more on stabilization fund - from ATM 2012;
Article 28. To see if the Town will vote to appropriate a total sum of Four Hundred
Ninety-Seven Thousand, Five Hundred Twenty-Three Dollars
($497,523.00) for the Worcester Regional Retirement System assessment;
said sum to be provided as follows: the sum of One Hundred Four
Thousand, Eight Hundred Twenty-Eight Dollars and Ten Cents
($104,828.10) to be transferred from the Light Department, the sum of
Forty-Two Thousand, Seven Hundred Thirty-Seven Dollars and Twenty-
11
Three Cents ($42,737.23) to be transferred from the Water Department, the
sum of Thirty-Eight Thousand, One Hundred Sixty Dollars and One Cent
($38,160.01)-to be transferred from the Sewer Department, and the sum of
Three Hundred Eleven Thousand, Seven Hundred Ninety-Seven Dollars and
Sixty-Six Cents ($311,797.66) to be raised by taxation and/or transferred
from the Stabilization Fund, or to take any other action relative thereto.
Submitted by the Board of Selectmen
On a motion duly made and seconded the town voted to appropriate a total
sum of Four Hundred Ninety-Seven Thousand, Five Hundred Twenty-Three
Dollars ($497,523.00) for the Worcester Regional Retirement System
assessment; said sum to be provided as follows: the sum of One Hundred
Four Thousand, Eight Hundred Twenty-Eight Dollars and Ten Cents
($104,828.10) to be transferred from the Light Department, the sum of
Forty-Two Thousand, Seven Hundred Thirty-Seven Dollars and TwentyThree
Cents ($42,737.23) to be transferred from the Water Department, the
sum of Thirty-Eight Thousand, One Hundred Sixty Dollars and One Cent
($38,160.01)-to be transferred from the Sewer Department, and the sum of
One Hundred Seventy-One Thousand, Seven Hundred Ninety-Seven Dollars
and Sixty-Six Cents ($311,797.66) to be raised by taxation and/or
transferred from the Stabilization Fund.
Passed Unanimously/May 16
th @ 9:15
It would have to be checked on how much if any money was taken from stabilization and if vote was correct. This was the last Town Meeting for the vender CPA and it was during this time that there was an interim town coordinator for a period of time due to the big recall happening earlier in the year.
posted by Jeff Bennett
Monday, June 12, 2017
Sunday, June 11, 2017
Message from Town Administrator Bob Markel
The Department of Revenue has always discouraged the use of free cash to balance the budget. Bond rating agencies do the same, and the low bond rating for the Town reflects, in part, the lavish use of free cash to fund the operating budget. However, this is not illegal; it is simply unsound financial policy.
The amount of free cash available changes yearly, and it is not predictable. Free cash is considered one-time revenue, and the Department of Revenues recommends that it used to augment the Stabilization Fund (reserves) or for one-time purchases like capital items.
Audit firms do not do a thorough job of auditing the books (unfortunately). They come and test various areas of the town’s finances to see if there are problems, but some problems are not caught and can persist for years. They tell you up front that they cannot do a thorough audit for the relatively modest amount they charge. The DOR representative at today’s meeting called the standard municipal audit a “hit and run” audit. Still, some firms are more reputable and more competent than others. I cannot name names in this message, but there are several firms that I would never hire.
Recommendation: The Selectboard should create an Audit Committee of knowledgeable citizens who will have two responsibilities: 1) Bid the audit contract every three years, and hire an independent auditor; and 2) Receive the annual audit and do a public review of the findings and the management letter. Municipal auditors are typically hired by the Town Administrator, Town Accountant or Finance Director. This is an inherent conflict of interest since town officials who do the hiring are the ones whose work is being audited. Hiring and receiving the audit should be an arm’s length transaction from the Town’s financial team.
