Wednesday, April 16, 2014

Shortfall still $505K after state's visit

Shortfall still $505K after state's visit

Eryn Dion
News Staff Writer

TEMPLETON — Representatives for the state Department of Revenue recently met with the town’s financial management team for several hours in order to take a closer look at the town’s debt — offering officials a rare glimmer of good news.

Last week, Town Administrator Bob Markel reported that the state was concerned about the amount of the town’s budget shortfall,   stating it might be $585,000, as opposed to the $505,000 previously estimated. After reviewing information presented by Templeton’s acting accountant, DOR representative Matt Angel did not find any discrepancies and the budget gap ultimately remained unchanged.

“They were convinced and said to me at the end of the day, that they believe the shortfall this year is $505,000,” said Mr. Markel. “We don’t have to worry about another $70,000 or $80,000 tacked on to that.”


The department reviewed debt issues dating back to 2004, cross-referencing them with town meeting votes and asking questions to ensure all debt was reported correctly. Mr. Angel will be creating a debt schedule to be posted on the town’s website, which will outline all the borrowing undertaken by Templeton and projected future payments.

Also under the state’s microscope, is the proposed 5 percent municipal budget cuts to be enacted during the Special Town Meeting within this year’s Annual Town Meeting — which will amount to an estimated $150,000 reduction across the board.

“They wanted to make sure that those cuts are real, that the monies are available and that we go ahead with the deductions,” Mr. Markel explained. 

Should voters reject the Proposition 2 1/2 tax override, and the revenue department submit special legislation to allow the town to operate in a deficit, the state would likely be unwilling to loan the full $505,000 and would expect the town to contribute some of the funding in the form of budget cuts and other efficiency measures. Mr. Markel said the threat of state control is very real, as the revenue department has been preparing the deficit legislation and has already outlined to officials their course of action.

The state representatives said Monday that the department would not send a control board or an overseer — like they have in other communities — but that the town would be placed in a financial straitjacket. All expenditures and significant activities in town would first need to be approved by officials in Boston.

Mr. Markel reiterated that, while state control may seem “superficially attractive” to some residents, it comes with a number of decidedly unattractive consequences — including a negative impact on the services provided by the town, reputation, ability to attract talented employees and property values.

The shortfall figure has temporarily fluctuated over the past few months, with the state claiming in separate instances the $505,000 figure to be greater or less than what was estimated. Residents were understandably concerned that there might be a bigger shortfall lurking in the books, however, Mr. Markel assured there were no more surprises and the $505,000 figure was final.

“It’s over,” he said. “No one’s going to find anything more.”

If the override passes at the May 5 Town Election, the board will hold a tax classification meeting the following day to set the tax rate and have it sent to the state for approval. Mr. Markel expected tax bills to go out around May 11 or May 12 — allowing the town to collect some tax income in time to cover the $2.6 million loan taken out in January in anticipation of revenue.

If that cash flow fails to materialize before the loan’s June 30 due date, Mr. Markel said the town will need to use every resource available, including tapping enterprise funds.

“We’re really down to no good options if that happens,” Mr. Markel said. Overall, Mr. Markel described Monday’s meeting as positive — saying the state has been very cooperative and is going out of their way to help Templeton through its budget crisis.




5 comments:

  1. If that cash flow fails to materialize before the loan's June 30 due date,Mr. Markel said the town will need to use every resource available,including tapping ENTERPRISE funds.
    SEWER,LIGHT,WATER, to name the few.
    Will the people we vote to help protect our people,town,and assets work for the people or will they play protect what "they" have with a call to their lawyer to see if they need to follow any laws this time.
    John Adams wrote the Massachusetts first constitution the U.S.constitution is based on. In it we were given the duty to vote and choose the people who will create justice and fairness in the public trust for the people. Our commissions are formed to do this for us above all. Not one of the commissioners answered my question that way. The most important thing is for them to follow the laws, so why don't they make the TMLWP general manager follow the laws? Why do the citizens have to prod till they do. I will look forward to work with,for and by the people who vote me to replace Dana and those who vote to keep him the same. I will support the commission and the members with knowledge i can share.I will be a team member who will assert values to grow Templeton for the better town we all want. It is time for Templeton to get a firm handle on what we now have and what we are exposed to. It is our business after all, All of it.
    Please Vote it's our duty to do so,your vote picks the justice Templeton will live with for years to come.


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    1. frankly your rely on representational government and your dead wrong , The form of government we are left is a constitutional republic in which everyone of us has rights , we do enlist committees but it is the people who instruct . I have yet to see the selectmen favor a vote for any decision / in taking my appeal on the by law LV and question 3 on cannabis issue the selectman failure to throw off the by law due to the number of votes which was 3 to 1 in measure . To continue respectfully most of you should stand down in look back at what your writing you are for-filling a progressive socialistic holding hostage property owners to your expansion , refusing to draw back and hold town employment and spending , the past elected cause this as they too expended the town . we only have to look at who driving bran new trucks and cars

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  2. I have seen signs asking the people of our town to support Dana, for the job of Water and Light Commissioner. I would like to ask these people why do they support him ?? It is a simple question. Is it because he has been a commissioner since the Light Dept was removed from the town control ? Not the best of reasons to me. The Light and Water Commissioners do not feel they have any loyalty to the town. Why support anyone that does not have the awareness of what rebates the rate payers have coming to them, just for being a member of MMWIC. Why support a candidate that would not support help for the "people on public assistance or have a disability." It would cost the business too much, people would take advantage of this benefit", according to this person. "We do things right over here" according to this candidate. It is something to note that when Mr. Spring, Dave and Bart and I went to the Light and Water meeting to ask them to help the town, we were told "it was not their problem", and they had no desire to help the town. I remember a time that we did get help from our Light Department, but as they eat steak while the rest of the town departments exist on bread and water, some of us know wrong when we see it!! Now what was that reason you support this man ?? This is my opinion, Bev.

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  3. You want facts : preposition 2 & 1/2 was voted in why to control the town for restriction to limit government expansion though spending ect.. and its working so stand with it .. here is fact 1 The state of Massachusetts has a surplus of $ 686,000 ,000 million dollars / collected in property taxes ???ummm the state will never send back a refund ??like the town useless incisions... or is there a law ??? , do you question is there law?? that allows town of collect back form the state coffers any surplus funds umm bet your rep >> hasn't even investigated this ? NO why not youmight asked ?? because you property owners are sap ... Now yet the only solution put forth is to tax you more on property taxes taxes taxes and more so called incisions of ideals please , just say NO Over and over and over and maybe there get some good advise here on line >>
    massvocals maybe WE can threaten legislation to take back the surplus form the state paid in MAYBE ?? but is there a law my question to you concern .. ask your rep right now ??

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  4. Income tax and sales tax goes to state. Property tax to town or city!

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