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Select Board debates redistributing free cash to rebuild reserves and fund capital projects
Summary
Board members disputed a proposal to change how Templeton allocates certified free cash — with some urging larger transfers to capital and stabilization funds to support roads and equipment, while others warned it could constrain current operating needs; discussion was tabled for further work.
Members of the Town of Templeton Select Board spent substantial time on Dec. 8 debating revisions to the town’s Free Cash Policy and how certified free cash should be allocated among working capital, capital stabilization, general stabilization, OPEB and reserve funds.
Chair Bennett (Select Board) argued that the town should shift a larger share of certified free cash into capital and infrastructure stabilization accounts to rebuild reserves and fund long‑deferred maintenance such as road drainage and bridge repairs. Bennett said relying heavily on free cash to balance annual operating budgets reduces investment income and weakens the town’s bond profile, and advocated restoring a higher share to general stabilization and capital funds.
Other board members and the town administrator cautioned that reducing the current working‑capital allocation too steeply could leave departments unable to meet near‑term operational needs and that the town lacks a complete capital inventory and prioritized capital improvement plan. Administrator James Ryan and members recommended further analysis and planning; multiple members said the proposal required more modeling of both short‑term and long‑term consequences.
No vote was taken; members agreed to continue the conversation at an upcoming meeting with additional supporting numbers and proposals. The board asked members to submit suggested percentage breakdowns to the town administrator ahead of the next agenda.