The Department of Revenue oversees 351 cities and towns in the Commonwealth. They accept data provided by the Town Accountant, the Treasurer/Collector and the Assessors. They often question the data, but they are not always able to verify if data submitted on the Tax Recap or Schedule A are accurate. The DOR does not have access to the town’s accounting system. For example, the DOR was in Templeton today to question whether the Town has properly reported debt obligations on the DE-1 section of Schedule A. Some debt is paid from general revenue within the town budget and some debt is paid through debt exclusion. There is a correct way to report these two types of debt on Schedule A. The DOR representatives checked to see if the Town reported the data correctly, but they are limited in their ability to verify the accuracy of the data.
The long term solution to Templeton’s financial problems is to hire a professional Town Administrator who will put in place a competent financial management team – Accountant, Treasurer, Collector and Assessors. The Selectmen and Advisory Board have the responsibly to oversee the T.A. and the financial team on their management of the Town’s finances. To complement the BoS and Advisory Board, the Audit Committee should retain a reputable accounting firm to conduct an annual audit with the results made public.
Bob Markel
Interim Town Administrator
Interim Town Administrator
I believe there should be more of this on the Templeton face Book page and less individual photos, updates and the like. It is one more tool to make available to any and all, valuable public information on things such as budget, board and committee make up and schedules.
my opinion and posted by Jeff Bennett
Section 49: Annual town reports; publication; penalty for noncompliance
[ First paragraph effective until July 1, 2015. For text effective July 1, 2015, see below.]
Section 49. The selectmen, before the annual town meeting, shall at the expense of the town print the annual town report for the use of the inhabitants containing the report of the selectmen for the calendar or fiscal year preceding said meeting, the report of the school committee, statements in tabulated form prepared under section sixty of chapter forty-one unless otherwise printed as provided in said section, the annual report of the town accountant for the preceding fiscal year as provided in section sixty-one of chapter forty-one, the annual report of the town treasurer as provided in section thirty-five of chapter forty-one, and except as otherwise provided by vote or by-law of the town, of such other officers and boards as consider it expedient to make a report, the jury list as required by chapter two hundred and thirty-four, and such other matters as the law, or the town by vote or by-law, requires or as the selectmen consider expedient. If the selectmen neglect or refuse to make the annual report, they shall severally forfeit fifty dollars.
[ First paragraph as amended by 2015, 46, Sec. 62 effective July 1, 2015. See 2015, 46, Sec. 216. For text effective until July 1, 2015, see above.]
The selectmen, before the annual town meeting, shall at the expense of the town make available the annual town report for the use of the inhabitants containing the report of the selectmen for the calendar or fiscal year preceding said meeting, the report of the school committee, statements in tabulated form prepared under section sixty of chapter forty-one unless otherwise printed as provided in said section, the annual report of the town accountant for the preceding fiscal year as provided in section sixty-one of chapter forty-one, the annual report of the town treasurer as provided in section thirty-five of chapter forty-one, and except as otherwise provided by vote or by-law of the town, of such other officers and boards as consider it expedient to make a report, the jury list as required by chapter two hundred and thirty-four, and such other matters as the law, or the town by vote or by-law, requires or as the selectmen consider expedient. If the selectmen neglect or refuse to make the annual report, they shall severally forfeit fifty dollars.
A town may by by-law provide for the printing of such fiscal year reports as it deems suitable within ninety days of the close of the fiscal year. A copy of such fiscal year reports shall be transmitted by the town clerk to the state library before the first day of November. A town may also by by-law provide for the printing of all reports of town officers and boards, committees and commissions on a fiscal year basis in place of the calendar year report required by this section.
posted by Jeff Bennett
Good Day:
As an FYI;
- We received bids on our $5M Bond Anticipation Notes (BANs). We had three bidders ranging from 1.5% to 2.25% gross and, after application of the bond premium, 1.05% o 1.84% net. This positions us just where we wanted to be for the fall bond rating and bond offering for the school project. You will now need to take a formal vote to award the placement of the Bond to Eastern Bank. As planned, this erases the deficit in the capital accounts and fully funds the work of Colliers and SMMA to prepare for the fall bidding of the School project. I expect the BoS to award the BAN bid tonite.
