Without a tax rate, town forced to take out a loan
Eryn Dion
News Staff Writer
TEMPLETON — The Board of Selectmen voted Thursday afternoon to allow Town Treasurer Daniel Keeney to take out a $2.6 million loan in anticipation of future revenue collection.
The decision was made during an emergency meeting, with all members except Kenn Robinson present. The board voted unanimously to authorize the loan.
According to member Julie Farrell, the $2.6 million will be used to cover the town’s expenses through the fiscal year until the tax rate is set. The rate is not set until after the books for Fiscal Year 2013 are closed, which Chairman Jeffrey Bennett explained at Tuesday’s meeting should happen by the end of the month.
The $2.6 million was based on an estimate of what the tax rate would be and how much revenue it would bring the town.
In authorizing the loan, Mr. Bennett referenced Massachusetts General Law c. 44 section 4, which says a city or town, with approval from the board, can incur a temporary debt in lieu of future revenue, as long as the loan was for less than one year and for the year the debt was incurred.
A warrant allowing the town treasurer to borrow to cover future revenue was on the last town meeting agenda in May but was passed over with no action, prompting Mr. Bennett to examine the Massachusetts General Law.
Once the tax rate is set and the revenue collected, it will be used to pay back the loan and should not add to the town’s already substantial $505,000 budget shortfall.
According to Mr. Keeney, he asked for the emergency meeting because he was worried waiting until the next selectmen meeting on Jan. 27 would not leave him enough time to get the money deposited to the town by the end of the month.
The loan would also be subject to the town’s bond rating. Moody’s most recent evaluation in July 2013 gave the town’s general obligation bonds an A2 rating with a negative outlook, which is slightly lower than surrounding towns.
Another issue waiting to be resolved until the books for FY 2013 are closed is the amount of certified free cash available to the town, which historically has been used to help set the tax levy and will this year be used to help plug the budget shortfall.
News Staff Writer
TEMPLETON — The Board of Selectmen voted Thursday afternoon to allow Town Treasurer Daniel Keeney to take out a $2.6 million loan in anticipation of future revenue collection.
The decision was made during an emergency meeting, with all members except Kenn Robinson present. The board voted unanimously to authorize the loan.
According to member Julie Farrell, the $2.6 million will be used to cover the town’s expenses through the fiscal year until the tax rate is set. The rate is not set until after the books for Fiscal Year 2013 are closed, which Chairman Jeffrey Bennett explained at Tuesday’s meeting should happen by the end of the month.
The $2.6 million was based on an estimate of what the tax rate would be and how much revenue it would bring the town.
In authorizing the loan, Mr. Bennett referenced Massachusetts General Law c. 44 section 4, which says a city or town, with approval from the board, can incur a temporary debt in lieu of future revenue, as long as the loan was for less than one year and for the year the debt was incurred.
A warrant allowing the town treasurer to borrow to cover future revenue was on the last town meeting agenda in May but was passed over with no action, prompting Mr. Bennett to examine the Massachusetts General Law.
Once the tax rate is set and the revenue collected, it will be used to pay back the loan and should not add to the town’s already substantial $505,000 budget shortfall.
According to Mr. Keeney, he asked for the emergency meeting because he was worried waiting until the next selectmen meeting on Jan. 27 would not leave him enough time to get the money deposited to the town by the end of the month.
The loan would also be subject to the town’s bond rating. Moody’s most recent evaluation in July 2013 gave the town’s general obligation bonds an A2 rating with a negative outlook, which is slightly lower than surrounding towns.
Another issue waiting to be resolved until the books for FY 2013 are closed is the amount of certified free cash available to the town, which historically has been used to help set the tax levy and will this year be used to help plug the budget shortfall.
Oh goodie more debt for the town
ReplyDeleteDoesn't sound legit in my book. There was a posted MTG a few days before & another next week. And how does paying interest not add to the debt???
ReplyDeleteGuess we now know the answer to my question to Julie. When do we run out of money?....... Next week!
So Puffy, what do you think the town should do ? Stiff everyone the town owes money to ?? Maybe you think it is ok to screw up people's medical coverage or bounce the paychecks of the people who work for us. Oh yes, I think you want the BOS to just go in and give people their pink slips with out knowing how the numbers will look when fiscal year 13 closes. Well, once these people are laid off it is really hard to call them back because the process has already been started with unemployment. It is surprising, how clear a persons vision is from the cheep seats or from the easy chair in a person's livingroom. I may not always agree with the people running the town, but I do know this BOS are cleaning up after years of questionable bookkeeping and trying to unravel a shell game that has been ongoing for many years. Jeff ran a very good meeting Monday night, and I give him credit for handling this situation with more patience than I would. Puffy, I figure nothing will make you a happy so maybe you should go into hibernation until spring. Maybe you will feel better when you wake up. Have a good day. Bev.
DeleteHow about holding the people THEY APPOINTED responsible????? Its time they stop burying their heads in the sand & holding someone else solves their problems. Step up & be the officials we elected you to be!
DeletePuffy,
ReplyDeleteYou seem intent on blaming all the ills of Templeton on me. The unanimous vote by the BOS on Thursday authorizes the treasurer to secure short term borrowing so the town can pay its bills. The BOS usually votes to allow short term borrowing as necessary. There is a budget item for the cost of short term borrowing because this is something the town needs to be able to do.
The reason for the emergency meeting is that the BOS vote was necessary for the borrowing to happen. Due to time constraints, waiting until the BOS meeting on the 27th was not a good option. It would cut the timeline for processing the borrowing too closely.
