Excess levy capacity, Templeton now has it and on purpose. Each year, under prop 2 1/2, the town's levy can increase by 2 1/2% and many towns, including Templeton usually spend at or very close to levy limit. For fiscal year 2023, Templeton budget left almost 200 thousand dollars on the table, so to speak. What this means is Templeton has, in a way, set aside 200 thousand dollars that will be available next year, that could be added to the automatic 2 1/2% increase in the levy in case something comes up, money wise. That 200 thousand is a financial cushion and if the town could continue to have excess levy capacity over the years, those funds could be used rather than an override to have more funds available for any unforeseen need for increased funding for any number of things. Anyone can google or search online for what is excess levy capacity. This was a smart move by the board of selectmen. You are welcome.
Mr. Bennett, please explain.
ReplyDeletePlease coordinate the plan.
Tell us all how the excess levy capacity of $200k effects the EOY free cash, policy recently adjusted, and the capital improvement plan funding for the town.
Please explain what the $200k in excess levy capacity along with the wage increases, inflation, and increasing Fire expense by $187,500 etc on a level funded budget are going to do to Free Cash.
Please be sure to incorporate the new 50/50 split in free cash based on the updated financial plan.
If the $200k levy excess was actually part of plan I might think differently, but this is TEMPLETON and plans are for other towns..............2 yrs from now our capital program dies.............mark my words.
I don't hear the explanation ?? Lol
DeleteFirst, excess levy capacity does not have an effect on EOY free cash, which is money left over from previous appropriated expense money and unexpected revenue. Since there really is no capital improvement plan, there is no effect. Excess levy capacity is more in line with emergency funds for the following year. What will excess levy capacity do to free cash, I do not know as I have no crystal ball, I am pretty sure that over time (how long I do not know) free cash will drop below one million, which if one looks at town free cash sheet on dls website, you can already see a downward trend. As foe excess capacity being part of a plan, I can say it is my intent to try and keep that going. So, Mrs. Bartolomeo, did you hear that? My answer could be the first paragraph in your empty book on municipal governance and finance.
ReplyDeleteExcess levy Capacity has a direct effect on EOY free cash. At least in theory if you start off with $200k less, you should end up with $200k less or does math not work in Templeton?
ReplyDeleteI personally see Free Cash at closer to $800k this year and probably less than $500k the next year.
What does this do to the Capital Plan, you say we dont have (I agree), lets look
$500,000 x 50% = $250,000
$250,000 minus Snow and Ice($150kfy22)
$100,000 left for the Town Capital Program, back filling Town government.
Again Excess Capacity like Ambulance receipts could be a good thing if the Town would do it correctly instead of always Cart before horse.............worrying about excess capacity without a demanding a real capital plan is laughable.
It's like building a stabilization account by not fixing roads or maintaining buildings..........in case you need to fix roads or buildings.
Just like everything in Templeton the Excess Levy capacity which you'll not find on select board goals or the financial recommendations by DOR/DLS was just done without any public discussion on how it will effects other items on budget process................just like ambulance.