Municipal Finance

What is Free Cash - Free cash is the term used for a community's funds that are available for appropriation. Specifically, free cash is generated when actual revenue collections are in excess of estimates, when expenditures are less than appropriations, or both. Free cash must be certified by the Director of the Bureau of Accounts as of July 1 of each fiscal year upon submission of a community's balance sheet and cannot be appropriated until certified.

What is the Cherry Sheet - Named for the cherry colored paper it used to be printed on, the Cherry sheet combines two separate notifications to each town. The first is CS 1-ER, is the official notification by the Commissioner of Revenue to local assessors of the estimated receipts to be paid to the town by the state during the next fiscal year. The second notice, CS 1-EC, is the official notification of the estimated assessments and charges for the next fiscal year, which the town must pay for services performed by the state, county and certain regional districts. Cherry sheets are available on line at www.mass.gov/dls/cherry/index.htm.

Looking back at Templeton's practice of often using transfers from other accounts usually in the fall at a special town meeting, I wonder how we could always be told that we had a balanced budget. Often monies were transferred from dispatch salary account to pay other bills while the 911 grant funds were used to replace the salary account. The reasons to use the 911 grant money were and are specific but town meeting can transfer monies from salary accounts and others at will. The question is, if we had a balanced budget where you have x number of bills and x number of funds so you have enough money to cover all of your bills. If you have to constantly take money from here to pay other things, I would think that shows you never had enough money to cover everything in the first place. That in my opinion is a shell game, making everything look grand on paper while your financial foundation is crumbling. Just my opinion and look for more information here on finance.

Jeff Bennett