Why?
Return
of Money to Casella from Water Department
On
November 13, 2008 (FY 09) a check was made out to Casella Waste Systems in the amount of $369,681.40. This “settlement” was never brought before town meeting even
though it is significantly more than $1,000. (See Bylaw Article VII – Legal
Affairs section 2)
In
FY ’09 $665,959 in Free
Cash was used to balance the town’s budget. Why did the BOS vote to return
a gift of $369,681.40 to Casella?
Without a town meeting vote?
The Town could use that kind
of money right now!
Also-
The
invoice itemizes the total as
$142,671.47 from account 29-3-350-000 (FB Zone 2 Delineation Water department)
and $227,009.93 from account 63-3-300-000 (Landfill Enterprise Account).
How did the water department
receive money from Casella for the Zone II delineation? When did town meeting vote
to give the water department money from Casella?
Why
didn’t the DOR question this
transaction?
Why?
What is certified free cash? Free cash is a term to describe funds available to a community for appropriation. Free cash is generated when actual revenue collected is more than estimates of expenditures or expenditures are less than appropriations or both. Free cash must be certified by the director of bureau of accounts as of July 1 of each fiscal year or anytime after that date upon submission of the town's balance sheet and cannot be used until certified. Once it is certified, it can be used for appropriation at the annual or any special town meeting. (a special town meeting is any town meeting other than the one required annual meeting) Free cash may be used for any legal municipal purpose. Free cash balances do not necessarily carry over to the next July 1, the director's certification expires on June 30 of the fiscal year (a fiscal year for the town begins on July 1 and ends on June 30, FY14 begins July 1, 2013 and ends June 30, 2014) Things that affect free cash are actual revenues and expenses versus amounts budgeted, the collection of property taxes, the less collected, the less free cash likely. The amount spent in the previous year and any deficits in both general funds and other funds, like deficit spending on snow & ice. You spend more than you appropriate so that money has to come from somewhere. Hope this helps people understand what is free cash and how it comes to be
ReplyDeleteWhat is a stabilization fund and how can it be spent? Towns can establish 1 or more of these funds for different reasons. A stabilization fund is a special reserve fund into which monies may be appropriated and reserved for later appropriation for any lawful municipal purpose. Money accumulated in such funds carry forward from one fiscal year to the next. Interest earned in one particular stabilization fund stays with that fund. It requires a 2/3 vote of town meeting to establish and appropriate into or out of each such fund. It also requires a 2/3 vote amend or change the purpose of each fund. Stabilization funds allow a town to save money for future years or avoid borrowing for capital projects. For example, towns often fund items like fire trucks, highway equipment or building repairs from these funds. Use of a fund avoids having to incur debt and saves interest costs on borrowing.
ReplyDeleteWould the financial picture of Templeton be better and would the highway dept. for example have better equipment or the elementary school buildings be in better condition if the town's free cash had been put into stabilization funds rather than used in setting the tax rate. Could the town have borrowed less and have less long term debt? Would the town be better off financially if the tax rate had been raised over the years and free cash been put into stabilization funds One thing is the town now has someone in Doug Morrison who is putting together a capital plan and hopefully moving forward, any free cash will be put into stabilization to allow the town to keep debt low and equipment and building funded and in good condition.
ReplyDeleteThere was a reference to surplus overlay funds at one BOS meeting and some discussion on who, what and how, concerning the use and determination of use. So, abatements and exemptions funded from the overlay account. This is a special account, the amount of which is established annually by the assessors prior to setting the tax rate. The amount established for overlay should reflect the expected amount needed to cover abatement and exemption costs. When there is a balance in the overlay account, it may be transferred by the board of assessors to an account called overlay surplus. These funds may be appropriated by town meeting for any purpose for which a town may expend funds. At the close of the fiscal year, any balance in the overlay surplus account becomes part of free cash calculation on July 1 of the following fiscal year.
ReplyDeleteAbatements are a thing where taxpayer files a request because they feel the assessed value of their property is too high or is disproportionately assessed. The BOA examine the circumstances to see if the request has merit. If it does and the assessors find in favor of the taxpayer, an abatement is granted and the taxpayer will receive a reduction in their tax bill. Exemption from taxation is a statutory privilege conferred on various categories of persons or property. Some of the most common are religious or charitable organizations, disabled veterans, elderly and blind persons.
ReplyDeleteThank you JEFF for your insight and input,as Templeton is in need of it now and in the future. I only hope the voters in Templeton see what they need to and keep out the former board members we never need in office again. I wish you were still on the team but i can understand why you are not.
ReplyDeleteThank you again for informing Templeton.