OVERVIEW OF STATUTORY TREATMENT OF MUNICIPAL REVENUES
 This summary is intended to provide general information about municipal revenues and special funds under Massachusetts law. It is not designed to address all questions or issues about these revenues or funds. Nothing contained in this summary changes the laws that govern municipal revenues and special funds.

REVENUE TREATMENT -

 A fundamental principle of municipal finance in Massachusetts is that all revenue received or collected from any source by a city, town or district department or official belongs to the general fund and can be spent for any lawful purpose only after appropriation by the legislative body. G.L. c. 44, § 53. No revenues can be segregated from the general fund into a separate fund to be reserved for specific purposes or spent without appropriation unless expressly authorized by a statute (general law or session act).

GENERAL FUND REVENUES (Estimated Receipts) 

Definition: all unrestricted revenues, including real and personal property taxes, other local taxes, such as excises, special assessments and betterments, unrestricted local aid, investment and rental income, voluntary and statutory payments in lieu of taxes and other receipts not expressly dedicated by statute. The anticipated general fund revenues for a fiscal year constitute the tax levy as a financing source (raise and appropriate), which may be appropriated until the tax rate is set. Collections during the year above the estimates used to set the rate are not ordinarily available for appropriation until after the close of the fiscal year and certification by the Director of Accounts as part of the municipality’s undesignated fund balance (free cash). G.L. c. 59, § 23.


posted by Jeff Bennett

Good Day:

First, as a reminder, I do have a prior commitment for this evening and may not be able to be in attendance to discuss the two transfer requests.  I am hopeful that, if I cannot be in attendance, the written explanations provided previously were satisfactory.

Second, I am in the midst of trying to schedule a meeting with DOR to review and discuss their concerns and expectations for the Town in closing out FY ’17, going into FY ’18 and beyond.  The tentative date(s) are June 28 or June 29, at 6:30 p.m. Please ask you members to keep those dates open and I’ll confirm with all involved as soon as I can.

Third, you may have missed it in my email of 05/30 but I had asked that you kindly let me have the contact info for your new members that I might include them in future transmissions.  I would ask again for that information as I was not able to include them in this transmission.

Finally, I have included some materials with respect to the Special Financial Edition we are now preparing to send to the printers.  The first is the DRAFT letter from the BoS.  Subject to revisions, they will act upon this on 06/12.  The second is the revised report of the Advisory Committee to correct the poor edit contained in the Annual Report and include the year end transfers.  As I told you before, we reserve the right to edit materials for clarity and to control printing costs.  As you can see, once revised for format and only those transfers approved, this has gone from eight pages to two while preserving all of the required material.  I am - of course - open to correcting any typos or factual errors that you notice so do please let me know ASAP. 

I have put copies of this material in the mailbox here at Town Hall for you.

Many Thanks

Carter Terenzini

Interim Town Administrator

Town of Templeton

160 Patriots Road

East Templeton, MA 01438

(978) 894-2753

posted by Jeff Bennett

The Division of Local Services;

In a letter from that state agency, dated May 23, 2017 and just received by the Advisory Committee has some interesting items within it. The agency will also be coming to Templeton to meet with some officials. One item in it has "In FY2013, the town did not renew the accountant's contract" First of all, the former Templeton outside vender for accounting, CPA Scott Sawyer resigned, effective in June 2012. The next accountant hired as a town employee also submitted their resignation. In effect, they left but it was not due to the town not renewing anything.

"The Bureau of Accounts had requested additional supporting documentation from the town accountant for the purpose of certifying FY2016 free cash. Since this was not received, FY2016 free cash was not available for appropriation at the May 13, 2017 annual town meeting."

There are deficits related to the school project and there is a schedule of sorts and one item states " The remaining $211,565.00 of the deficit should be raised from free cash, or if not available, from FY2018 budget cuts."

Interesting with there already being a $100,000.00 shortfall built into the FY2018 budget.



posted by Jeff Bennett

What is in a name?

State law says it is the Finance Committee or Advisory Committee or in some communities, a Warrant Committee. Somehow, somewhere, this name morphed into Advisory Board in Templeton and in some other communities. Templeton by-laws state: Advisory Committee. This is something I raised a while ago and at least one member noted "it has been Advisory Board in all the annual town reports dated back to the seventies." The email address for the Advisory Committee has Advisory Board rather than Advisory Committee. As I have previously stated, the correct name has meaning and importance because it goes to credibility and confusion. State law says Committee, Town by-law says Committee, it is the association of finance committees not board. It needs to be addressed, fixed and corrected once and for all. It does matter and if anyone is going to comment on rules, procedures, laws and other things, lets begin with the correct name and stick to it because it matters!


The name does not really affect the function but it does sometimes create confusion especially when the board of selectmen and the Advisory Committee are discussed in the same line. Is a board more "powerful" than a committee? The is one state committee that is very powerful and influential - it is the state House Ways and Means Committee. Then there is the Senate Ways and Means Committee, and we have the Municipal Finance Oversight Board. I believe if you check, you will find that financial wise, pretty much all things live and die in the House Ways and Means Committee.

That is my opinion.

posted by Jeff Bennett

How the Collector's Manual states to handle them.

In a manual for Treasurers/Tax Collectors paid for by you through taxes (nothing is free), there is a process for dealing with "bad checks" Why spend grant money, which is taxpayer money (as in income taxes, sales taxes excise taxes and on and on) on something that is already provided for. Perhaps it is another example of the government creating something so they can say they are doing something and we are solving issues! just my opinion there.

