Read as much as you want on BostonGlobe.com, anywhere and anytime, for just 99¢.

Sharon

Responding to bond-rating downgrade

Continue reading below

The Board of Selectmen adopted a reserve-fund policy Aug. 20, following the July 22 downgrade of the town’s bond rating by Moody’s Investors Service to Aa3 from Aa2. The policy says the town “shall endeavor” to maintain reserves of 5 to 10 percent of general-fund revenue, but it isn’t a mandate, because appropriations are the prerogative of Town Meeting. The policy was recommended by Finance Director William Fowler, who said in an interview that Sharon has a little more than $100,000 in reserves; 5 percent of revenue would require about $1.2 million. The town has depleted its reserves to hold down taxes in a weak economy, he said. Moody’s cited shrinking reserves as the primary factor in the downgrade. With a lower bond rating, the town will pay more to borrow money.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week