By Melanie Petrucci, Contributing Writer
Northborough – Town Administrator John Coderre reported to the Board of Selectmen at their Sept. 25 meeting that the books have been closed on fiscal year (FY) 2017 and that Free Cash has been certified at $2,877,855, as of July 1, 2017.
Free Cash is essentially revenues that came in higher than forecasted and expenditures coming in lower than what was budgeted combined with whatever was left over from the previous year.
Coderre informed the board that he strives to have revenue come in 2 to 3 percent higher than forecasted and expenditures to come in 2 to 3 percent lower than budgeted.
Coderre reminded the board that $732,000 was already in the account from the previous year. Accounts have been closed out, e.g. Avalon, and frugal department heads have been able to turn back unused funds.
Coderre outlined the Preliminary FY2019 Free Cash Plan which will fund the FY2019 Appropriated (Emergency) Reserve with $175,000; the FY2019 Operating Budget with $500,000; the FY2019 Stabilization Fund with $200,000; and FY2019 Capital Projects with $1,502,855. Remaining available Free Cash will stand at $500,000.
This preliminary plan is consistent with recent past years. The Financial Planning Committee will meet and go through capital projects. The plan is subject to Town Meeting’s approval.
Selectman Leslie Rutan inquired if Coderre was concerned with the downward trend displayed on the Certified Free Cash Chart. Coderre replied that he was not and he explained that it was anticipated and that they are getting back to more historic levels. Free Cash was artificially high due to its absorbing large project mitigation returns and other onetime influxes. Budgets and revenues are getting tighter.