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Sunday, November 12, 2017

Proposed Use of Free Cash in Templeton

Proposed Use of Free Cash in Templeton

From the Interim Town Administrator:

 "Working Capital" = $199,192 . "Working Capital" = Slush Fund ? Is there a line item in the FY 18 budget for "Working Capital"? 

No?

Really?

From the Warrant for the Special Town Meeting November 14, 2017:



So where will the remaining $199, 192 in Free Cash go? 

Maybe a good chunk of $199,192 should go to Stabilization or OPEX?



 

2 comments:

  1. I'm not liking the apparent diversion of cash from reserve funds.

    Town policy:

    Upon certification of the Town's free cash, the Town Administrator shall prepare a plan of its useto guide the expenditure of free cash. He shall, first deduct an amount anticipated to be needed at the Annual Town Meeting to meet unanticipated operating deficits such as snow and ice. He shall then deduct for extraordinary or unplanned needs which have arisen since the annual townmeeting with a target of having a remainder of no less than fifty percent of the certified free cash.The remainder shall be, subject to rounding factors, used for contributions to reserves and asworking capital for the balance of the fiscal year, provided that it shall be available for appropriation for capital needs at the annual town meeting, as follows:

    I know I'm being picky, but please tell me how the OPEX Deficit from previous years fits from this paragraph!!!

    It's not for the upcoming annual meeting
    It's not since the last annual town meeting.

    So the policy says remaining 50%...........well $396,588 is actually 38% of $1,042,000. The mmissing 12% of $125,110 is more than we now have in stabilization + Capex

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  2. A couple of interesting points that should be pointed out. The 11/11/17 memoranda above needs correction. The CAPEX "backfill" is now $30,000. This begs the question as to which of the remaining numbers change?

    Another interesting tidbit is that reading the Warrant i see only $445,896 of the total $1,042,588 being alotted with any specificity.

    Article #1 $223,396 ------- 2013-15 deficit

    Article #5 $30,000---------OPEX backfill

    Article #6 $25,000--------- Inspectional expenses

    Article #7 $167,500-------- Capital expenditures

    Total $445,896-------- TOTAL FREE CASH ALLOCATED BY TOWN MEETING


    In this memoranda above the TA quotes the financial policy which incudes " with a target of having a remainder of no less than fifty percent of the certified free cash."


    NO LESS THAN FIFTY PERCENT !!!!!


    Scratching my head.........

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