Pay Off Debt Or Lower Taxes
For a refresher on Free Cash click on this link for the
6. Limit the Use of Free Cash
We recommend that the town limit its use of free cash. While officials in Templeton have been successful at generating free cash because of their
conservative budget practices and avoidance of year-end
deficits, it has been a longstanding practice to appropriate a significant portion or all of certified free cash to “reduce the tax levy” at the annual town meeting. As
indicated in Appendix A, Table III, between FY2005 to FY2010, town meeting appropriated an average of $709,013 per year or 81 percent of free cash to support ongoing operations.
As a result, there is an expectation that a significant portion of free cash, a one-time revenue source, will be used each year to offset recurring expenditures.
In order to achieve a sound and sustainable annual spending plan, Templeton should wean itself off its reliance on free cash to balance the annual budget. The wisest use of free cash would be for non-recurring expenditures, such as outlays for one-time capital projects or purchases, or it could be appropriated to reserves. If free cash is used to stabilize the tax levy, we suggest that the town retain an
incrementally larger portion of free cash as unexpended to serve as a beginning point in the subsequent year’s free cash calculation.
So in 2010 $882,486 dollars in Free Cash was used for the operating budget.
ReplyDeleteIn 2007 over a MILLION dollars of Free cash was used for the operating budget.
In those fiscal years there were audits performed. In those fiscal years, I spoke out and was opposed to the use of Free cash to supplement the operating budget. I wrote editorials to newspapers. I spoke out a town meetings on this issue. People did not pay attention and voted theses amounts at town meeting.
The use or rather misuse of Free cash is one of the major reasons the town has lost its bond rating.
In my opinion, and the opinion of the DOR, the wisest use of free cash would be for capital expenditures...like equipment for the highway and cemetery and police and fire departments.
In Templeton all expenditures of Free Cash come before town meeting for a vote.
BUT YOU HAVE TO PAY ATTENTION!
So it would be fair to say the old way the town ran it budget is by a 20% or more from the returns of the prior year. With the combination of the light and water departments we now see the struggle our town has keeping thing afloat.
ReplyDeleteTo top it all off the amount from the pilot used by the light department for its own free cash account causes even more stress for the books to become balanced.
We were told when the pilot was removed from the cost to the light dept there would be road projects done and a equal amount would be spent for the towns needs.
Has anyone seen that happen?
Has any selectman asked about it?
WOW we get free electric for the town buildings and street lights/FREE
When asked how much the bills are total answer was 48,000.00 per year average.
This does not count the schools.
So do the math pilot amount 150K average/should be more with the rates we pay
minus the 48k = 102k and the cost to give away the 48k would be more like 32k
So with the new solar deal and LED low power street lamps why would we charge the town for the price of a more expensive power source. Gregg Edwards does not speak up and complain so why reelect someone who won't speak up for the people in the town?
The three commissioners would rather fill the bank accounts of the Light Department and act as though it's not our business they try to run.
Where's the projects.
Better yet where's the 450,000.00 we paid extra over the three years.
Time to abolish the customer charge and call the projects our own wallets.
After all it is our business.
Vote SMART
L+W Commission