Tuesday, September 19, 2023

 May 10, 2023, Templeton annual town meeting, article 16 - CPC funding reclaiming and fence tennis courts at Gilman Waite field, appropriation voted by town meeting, $139,500.00. Bid for the work was opened August 30, 2023, $178,500.00, so the Advisory Committee has agenda item for meeting this Wednesday, September 20, 2023 at 6:30 P.M. - reserve fund request from parks & rec. July 2023 (FY24) monthly report from accountant shows reserve fund balance at $47,500.00. We (the town) are still in the first quarter and already going after monies from reserve fund, and it would have to be $39,000.00 to make up the short fall to pay for the project. If the transfer were to be approved and contract awarded, would the work be complete before winter, would the company be able to do the project this late in the year (I would assume they have other work already) so if the project is put off until next year, would that bid figure hold? In my humble opinion, it would be irresponsible to use the reserve fund for tis project, as it would be overriding town meeting vote, which if one looks at the ATFC handbook, it states the reserve fund is not for that (overriding town meeting vote) This needs to go back to town meeting and ask them to amend their vote and put a new dollar figure in front of them. If this is the town administrator approach to town budgeting, we need a new TA.


from the handbook that is put together by the ATFC (association town finance committees) which is what the Advisory Committee is in Templeton: to provide for urgent or unforeseen expenditures
that could not have been anticipated before town
meeting; and/or;
• to allow immediate expenditures of funds in the event of an emergency (threat to public safety or health)
when the delay of having to call a special town
meeting could be potentially harmful.
In either case, the finance committee must approve
all proposed transfers from a reserve fund. It is also
understood that a reserve fund should not be to reverse a vote of town meeting or as a “backdoor” means of increasing the budget. Finance committees should adopt their own reserve fund guidelines to supplement the state statute, and should help other town officials gain a better understanding of appropriate uses of a
reserve fund.

$40,000.00 is a substantial amount of tax dollars, this belongs in front of town meeting. The difference between appropriation and the bid received is $39,000.00 and if 39K is taken from town reserve fund at this time, it would leave $8,500.00 for use in any emergency for the rest of the FY, until June 30, 2024.

3 comments:

  1. . Discussion RE: Considering spending requests, recommending an increase to the Advisory reserve fund of $25,000 at the fall town meeting. In my opinion approval of requests in September should be with the understanding that the reserve account will be supplemented at the fall town meeting.


    Has anyone seen a big pile of cash? How are they adding $25,000 at FTM? Would that be from the "unknown uncertified free cash" we do not have a present time.
    Spending money you dont yet have is not a good financial move in private life. Is it good for the Town?


    How does one get an "understanding that the reserve account will be increased" since it's by vote of Town Meeting.

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  2. Correction: Certified Free Cash reported on 9/18/23 for the Town of Templeton...........

    $674,546.00

    A drop of just about $500k from 2022 free cash of $1,168,000 or so.

    Thats right, Advisory wants a promise of $25,000 at FTM from free cash early..............We already postponed a police car to be bought with free cash from FTM as "BUDGETED" lol.

    This is how free cash gets broken down based on FMP.

    60% Reserved for Working Capital and other town needs
    15% Transferred to the General Stabilization Fund
    10% Transferred to the Capital Stabilization Fund
    10% Transferred to the Infrastructure Stabilization Fund
    5% Transferred to the OPEB reserve.

    60% of $674,546.00 is $404,727.00 which the total the town has for its needs and Capital items.

    2022 snow and ice additional funding was something like $220,000 which in this case would leave about $184,000 for capital and other town needs...............sounds awesome.......lol

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  3. Finance committees has adopt their own reserve fund guidelines to supplement the state statute.

    ac_policy_on_reserve_fund_transfers_approved_09022021.pdf

    ReplyDelete