Showing posts with label fiscal year. Show all posts
Showing posts with label fiscal year. Show all posts

Tuesday, January 23, 2018

Insights from the Audit Report 2017

The Audit Report for Fiscal Year 2017 does not have a "Management Letter" this time around. Hence, one can easily say the Town is in the best financial position from a control perspective than ever before.

The Audit Report is a good source of information, not just data.

How much stabilization money do we have?
At the end of 2017, the total was $6.7M a decrease of $1.3M primarily due to the use the purchase of the fire truck and the resurfacing of the turf fields. Both have stabilization accounts where we were saving for this expected purchase. (See the table at the top of page 10 of the printed doc, page 13 of the PDF for details).

How much did the FY 2017 budget change during the year?
You might be surprised to find that we added $3.9M to the budget but that was primarily due to the use of the "free cash" from the prior year. The expenditures for the fire truck and turf fields helped to contribute to this as money from "free cash" was added to what was saved in their respective stabilization accounts to provide the total for each purchase. (See General Fund Budgetary Highlights on page 10 of the printed doc, page 13 of the PDF for details).

How many stabilization funds do we have and what amount is in each?
Other than the agenda doc for each Finance Committee meeting which shows the current total during the fiscal year, this is one place to see that answer. The table also shows the change in funds along with the change in amounts over the years from 2008 to 2017. (See section G. Stabilization Funds on pages 11-12 of the printed doc, page 14-15 of the PDF for details).

How do we get "free cash"?
"Free cash" is neither free nor cash. It comes from two sources. (1) You receive more revenue than you budgeted for (2) you spend less than you budgeted for. You can see this effect in the table on See General Fund Statement of Revenues and Other Sources, Expenditures and Other Uses - Budget and Actual, for the year ended June 30, 2017. According to this, we should have $2.9M 'free cash' to use for FY 2018 which is less than we had available in FY 2017 (recall the $3.9M). (See page 19 of the printed doc, page 22 of the PDF for details).


You can find the audit report on the Town of Franklin webpage as part of the Town Council agenda for the January 24 meeting.
http://www.franklinma.gov/sites/franklinma/files/mai/files/2017_audit.pdf

Insights from the Audit Report 2017
Insights from the Audit Report 2017

Monday, January 11, 2016

In the News: contractor chosen for Senior Center project, Franklin's fiscal prospects good

From the Milford Daily News, articles of interest for Franklin

"After a process that drew lower-than-expected bids, a local committee voted Friday to award a contract for a renovation of the Franklin Senior Center. 
The Senior Center Building Committee opted to hire general contractor GTC Construction Management of Haverhill. The company bid just more than $1 million on a project that had been estimated to cost in the neighborhood of $1.6 million. 
Committee chairman and Town Council member Tom Mercer said the project had garnered nine bidders - a higher total than expected. 
Fellow committee members noted that there was not much variance among the bids, which was another surprise."
Franklin Senior Center in the rain
Franklin Senior Center in the rain

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20160111/franklin-senior-center-contractor-chosen


"The town should be in good financial shape for the next couple of years, but may face challenges in the future, according to a recently-released fiscal forecast. 
Town Administrator Jeffrey Nutting put forward his five-year forecast during the most recent Town Council meeting. During a brief oral summary, he spoke about its basic conclusions. 
"It hasn't changed dramatically from last year," he said. "The town is in good shape in the short run, but there continue to be concerns about the future, as fixed costs continue to rise."

