This summary is intended to provide general information about municipal revenues and special funds under Massachusetts law. It is not designed to address all questions or issues about these revenues or funds. Nothing contained in this summary changes the laws that govern municipal revenues and special funds.
REVENUE TREATMENT -
A fundamental principle of municipal finance in Massachusetts is that all revenue received or collected from
any source by a city, town or district department or official belongs to the general fund and can be spent for
any lawful purpose only after appropriation by the legislative body. G.L. c. 44, § 53. No revenues can be
segregated from the general fund into a separate fund to be reserved for specific purposes or spent without
appropriation unless expressly authorized by a statute (general law or session act).
GENERAL FUND REVENUES (Estimated Receipts)
Definition: all unrestricted revenues, including real and personal property taxes, other local taxes, such
as excises, special assessments and betterments, unrestricted local aid, investment and rental income,
voluntary and statutory payments in lieu of taxes and other receipts not expressly dedicated by statute.
The anticipated general fund revenues for a fiscal year constitute the tax levy as a financing source (raise and
appropriate), which may be appropriated until the tax rate is set. Collections during the year above the
estimates used to set the rate are not ordinarily available for appropriation until after the close of the fiscal year
and certification by the Director of Accounts as part of the municipality’s undesignated fund balance (free
cash). G.L. c. 59, § 23.posted by Jeff Bennett
This boils down to which revenue number the BOS/TA decides to use. Do we ever collect all of the money we bill for ? For the 18 budget it was decided to use the big number ! Did the majority of AC agree ? I do not think so, but this is where it gets sticky. What do you do when you are presented with the budget that is 99% done ? It is too late to start from scratch! It is not the budget I would have presented, not by a long shot. But it is not my place to correct the Town's leaders, this is their budget. Let them defend it to the DOR. They would not have listened to us any way. These are the leaders this Town chose, maybe someday they will learn to choose more wisely. Bev.
ReplyDeleteBev. Funny thing. This morning I was doing a google search for "Templeton Stabilization Fund". I came across a PDF file from 2012. A couple lines struck me as I'm sure they will you.( You probably know of many more issues just like it)
ReplyDeleteI'll just post the link as to much of it could just be re-read today as it is still relevant.
http://templeton1.org/sites/templetonma/files/file/file/financial_goals_2012.pdf
So Bev, did you have anything to do with the idea of using "conservative numbers" when calculating revenue......It sounds familiar.
I'll be interested in getting answers to the Stabilization Funds mysteriously decreased size.
Most of the Advisory Committee wanted to use conservative revenue numbers. If we do not collect all of the money we bill for, then how can you plan to spend it. We have tried to figure out why we are constantly broke. This does not count the bad management that has plagued this Town For the past 20 years. Spending more than you take in does not work, no matter how anyone spins it. The budget was 99% done when the A.C. received it. On more than one occasion, I brought up the fact that the DOR told us, not to use one time money/ or sources to fund a budget. I did not feel that relying on income from the trees cut at the cemetery was an appropriate source of revenue. This landed on deaf ears, so that money stayed in the budget. Will we receive enough money to make this line item work ? What about next year ? It will come out in the wash.. Bev.
DeleteI can promise you, if someone does not come up for a real good explanation as to where this money went, them I will go to the people who will find out. Is that clear enough ? Bev.
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