To my selectmen, Cameron Fortes;
According to MA state government, Moodys lowered the State's bond rating from AA+ down to AA: reason for the change, state has failed to build its rainy day fund. So, it seems Advisory Committee has a valid point concerning Templeton bond rating possibility versus the size/amount of the Templeton general stabilization fund
Still waiting on the financial information concerning the elementary school that you indicated you would send to the Advisory Committee. Why on that subject, thanks for taking the time to attend Advisory Committee meetings.
Also, since you take the time to attend, perhaps you can obtain and send to Advisory a detailed line by line general ledger printout of the Templeton snow & ice account as discussed at the Advisory Committee.
Since you seem to be versed in financial material, perhaps you could get an agenda item on a selectmen meeting and explain how it makes sense to use a revenue number that all indications show is noncollectable and unrealistic on a budget basis, as in if you are only collecting say 98%, why would anyone responsibly use the 100% number to base expenses off of when you know it will only be say 98%. That would be a great service to the people who elected you.
So to recap: suggestions/solutions - change or adjust the Templeton Town face book page from the appearance of a personal page by removing any personal pictures content and replace with "official" pictures such as town seal, town hall, Town Common etc and post more official material such as Town Administrators report, budget information, financial transfers etc., Not hard, not much time involved and no money involved. Contact Athol (town of) Adminstrator and ask what was involved in creating the "sunshine section of the town website, action, cost, if any etc. Explain, per agenda item why is a number for revenue used that is not realistic rather than what is actually collected based on five year history. If the actual amount collected, please explain that as well. Explain, by way of an agenda item why the selectmen policies are not followed by the selectmen; as in no public comment on selectmen meeting agenda. That should be enough for a bit. So there you have some suggested solutions or alternatives.
Thank you in advance.
posted by Jeff Bennett
Afternoon Jeff,
ReplyDeleteTo disclose this information is not representative of the BoS standpoint and merely reflects my own opinions.
I would like to discuss that Moody's does not rate their bonds like Fitch or S&P. Moody's has assigned a rating of Aa1 to Massachusetts. General semantics but I need to make that distinction because I was a little confused if you were mixing up the agencies.
I haven't read any report stating that the bond rating from Moody’s was dropped to an AA or lower than the Aa1 rating that was given June 1st, 2017. Following here is the article that was posted by Moody's regarding Massachusetts bond rating. Make notice of the second line.
"The outlook for Massachusetts is stable, reflecting its satisfactory reserve levels and efforts to regain structural budget balance. The outlook also reflects our expectation that the Commonwealth will continue to take proactive measures to close budget gaps if they emerge and continue its trend of strong financial management. Going forward, reliance on one-time budget solutions, tighter cash margins, unexpectedly severe economic deterioration, or a large increase in tax-supported debt, could pressure the rating at its current level." - Moody's
Here is the link if anyone would like to validate that statement: https://www.moodys.com/research/Moodys-Assigns-Aa1-to-Massachusetts-7167M-GO-Bonds-and-GO--PR_904044124
Case Closed
Now lets take a moment and discuss the advisory committees “seemingly” solid statements. Templeton WILL receive the lowest bond rating and we will have terrible interest rates. My first week as selectmen the “We will get whacked with 4% interest rate [on the 5 Million Dollar BAN]” - Beverly Bartolomeo. I offered my input was met with criticism perhaps the third time will be the charm. The advisory committee understands budgeting, bond ratings, interest, and forecasting bad debt. Detroit of Michigan has a bond rating of aa2, A1, and A2 which isn’t even the lowest bond rating that can be obtained and they filed for bankruptcy. I believe Winchendon has a bond rating of a1 which was in a worse condition than we were. I cannot see how anyone can come to that ‘logical’ conclusion that Templeton will receive the lowest bond rating.
As I see it Jeff, Reserves do help bond ratings but a low reserve isn’t going to give us the lowest bond rating. That isn’t a logical conclusion. If you have some inside information or new profound school of financing methods perhaps you could’ve worked for Moody’s. They may wish to take you based on your professional working experience with bond ratings and research.
To your request about the Elementary School Project budget. I will talk to the chairman of the advisory regarding that matter. Perhaps he will allow me a slotted time to present the information to you guys at your next meeting since It would seem more appropriate if I explained it to you and took questions directly. Who knows perhaps I will ask for permission to become a representative of the BoS at advisory Committee Meetings.
