The Town sets aside money in a variety of funds, to help manage cash flow and have funds available for large, infrequent expenses (like rebuilding the police station), or emergencies. When Arlington asks for a multiyear tax increase not all of the new income is spent immediately. Some of that money is used to build up reserves for a few years and then slowly used to support the operating budget in outlying years. The bar chart below shows the towns reserves over time. Years in the past show actual balances and future years show the projected balances from the long range plan.