Templeton 2023 annual town meeting,
article 2, amend fy23 town budget.
Once again, use of so called free cash is being used to increase the FY23 town budget, which again, goes against town financial management policy, use of one time funds to support town budget.
1. increase of $52,500.00 for insurance & benefits.
2. $2,500.00 to cover cost of a grant.
Snow & Ice continues to be minimally funded, because it can be and because it is an easy way to make a budget work. Snow & ice is one of 4 things that a town can deficit spend (think living on credit card - eventually that card has to be paid) by continuing to do this, the town fails to follow policy, best practice, stays dependent on so called free cash and puts future town budgets in peril. Again, this bill needs to be paid.
My thought:
When so called free cash becomes available, typically in the fall and if use of free cash is on a town meeting warrant, my opinion is town meeting should look carefully at the amount available and how much is presented to the meeting to be used and then take charge, amend articles and put more of that free cash in place, taking away the option of free cash, which would force administration to budget better, tighter and perhaps even move closer to following principles of prop 2 1/2; do more with less, become more efficient and change way of how they do business. Town meeting could vote to put more in capital stabilization, infrastructure and demo revolving funds, as a few options.
https://www.templetonma.gov/sites/g/files/vyhlif3911/f/uploads/financial_management_review_update_march_2021.pdf
ReplyDeleteFrom the above link I have copied and pasted the Department of Revenues suggestions from the review on page 11-12 but feel free to read others and see what the town is doing and ask why they wont change?
Update the free cash policy and discontinue use of free
cash for general operations.
▪ Templeton’s FY2021 budget document sets an
informal target for unappropriated free cash at 20%
of its certification, and we recommend the free cash
policy be updated to incorporate this goal.
▪ Templeton’s current policy sets percentages for free
cash use that total 100%. This includes: 50% for
working capital, 35% to general stabilization, 10% to
capital stabilization, and 5% to OPEB.
▪ Although Templeton has made positive steps to limit
free cash use to one-time expenses, there still exists
a pattern of use for general operations. To achieve a
sustainable expense plan, we recommend Templeton
suspend its use of free cash to fund the operating
budget. Free cash should be used to fund
unanticipated costs, one-time expenditures, and
replenish reserves. This will require adhering to
budget policy and discipline to limit the budget
growth.
▪ Further, Templeton consistently underfunds the
annual snow and ice budget and then appropriates
free cash to avoid year-end deficits in this account.
To prevent this pattern, we encourage the town to
annually increase the snow and ice budget until it
reaches the five-year average expenditure amount of
$203,642.
Look and see how our Town Administrator Adam Lamontagne responded to the DOR suggestion. He increased the FY 21 snow and Ice account from $147,500 to $147,501 in FY 22 and only at the request of other did He not raise it $2 in FY 23.
I've watched the Administration, supported by the Selectman disregard most suggestions of the DOR and in most cases they mostly pay lip service to their suggestions.
I do not support the use of Free Cash to support ongoing regular expenses. I do not support this article.
I will vote NO!
This is very helpful to understand things before the meeting. We need to have an accurate budget and it needs to be within the means provided. Adhering to budget policies. I will be voting No too.
ReplyDeleteBob post is correct, the department of revenue has suggested that to the town in 2 different reviews as well as in other publications through the division of local services. The use of so called free cash to back up the general fund budget is becoming more common and more accepted by most select board members. I will find the town meeting where Templeton pulled money from general stabilization fund to pay the town's cost of retirement costs. At last nights select board meeting, one member stated to the effect, we put money into stabilization fund and it is there to use. Someone needs to read the financial management policy and then follow it!
ReplyDelete