Have a great day!
Why wasn't it brought up at the previous open MTG?
DeleteThis comment has been removed by the author.
ReplyDeleteI think the voters also deserve an answer as to why the FY2013 books aren't closed and what will change to make sure that the books are closed sooner into the coming FY. This is a terrible way to run a town! Maybe we need a completely new select board? You want more money out of the towns people and yet you can't keep up with the books to know what we have in the bucket. What the heck! So many inept people trying to run a town. I truly hope a override is voted down you have already asked the towns people for enough money this year the select board, advisory board and all other town entities need to get their act together and run a fiscally responsible budget all around.
ReplyDeleteYou work with the numbers you are given by the people who are paid to maintain the books, write the checks and make sure it all adds up.
Deleteto H&P It was my judgement that with 2 selectmen due to be out of town on Friday at the MMA conference and if the vote was on the evening of the 27th which means things would not be processed & mailed until the 28th at the earliest combined with a January 30th deadline, according to the treasurer, I decided to post the emergency meeting for Thursday. An emergency meeting (one held without the 48 hour posting notice allowed under thelaw) So first off puff, you are wrong, we are not out of money next week. If you wish to ponder something, try this: if in years past the town had not used all its certified free cash to set the tax rate, there would be no problem as there would be funds in stabilization to transfer from to take care of the shortage. As was the case in Phillipston when voters rejected a tax override to fund the recent increase in their school assessment. They paid it out of free cash.
ReplyDeleteQuit skirting the issue. Who is responsible for being short??¿ Until that person or entity is held responsible, you will not get another override. I think you should start exploring bankruptcy.
Deletehuff, watch the tv or come to the selectmen meeting on Monday evening on the 27th. I did not skirt the issue you raised "doesn't sound legit in my book and why was it not brought up at previous meeting or why not wait until the meeting on the 27th?" I addressed those concerns you raised here. Rather than skirt the issue, perhaps you and the others who use screen names to question, to propose change and demand accountability, I think it would be appropriate to introduce yourself at a selectmen meeting, ask your questions and bring your suggestions as hello, I am so n so aka huff n puff and here is my question / suggestion. goog day and I hope you attend orwatch the meeting Monday evening for the blockbuster announcement from me.
ReplyDeleteNo matter how many times someone gets told something they may not get it. Stuck on stupid ring a bell.? Hellbent on negativity is how some deal with the unclear issues at hand.Dumber ,huff+truth all have nothing to add positive and only try to fuel a fire of negativity.Like you say jeff come add to the fix and open your minds to help out. Put away the mirror and tell the people who and how you can help out. Drop the 3 or 4 that post the crap and others may see some light at the end of the tunnel. Keep the ship upright Jeff,Julie,Doug,Ken,Diane. Keep your eye on the goal and next year we will get our town back as normal as it can be. I thank you all for the time and effort you have given and i hope you will all keep holding your heads high. All this has been in the makings for years and years. You are the "cure" not the illness! As stated Huff go ask at a meeting. Dumber is also welcome to opine there. Truth,just stay home. Hard for you to cross the bridge!
ReplyDeleteEnough for today
It sure sounds to me like our anonymous bloggers can't understand the truth. A mistake was made in creating the budget, plain and simple. A math error, or more like a procedure error, along with increases that no one saw coming. Large increases in retirement costs along with a couple of other increases just add to the problem. One thing I learned going through life, things like this will be fixed and life will go on. Puffy and others seem to love to stir the pot, and will not be happy until people are hurt. This is the best BOS the town has had for many years. They are not sweeping the problem under the rug like it has been done for 30 or 40 years. Again, "if it an't broke don't fix it," that kind of thinking has us in the position we are in today. Thank you to the Select.Boards in the past for ignoring what should have been taken care of many years ago. No matter what their excuse was, they did not do the citizens any favors, and as a result we will pay today.
DeleteJust so I understand your logic.... Large increases in costs are now OK for the town, business as usual you might say, but when those same costs go up for the school district, you scream bloody rape?
Deletedave please review your post above..not really constructive or helpful and certainly not the way a hopeful elected official should be representing the town of templeton. I realize you wish to run for change. I wish you the best in this endeavor but it is completely inappropriate to address people in this manner. regardless of what you think someone may or not have done.
DeleteSorry Jeff,Julie,Doug,Ken,Diane. jay no like it?I stick by my words! I thank you all.
ReplyDeletePuffy, are you really that thick?? The increases I spoke about are fixed, and can't really be changed. Gee, you sure sound a lot like Ken. and if you are, maybe it is time for you to use your real name and stand up for what you believe. Julie and Jeff have no problem using their names, so you shouldn't. Bev.
DeleteI am not Ken. If I was I couldn't be on here. That would be an OML violation. How bout you worry less about my name & more about your two sided logic.He school costs went up because of fixed costs also. Yet they LEVEL FUNDED! They even gave money back to the town.
DeleteMy point is, fix your own house before you bitch about others.
no I don't like because my view of a leader is someone who shows progress and strength like Dr. Martin Luther King. someone who creates a positve culture for people to follow. This would be my hope for templeton for a leader to create a climate where people's opinions are welcome and not attacked if they see a situation from a different perspective. I honestly don't care what the town decides to do it is HOW they do it which needs to be addressed. thank you all and god bless
Deleteoh and please delete your post as you are personally attacking me in contributing nothing
ReplyDelete5 min.
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