Article 21. Appropriation to General Stabilization Fund

ARTICLE 21. To determine whether the Town will transfer from available funds $750,000 to the General Stabilization Fund; or take any other action relative thereto.

Article Explanation

The newly adopted Financial Reserve Policy indicates that the minimum funding target for the General Stabilization Fund is 4% of the budget, or $5,950,000. The current balance in the fund is $1,102,855. The Financial Policy Working Group has discussed the total funds availability in reference to the policy and a plan to meet the target. The recommendation of the Group is to transfer $750,000 and work toward a 10-year funding plan. This article is one step forward in achieving a healthy reserve balance for future needs and is highly advantageous in maintaining the Town’s AAA bond rating.

Article Motion

Ms. Wasoff moves that the Town vote to transfer $750,000 from Free Cash to the General Stabilization Fund.