Norwood adopts capital stabilization account policy after selectmen review
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Summary
Following town‑meeting funding of a $2,000,000 special stabilization account, the Board of Selectmen unanimously approved a draft policy prepared by the town CFO to govern the use of the capital stabilization fund and satisfy bond‑agent expectations.
The Norwood Board of Selectmen voted unanimously Dec. 2 to adopt a special capital stabilization account policy drafted by the town’s CFO, following a prior town‑meeting vote to fund the reserve with $2 million in free cash.
Chair and finance officials told the board a written policy is required by state law (Chapter 40, Section 55B was cited in the discussion) and would be reviewed by bonding agents. Selectman Donnelly and others recommended prudent parameters in the policy, including discussing the timing of proposed expenditures at the spring town meeting so that reserves and operating needs can be considered together.
The adopted policy provides structure for what projects may be funded, a target funding range for the reserve and a process for coordinating with the finance commission and the school committee. Selectmen said the policy is intended to be sufficiently specific for outside fiscal reviewers while retaining flexibility for municipal priorities.
Board members asked staff to coordinate reserve funding proposals with the spring town meeting cycle and to keep the pension reserve and other priorities in view when proposing transfers from the stabilization account.
The vote to adopt the policy was unanimous and completes a step the selectmen said is necessary to implement the special fund approved previously by voters at a town meeting.