All,

We have all been trying to figure out how the town is having the issue regarding the budget and the recap.  Jeff Ritter pointed out to me the FY12 budget in relation to revenue.  The FY12 budget used $686,628 of Free Cash and $212,126 of Stabilization funds in order to balance the budget.  As you probably remember the Accounting Consultant Matt Angel at last Friday's Selectmen meeting mentioned that if the town continues to use one time funds (Free Cash, Stabilization) the town’s money concerns will never be fixed.

After a little research it is quite clear that the use of one time funds Free Cash, Stabilization have been used for a number of years.  After examining the tax recaps for FY02 through FY12 with the exception of FY05, Free Cash and Stabilization have been used as a funding source every year through FY12.  The recap in the state’s Gateway system only has records back to 2002.  The recap in the State's Gateway system has records back to 2002.

	2002	2003	2004	2005	2006
Free Cash	220,403.00	377,582.04	143,493.00	0.00	582,421.00
Stabilization	39,392.64	118,190.45	24,468.00	0.00	27,963.00

FY07 Free Cash used 784,151.00          Gen Fund Budget 4,064,358.00

FY08 Free Cash used 403,637.00          Gen Fund Budget 3,686,661.00

FY09 Free Cash used 665,959.00          Gen Fund Budget 4,883,566.00

FY10 Free Cash used 882,486.00          Gen Fund Budget 5,160,573.00

FY11 Free Cash used 380,007.00          Gen Fund Budget 5,101,816.00

FY12 Free Cash used 686,628.00          Gen Fund Budget 5,277,527.00

FY13 Free Cash used 189,081.00          Gen Fund Budget 4,627,447.00…12% reduction from FY12

The Town Clerk’s certified town meeting minutes for ATMs has similar language for authorizing the use of Free Cash.  It is generally the last article.  As you can see the funds are used to balance the budget and not for other items.

To see if the Town will vote to appropriate from available funds in the Treasury, a sum of money to be used by the Board of Assessors

in fixing the tax rate to meet appropriations made for the fiscal year ending June 30, 2007 or take any other action relative thereto.

On a motion duly made and seconded the Town voted to Appropriate from Certified Free Cash the sum of

Seven Hundred Eighty Four Thousand, One Hundred Fifty-One Dollars ($784,151.00) to be used by the Board of Assessors in fixing the tax rateto meet appropriations made for the fiscal year ending June 30, 2007.

Obviously knowing why this has happened doesn't fix the current problem but should help for future budget years.  The real question is, who made the decision to use Free Cash, former Town Accountant, past administration, past Select Boards?  Again, it doesn't fix the problem but should shed some light on the budget process and the fact that more people should be involved and have input.

Thanks

Fred Aponte

posted by Jeff Bennett

remember when. . . . . . . . . . . . . ?

Everyone,

I had the chance to read the Gardner News article regarding Templeton's 500k deficit and I think it is important to correct some misinformation.  First, the switch over of software between City & Town and VADAR has absolutely nothing to do with the recap and setting the tax rate.  Second, the closing of FY 13 also has absolutely nothing to do with recap and setting the tax rate except the certification of Free Cash which we now know was used to "fix" the tax rate for at least the last 11 years.  Third, the Treasurer's Cash Book does not affect the recap.  

For years the Town Accountant was in control of preparing the budget (including FY13) and part of the FY13 budget and as you might remember FEMA funds were used and when the FY13 recap was prepared we could not move forward as the FEMA funds were from a prior fiscal year so could not be used.  This forced a town meeting to rescind votes and left the town scrambling to set a tax rate.  

The "model" (spreadsheet) used for preparing the budget was the Accountant's creation. FY14 was the first time the budget forecast was prepared by someone else using this "model".  There were no instructions on how to use the "model" and as a result some information was not included on the budget projection.  If all of the information had been included in the forecast this problem would have been discovered early into the process and the appropriate action would have been addressed then, and not when the recap was prepared which is where we are now.

