Town focuses on solving fiscal issues after news of budget shortfall

Town focuses on solving fiscal issues after news of budget shortfall

Eryn Dion
News Staff Writer
TEMPLETON — In a time when many residents are wondering why the town is currently facing a $505,477 budget shortfall for the year, Interim Town Administrator Rob Markel and department heads are focused on moving forward.

“I’m focused on solving the problem,” said Mr. Markel, “I’m going to go forward and not get involved in any battles.”

Mr. Markel, who described the town’s budget problems as his ‘number one priority’ has already caused a stir by removing Town Treasurer Dan Keeney from his position on Monday, a decision he said he reached after meeting with department heads that morning. At that meeting, Mr. Markel said he heard an “avalanche of criticism” from departments about the quality of work coming from the Treasurer’s office, leaving him with little choice but to remove Mr. Keeney.

“I don’t take decisions like these lightly,” he commented.

Weekly department head meetings are just one of changes Mr. Markel has brought to the table as a way to navigate the financial storm, which includes restructuring the financial management of the town.


At their next meeting, the Board of Selectmen will review articles submitted for March 29’s Special Town Meeting, which will be held in conjunction with the Narragansett Regional School District and Elementary School Building Committee. The meeting will hopefully provide a long sought after resolution to this year’s budget troubles, with the board likely offering articles for an override and budget cuts to close the half-million dollar gap. Mr. Markel said an article to combine the Town Treasurer and Tax Collector roles was also submitted, a move which would consolidate town offices and save time and money.

Using certified free cash to once again patch the hole is a tempting option and the board rescheduled a previous Special Town Meeting to buy more time to receive that number from the Department of Revenue. But with the books for Fiscal Year 2013 still not closed, it is looking increasingly unlikely that the funds will be submitted, reviewed, and certified in time to be used.

Deb Wagner of the Springfield Division of Local Services will meet with Mr. Markel early next week to look over the town’s finances and offer guidance. Dan Bertrand of the DLS’s Boston office said Templeton is one of about 13 towns that does not yet have a tax rate, which cannot be set until after the FY13 financial records are submitted.

“We’re not just going to swoop in,” Mr. Bertrard said. “We have a good working relationship with these towns.”

But for residents and officials still grappling with the “why” of the shortfall, looking at the hard numbers only brings more questions.

A sheet outlining just where the $505,477 gap came from was made available after Monday’s selectmen meeting. According to the information provided, there is a serious discrepancy between the town’s forecasted revenue and expenses, which were used to create the budget, and the actual money available after the tax recap.

The finance board’s projections had both the town’s revenue and expenses listed at $12, 85,982, creating a balanced budget. However, the town actually brought in $12,645,197 in revenue through the tax levy, state aid, and local receipts. While the town made more than estimated, it also incurred significantly more expenses than had been initially forecasted. The $505,477 shortfall can be found by taking the town’s $13,150,674 in expenses and subtracting the $12,645,197 made back in revenue.

Revenue and expenses are further detailed on the sheet, where the breakdown between the forecast and reality become more apparent. Some are relatively easy to decipher, for example, the $160,000 generated by the town’s ambulance service was counted as revenue but not listed as an expense, inflating the town’s anticipated profit.

Other differences elude explanation, such as the town’s tax levy and long-term debt. According to numbers given, the town was projected to receive $8,906,631 in tax revenue, however the real number was $126,791 lower. The debt also jumped a significant amount, from the $808,542 anticipated to $1,391,046 recorded – over half a million dollars more. Reasons for these discrepancies are not readily available and many worry that if not addressed, these deficits could cause recurring budget concerns further down the line.

The town is also facing several difficult deadlines in March. According to a letter sent by the DOR, the DLS will soon stop all state aid payments if the town’s Schedule A forms are not submitted by the end of the month, and will withhold the March payment if they are not received in the next week. The loss of state aid would be catastrophic to the town’s already delicate finances and both the administrator and Town Accountant are working diligently to complete the process. 

A Special Town Meeting has already been scheduled to hopefully solve this year’s shortfall. The board hopes to host several educational Town Hall meetings prior for residents to come, ask questions, and learn about their options.

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Budget recap sheet