DeleteYour second request, a detailed general ledger printout of the Templeton snow & ice account is not something that I had discussed I would provide. However, as a FAVOR, I will be meeting with the Town Accountant next week and perhaps I can discuss with her if there is a better way to answer with evidence your questions from the meeting. I believe that was sent in an email request that I was CC'd on so I will review the questions prior.
Your third request. It seems like common sense to have it done that way but as we know it sometimes common sense doesn’t drive sound financial decisions or statements. In GAAP and SEC reporting standards there is an account called bad debt reserve. This is for any credit sales that are recorded as revenue to have a bad debt reserve ratio. I.e. if you sold 100 of credit goods over the year perhaps you can only expect to collect 98 of those dollars and you would have a 2% bad debt reserve ratio. So, the following year when you make sales totaling $500 you would want to only record $490 as revenue and $10 as bad debt. These are projected numbers. I am unaware of how municipal collection forecasting and if there is such a thing as bad debt reserve for a town.
So, I will have to do the research before I make any misinformed and common-sense statements and I will personally reach out to you regarding this information of my findings and why Templeton does/does not/should/should not on that issue. Perhaps later next week I will return an answer via email.
To you recap and suggestions. Templeton's town Facebook is on my back burner. You could take that up with another selectman that would respond to your requests to champion this project. I am getting the wheels turning on the website as there seems to be overwhelming support and request for that action and would supersede the Facebook page as overall importance. After, if the Town's Facebook hasn’t been discussed I will champion that project as well. I think the website would help captivate the scope of your financial reporting requests rather than posting them on social media social media (That doesn’t seem professional to post business on a Facebook page).
The BoS policies that have been violated please send me an email with all the policies that have been in violation or that we do not follow and I will review those. I recommend you be professional in your email and as such please give me it in a format stating the quoted article item within the BoS Policy, when it was violated, and how. I am sure that would be an excellent project for you while I work with your other requests.
Enjoy your weekend Jeff
Your Selectman,
Cameron Fortes
Cam,
DeleteIllinois GO's June 1, 2017 Moodys rating, Baa3.
Winchendon does have an a1 rating with a negative outlook.
S&P just upgraded Winchendon from an A- to an A+ based on.......improvements in the Town's available fund balance levels.
I'd personally like to know how you feel Templeton was in far better shape?
Cam, as to the Policies and Procedures. It's not up to Jeff or anyone else to detail the violations of those policies. It's the responsibility of the BOS to follow them.
Please inform me of the last time "public comment" was on the agenda?
Can you inform me how the BOS complies with MGL 268a section 21a.
Can you tell me about the last meeting of the BOS. Did you vote on any item?
Please inform me how our Stabilization account, the one that cannot be added to or deducted from without a 2/3 vote of the Town Meeting somehow appears to be missing over $47,000 . Remember, the one the BOS stated had $142,000+ at the Special Town meeting in 2016. Who is able to remove money from that account? What is the balance history of that account.
Read the F'n Policies and Procedures of the BOS and if you feel your not violating any than please post it proudly, but otherwise maybe clean your own house.
Detroit June 13, 2017 GO's Moody rating is Caa3
Oh, just as a note for those not familiar. Basic guidelines on how ratings are made.........
ReplyDeleteIn general, rating agencies assign a GO rating based on four main factors: the issuer's economy, the issuer's financial position, the issuer's current/future debt burden and pension liabilities, and management.
I see 3 of those as seriously lacking in Templeton more than Winchendon.........
we need a selectmen not a wise ass. do your job and get the information a citizen asked for
ReplyDeleteJust a simple update from the Worcester T&G article.
ReplyDelete"“The downgrade reflects what we view as the commonwealth’s failure to follow through on rebuilding its reserves as stipulated through its own fiscal policies aimed at mitigating the state’s propensity for revenue volatility"
Sounds like the State got slapped for not rebuilding its......."Stabilization Fund"..........dont worry, nothing to see here, move along.............lol
Cam.
ReplyDeleteWinchendon bond rating show they have over 1 million in stabilization and 750,000 in OPEB neither of these funds are what Templeton has. See attachment below of report
PDF icon ratingsdirect_analysis_1849253_may-15-2017_17_06.pdf