Town officials correct free cash miscalculation revealing $403952 available for budget

During the recent Select Board meeting in Hubbardston, Massachusetts, significant discussions centered around the town's financial status, particularly concerning the free cash balance. The meeting highlighted a critical adjustment in the town's free cash figure, which was initially reported as $549,563. However, after a thorough review, it was revealed that the actual amount available for the upcoming fiscal year is $403,952. This discrepancy arose from a misrecording of $145,611 that had been used to balance last year's budget.

The town's financial officer emphasized the importance of maintaining a healthy free cash reserve, noting that the amount has been declining over the past four years. This trend raises concerns about the town's financial sustainability, as reliance on free cash for operational expenses is not advisable. The officer pointed out that many municipalities in Massachusetts face similar challenges, indicating a broader issue within local government finance.

The discussion also touched on the implications of free cash on the town's bond rating. Maintaining a certain level of free cash is crucial for securing favorable borrowing rates, which can significantly impact the town's financial health. The board acknowledged the need for conservative revenue projections to avoid future shortfalls.

Looking ahead, the financial officer plans to present a finalized proposal for capital items and the budget at the next meeting. This proposal will likely involve reevaluating some capital expenditures, including the purchase of a new fire department pickup truck and breathing apparatus, as the town seeks to balance its budget while ensuring essential services are maintained.

In conclusion, the meeting underscored the importance of accurate financial reporting and prudent fiscal management in Hubbardston. As the town navigates its financial landscape, the discussions reflect a commitment to transparency and responsible governance, ensuring that the community's needs are met without compromising future stability.