The meeting’s focal point revolved around the introduction of new financial management principles by John Townsend, the finance director and assistant town administrator. Townsend outlined a comprehensive set of proposals aimed at revising the town’s approach to reserve funds and stabilization funds. These proposals included consolidating the general and operational stabilization funds into a new entity called the emergency operational stabilization fund, designed to address broader economic challenges. Additionally, the board considered the creation of an infrastructure stabilization fund to tackle the town’s decaying infrastructure and an override stabilization fund to mitigate the need for tax overrides until pension obligations are fully funded.

Townsend emphasized the importance of maintaining prudent debt management practices. He proposed a cap on authorized indebtedness not exceeding 2% of the town’s equalized valuation and advocated for keeping the debt-to-revenue ratio under 9% to maintain a strong bond rating. The board also discussed the strategic use of Bond Anticipation Notes (BANs), which require only interest payments initially, facilitating a more manageable budgeting process.

The board’s deliberations extended to the town’s obligations concerning the pension system and Other Post-Employment Benefits (OPEB). A flexible approach to funding OPEB was acknowledged, with contributions covering both the pay-as-you-go benefits and additional liabilities determined through actuarial studies. The board underscored the necessity of maintaining a conservative approach to revenue projections to minimize potential budget shortfalls and their impact on free cash.

Amid these discussions, the board highlighted the need for improved alignment between the town administrator’s budget and the expectations of the Natick public schools and the school committee. A member described past discord between these entities as akin to “the Hatfields and the McCoys,” emphasizing the necessity of a collaborative approach to ensure a unified budget proposal. The board proposed explicitly stating this alignment in budget documentation.

In addition to financial policy reforms, the board also initiated a series of monthly meetings among the chairs of the Select Board, the School Committee, and the Finance Committee. These meetings are intended to facilitate communication on budgetary and other relevant issues. Topics such as the split tax rate and potential warrant articles for funding a feasibility study for the Memorial School were raised during these discussions.

The board also addressed ongoing efforts to enhance transparency and communication with Natick’s senior population regarding available programs, such as deferring or reducing real estate taxes and qualifying for free water and sewer services. Concerns were raised about the timing of communications, particularly in light of potential changes introduced by the Municipal Empowerment Act. The board acknowledged the importance of ensuring that these communications are spaced appropriately and accessible to seniors who may not use the internet.

In the realm of policy approvals, the board reviewed and approved several financial policies, including those related to procurement, purchasing, and travel reimbursement. Amendments were made to ensure clarity and compliance with local standards, such as specifying that alcohol would not be reimbursed under meals and discussing the inclusion of age-restricted products like cannabis and vaping products.