Showing posts with label free cash. Show all posts
Showing posts with label free cash. Show all posts

Tuesday, January 30, 2018

Franklin, MA: Finance Committee - Agenda - Jan 30, 2018

The agenda for the Finance Committee meeting scheduled for Tuesday, Jan 30, 2018.


1. Call to Order
2. Election of New Officers; Chairman, Vice-Chairman, and Clerk
3. Public Comments
4. Approval of Minutes
5. Free Cash Overview/Administration
6. Capital Budget Presentations:

  • School Department
  • Facilities Department
  • Technology Department
  • Town Clerk Department
  • Fire Department
  • Police Department
  • Public Works Department
  • Water Enterprise Department

7. Final Recommendations and Vote
8. Adjournment



Trust Fund Balances Update as of 12/31/17
• General Stabilization      $ 5,060,984
• Recreation Fields                    6,802
• Open Space Acquisition    1,101,229
• Budget Stabilization         1,848,663
• Free Cash                       2,821,988
• OPEB                              4,072,090
• Property Acquisition            260,620

OPEB Obligation as of 6/30/17 (PAYGO): 69,295,796


The full agenda document can also be found on the Town of Franklin webpage
http://www.franklinma.gov/finance-committee/agenda/finance-committee-agenda-revised-3

Franklin, MA: Finance Committee - Agenda -Jan 30, 2018
Franklin, MA: Finance Committee - Agenda -Jan 30, 2018

Wednesday, December 7, 2016

Finance Committee approves funding

In a preview of the funding measures coming before the Town Council on Wednesday, the Finance Committee heard the updates from Town Administrator Jeff Nutting and Deputy Administrator Jamie Hellen before voting to approve all three.

The three funding items
  • Technology – E Permitting Purchase
  • Technology – Google Applications Purchase
  • Turf Field Design and Development

Town Administrator Jeff Nutting and Deputy Administrator Jamie Hellen
Town Administrator Jeff Nutting and Deputy Administrator Jamie Hellen

(be sure to scroll within the Storify widget to review all the entries)

Additional info on the Finance Committee can be found on their page in the Town of Franklin website   http://www.franklinma.gov/finance-committee

Monday, December 5, 2016

Finance Committee - Agenda - Dec 6, 2016

The Finance Committee is scheduled to meet on Tuesday, Dec 6 at 7:00 PM in the Council Chambers. The full agenda document is attached below with the key items highlighted here:

  • Technology – E Permitting Purchase
  • Technology – Google Applications Purchase
  • Turf Field Design and Development

Items for Discussion:

Town Administrator Updates 
  • FY 17 Capital/FY 18 Budget, 
  • Multi-units development in Town

the new artificial turf field at FHS has good softness with its new infill although it is  crumb rubber and is controversial
the new artificial turf field at FHS has good softness with its new infill although it is 
crumb rubber and is controversial


Worthy of note is the balance of the budgetary savings accounts. These accounts are used to plan for actual or emergency expenses.

The "Rec Fields Stab" is money set aside to replace the FHS and Beaver St artificial turf fields. Coincidentally, one of the action items on this agenda is to use some money from the "Free Cash" to fund the design for those fields. The design is needed to put the work out to bid with an expectation to have the fields replaced during the period June-July 2017.


Balances update 09/30/16


  • Gen Stab 4,987,740
  • PW Stab -0- 
  • Rec Fields Stab 870,105
  • Traffic Stab 4,611 
  • Fire Truck Stab 486,407
  • Property Acquis Stab 255,527 
  • Open Space 1,085,668
  • Budget Stab 1,345,759 
  • OPEB Trust 2,262,251
  • Free Cash 3,516,586


OPEB Obligation: Pay as you go 93,975,598 as of 6/30/15



Sunday, April 10, 2016

Town Council authorizes $6.2 million for spending and sets aside $300,000 for future

The Town Council was busy approving spending and saving on Wednesday evening. The grand total approved was $6.5 million with the breakdown shown below.


Savings Approved
Fire truck$100,000
Artificial Turf Fields$200,000
$300,000
Spending approved
Election expenses$3,500
Veterans Benefits$50,000
Sidewalks for Pleasant and Chestnut Streets$1,800,000
Capital expenses (see listing for individual items)$1,938,607
Water improvements$1,300,000
Sewer improvements$1,200,000
Recreation improvements$50,000
$6,288,607
grand total of approvals$6,588,607


Within the document, the links will take you to the details on each authorization item



You can also find a copy of this file on the Town of Franklin webpage
http://franklin.ma.us/Pages/FranklinMA_News/023987EB-000F8513


My notes reported live from the meeting on Wednesday can be found here



DelCarte will get some funding to address the invasive species issues
DelCarte will get some funding to address the invasive species issues

Sunday, March 8, 2015

MassBudget: Analyzing the Governor's Budget for FY 2016

The Governor's Budget starts the Franklin budget process at the state level. Why? Franklin depends heavily on state funding for its local budget. Being aware of what is happening on the state level is a key piece to understanding what Franklin can do with its local budget.