- I will need to request two transfers and they will be in your box tomorrow a.m. The first is for $1.5k+/- from the emergency reserve to cover an unexpected expense in the group insurance program. You buy a high deductible ($30,000) insurance coverage for your 111F (Police & Fire) medical expenses [These are not covered by the typical Workers Compensation coverage.] . You normally budget for a single infusion of $5k during the course of the year into the insurer’s pool on those deductibles that you might incur. You have exceeded that pool coverage and now need to make a second infusion of $5k. The second is for $3.5k+/- from an internal transfer of unused monies in the TA Salary account to cover the out-of-class pay and staff shortages in the Treasurer/Collector’s Office while the T/C used up leave time in the run-up to her resignation and during the upcoming recruitment process. This goes to the BoS this evening for their initiation to you. The request will have more detail when it comes along.
Do kindly let me have the contact info for your new members that I might include them in future transmissions.
Many Thanks
Carter Terenzini
Interim Town Administrator
Town of Templeton
Wonder what happened to that "Do not spend it" advice from the Auditor and DOR?
posted by Jeff Bennett
Information in a letter from DLS to Templeton Board of Selectmen:
Since 2012, Templeton contracted with a succession of three individuals to serve as interim Town Administrators. I believe the correct number is two.
In fiscal year 2013 (July 1, 2012 to June 30, 2013) the Town did not renew the accountant's contract.
In 2012, longtime vendor CPA Scott Sawyer resigned his position as Town Accountant effective in June of 2012.
Sometime in the fall of 2012, Fred Aponte was hired as Templeton Town Accountant, so I am not sure where the DLS got their information but it does not seem to be accurate.
Since 2012, Templeton contracted with a succession of three individuals to serve as interim Town Administrators. I believe the correct number is two.
In fiscal year 2013 (July 1, 2012 to June 30, 2013) the Town did not renew the accountant's contract.
In 2012, longtime vendor CPA Scott Sawyer resigned his position as Town Accountant effective in June of 2012.
Sometime in the fall of 2012, Fred Aponte was hired as Templeton Town Accountant, so I am not sure where the DLS got their information but it does not seem to be accurate.
Deb,
I have submitted Templeton's Schedule A. The balance sheet will follow. I will be attending the MMAAA annual meeting at the beginning of the week and will submit the balance sheet during the week of March 24th. I will monitor my email and have my laptop if needed.
Please remember that my last day in Templeton is March 28th.
Thank you
Fred Aponte
Accounting
posted by Jeff Bennett
Saturday, June 10, 2017
A conclusion from your selectmen, Cameron Fortes:
Lending, bond ratings, and economic growth are all related. If you'd like to include a graph of Templeton's bond rating to historic levels of stabilization fund I would be very interested to see how that correlates as you have specified. However, as I see it, it would seem that the bond ratings were a sign of the times and have increased naturally not due to better financial management but due to economic growth in both then Securitized Credit and GDP levels.
Thanks for the chart,
Cameron Fortes
The costs will be the costs but it does seem that you do better when you have savings in sufficient amount to weather an economic storm so to speak. The more you have in savings and the better savings plan the better you seem to do when borrowing.
posted by Jeff Bennett
BOSTON, MA – Thursday, April 16, 2015 – State Treasurer Deb Goldberg announced today that Moody’s, Standard & Poor’s and Fitch, maintained their respective bond ratings of Aa1/AA+/AA+ and affirmed stable economic outlooks ahead of the Commonwealth’s next competitive offering.
State general obligation ratings are largely based on four main factors: the state’s economy, financial position, debt and financial management, and long-term liabilities. While Massachusetts is considered to have a relatively high debt level, it is explained in part by the heavier role the Commonwealth takes in the financing of local projects, often handled at the county level in many other states. Massachusetts’ strong financial management practices and Budget Stabilization Fund levels are generally viewed as credit strengths for the Commonwealth.
I am pleased that the rating agencies have recognized our decisive and effective actions on the Fiscal Year 2015 and 2016 budgets and the experienced team we have assembled to lead the Commonwealth’s fiscal management,” said Governor Charlie Baker. “Our cooperation with the Legislature, Treasurer, and other state officials has led to a strong fiscal foundation for our economy. Maintaining the highest bond rating in the Commonwealth’s history will provide the access to capital markets we need to begin executing our capital budget plan.
