Braintree Flush With Cash Heading into New Year

The Town Council Thursday night approved the transfer of $1 million into a capital reserve fund, set up to help pay future projects such as new building construction, renovations and large equipment.

The transfer, requested by Mayor Joseph Sullivan, is a sign that Braintree has reached its goal of stocking up between five and 10 percent of its annual budget (now approximately $116 million) in reserve. 

Now that the town has hit the upper mark of 10 percent recommended by credit counselors – it has nearly $15 million just in free cash – Braintree will begin setting aside more money for capitals such as increasing space in the school system, Chief of Staff and Operations Peter Morin said.

"Our capital needs are going to be significant," Morin told councilors Thursday night.

Morin said the amount Braintree has in reserve is the most in recent history. 

The town had $14.9 million in free cash and $2.8 million in retained water and sewer earnings by Thursday night. Morin pegged the town's healthy financial condition to a "change in culture" that came with the change in town government.

The administration has been working in recent years not to spend every dollar appropriated by the council, Morin said.

Those kinds of savings (amounting to $1.6 million this year), combined with larger than expected revenues from the motor vehicle excise tax and hotel/motel tax meant a boost in free cash of $3.6 million.

The stabilization fund, with the transfer, now contains $1.9 million.

"Will we ever get to the point where we don't increase real estate taxes?" Councilor John Mullaney asked.

Morin said that the town exercised its ability to not seek the full two and a half percent increase on its levy a couple years ago, and that it has that available as an option in the future.

The council Thursday also transferred $837,543 that was in the current year's budget to pay for an increase in salaries for educators. The town and its various education unions negotiated an agreement earlier this year that gives educators two percent raises for each of the next three years.