Selectmen adopt special-capital stabilization policy for $2 million fund approved at town meeting
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Summary
The board adopted a policy governing a $2 million special capital stabilization fund approved at recent town meeting; selectmen said the policy, drafted by the CFO, sets permissible uses and recommended bringing future reserve funding items to spring town meeting for prioritization.
The Norwood Board of Selectmen voted Dec. 2 to adopt a draft policy governing a special capital stabilization fund established by the recent town meeting using $2 million of free cash.
Selectmen said the policy — prepared by the town CFO and reviewed with the finance commission — defines allowable uses for the fund consistent with state law (chapter 40, §55B) and provides targets and guidance for funding and expenditures. Selectman Donnelley and others recommended that any expenditures from the fund be brought forward at the spring town meeting so the community and elected bodies can consider stabilization funding alongside other reserve and operating needs.
Board members acknowledged the policy is intended to be sufficiently tight for bonding agents and credit‑rating considerations while preserving flexibility for the town to use the reserve on future capital priorities. Speakers noted the town recently created a pension reserve and other obligations that should be weighed with stabilization decisions.
The board approved the policy by unanimous vote and asked staff to continue coordination with the finance commission, the CFO and the school committee on timing and priorities for potential expenditures from the fund.