Update from Selectmen's Budget Meeting
To begin the meeting, John Columbus stated he needed a clear and compelling reason to review the budget.
So maybe the FACT that the selectmen's budget that was approved by voters at town meeting, was full of inaccuracies and the new growth figure was not accurate is not compelling enough to discuss the budget for Mr. Columbus.
A few tidbits from this meeting - the raises are not longer termed "Salary Adjustments" but "Equity and Merit Pay".
$35,000 was allocated in the FY 17 selectmen's budget for raises, excuse me "equity and merit pay", however over $55,000 was distributed in "equity and merit pay". It was stated at this meeting that some of the selectmen were not aware of the raises that were given out BY THEIR OFFICE!
One option to maintain the "equity and merit pay" would be to reduce the town fuel account which was approved at $100,000 by town meeting. With all of the transfers last year, $40,000 was taken out of the fuel account and fuel prices are projected to remain stable. ( see Wood Chip boiler)
Another way to fund some of the budget shortfalls would be to use the money from OPEB from FY 17. The "OPEB" money was not appropriated at the May Town Meeting so it may be available to fund any shortfalls in the FY 17 budget.
OPEB- Other Post Employment Benefits
The question was raised what happens if Templeton doesn't fund OPEB?
The FY 16 appropriation is just sitting off to the side. Templeton will not be able to establish an OPEB account until:
1. an actuarial analysis has been done to determine the town's liability - which will be a large amount!
2. the "penalty" for not funding OPEB is Templeton won't receive a clean audit report...whenever that may happen.
3. Bonding agencies may see a lack of an OPEB account as a negative and it will impact our non-existent bond rating.
To obtain a bond rating bonding agencies will look at Templeton's debt( good luck with that!), Templeton's revenue stream, and Templeton's liabilities. Basically, is Templeton more like Cambridge or more like Puerto Rico...no further comment needed here.
Possible warrant articles were presented by the interim town administrator, Carter Terenzini.
1. Late bills from the sewer department which will require a 9/10ths vote at the STM.
2. An article for the scholarship fund
3. Bond issue article for repaying 252 Baldwinville Rd.
It seems the bond repayment for 252 Baldwinville Rd got messed up. It was stated the town will need to locate an additional $87,5000 for the FY 17 bond payment.
Options to to come up with $87,500 - cut the operating budget, increase revenues or take from the stabilization account.
It seems Templeton can pretend it has more revenue than it actually has. Sort of like FY 13!
Stay tuned. Sept 6th selectmen meeting will be have the more information on options for the budget.
Another way to fund some of the budget shortfalls would be to use the money from OPEB from FY 17. The "OPEB" money was not appropriated at the May Town Meeting so it may be available to fund any shortfalls in the FY 17 budget.
OPEB- Other Post Employment Benefits
The question was raised what happens if Templeton doesn't fund OPEB?
The FY 16 appropriation is just sitting off to the side. Templeton will not be able to establish an OPEB account until:
1. an actuarial analysis has been done to determine the town's liability - which will be a large amount!
2. the "penalty" for not funding OPEB is Templeton won't receive a clean audit report...whenever that may happen.
3. Bonding agencies may see a lack of an OPEB account as a negative and it will impact our non-existent bond rating.
To obtain a bond rating bonding agencies will look at Templeton's debt( good luck with that!), Templeton's revenue stream, and Templeton's liabilities. Basically, is Templeton more like Cambridge or more like Puerto Rico...no further comment needed here.
Possible warrant articles were presented by the interim town administrator, Carter Terenzini.
1. Late bills from the sewer department which will require a 9/10ths vote at the STM.
2. An article for the scholarship fund
3. Bond issue article for repaying 252 Baldwinville Rd.
It seems the bond repayment for 252 Baldwinville Rd got messed up. It was stated the town will need to locate an additional $87,5000 for the FY 17 bond payment.
Options to to come up with $87,500 - cut the operating budget, increase revenues or take from the stabilization account.
It seems Templeton can pretend it has more revenue than it actually has. Sort of like FY 13!
Stay tuned. Sept 6th selectmen meeting will be have the more information on options for the budget.
Love the merit and equity pay.............just means its a way for "bosses" to support their "pals"...........
ReplyDeleteHow is "Merit" measured?