Town of Templeton Financial Goals adopted 10/09/12

Introduction goals set boundaries within which financial decisions are made. The following principles set forth the broad framework for overall fiscal planning and management of the Town of Templeton’s resources. Goals allow response to changes in the economy, change in government priorities, and other changes that effect the Town of Templeton’s well being. It also provides a road map for future civic leaders for the well being Templeton’s finances. The best expectations for these goals will be that eventually we can hope to turn many of them into policies. Having attainable goals is the best beginning to achieving that end, while giving the Town thoughtful guidelines. These guidelines should be reviewed at least annually.

Financial Reserve Goals

1.       The Town will make it their goal to maintain a stabilization fund at least at a level of 4-7% of the Towns FY general fund revenues as its main financial reserve in the event of an emergency.

2.       10% of all funding to Stabilization will be invested into a Capital Stabilization Fund.

3.       Stabilization and Capital Stabilization funds will be invested in interest bearing accounts.

Budget Goals

1.       The Town will not spend more than it receives. It will develop balanced budgets in which current revenues equal or exceed current expenditures.                      

2.       The Town will attempt to balance the budget without using free cash or one time revenues to fund on-going expenditures. If it becomes necessary to use free cash for this purpose, no more than 20% of the free cash will be used for this purpose.

3.       One time revenues and free cash should be used on one time capital expenditures or replenishing other reserves.

4.       The budget will provide for adequate maintenance and replacement of capital plan items and equipment maintenance will be prioritized over capital projects.

5.       The Town Accountant shall issue a monthly report on revenues and expenditures.

6.       The Town Accountant shall issue a weekly report of budget versus actual to track spending for all departments.

Revenue Goals

1.       The Town will estimate its revenues with conservative methods and present this along with the balanced budget.

2.       Any artificially high revenue increase should be considered a one- time occurrence and should only be expended to increase reserve fund levels or to fund non-recurring capital expenditures so as not to depend on it as a revenue source.

3.       All current expenditures should be paid for with current operating revenues.

4.       The Tax Collector and Treasurer will routinely monitor all amounts due the Town. A proactive policy of collection should be followed for all receivables, including property taxes. An aggressive target rate for property taxes should be set and collected by fiscal year end.

Capital Planning Policies

1.       Except as required by an emergency, all approved capital projects must be part of the adopted Capital Improvement Plan.

2.       The Capital Improvement Program will directly relate to the long range plans, goals and policies of the Town.

3.       A rolling Capital Improvement Plan (CIP) will be coordinated with the Finance Committee (Advisory Board). The first year of the CIP shall include the proposed capital improvements for the coming fiscal year.

4.       All proposals for capital improvement shall include sources of funding for each capital improvement or category of capital improvement.

Goals for Debt

1.       The term of debt issued to finance capital improvements or procurement may not exceed the useful life of the asset or improvement.

2.       Short term debt should not be rolled over beyond two years without a principle pay down.

3.       The Town will strive to manage the issuance of debt in line with the following targets:

                                             

A.       General fund debt not to exceed 5% of the general fund revenues.

B.       Enterprise Fund debt not to exceed 20% of the enterprise operating revenues.

C.       Enterprise debt should be gradually re-absorbed by the enterprise funds and taken off the general debt assumed by the town.

D.       The goal for debt reduction is for 65% of the total debt to be retired at the end of 10 years.

This information is from the Town of Templeton website under the Board of Selectmen tab.

Jeff Bennett