from the Division of Local Services
May - 2016





The decision to borrow money can be intimidating. To make matters more uncertain, the mechanics of issuing debt may be the least understood financial process among citizens, local officials, and even some professional staff. Generally known is the statutory requirement that a town meeting or a city council can authorize borrowing only by a two-thirds vote. State law also specifies what expenditure purposes may be funded through debt and the allowed duration of the borrowing term (M.G.L. c. 44). The terms of a borrowing are made final when a majority of the board of selectmen or the mayor affixes their signatures to required documentation. However, between authorization and issuance much more occurs with little notice outside the treasurer’s office.



Short-term Debt Short-term debt can be classified best as borrowing through the issue of notes in anticipation of either paying them off or permanently financing the debt. Short-term borrowing also allows communities to make interest-only payments. However, such debt usually has a maturity date of no more than two years, though in some cases, statute dictates a shorter time frame. Additionally, a community might choose to reissue short-term debt and/or to make principal payments under certain circumstances. The various types of short-term debt vehicles used in Massachusetts include the following:

Revenue Anticipation Notes (RANs) – These notes, issued for a maximum of one year, are used to stabilize cash flow when the treasurer’s cash balances are low or forecasted to go negative (M.G.L. c. 44, §4). These notes are issued to fill a cash need, usually until receipt of quarterly or semiannual tax payments or local aid distributions from the Commonwealth.

Federal and State Aid Anticipation Notes (FAANs and SAANs) – These notes are issued to fund spending in anticipation of grant receipts, with the expectation that the note will be paid off upon receiving federal, state or other funds (e.g., Chapter 90 highway project reimbursements).


Bond Anticipation Notes (BANs) – These notes are issued to provide funding for capital improvements. BANs are usually paid off with the proceeds of long-term financing instruments, such as general obligation bonds. However, state law allows for the reissue of a BAN for up to five years if principle payments are made in accordance with an amortization schedule that would be required if the outstanding balance were financed as long-term debt (M.G.L. c. 44, §17). Since short-term debt normally carries a lower interest rate than permanent, this strategy may make sense under certain circumstances.

Templeton Tax Rate through the years:

From the Division of Local Services website

Fiscal Year - 2014 - $16.24

Fiscal Year - 2015 - $16.64

Fiscal Year - 2016 - $16.47

Fiscal Year - 2017 - $16.12

Fiscal Year - 2018 - $16.72

Some of that increase is due to debt payment of feasibility for new school. Part of the price for increase in property values due to the building of a new school is more taxes;  again, Merry Christmas.

from the Templeton personnel policy on the Town website:

B. Attendance - Employees are expected to report to work as scheduled, on time and prepared to start the work day. Employees also are expected to remain at work for their entire work schedule.

I wonder if that is meant to mean if the posted hours for an office is 7:30 A.M., people will actually be in those offices?

Yesterday, I obtained a letter from Town Hall addressed to Jeffrey Bennett, c/o Town Hall. It was in regards to one of those open meeting law complaints filed by the board of selectmen against members of the Advisory Committee. The letter was from the Massachusetts Attorney General's Office. It contained information about the complaint, who filed it and the response received. Since the period of time had passed for an appeal of that response and since no appeal had been made, the Office of the Attorney Genera considers the matter closed and the response from the Advisory Committee to the board of selectmen was accepted.

Maybe now we can have an administrator's report given at a selectmen's meeting.

Good news from Monty Tech school district. A letter dated November 16, 2017 states Templeton's assessment has been revised, as in, went down.

The assessment that was voted at Town Meeting back in May was $638,130.00. It now stands at $635,178.00. A modest drop for sure, but good news for taxpayers! Now, what can the selectmen find to spend it on?

Selectmen Workshop - note the local option meals tax. Taxing local mom and pop small business even more, now that is a plan to attract more small business to Tempeton.

Templeton Board of Selectmen 
Workshop
Town Hall, 160 Patriots Road, East Templeton
Monday, December 4, 2017, 6:30 p.m.

Agenda
1. Call the Meeting to Order

2. Pledge of Allegiance

3. Templeton EDC RE: Recommendation to Pursue MassDevelopment Grant for Civil Engineering Services Related to Industrial Park Development

4. MRPC RE: Pursuit of Community Development Block Grant Funds in FY’18 (Grant Proposal Due on March 2, 2018) and Beyond

5. Fall TM Lessons Learned

6. Proposed Amendment of Financial Management Policies

7. Employee & Volunteer Recognition Program (E.Pollitt)

8. Lapel Pin Policy (J.Caplis)

9. Proposed Informational Meetings RE: Local Option Meals Tax (E.Pollitt)

10. Disposal of Baldwinville Elementary School

11. Lease of Templeton Center Elementary School

12. Adjournment

The listing of Agenda items is those reasonably anticipated by the Chair which may be discussed at the meeting. Not all items listed may in fact be discussed and other items not listed may also be brought up for discussion to the extent it is permitted by law.
THIS AGENDA IS SUBJECT TO CHANGE

Templeton tax rate set by the Massachusetts Department of Revenue;

$16.72 per thousand, couple that with increase in valuations and people will see a nice tax bill increase coming their way - Merry Christmas

On Templeton Town website, one can find the bid/contract proposals for the police station addition listed at $2,133,200.00. This seems to contrast with the amount listed in a memo from the part time town administrator to selectmen.

part of that memo: 

The initial reaction is that we will not be able to obtain a MIG 1 rating.  There is a strong possibility we can achieve a MIG 2 rating but that is never certain until one formally submits the documentation for review.  Even if we achieve a MIG 2 rating it is at least .25% above the interest rate of a borrowing rated MIG 1 rating.  Our advisor has recommended, and I agree, that we not seek a formal bond rating at this time but instead finance our needs through unrated bank notes. 

The maximum for this in this calendar year will be $10,000,000 which is more than enough to cover our needs ($5M BAN, $1M Police, $2.3 Sewer, $1.7 new money).  This gives us $5.4M+/- for the school in CY ’18.  We will then seek an additional $10,000,000 in CY 2019 and continue to work toward an acceptable bond rating as your financial picture slowly improves.

Notice that 1 million for the police station - time to regroup/ so does that mean only 4.5 million for the new school for FY 18?

Does anyone remember that 1.9 million dollar number for a 12,000 sq. ft. building for a town hall? I think the bid proposals came in near 4 million, leaving me with the opinion when the elected ones tell you it will cost this $$$, you should take that number and double it.  Lets not forget that 5 million dollar BAN (bond anticipation note) due in December. Will there be a bond or will that note be extended?

On another front, Hubbardston is the latest town to change to all salt for the winter months. Some of the reasons given, saves money, keeps road side drains clean, salt is actually a anti ice - de-icing agent while sand is neither of those. That is from an article in a news paper with the DPW director explaining that. No mention of a required $250,000.00 for a new storage facility.