What a difference a couple of years makes.
from the DLS - UNDERSTANDING MUNICIPAL DEBT May 2016
Communities in Massachusetts have ongoing responsibilities to create and maintain their capital assets. Hopefully, decisions of this nature are based on capital improvement plans developed by analyzing and prioritizing community needs. It is the treasurer’s responsibility to maintain sufficient cash balances to meet the spending demands of departments within the limits of appropriations. Occasionally, some communities find themselves in need of a short-term infusion of cash for capital or operating purposes. For these and other reasons, Massachusetts General Law authorizes cities and towns to issue debt under certain circumstances and for various durations.
Credit Rating Agencies In Massachusetts, nearly all communities that carry bond ratings are evaluated by either of two rating agencies, Moody’s Investors Service or Standard & Poor’s, although some communities seek ratings from both. While the ratings process appears shrouded in mystery for some, it is important to remember that the city or town is a client of the rating agency, whose function is to render a third-party opinion on the municipality’s likelihood of default. In conducting an assessment, a rating agency will perform analyses of financial statements, management capability, fiscal stability, economic condition, and other data. The process will often include in-person or telephone interviews with municipal finance officials. On less frequent occasions, a ratings analyst will make a site visit to a city or town in an effort to gain a more substantial understanding of the community’s assets and management capabilities. Later, the agency will issue a concise, written report that presents the rating assignment and describes the community’s financial position. Purchasers of municipal bonds and notes use this rating when considering their bids. Typically, the better rated credits garner lower interest rate charges.
posted by Jeff Bennett
State general obligation ratings are largely based on four main factors: the state’s economy, financial position, debt and financial management, and long-term liabilities. While Massachusetts is considered to have a relatively high debt level, it is explained in part by the heavier role the Commonwealth takes in the financing of local projects, often handled at the county level in many other states. Massachusetts’ strong financial management practices and Budget Stabilization Fund levels are generally viewed as credit strengths for the Commonwealth.
I am pleased that the rating agencies have recognized our decisive and effective actions on the Fiscal Year 2015 and 2016 budgets and the experienced team we have assembled to lead the Commonwealth’s fiscal management,” said Governor Charlie Baker. “Our cooperation with the Legislature, Treasurer, and other state officials has led to a strong fiscal foundation for our economy. Maintaining the highest bond rating in the Commonwealth’s history will provide the access to capital markets we need to begin executing our capital budget plan.
What a difference a couple of years makes.
from the DLS - UNDERSTANDING MUNICIPAL DEBT May 2016
Communities in Massachusetts have ongoing responsibilities to create and maintain their capital assets. Hopefully, decisions of this nature are based on capital improvement plans developed by analyzing and prioritizing community needs. It is the treasurer’s responsibility to maintain sufficient cash balances to meet the spending demands of departments within the limits of appropriations. Occasionally, some communities find themselves in need of a short-term infusion of cash for capital or operating purposes. For these and other reasons, Massachusetts General Law authorizes cities and towns to issue debt under certain circumstances and for various durations.
Credit Rating Agencies In Massachusetts, nearly all communities that carry bond ratings are evaluated by either of two rating agencies, Moody’s Investors Service or Standard & Poor’s, although some communities seek ratings from both. While the ratings process appears shrouded in mystery for some, it is important to remember that the city or town is a client of the rating agency, whose function is to render a third-party opinion on the municipality’s likelihood of default. In conducting an assessment, a rating agency will perform analyses of financial statements, management capability, fiscal stability, economic condition, and other data. The process will often include in-person or telephone interviews with municipal finance officials. On less frequent occasions, a ratings analyst will make a site visit to a city or town in an effort to gain a more substantial understanding of the community’s assets and management capabilities. Later, the agency will issue a concise, written report that presents the rating assignment and describes the community’s financial position. Purchasers of municipal bonds and notes use this rating when considering their bids. Typically, the better rated credits garner lower interest rate charges.
posted by Jeff Bennett
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