Free Cash is a critical financial indicator representing the town's available, undesignated funds that can be appropriated for various municipal needs. This page explores Hubbardston's free cash journey from past challenges to future projections.
Free Cash represents the amount of unrestricted funds from the previous fiscal year's operations that can be appropriated by Town Meeting for any municipal purpose. It's essentially the town's "savings account" and a key indicator of fiscal health.
Free cash is certified annually by the Massachusetts Department of Revenue and comes from actual revenue receipts in excess of revenue estimates, unexpended funds from departmental budgets, and prior year free cash that wasn't appropriated.
This period marked significant fiscal instability with deficits in multiple years, particularly 2007's negative balance of $355,144. The town faced revenue shortfalls, budget deficits, and financial management challenges requiring corrective action.
Hubbardston implemented improved financial practices, leading to recovery and stabilization. Free cash levels remained moderate (around $100k–$300k), establishing a foundation for future growth and financial health.
This period saw consistent but relatively modest free cash balances, ranging from approximately $98k to $201k. While positive, these levels indicated opportunities for improved revenue collection and expense management.
Free cash rose dramatically, peaking at $806,289 in FY2023. This improvement resulted from conservative budgeting practices, revenue growth, and federal relief funds that helped strengthen the town's financial position.
Free cash has normalized to sustainable levels ($542,924 in FY2024 and $549,563 in FY2025), reflecting a more realistic financial position while maintaining significant reserves for town priorities.
Projections indicate continued stability with growth from $570,000 in FY2026 to $730,000 by FY2030. These estimates assume continued disciplined fiscal management and absence of major economic disruptions.
The line chart below shows Hubbardston's free cash journey from 2005 to 2030, with projections for future years. Note the significant improvement in recent years following earlier fiscal challenges.
| Fiscal Year | Certified Free Cash | Status |
|---|---|---|
| 2005 | $29,269 | Certified |
| 2006 | -$5,384 | Certified |
| 2007 | -$355,144 | Certified |
| 2008 | -$49,460 | Certified |
| 2009 | $76,246 | Certified |
| 2010 | $123,998 | Certified |
| 2011 | $297,370 | Certified |
| 2012 | $211,777 | Certified |
| 2013 | $230,061 | Certified |
| 2014 | $106,916 | Certified |
| 2015 | $220,223 | Certified |
| 2016 | $172,811 | Certified |
| 2017 | $98,815 | Certified |
| 2018 | $177,223 | Certified |
| 2019 | $201,866 | Certified |
| 2020 | $401,503 | Certified |
| 2021 | $312,052 | Certified |
| 2022 | $585,266 | Certified |
| 2023 | $806,289 | Certified |
| 2024 | $542,924 | Certified |
| 2025 | $549,563 | Certified |
| 2026 | $570,000 | Projected |
| 2027 | $600,000 | Projected |
| 2028 | $630,000 | Projected |
| 2029 | $680,000 | Projected |
| 2030 | $730,000 | Projected |
Hubbardston's financial leadership is implementing a strategic approach to free cash management:
For FY2026, the town has allocated $131,478 in free cash (approximately 24% of the available amount) to support the annual budget, primarily for one-time investments.
Through smart budgeting, strategic savings, and disciplined financial planning, Hubbardston is well-positioned for a stable financial future.
Last updated: March 1, 2025 | Finance Committee & Town Administrator's Office