Westborough finance panel backs $450,000 free‑cash offset after heated debate on tax impact

The Westborough Advisory Finance Committee voted to recommend that the town use $450,000 in certified free cash to offset the FY25 tax levy after a lengthy discussion about fiscal risk and alternatives.

Committee members and town finance staff spent more than an hour weighing the trade‑offs between lowering the immediate tax bill and preserving reserves that bond agencies review. Christy, a finance staff member presenting free‑cash slides, explained the town’s fiscal management goals and cautioned that drawing down reserves beyond policy targets could put the town’s bond rating at risk. "It is a structural deficit," she said, describing the repeated use of one‑time funds to cover recurring obligations.

Supporters of a larger offset argued that the town’s unexpectedly high free‑cash balance and strong capital plan left room to return more to taxpayers without immediate harm. Opponents said that reducing reserves could force painful choices later — higher borrowing costs or a need to cut services — and urged instead that the town reduce or delay capital projects to lower the tax impact over time.

After debate, the committee voted in favor of leaving the advisory motion for Article 8 at $450,000. Members who supported keeping the proposal at that level said it represented a balance between giving near‑term relief and maintaining prudent reserves; dissenting members said they would have preferred either larger offsets or much tighter scrutiny of proposed capital spending.

The committee’s recommendation will go to town meeting for a final vote. Town staff noted the free‑cash number is certified annually and that the official tax rate is set later in the year, after additional budget adjustments.