Continue reading the article online (subscription may be required)
http://www.milforddailynews.com/news/20160110/franklin-short-term-fiscal-forecast-positive

You can find the five year fiscal forecast referred to here
http://franklin.ma.us/Pages/FranklinMA_News/022E2532-000F8513

Wednesday, January 6, 2016

Live reporting: to closing


K. TOWN ADMINISTRATOR’S REPORT
– Fiscal Forecast
to be posted to webpage this week (is as part of agenda doc now)
state aid is always an unknown, there are variations within the components
the charter school is looking to expand the school with a new facility, this could affect the reimbursement

when we saw the 17 and 18 numbers, it makes 19 look a little better
do have collective bargaining agreement with all the locals
teachers union remains to be worked by Schools

will be used by the Finance Committee as part of the budget process

change in harassment policy - for review by Council

L. OLD BUSINESS
Bissanti - alcohol awareness
Cerel - looking into this, no litigation to provide guidance
can provide before license is issued or if there is a problem

Jeff - survey sent to all the license holder, if they require training of their staff
Kelly - waiting for them to get their info together so we can put it on the agenda

draft report on DelCarte in couple of weeks (an update on an old item for Padula)

M. NEW BUSINESS
none

N. COUNCIL COMMENTS
Jones - happy new year, looking forward to goal setting session next Tuesday

Dellorco - Coalition, next meeting Feb 2, begins at 7 at FHS auditorium

Bissanti - happy new year, EDc has a lot of things going on

Pfeffer - happy new year

Vallee - rumors about the FHS football team with nasty remarks about
can someone enlighten me on how come we can't produce a winning team?

Mercer - open bids on Senior Center project last week, all 9 bids came in under budget, vetting low bidder; taking extra step to go to DECAM and vet the bidder their, looking to vote to award the contract. Beaver St possible entrance still under discussion

Padula - I had the privilige to be coached by Leone, it is a serious issue, the kids are affected by it, we are watching it and will weigh in on it

Pellegri - congrats to Alexis for MA Teen
can we keep the lights on through January?
Betty Noble, election worker and teacher for many years passed away this past week

Kelly - happy new year

O. EXECUTIVE SESSION
- Pending or threatened litigation

Proposed Excelon expansion of Medway electric generating facility pending before Energy Facilities Siting Board.
Proposed Spectra gas transmission line through Franklin.

motion to go to executive session, seconded, passed 9-0

Saturday, November 14, 2015

The new Town Council packet to study

At the beginning of each new term for the Town Council, Town Administrator Jeff Nutting provides the councilors with a packet of information. You can read along too!

Town Council getting sworn in by Town Clerk Debbie Pellegri
Town Council getting sworn in by Town Clerk Debbie Pellegri

1 - Town of Franklin - Home Rule Charter

http://town.franklin.ma.us/Pages/FranklinMA_TownCharter/revised%202013.pdf

The preamble to the Charter:
"We, the people of the Town of Franklin, Massachusetts, in order to form a more perfect community, reaffirm the customary and traditional liberties of the people with respect to the conduct of our local government and take fullest advantage of the Home Rule Amendment to the Constitution of the Commonwealth, do ordain and adopt this Home Rule Charter for our Town."

2 - Role of the Town Council

http://town.franklin.ma.us/Pages/FranklinMA_Council/role.pdf

The first section reads as follows:
1. A member of the Council, in relation to his/her community should:
A. Realize that his/her basic function is to make policy, with administration delegated to the Administrator.
B. Realize that he/she is one of a team and should abide by, and carry out, all Council decisions once they are made.
C. Be well-informed concerning the duties of a Council member on both local and state levels.
D. Remember that he/she represents the entire community at all times.
E. Accept the office as a means of unselfish service, not benefit personally or politically from his/her Council activities.
F. In all appointments, avoid political patronage by judging all candidates on merit, experience, and qualifications only.
G. Abide by the ethics established by the State and not use the position to obtain inside information on matters which may benefit someone personally.

3 - Fiscal Policies

http://town.franklin.ma.us/Pages/FranklinMA_Council/fiscal.pdf

Note: the fiscal policy document handed out on Wednesday is a proposed update to the document currently approved by the Town Council and linked to above.


4 - Fiscal 2016 Budget

http://town.franklin.ma.us/Pages/FranklinMA_Admin/budgets/FY%2016%20Budget/

The Fiscal budget is really a set of documents with the Budget Letter by Town Administrator Jeff Nutting summarizing the revenue and expense driving factors.


