Free Cash Management Strategy

This outlines the approach I use in recommending free cash appropriations in the budget process. The use of free cash, unlike OPEB and Stablization, is more discretionary. While the preferred action in acting to strengthen our position for an improved bond rating is to use as little free cash as possible, this outlines a responsible framework for considering annual recommendations while demonstrating that the use is not directly intended to draw down reserves to fund current operations. Ultimately, because this is discretionary, direction by other Boards and Committees, Town Meeting decisions or unique economic conditions may create circumstances where greater use of free cash may be required. For those reasons, stating this as a management strategy preserves that discretion.

3 Year Free Cash History:

FY19 Certified Free Cash to be used in FY20

FY18 Certified Free Cash to be used in FY19

FY17 Certified Free Cash to be used in FY18