Randolph Reaches Significant Financial Goal
The Randolph Town Council approved two separate appropriations proposed by Town Manager David Murphy to transfer a total of $1.5 million into the Town’s Stabilization Reserve Account recently. The appropriations help the Town achieve its long-standing goal of having its Stabilization Account balance be at least 6% of its annual operating budget.
The transfers were made possible by the Town having more than $1.6 million in Free Cash certified by the State’s Department of Revenue last year. Free Cash is better defined as budget surplus created by limiting expenses and generating higher revenues than projected.
“Having more money in reserves may seem boring but it will save the taxpayers hundreds of thousands of dollars in the long run,” said Town Manager David Murphy. “We will likely see our fifth bond rating increase in six years as a result of this action which provides us lower interest rates on our long-term debt. Lower interest rates result in smaller debt payments and those savings are diverted to important uses like education and public safety. This may seem like a financial issue but it is truly a big help in the continued improvement of services in Randolph.”
The Town established a series of Financial Policies in 2008 dealing with Reserves and Stabilization, Capital Planning, Debt Management, and Operational Budgets. The 6% Stabilization goal has been chipped away at over the years before the recent substantial infusion of funds were placed in reserve.
The $1.5 million transfer brings the account balance to just over $5.1 million. In addition, the Town has set aside $500,000 in reserves for the construction of a new water treatment plan and Murphy has pledged further savings for this important capital investment.
Add Murphy, ‘It is my hope to provide the Town Council with an additional $1.5 million from the water and sewer enterprise accounts to put toward the new water treatment plant. By planning prudently, we can set aside enough monies to avoid a major impact to our ratepayers and take on less debt for the project.”
Randolph achieved this goal in 2016-2017 while simultaneously making substantial investments in constructing a new fire station, undertaking major renovations to its police station and public library, and beginning the construction of a brand-new municipal community center.