Additional information on the Town Council can be found on the Franklin website here  http://town.franklin.ma.us/Pages/FranklinMA_Council/index


Monday, July 13, 2015

MA Ranked 48 of 50 on Fiscal Condition

Given the agreement between the MA House and Senate on the state budget which is now in the Governor's hand to review and vote on, it would be interesting to know how MA finances compare overall with the other states.

Does your state have its fiscal affairs in order? It’s not an easy question to answer, in part because the question can mean so many different things, including:
  • Can the state pay its current bills? (cash solvency)
  • Will annual revenues be sufficient to cover budgeted expenditures? (budget solvency)
  • Are the state’s long-term liabilities—think bonds and loans—sustainable? (long-run solvency)
  • How much room is there to raise additional revenue should the need arise? (service-level solvency)
  • Can the state meet its pension and health care obligations? (trust fund solvency)
The Mercatus Center at George Mason University has compiled this information in an interactive manner so you can check on the state by state comparison.

Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?
Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?

MA does not do well. We are ranked 48 of the 50. Yes, well down the bottom.

You can find the rankings here
http://mercatus.org/statefiscalrankings

The MA summary is here
http://mercatus.org/statefiscalrankings/massachusetts

A video explanation of the process can be found here




Friday, February 20, 2015

Fiscal Responsibility: A Taxpayer’s Perspective - Mar 5th

The Franklin Republican Town Committee is proud to sponsor the following event:

What: Fiscal Responsibility: A Taxpayer’s Perspective
Who: Mass Fiscal Alliance, Paul Craney, Executive Director (speaker)
Where: Alumni Restaraunt (391 East Central St, Franklin, MA)
When: Thursday, March 5th, 2015; 7-10pm


Massachusetts Fiscal Alliance is a nonpartisan, nonprofit advocacy organization dedicated to promoting better government and right-of-center fiscal and economic policy solutions. 
They have an office near the Statehouse in Boston and their website is www.MassFiscal.org and they launched a first of its kind, online and real-time, state legislative scorecard which may be found at www.MassFiscalScorecard.org
screen grab of MassFiscal webpage
screen grab of MassFiscal webpage

Wednesday, January 7, 2015

"property taxes will continue to be a solid source of revenue"

The Milford Daily News reports on the five year financial forecast that is in the current set of documents for Wednesday's Town Council meeting. The forecast says FY 2016 should be ok but FY 2017 is another budget year where balancing the budget will present some problems. 

This financial reason is the driving factor behind the moves to sell both the Pond St and Emmons St properties. The town needs to expand its taxable base to bring in additional revenue.


Nutting said that beginning next year, revenue increases may start to lag behind town expenses, forcing the town to stretch itself thinner in order to balance the budget. 
"By FY 2017, the forecast strongly suggests we could be in a position to use some reserves, reduce the current level of services, and consider a tax increase or some combination of the above to balance the budget," he explained. 
The only short-term solution to reducing costs is cutting town employees, Nutting said, an option he views as a last resort. 
"This will directly affect the quality of education and public services currently provided by the town," he said.
Continue reading the article here: http://www.milforddailynews.com/article/20150107/NEWS/150108229/1994/NEWS#sthash.0xUy51VN.dpuf

150 Emmons St - one of the topics on the agenda
150 Emmons St - one of the topics on the agenda

Details on the five year fiscal plan can be found beginning on page 43 of the released set of documents for the agenda for the Town Council meeting, They can be found here
http://www.franklinmatters.org/2015/01/franklin-ma-town-council-agenda-jan-7.html


Tuesday, February 4, 2014

Franklin, MA: Five Year Fiscal Forecast - Draft

This was the draft copy sent to the Town Council on Jan 10, 2014. The 'final' copy is scheduled for discussion at the Town Council meeting on Wednesday evening.

For simplicity, this copy includes the text and not the tables of the forecast itself. The 'final' copy will be published in its entirety.




