Reserves Replenished With $150,000 Transfer Amid Questions on AAA Bond Rating

Key Points

  • $150,000 transfer to the stabilization fund from free cash
  • Finance Director warns against depleting reserves due to bond rating concerns
  • Town currently holds $5.4 million in certified free cash

Voters approved Article 4, transferring $150,000 from free cash into the town’s stabilization fund to replenish reserves used in the previous year. The discussion centered on the importance of maintaining high reserve levels to protect Duxbury's AAA bond rating.

Resident Mike Thorp questioned if the fund, which currently exceeds $7 million, could be reduced to fund other expenditures while still maintaining the rating. Finance Director Mary MacKinnon cautioned against the idea, stating, The AAA rating is dependent upon Standard & Poor's opinion... I would be very concerned if we were to take additional funding out of the stabilization account today.

MacKinnon also clarified that the town’s certified free cash at the end of the last fiscal year stood at $5.4 million.

Motion: I move that the town appropriate the sum of $150,000 to the stabilization fund... transfer the sum of $150,000 from free cash.

Vote: Passed 160-11