The Select Board on Tuesday approved changes to the town’s financial management policies in a 4-0 vote.

Chief Financial Officer Kyla LaPierre said the department conducted a review “with fresh eyes” of the town’s financial management policies. They were originally established in 2012 and updated in 2022.

She explained that seven key changes were made. They were reviewed and approved by town staff, the Appropriation Committee and the Capital Improvement Committee.

The biggest change was the addition of a certified free cash target of 5% of the town’s operating budget.

“We’ve been all over the board with our free cash over the last eight years,” stressed LaPierre.

Free cash has ranged from 1.8% in fiscal year 2019 to 13.28% in FY 26.

The 5% target is in line with the town’s average free cash balance of 5.6%, LaPierre said. This also is in line with the state’s recommended free cash balance of 5-7%.

Another policy section was deleted. It stated that the town will contribute to its capital fund for capital fund expenditures. LaPierre said this should be removed because the town has not adhered to this policy during her tenure as CFO.

Language about rescinding excess capital to Town Meeting for reappropriation was added. This means that if all requested money was not spent on a project, the department head cannot use it for related projects. It must be reappropriated by a Town Meeting vote. This ensures transparency, LaPierre said.

A financial policy for water and sewer enterprise funds also was added to ensure that “they don’t go negative,” according to LaPierre. She has been working with board vice chair Matthew Kizner, the Water & Sewer Advisory Board and Department of Public Works Director Kerry Reed.

“The goal is to keep retained earnings to maintain a balance equal to 10% of the operating expenses and 20% of the capital expenses,” she explained. “So, while we may not be there yet, the foal is to get there in [FY] 27 and 28 to make sure that we maintain minimum balances.”

In addition, there now is a policy to review all the town’s financial policies annually.

“I think this will help with our fiscal discipline,” said chair Shahidul Mannan.

Report focuses on water quality, public outreach

Kerry Reed, the Department of Public Works director, presented the town’s annual water report. She explained that this is a complicated system that provides water to 65% of the town despite drought challenges.

Eight wells supply the town’s water. The connection to Ashland’s water treatment plant provides close to 40% of the town’s water, which is of higher quality because of the filtration system.

There are 4,431 water accounts in town. This is a jump of 45% over the past decade.

Reed’s staff consists of seven people who are on call 24/7, 365 days a year.

The water quality report was included in a recent issue of the Independent, Reed explained. It contains water conservation tips, water sampling results and health information.

The DPW received a grant that has helped Reed spread information about the importance of water conservation. Keeping the public informed is the best way to allay fears, she said.

Reed also stressed that the water quality is good. Over the past few years, the community has raised concerns about a group of chemicals (perfluoroalkyl and polyfluoroalkyl substances) known as PFAS. The town implemented a PFAS filtration system at Well 6 in 2024.

There also has been brown water due to hydrant flushing. Water mains are gradually being replaced.

“I want to make sure that everybody understands very clearly that our water system is in compliance,” said Reed.

She noted that, while the water quality is good, state and federal regulations may change to lower the amount of acceptable levels of PFAS, as well as manganese, lead and copper.

Water conservation key

The area has been in a critical drought state for more than a year, Reed stressed. The town has a ban on all nonessential outdoor water uses, such as filling swimming pools and watering lawns.

The groundwater levels also are low, she said.

Reed noted that the proposed connection to the Massachusetts Water Resources Authority system “is much more resilient because you have a larger supply.”

Kizner questioned whether any fines had been issued against residents who violate the policy.

Reed said no enforcement fines have been collected. The department doesn’t have the personnel and would have to catch people in the act of violating the policy.

Said Kizner: “People are only going to take it as seriously as we make it serious for them.”

Member Amy Ritterbusch noted that the community outreach efforts have led to decreased water usage by residents.

On a related note, the board approved 4-0 a plan for Hopkinton to participate in a consortium of more than 30 towns to negotiate a contract for solid waste disposal.

WRAP reimbursement to go to general fund

The board voted unanimously to allow state reimbursement funds to help with snow and ice removal budget deficits to go into the general fund as free cash.

The Massachusetts Department of Transportation (MassDOT) is returning $309,336.61 as part of its Winter Recovery Assistance Program (WRAP) for the 2026 fiscal year.

Allocating this money to the general fund will allow it to be used for any free cash expenses in the upcoming fiscal year, said Town Manager Elaine Lazarus.

Solar PILOT agreement approved

The board approved 4-0 a payment in lieu of taxes (PILOT) agreement for Frankland Road Solar. The photovoltaic ground-mounted project is located at 69 Frankland Road.

This action was approved by a vote at May’s Annual Town Meeting.

Saddle Hill Road open space purchase OK’d

The board approved the purchase of a 2.93-acre portion of 89 Saddle Hill Road for $29,300 in a 4-0 vote. Known as the Casucci property, the land will be used as open space. It will be under the care, custody and control of the Open Space Preservation Commission.

This action was approved by a vote at the 2025 Annual Town Meeting. The land will be purchased with Community Preservation Committee funds.

Board approves state primary election warrant

The board voted unanimously to approve the state primary election warrant for the Sept. 1 state election.