Town Seeks Assistance On Finances

Town Seeks Assistance On Finances Applies for grant for part-time fiscal expert

‘What caused a crisis here about three to four years ago was financial management.’ — Bob Markel, interim town administrator Tara Vocino Reporter TEMPLETON –– With the town trying to get assistance through a new program sponsored by the governor’s office, hopes are high that a grant will be obtained to help with the town’s financial practices. The Community Compact is a program introduced last year by Gov. Charlie Baker’s administration. Communities select three areas they want to focus on improving, which the state then agrees to help them with. The three areas are taken from a list ranging from environmental policies addressing climate change to housing programs. In return, the state promises to try to give assistance. For the purposes of the Community Compact, Tem­pleton is selecting the budget, financial policies and long-range planning/forecasting. With an application pending for the Community Compact, Templeton hopes to obtain a grant through the state’s District Local Technical Assistance program in the category of best financial practices. The grant would provide Town Hall with a staff person who is certified in accounting or municipal fin­ance, to provide assistance in ensuring that the town is using the best practices in financial management. Interim Town Administrator Bob Markel said Templeton could use the financial management grant to have the budget specify all revenues and expenditures, and to provide a narrative describing priorities and financial challenges. “It’s an opportunity for the town to get state funding in order to hire expertise in order to assist us in our ongoing efforts to improve our financial management practices,” Markel said. He said that if he had to put a number equivalent on it, it would amount to about $20,000 in staffing. The town’s pact priorities are all in financial management. “What I was asked to do when I came here was to do a complete reorganization of, and improvements to, Templeton’s financial practices,” Markel said. “What caused a crisis here about three to four years ago was financial management. That includes the budget document, financial policies and long-range financial policies/forecasting.” He filed the paperwork to join the Community Compact just before Jan. 29. The grant application itself is due Feb. 29. The funds are administered each year through a competitive process managed by the Metropolitan Area Planning Council. Funds are set aside by the Legislature to encourage cities and towns to either improve in the areas they’ve selected through the Community Compact or which encourage shared land use objectives or shared services. In one aspect of the grant, sound financial policies would provide important structure and consistency around local fiscal policy decisions, and it would ensure that they are documented and followed. That would fall under the financial management category. The best practice is achieved by evidence of documented fiscal policies, including reserve levels, capital financing and use of free cash. Markel said the state Department of Revenue encourages communities to set aside 5 percent of the operating budget as reserve funds. He said the stabilization and free cash accounts help the town’s bond rating and provide a cushion in case of an emergency. However, the debt load in Templeton is rather small. “Templeton doesn’t have a problem with debt, but many towns do,” he said. “We should have a policy to address this.” Markel said one of the policies that Templeton could adopt is to make a formal policy not to use free cash in the operating budget. The grant suggests the town use long-term financial forecasting and long-term planning to detect fiscal challenges earlier, to develop strategies to address issues that emerge, and to provide the context for analyzing multiyear contracts and other financial trends. However, Markel isn’t a fan of such long-range planning. “I’m not enthusiastic,” he said. “It’s not that valuable to you other than having it. But it is interesting to see how things change.” Markel said a grant was awarded in the fall to enable the Planning Department to use Metropolitan Area Planning Council staff to complete an update of the master plan. “It was the first update of the master plan since the late ’60s,” Markel said. The grant can be used toward any one of the following best practices categories: finance, education, energy/environment, financial management, information technology, regionalization/shared services, as well as transportation and citizens safety. However, Templeton is only applying in the area of best financial practices. Markel said the town’s participation in the Community Compact and its pact priorities will definitely help it to be awarded the grant. “We had a balanced budget last year,” Markel said. “We have a balanced budget this year, and we’re in balance for fiscal 2017. We achieved financial stability in the town. The next step is to ensure that the town is using best financial practices.”