RUTLAND CENTER — The town's Highway Superintendent, Claude F. Phelps, could be responsible for paying for budget overages incurred without Town Council approval.

Rutland Town Attorney Timothy A. Farley said in a letter, provided to the Times by a council member, that a precedent for personal liability is indicated in a 1900 case, Lyth v. the town of Evans.

Town Supervisor Gary D. Eddy asked Mr. Farley for his legal opinion on the issue after finding out in July that Mr. Phelps had exceeded the $110,000 budget for paving Cramer Road and Burnup Road. The amount was agreed upon at the council's June 12 meeting, and Mr. Farley wrote that since expenditures exceeded that amount, the agreement could be null and void.

If the agreement is upheld despite the overages and the Town Council decides to pursue reimbursement, Mr. Phelps could be required to pay $12,085.17. The 2008 Highway Department budget is $713,400, cut from $779,900 in 2007.

Mr. Phelps told the council that his budget overages could be covered by an additional $17,299 in CHIPs (Consolidated Local Street and Highway Improvement Program) funds from the state. Mr. Eddy pointed out at the council meeting Aug. 14 that those funds haven't been designated to any account.

Some council members wanted to use the funds for gasoline consumed for the paving projects. According to Councilwoman Colleen J. Woolley, the highway account doesn't have enough revenue to cover the agreed-upon $110,000 for permanent improvements, so the CHIPs funds could make up for other line items that haven't produced as much revenue as expected.

Mr. Eddy said at the meeting that he didn't see a problem with putting the CHIPs funds toward the overages, but Ms. Woolley and Councilman Michael C. Gillette disagreed because the superintendent doesn't have the authority to spend more money than allotted in the agreement.

Mr. Farley also wrote that according to Section 284 of state Highway Law, the superintendent cannot spend money in excess of the amount "raised for highway for a particular year."

The board decided to table the request to apply CHIPs money to the paving projects, and to hold payments to King's Quarry, Rodman, and Suit-Kote Corp. for materials associated with the project.

The council will discuss the issue at its next meeting, Sept. 11.