Following a vote of the Board of Selectmen Monday night, the town of Salem has joined several other state municipalities in filing a formal complaint against the Local Government Center for "discriminatory business practices."
In a press release Monday, Durham Town Administrator Todd Selig said in their letter to the state Bureau of Securities that "the LGC’s proposed refund through the issuance of future insurance premium “holidays” to current LGC members will not include those municipalities and school districts that contributed to the creation of the surplus funds, but that have recently left the LGC and taken their insurance business elsewhere."
At Monday's meeting, Salem Town Manager Keith Hickey said he had conversations with Selig and Peterborough Town Administrator Pam Brenner regarding the complaint.
"They are in the same situation the town of Salem is in," Hickey said. "They asked if we would be willing to participate with them."
The board unanimously voted to authorize Hickey to join in the effort.
"The LGC indicated in October 2012 that the 'return' of Surplus would be in the form of a premium 'contribution holiday,'" Selig said in a statement Tuesday. "Until late in the day on Monday, December 10, 2012, it was the understanding of these communities that no actual funds were proposed to be returned. The LGC announced on December 10th, possibly as a result of Peterborough and Durham's filing with the NH Bureau of Securities Regulation, that member entities can now request a cash payment in writing."