With town facing a cash flow problem, residents lend a helping hand
Eryn DionNews Staff Writer
TEMPLETON – After last week’s heartwrenching budget cuts closed this year’s $505,000 shortfall, the Board of Selectmen will soon be taking steps to address their second pressing issue – the town’s cash flow problem.
With no tax rate set for Fiscal Year 2014, the town has only been able to collect minimal revenues, leaving them with $3 million in obligations left until July 1 and only $2 million in the bank. Without additional tax revenue, interim Town Accountant Matt Angell estimated the town would run out of money on June 13 and without a balanced budget, the town could not get their tax rate certified. Exasperating the problem was a bond payment coming due on June 15 that the town could not afford to default on.
In an attempt to tackle the problem, Town Administrator Bob Markel reminded residents that they could make early payments towards their tax bills and Police Chief David Whitaker said he would like to get word out to the community.
“Last week a Code Red message was sent out from the Police Department asking residents to come in to make early tax payment,” Mr. Markel said. “As of today we have about $150,000 in tax money has arrived.”
Those who came in to pay, according to Mr. Markel had not been presented a tax bill but wanted to do what they could to help the town through its financial issues.
Moving forward, Mr. Markel explained the town’s strategy to have this year’s cuts to the operating budget formalized during the Special Town Meeting to be held within Saturday’s Annual Town Meeting.
Budgets can only be adopted on Town Meeting floor, and can subsequently only be changed on Town Meeting floor.
The board has scheduled a tax classification hearing for Monday, when they will hear from the Assessor’s their recommendations and vote to adopt a rate.
“Assuming all this goes according to that plan, I was told by Gerard Perry (of the Department of Revenue) that if we can present the so-called tax recap and we can present a certified copy from the Town Clerk that the cuts have been made at the Town Meeting, he will certify a tax rate on Tuesday,” said Mr. Markel.
Following this timeline, Mr. Markel said he expects tax bills to be sent out by the end of the week.
“The town stands a good chance of getting through this year without any more damage,” he said.
Per the recommendation of the Department of Revenue, the deficit legislation allowing the town to accept a state loan and financial receivership will feature on Saturday’s Town Meeting Warrant, although Mr. Markel said this is just an “insurance policy” if all does not go according to plan during the meeting.
I kicked in my share in yesterday, at least part of it. I gave the tax collector 1600.00, and that is like a down payment. Do you realize how many tomato plants you would have to sell to make that much money?? Too many !! Things are going to get tough for a lot of people in the near future, and I do not see any help from anyone else. In the past, the Light Department helped the town every year by giving them a PILOT, and also giving the town surplus funds. With out that help, and nothing to replace it, the burden falls on the taxpayer. Mr. Driscoll had a busy year hiding the light company's surplus funds, so he can tell you they have no money..If you buy that line, you are a fool. The 45,000 deal is not a deal at all, seeing they managed to give the town more than that in 1976. Bev.
ReplyDeleteBev i think more than it falls on the taxpayer it falls on the town employees and the kids who will suffer the most.
ReplyDeleteThe Light department just raised the rates and had a rate study done also.
So tell me why don't they fund the opeb like it should be and continue to pass the buck off without addressing the issue of the cost. Without higher rates than they charge us now we will be charged more later. Part of the pilot money went into the new account they just started at MMWEC for the increases to OPEB liabilities i have brought up in the past. The rate we pay should be a fully funded operation and not a pay later deal to make the Department look as though it does things right.
Our rates should be alot higher but thats like taxes taxes in Templeton,what you pay now will hurt more when you find out you were not paying enough all along. But those in charge then knew that all along. The town government doesn't hide this now but the Light commission does continue their our rates are lower than the grids mentality.We will pay more in the end just like the taxes now will have to go up more, much quicker.