The full agenda for Wednesday's meeting can be found here
http://www.franklinmatters.org/2014/02/franklin-ma-town-council-agenda-feb-5.html

Franklin Municipal Building
Franklin Municipal Building


Thursday, December 12, 2013

Franklin - Fiscal Policy Draft Update

There is a fiscal policy that Franklin operates with. This year, the policy is being consider for revision and the revisions will include input from the Finance Committee, Town Council and School Committee.

The Finance Committee reviewed and discussed the update at their meeting on Tuesday. This was also mentioned during the Town Administrators update during the Council meeting on Weds. It is scheduled for further discussion within the budget subcommittee before the Council takes it up. It is also scheduled for review by the School Committee.




Friday, March 25, 2011

Extension of the School Year Beyond June 30

For those inquiring minds - what if we did have to go beyond June 30th to complete the school year? The State has an answer.


Extension of the School Year Beyond June 30

DESE, in consultation with the Division of Local Services (DLS), issued the following guidance
regarding possible extension of the school year beyond June 30.


Q: If the school year is extended beyond June 30 in order to comply with the 180-day equirement, may the district pay salaries and costs incurred from the current year's budget?
A: The Department of Revenue's Division of Local Services has advised that the answer is yes. If the school year must be extended beyond June 30 to comply with state law on student learning time, that would extend the scope of the municipality's appropriation for the schools beyond June 30. See Mass. General Laws Chapter 71, Section 40, which provides that the compensation paid teachers is deemed "fully earned at the end of the school year, and proportionately earned during the school year" (emphasis added). Teachers, therefore, could teach school in early July to comply with the 180-day requirement, and any salaries paid would appear on warrants payable for the fiscal year that ended on June 30.

In short, state law permits the school year (and salary payments) to extend beyond June 30 in these circumstances. School officials still should consult with their own legal counsel to determine whether any provisions in collective bargaining agreements or local ordinances would affect the decision to schedule school days after June 30.

This information can be found on Page 2 of the bulletin located here

Franklin, MA

Friday, July 2, 2010

Municipal Calendar

From the MA Dept of Revenue, Division of Local Services "City & Town" Newsletter for July 2010 comes the following. I don't pretend to know this in detail. It may very well go over your head too. The point of sharing it is as many folks head into vacation time, there is much still to be done in the Municipal Building. The fiscal year just closed June 30th, which means the books need to be closed, accounts balanced, etc. The following provides some detail into the behind the scenes stuff that just happens!


