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Council hears that unassigned reserves near $14.5M, about 65% of budget
Summary
Finance Director Steven Kaplan told the council the town’s unassigned general fund balance is about $14.5 million, or roughly 65% of the FY2025–26 operating budget, and defended holding a higher-than-average reserve for coastal emergency risks and cash-flow timing.
During questioning, Finance Director Steven Kaplan said the town’s unassigned general fund balance was ‘‘a little over almost 14,500,000’’ and that, by the end of FY2025 it is anticipated to equal about 65% of the FY25–26 operating budget.
Kaplan and councilmembers discussed why the town maintains reserves well above the 25% minimum policy: to respond quickly to emergencies such as storm damage and seawall repairs and to manage cash-flow timing before property-tax receipts are collected. Kaplan noted that a larger reserve can improve the town’s borrowing capacity and credibility with lenders.
Mayor Lythgoe and councilmembers pressed Kaplan on trade-offs between higher reserves and near-term spending; Kaplan said keeping a robust fund balance helps the town absorb unexpected large costs without immediate borrowing.
