Templeton didn't make a mistakeTempleton didn't make a mistake

Templeton didn't make a mistake

To the Editor: 10/22/2014

To the Editor: A Letter to the Editor from Barnard Heaney regarding the failure of the town of Templeton to bill its independent enterprises, the Water, Sewer and Light departments, for their respective shares of employee benefits accurately refers to a situation that existed in June 2014. However, the problem has been corrected. Mr. Heaney pointed out at an Advisory Board meeting in June that the town was not billing the independent enterprises for their proportionate shares of health insurance and the Worcester County retirement system. Billing of the independent enterprises had been done in the past, but the practice was discontinued by a previous Treasurer. When I learned of the problem, I met with the Acting Town Accountant and Acting Treasurer and instructed them to resume billing and to ensure that all funds owed for Fiscal Year 2014 were collected. Independent enterprises were billed in July, and reimbursements owed to the town are being collected. Billing will continue on a regular basis, I have assured the Board of Selectmen and the public on several occasions that this problem has been remedied. Mr. Heaney commented that the Sewer Department owed $60,000 to the town in June and that these funds could have been used to avoid the shutdown of most town services in May and June of 2014.  This is not how the budget process works. If the Sewer Department had paid $60,000 to the town last June, the money would have been deposited as a reimbursement into the town’s benefits accounts. There is no legal way that those monies could be used to pay employees salaries. The retirement system and health insurer require town government to pay the entire costs of their services up front.  In turn, the town is reimbursed by independent enterprises for their proportionate share of these costs.    The town budget is voted by line item at the Annual Town Meeting. It is illegal to shift funds around to pay salaries or for other purposes without a vote of the Town Meeting. This is apparently what happened in Winchendon. Moreover, if a Special Town Meeting had been convened to re-program the $60,000 to pay employee salaries, there would have been a $60,000 deficit in the benefits accounts. There is no excuse for the town not billing the independent enterprises for the health care and retirement costs for their employees, but when the problem was made known, corrective action was taken. The budget cuts at the end of Fiscal Year 2014 were very painful for town employees as well as town residents who saw an interruption of services.  But the crisis is now over. Templeton is coming out of the financial trough and moving towards fiscal stability and sound financial management. I have confidence in the town’s new team of financial managers, and residents of Templeton can have confidence that town finances are being managed effectively and according to the law.  Robert T. Markel Interim Town Administrator Templeton