the Council he had been in email communication with Library Trustees Chair Liz Thomas, who informed him that the Library had received a complaint requiring a formal investigation. The Town Attorney, he said, advised that the matter must be investigated, but insurance will not cover the cost.
“The Library has to have an investigation that needs to occur,” Mulholland said. “It’s unclear who’s going to pay for that.”
Because the expense cannot be submitted to the Town’s insurance carrier, Mulholland explained that the cost will need to be absorbed either by the Library or by the Town. If the Town pays, he said, the money will have to come from within the existing operating budget.
“If it comes from the Town side of the budget, then we have to make budget reductions elsewhere,” he said.
Mulholland noted that under the Town’s draft financial policy – which has not yet been finalized or voted on – he is required to notify the Council when unexpected legal expenses arise. “So I’m giving you a heads up in accordance with the new policy,” he said.
Council Vice Chair Shawn Faber suggested that Mulholland prepare a memo clarifying what legal services are authorized and what falls outside the scope of prior approvals. He said the Council wants to avoid a situation where legal bills accumulate without explicit authorization.
Councilor Dan Bouchard argued that the Library should carry its own legal line within its budget. Mulholland responded that the challenge is the unpredictability of the cost.
“The only problem with that is what number would you put in there,” he said, noting that investigations can vary widely in scope and expense.
Mulholland emphasized that choosing not to investigate would be a mistake, warning that failing to address the issue could expose the Town and the Library to greater financial and legal risk.
“The fear is that they decide not to investigate it,” he said. “And if they don’t, it will cost them a significant amount more money.”
Instead, Mulholland said he prefers to work collaboratively with the Library Trustees to manage the process and keep costs down. “They need to address these issues,” he said.
He also acknowledged that the Town’s legal budget will exceed its current allocation regardless of how the Library matter is handled. “Either way, we are going to be over the legal line in the budget,” he said, adding that cuts will be required elsewhere to maintain a balanced budget.
Thomas told the Council that when the Library received the complaint, they immediately brought it to the Town Attorney, who advised that an investigation was necessary. She said the investigator being considered was recommended through the Town and that the Trustees are committed to minimizing expenses.
“We’re doing everything we can to keep the cost down,” Thomas said.
She also noted that the Library is expected to come in under budget for the fiscal year, which will help offset some of the legal costs. A formal quote for the investigation is expected soon.
After discussion, the Town Council agreed to have Mulholland work directly with the Library Trustees as the investigation proceeds, with the goal of managing the process efficiently and transparently.