The recap is a collaborative effort between the Assessors, Treasurer, Town Clerk and the Accountant.  Everyone involved is responsible for certain parts of the recap however we discovered last year that not everyone is aware of their responsibility.  One example is that in FY13 the Town Clerk was not aware that it was her responsibility to prepare Page 4 of the recap with all town meeting appropriations.  The reason is that for prior recaps the Accountant prepared Page 4 and either had her sign (his work) or used her log on to sign.  For the FY14 recap the Town Clerk has received training and made her first attempt at Page 4.  There were some minor adjustments, but it was a good first attempt.  Another example.........after a brief conversation with Sue Byrne at Friday's meeting the overlay number was larger than necessary on the FY14 recap as it was on prior recaps.  This would create excess overlay which would be used for revaluation per the Accountant's instruction.  This also affected the tax levy as those funds need to be raised.  These practices may not be illegal but they do have the perception of being deceptive or at the very least "creative" and not something which I am familiar or comfortable with.

The bottom line is that things need to change dramatically in order to avoid these issues in the future.  Everyone needs to work together and have input when appropriate.

Thanks

Fred Aponte

Accounting

posted by Jeff Bennett

Massachusetts Laws

Note: There are different laws depending on whether the problem road is a city or town road or a state road. Be sure to select the proper statute for your situation.

City or Town Roads: MGL c.84, s.15 
Personal injuries or property damage from defective ways (City or Town Roads)

State Roads: MGL c.81, s.18 Defects in Highway, Liability (State Roads)

Not from the horse and buggy days.

posted by Jeff Bennett

963 CMR: Massachusetts School Building Authority

963 CMR 2.00: SCHOOL BUILDING GRANT PROGRAM

 (3) School Building Committee. (a) The Eligible Applicant shall formulate a school building committee for the purpose of generally monitoring the Application process and to advise the Eligible Applicant during the construction of an Approved Project. (b) he school building committee shall be formed in accordance with the provisions of the Eligible Applicant’s local charter and/or by-laws and it is recommended that the city, town, regional school district, or independent agricultural and technical school make a reasonable effort to include one or more of the following individuals: the local chief executive officer of the Eligible Applicant, or, in the case of a town whose local chief executive officer is a multi-party body, said body may elect one of its members to serve on the school building committee; the town administrator, town manager, or city manager, where applicable; at least one member of the school committee, as required by M.G.L. c. 71, § 68; the superintendent of schools; the local official responsible for building maintenance; a representative of the office or body authorized by law to construct school buildings in that city, town or regional school district, or for that independent agricultural and technical school; the school principal from the subject school; a member who has knowledge of the educational mission and function of the facility; a local budget official or member of the local finance committee; members ofthe community with architecture, engineering and/or construction experience to provide advice relative to the effect of the Proposed Project on the community and to examine building design and construction in terms of its constructability.

(c) The Authority may hold “best practices” information sessions at varying geographic locations in the Commonwealth for the purposes of keeping school building committees up to date on regulatory and policy activities of the Authority. (d) The Eligible Applicant shall submit to the Authority for its approval, a written statement describing the composition of the school building committee and the role of the school building committee in monitoring the Application process and advising the Eligible Applicant during the construction of the Approved Project. The written statement shall be in a format prescribed by the Authority. (e) The Authority shall approve the composition and role of the school building committee which approval shall not be unreasonably withheld. The Authority’s approval will be based on several factors, including, but not limited to: 1. past performance of the school building committee, the building committee, whether temporary or permanent, or any other committee responsible for the oversight, management, or administration of the construction of public buildings, the composition of the school building committee and qualifications of its individual members, the powers and duties of the school building committee; and the school building committee’s procedures for conducting its meetings; and 2. the extent to which there is representation of the municipal government, school district personnel with management, educational and maintenance expertise, and representation of members of the local community with design and construction experience. After the approval of the school building committee by the Authority, if any, the Eligible Applicant shall notify the Authority in writing within 20 calendar days of any changes to the membership or the duties of said committee. The Eligible Applicant shall make a reasonable effort to ensure the continuity of membership of the school building committee throughout the life of an Approved Project.

Again, at a meeting of Templeton selectmen, it was stated that it is the law for a director of building & grounds to be on the school building committee. The above code does not seem to say that.

posted by Jeff Bennett