Making Finances Work In Templeton

Making Finances Work In Templeton
Bond rating should be recovered in time for school project
Rebecca Leonard
News Correspondent

TEMPLETON  One question on residents’ minds in Templeton is how the town can intend to borrow $48 million for a new elementary school without a bond rating.

“I’m anticipating our financial records will be finished and audited by the end of the fiscal year,” stated interim Town Administrator Bob Markel.

After the auditing of the town’s records from the last three years, Mr. Markel said, the town will come back with a “respectable” bond rating and possibly $500,000 in free cash (leftover funds) from fiscal 2016.

But how will the town borrow the money? According to Mr. Markel, they intend to use short-term borrowing and bonds that will be issued in 2018.

“We have to be careful with timing on the issuing of the bonds,” said Mr. Markel.

The issuing of the bonds falls around the same time the old bonds for the remodeling of the high school and middle school expire. The town currently pays $480,000 a year for that bond.

According to Mr. Markel, if they time it right, that amount could be rolled over to the new bond, taking $480,000 off of the proposed amount the town would be paying, per year, for the new elementary school.

Mr. Markel explained that it would also help to bring down the overall tax impact for residents.

Board of Selectmen Chairman John Columbus assured that the town is in a good financial state and spring should give the town plenty of time to acquire their bond rating.

“I’m confident with the people we have in place, Mr. Markel and Kelli Pontbriand, we’re going to get everything squared away,” stated Mr. Columbus.

The town’s auditing of financial records has been delayed for several years and when they were brought before auditors this past year, officials were told by the Massachusetts Department of Revenue that they were unable to audit the books for fiscal years 2013, 2014 and 2015 because they were in such disarray. It would also be expensive to have the company put them in order.

Since early March, Ms. Pontbriand, the town’s accountant, has been reconstructing financial records in order to submit them to auditors. The records should be finished by November.

On Thursday, a public forum was held by the Elementary School Building Committee and Symmes Maini & McKee Associates for residents to acquire important information about the school’s design and traffic flow of the surrounding area.

Residents were also encouraged to ask questions regarding the school and several residents were concerned about how the school would fit in to the “19th century town.”

Jon Winikur, the project owner’s manager, explained that at later meetings, they will have actual materials that residents can see that will allow them to understand that the company and committees involved in the school’s planning have taken the look of the town into account.

“This school will be flexible and efficient,” said Mr. Winikur.