Municipal Calendar
July 1: Collector:Mail Annual Preliminary Tax Bills
For communities issuing annual preliminary tax bills, the preliminary quarterly or semi-annual bills should be mailed by this date.
July 15: Accountant: Certification Date for Free Cash: Anytime after Books are Closed
Two weeks after the close of a fiscal year, all accounts are closed out and the resulting balance sheet and supplemental documentation submitted to DOR. Free cash is certified any time after this date.
July 15: Accountant: Report Community Preservation Fund Balance: Anytime after Books are Closed After the close of a fiscal year, the fund balance is submitted to DOR (Form CP-2) and notice given to the Community Preservation Committee and other financial officers. The fund balance may be appropriated anytime after that report.
July 15:School Business Officials: Certification Date for Excess and Deficiency (E&D) Fund
Two weeks after the close of a fiscal year, all accounts are closed and the resulting balance sheet (a pre-closing trial balance or audited financial statements will not be accepted unless requested by the Director of Accounts) and supplemental documentation are submitted to DOR. E&D Fund is certified any time after this date.
July 15: Assessors: Deadline for Appealing Commissioner’s Pipeline Valuations to ATB
July 20: DOR/BLA: Notification of Changes in Proposed EQVs (even numbered years only)
July 20: DOR/BLA: Notification of Changes in Proposed SOL Valuations (every 4th year after 2005)
August 1: Taxpayer: Quarterly Tax Bills — Deadline for Paying 1st Quarterly Tax Bill Without Interest
According to M.G.L. Ch. 59, Sec. 57C, this is the deadline for receipt of the 1st Quarter preliminary tax payment without interest, unless the preliminary bills were mailed after July 1. If mailed by August 1, the 1st Quarterly payment is due August 1, or 30 days after the bills were mailed, whichever is later, and the 2nd Quarterly payment is due November 1. If mailed after August 1, the preliminary tax is due as a single installment on November 1, or 30 days after the bills were mailed, whichever is later.
August 1: Taxpayer: Annual Boat Excise Return Due
August 1: Accountant: Notification of Total Receipts of Preceding Year
The total actual local receipts (e.g., motor vehicle excise, fines, fees, water/sewer charges) of the previous fiscal year must be included on Schedule A of the Tax Rate Recapitulation Sheet (Recap) which is submitted by the Assessors to DOR. On the Recap, the Accountant certifies the previous fiscal year’s actual revenues, and the Assessors use this information to project the next fiscal year’s revenues. Any estimates of local receipts on the Recap that differ significantly from the previous year’s actual receipts must be accompanied by documentation justifying the change in order to be approved by the Commissioner of Revenue.
August 1: Assessors: Deadline for Appealing EQVs to ATB (even numbered years only)
August 1: Assessors: Deadline for Appealing SOL Valuations to ATB (every 4th year after 2005)
August 15: Assessor: Deadline to Vote to Seek Approval for Authorization to Issue Optional Preliminary Tax Bills For semi-annual communities issuing optional preliminary property tax bills, the Assessors must vote to seek authorization to issue the bills from DOR by this date. After receiving approval, Assessors must submit a Pro-forma Tax Rate Recap Sheet to DOR for review and issue the tax bills by October 1.
August 31: Taxpayer: Last Filing Day for Classified Forest Land, M.G.L. Ch. 61
August 31: DOR/BOA: Issue Instructions for Determining Local and District Tax Rates A copy of the Tax Rate Recap Sheet and its instructions are forwarded to the town.
August 31: Assessors: Begin work on Tax Rate Recapitulation Sheet (to set tax rate for semi-annual bills) Until the Tax Rate Recap Sheet is completed and certified by the Commissioner of Revenue, the community may not set a tax rate nor send out its property tax bills (unless it issues preliminary quarterly tax bills or requests from DOR the authority to send out pre liminary tax notices if DOR requirements are met). Communities should begin gathering the information in enough time for the tax rate to be set and tax bills mailed by October 1. The Tax Rate Recap Sheet provides Mayors or Selectmen with a ready-made financial management tool because the town’s most important financial management information is summarized on this form. The Mayor or Selectmen should review the Recap Sheet in preliminary form in order to understand the following financial information: Page 1 (Tax Rate Summary) — The proposed tax levy should be compared to the levy limit. If a town does not levy to its limit, the remaining levy is referred to as excess levy capacity. Excess levy capacity is lost to the community for the current fiscal year although it will always remain in the levy limit calculation. Page 2 (Amount To Be Raised) — This section includes appropriations and other local expenditures not appropriated. These include overlay deficits, revenue deficits, state and county charges, Cherry Sheet offset items, and the allowance for abatements and exemptions. By comparing this information to the prior year(s), any significant changes can be determined. Page 2 (Estimated Receipts & Revenues From Other Sources) — In particular, Sec tion C shows the amount appropriated from free cash and other available funds. By comparing the amounts appropriated to the balances in these accounts (available from the Accountant/Auditor), the Mayor or Selectmen can get a sense of how their non-property tax revenues are being used. Page 3, Schedule A (Local Receipts Not Allocated) — By comparing these figures to prior year(s), the Mayor or Selectmen can determine any changes in these revenues. Page 4, Schedule B (Certification of Appropriations and Source of Funding) — This section includes financial votes of City/Town Council or Town Meeting not previously reported on last year’s recap.



Franklin, MA