Please Templeton Selectmen, read the Department of Revenue Financial Review of 2009!

Notice what it says concerning Sewer Commissioners (Selectmen not mentioned)

1. Build a Multi-Year Revenue and Expenditure Forecast:
The sewer department needs to build a realistic multi-year revenue and expenditure forecast. Absent a solid projection, a true fiscal picture of the future spending in relation to estimated revenue is lacking. Financial forecasting not only allows officials to better understand and quantify the long-range impact of policy proposals, it contributes in a significant way to the annual budget process by working hand-in-hand with the capital planning and fee setting process.

2. Establish a Comprehensive Capital Improvement Program: The sewer department should outline a formal capital improvement program built on a multi-year plan that embodies clear spending priorities. An important resource would be the inventory of fixed assets the town was required to produce under GASB 34. A five year plan, updated annually, would be a useful tool and the basis of the department’s submission of capital requests to the town’s capital planning committee for review.

 3. Review Fee Schedule: Because the sewer department operates under a fee-for-service model, it is financially prudent that officials review fees annually to verify that the total operating costs are adequately covered by revenues. A review should include an examination of direct and indirect costs, anticipated capital outlays, debt service, or other operating costs.

4. Make Decisions on the Use of Retained Earnings: Retained earnings reflect the year-end surplus in the enterprise fund that, once certified by DOR, may be appropriated to support sewer-related purposes. The sewer commissioners should plan long-term for the accumulation and use of retained earnings. We typically recommend that a percentage of retained earnings be retained to cover ongoing maintenance costs and anticipated capital needs.

5. Outline Indirect Cost Formula: An indirect cost is a cost incurred or the time devoted by other town employees to enterprise purposes. We recommend that the town accountant develop a basis for calculating an annual indirect cost reimbursement to the town. The formula should have long-term applicability in a way that produces a fair and consistent annual reimbursement for services provided. To begin, survey each office to account for the amount of staff time spent on sewer enterprise fund activities.

An annual reimbursement from the enterprise fund to cover costs of any services provided by other town departments. There is no mention of cutting employees, transferring employees from one department to another. The spin needs to stop!