$80,000.00 is requested for the Town's reserve fund; response/question from Carter Terenzini, part time Town Administrator:
Answer from Advisory Committee via Chairman;Good Day:A few questions:What is MMAQ listed in employee support?What is the rationale for a .0098% reserve fund; that is an odd ratio I don’t think I’ve seen before.Further given draws out of the Reserve Fund over the past few years FY ’12 through ’16 came from an email from a W. Spring email; FY ’17 & ’18 came from our records here
Carter;
A few of the reasons for the desire of the Advisory Committee to establish a reserve fund in the amount of $80,000.00 is a multi faceted approach; The committee looked at the recommendations/guidelines from MA DOR/DLS. The committee did scale back some, otherwise the requested number would have been too much of a one time increase. The committee feels that slowly increasing the town's reserve fund demonstrates that the Town is heading towards a much better financial position than in the past. The Town is moving forward rather than backwards. (as in reducing the reserve fund, which in our opinion, shows the Town is spending more and does not have a sufficient financial cushion) Since there was no movement towards putting any of the recent certified free cash towards any of the Town's stabilization funds, which the committee feels would have been a positive move with regards to the Town establishing a bond rating. So with no apparent will on the part of the selectmen to increase or establish a savings plan, Advisory Committee feels there is justification for an increase to the Town reserve fund. Rather than a backwards move,, as was done last time around ( drop from $50,000.00 to $35,000.00) Advisory discussed and voted that the town should move towards an increase in reserve funding. It is the opinion of Advisory that this demonstrates the Town has sufficient revenue sources and numbers to not only operate the Town from a financially sustainable position, it also has the financial ability to set aside an adequate amount for emergencies without multiple financial transfers that can jeopardize things from a budgetary viewpoint. ( remember the fire department pump issue)
Again, Advisory fees this move can and will aid the Town as it moves forward towards a bond rating. Since the selectmen left an amount of certified free cash on the table, Advisory hopes this year the selectmen will use some of that money to increase the Town's stabilization funds. Again, the committee this would be financially prudent, smart and demonstrate Templeton is on the move towards financial stability. The Advisory Committee understands you may recommend something else and the selectmen will vote on what to present to Town Meeting, the committee hopes we demonstrate strong agreement on the financial path for the Town as we move forward. Whatever the number turns out to be, I believe Advisory will make known it's recommendation (s) to Town Meeting by way of it's written report to the Town per Templeton by-laws. We hope this is one area where we agree on common ground.
regards;
Jeff Bennett
Chairman - Advisory Committee
MGL Chapter 40 section 6 allows towns to place up to 5% of previous FY budget in an Emergency Reserve Fund.
ReplyDeleteThe Advisory Committee is asking for less than 1%. We've spent far more than this on unplanned unforeseen expenses in FY18 already but we paid for them with free cash that wont exists in these amounts again.
This is what Templeton always has done. Because the town departments cannot live within their budgets, free cash has been used to offset the budget. Unrealistic planning, or just plain government that is to big, is the problem. Like I have said again and again, you can't spend what you do not have ! How hard is that to understand ? Giving our raises when there is no money for them, does not solve anything. Bev.
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