BOS Meeting December 16, 2013

BOS Meeting December 16, 2013

This was one very long BOS Meeting! First the good news!

COA Van – COA Director Bethany Loveless approached the BOS about submitting a bid for a used van. The bid was submitted and we won! The bid was $3,612. Good news, but wait there’s more! Bethany contacted Rep. Denise Andrews and with her help the actual bid was lowered to $1,635. I’m sure there will be an update in the COA newsletter, probably pictures as well.

Vendor Warrant Checks – If departments need a check for a vendor held, departments may make the request to the town coordinator for approval to hold the check. It is a better business practice that there is a single of contact to issue vendor payments. This procedure is a change to past practices with a goal of better financial management.

MIIA Workers Compensation Insurance – The BOS voted to accept the 2-year proposal from MIIA with a goal of re-instating the IAC-Insurance Advisory Committee to review all insurances for the town.

The Board voted and approved a Class II license for Lang’s Old Car Parts and a Class III license for JL Auto Parts. A motion was made to disapprove the liquor license renewal for the Otter River Hotel due to taxes not being paid and no building inspection.

Mass CDBG Fund application was awarded to Community Opportunities group in the amount of $9,900. Only one person showed up for the public input hearing. There are three more public input sessions scheduled for January to solicit public input on the community needs for this grant. The sessions will be held on January 7^th (2 sessions) and at the January 13, 2014 BOS meeting.

Six bids were awarded for work on the Senior Center for the Emergency exit ramps and the main entry way and the cricket roof and fascia.

Tax Rate Issue – generated the most discussion. Templeton has a deficit on the books of $505,000 higher than local receipts. There are two ways to close this gap – raise taxes or reduce expenditures.

The analogy was used that someone copied someone’s homework and the homework was no good. The model used to develop the FY 14 budget was flawed. Some possible options to deal with the shortfall:

1.   override

2.   cut the budget

3.   use available funds.. stabilization and money for other accounts to make up for the shortfall.

Or a combination of all three.

After discussion, the BOS voted to freeze all hiring and discretionary spending with review by the town coordinator.

The BOS also voted to instruct department heads to submit budgets for FY 15 with a 2 % reduction.

This budget crisis has developed over a long period of time. The lack of continuity in the treasurer’s office as well as the transition to new accounting software and procedures brought this problem to light.

In the past, the town has voted to use every penny of free cash and stabilization to balance its budget. In one year alone, the Town (at town meeting) was presented a budget that used over $600,000 in Free Cash and $200,000 in stabilization. Free cash is something that fluctuates from year to year. Relying on Free cash to balance the budget is bad policy.

Town finances are restricted by Prop 2 ½. The amount raised by increasing 2 ½ percent is very limited. The levy limit projections for the next 5 years without overrides debt exclusions or new growth show that next year (FY 15) the additional amount raised by taxation is $219,496. That $219,496 has to cover all increases in insurances, employee raises, and overhead expenses like heat, water and sewer…not to mention demands in increased assessments by the school department and Monty Tech…or the town can deal with another round of the nuclear option.

 There will be another BOS meeting this month on December 30^th. By that time, more information should be available on closing FY 13 and the status of the books for FY 14. Another STM will need to be held.

In other business –

The Sick Bank has over 600 hours of leave in the bank. The employees of Templeton generously donated this time. Withdrawals are at the sole discretion of the BOS.

The warrant for the ballot election scheduled for January 14, 2014 was voted and signed by the BOS. More information will be forthcoming regarding the non-binding ballot question.

Town Coordinator issues – discussion about the policies and procedures of the BOS which was voted by a prior board. Changes were made to this policy. The red lined copy was discussed. The change from Town Coordinator to Town Administrator was also discussed.  A job description for Town Administrator will need to be developed by the BOS.

The BOS appointed Chris Stewart to the Templeton Elementary School Building Committee.

The COA by-laws were discussed and some changes were suggested by the BOS. A letter will be sent to the COA board explaining the reason for the changes to the by-laws.

There will be another informational meeting regarding sewer rates by the Sewer commissioners on January 6^th at 4:30 pm at the Sewer Department during the regularly scheduled Sewer meeting.

Under selectman comments –

Chairman Bennett took exception to the inaccuracies in the TMLWP general manager’s letter to the editor regarding the 23 % water rate increase. Tighe & Bond the consultants who were contracted for the water rate study are also the firm who post the water rates across Massachusetts. Templeton’s water rate is listed at $801.00 annual cost by Tighe & Bond.

My opinions… supported by FACTS ! ! !

 Julie Farrell

 The movie is coming ...4 parts