Seems pretty simple - get the collectors manual, make some copies and post in town offices and there you have it - a policy which is posted and already in existence and no need to stretch it out for thirty minutes or several weeks. Again, this is my opinion.

This is from the Collectors manual. Bad check add the fees back to the real estate or excise bill. If its for a permit/license - revoke the permit/license Not rocket science, all the rules are in the collectors' manual!

Processing Bad Checks

1. All too frequently, collectors receive dishonored checks back from banks.

In most instances, the taxpayer had tendered the check believing it would

be honored. However, the bank did not pay it because (a) the taxpayer's

balance was insufficient when the check was presented, or (b) the

taxpayer, had closed the old account before all checks had cleared.

a. In some instances, a taxpayer tenders a check in bad faith, with

an intent to defraud.

b. Whoever, with intent to defraud, makes, draws, utters, or

delivers any check, draft, or order for the payment of money,

with the knowledge that the maker or drawer does not have

sufficient funds at the bank, must be guilty of attempted

larceny; and if the money, property, or services are obtained

thereby, the person must be guilty of larceny. [266:37]

2. When notice is received from a bank that a check cannot be processed,

the bank notifies both the issuer and the town.

3. The collector may attempt to redeposit the check simply by calling the

bank to verify the presence of sufficient funds.

4. If the collector cannot successfully redeposit the check, he may pursue

one of the following alternatives:

a. The collector can reverse the payment and reestablish the

receivable as an unpaid balance.

b. The collector can pursue collection using the district court.

[218]

5. The collector may impose upon any person tendering an insufficient

funds check a penalty of 1% of the amount of the check, or $25 for a

check for less than $2,500. [60:57A] Any person so assessed may

appeal to the Commissioner of Revenue if aggrieved, and the

Commissioner may abate the penalty if he determines that the person

tendered the check in good faith, and with reasonable expectation that it

would be paid.

posted by Jeff Bennett

Squeaky Wheel gets the grease as the saying goes.

Before reading the following, consider this:
Special town meeting, October 20, 2016 - article 2: FY2017 operating budget supplement

"On a motion duly made & seconded the town voted to amend the 2017 annual town budget as voted in article 4 at the annual town meeting to add the sum of eighty seven thousand five hundred one dollars and no cents to the long term debt service line of that budget (account # 100-710-700-59-5910-0000) and further to transfer said sum from the stabilization fund to pay for the foregoing.

defeated at 7:56 by hand count requested by seven or more voters Yes 237 / No 226??

That is what the report states on the Templeton Town web site via town clerk.

A case against that transfer was made by the Advisory Committee, I spoke specifically against it, there being such a small amount of funds in those three funds (approximately $142,000.00, as presented by the town accountant) I am glad the transfer was defeated especially now after the audits which seems to show a totally different and lower amount in the funds???

Anyone else wish the selectmen had stuck with the slower more detailed audit in process before the switch to the faster audits? But then when your agenda is get a school project online regardless of the costs or consequences, what else would you expect. Perhaps that is why the accountant did not wish to release the information on the stabilization funds, just my thought.

I know, ask the selectmen, as they now provide answers when asked, according to their spokesperson.

Good Day:

Per your request; the balances we now show, as a result of the audit(s) for the several stabilization funds are:

General Stabilization        $95,334.28

Pajari Stabilization              $9,263.90

Capital Stabilization            $1,958.95

Total                                  $106,557.13

Many Thanks

Carter Terenzini

Interim Town Administrator

Town of Templeton

160 Patriots Road

East Templeton, MA 01438

(978) 894-2753

posted by Jeff Bennett

Is a code of conduct a priority for the Templeton Board of Selectmen at this time?

Consider what is already on paper, in front of them, within the Policies and Procedures for the Board of Selectmen, which were discussed in part at last night's "workshop" meeting.

A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional is held.

A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organization. Related concepts include ethical, honor, moral codes and religious laws.


The following can be found on the Town website under Boards and Committees, Board of Selectmen -Town of Templeton policies.

BOARD ETHICS:

1.     A member of the Board of Selectmen, in relation to his or her community should:

A.     Realize that his or her basic function is to make policy, with administration delegated to the Town Administrator.

B.     Realize that he or she is one of a team and should abide by all board decisions once they are made.

C.    Be well informed concerning the duties of a board member on both local and state levels.

D.    Remember that he or she represents the entire community at all times.

E.     Accept the office of Selectmen as a means of unselfish service, not benefit personally or politically from his or her board or outside activities.

F.     In all appointments, avoid political patronage by judging all candidates on merit, experience and qualifications only.

G.    Abide by the ethics established by the state and not use the position to obtain inside information on matters which may benefit someone personally.

2.       A member of the Board of Selectmen, in their relations with administrative officers of the Town  should:

A.     Endeavor to establish sound, clearly defined policies that will direct and support the administration for the benefit of the people of the community.

B.     Recognize and support the administrative chain of command and refuse to act on complaints as an individual outside the administration.

C.    Give the Town Administrator full responsibility for discharging his or her disposition and solution.

3.      A member of the Board of Selectmen, in his or her relations with fellow board members, should:

A.     Recognize that action at official legal meetings is binding and that he or she alone cannot bind the board outside of such meetings.

B.     Uphold the intent of executive session and respect the privileged communications that exists in executive session.

C.    Make decisions only after all facts on an issue have been presented and discussed.

D.    Treat with respect the rights of all members of the board despite differences of opinion.

I leave to you if the above covers both ethical behavior and conduct in a responsible manner.

posted by Jeff Bennett