Each department has prepared their capital needs. These will be prioritized and dependent upon what is left of 'free cash' after the shortfall in the snow/ice budget is covered.

Each department has also prepared their operational budget needs which will begin to get reviewed at the Finance Committee before coming to the Town Council for hearings and then a vote to approve the budget in late May or early June. The budget needs to be in place to fund operations for the new fiscal year beginning July 1.

It is note worthy that one of the 'one time solutions' in the Governor's budget is the delay of a payment of $24 million to the state OPEB account. Franklin has an outstanding unfunded liability of about $89 million in our OPEB account. One of the priorities in our budget will be to increase some funding each year to help cover the requirements.

Stay tuned for frequent updates as the budget process develops over the next several weeks.



MassBudget  Information.
  Participation.
 Massachusetts Budget and Policy Center  Democracy.


Analyzing the Governor's Budget for FY 2016

In releasing his state budget proposal (House 1) on Wednesday the Governor identified important priorities: "creating better communities, better schools, and better jobs for all of Massachusetts." House 1 does not, however, propose the types of significant investments in these areas that could make a meaningful difference in the lives of working people across the state.

With the budget, the Governor filed a tax reform proposal that would significantly help lower-wage working people across the state: a doubling of the state earned income tax credit. This is a tax credit that increases the after tax wages of people with incomes under about $52,000 a year. The largest benefits go to low wage workers with children. It helps these families to make ends meet and be able to pay for basic necessities like food, clothing and rent. The Governor proposes paying for the increase in the earned income tax credit by eliminating the state's tax subsidies for movie producers.

Our Budget Monitor describes the spending proposals in each major section of the budget. One of the most notable features overall is how heavily this budget proposal relies on temporary revenue and savings and on proposals that may prove to provide only temporary savings. As the chart below describes, the budget relies on over $600 million in temporary solutions that will help to balance the budget this year but will leave in place a longer term structural gap.
 
one time solutions  
In addition, the budget counts on $178 million in savings from an early retirement program. This savings estimate assumes that most of the positions of people who retire would not be filled. It is not clear, for reasons we describe in the Monitor, that doing so would be possible, or in the best interests of the Commonwealth.

Te read our full Budget Monitor, please click HERE

The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts.

MASSACHUSETTS BUDGET AND POLICY CENTER
15 COURT SQUARE, SUITE 700
BOSTON, MA 02108
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Massachusetts Budget and Policy Center | 15 Court Square | Suite 700 | Boston | MA | 02108

Monday, April 7, 2014

Franklin, MA: FY 2014 Capital Plan - draft

As reported during the Finance Committee meeting last week, the draft capital plan was reviewed. My notes can be found here:  http://www.franklinmatters.org/2014/04/live-reporting-finance-committee.html

The official memo from Town Administrator Jeff Nutting is shown here. It walks through the highlights of what is proposed to fund for the capital plan. There are two speadsheets at the back that work through the numbers on what is proposed as well as the source of funds.

While the Finance Committee has approved the plan, the numbers won't be final until the snow/ice expense totals are complete. The winter storms have caused an overspending in the snow/ice budget so some of the 'free cash' will cover that shortfall. The remaining amount of 'free cash' will then be split among the proposed items.

You may recall that Franklin using their 'free cash' as their source of funds for the capital plan. You should recall that the 'free cash' is not really cash, nor is it 'free'. It is an accounting function for an annual budget. At the beginning of the year, amounts are budgeted for revenue and expenses.

When revenues exceed what is forecasted (which is a good thing and something Franklin does regularly) that becomes an amount that would contribute to 'free cash'.
When one or more departments spend less than their budget during that annual budget period, that amount also contributes to 'free cash'.

The state DOR validates the amount of 'free cash' for each community and releases the final number by about Nov/Dec. This is money that the community can use for one-time expenses and thereby Franklin uses for their capital budget.

Why not use 'free cash' for something else? 
The money is available this year but there is no guarantee of it recurring. If the amount was added to a departments regular budget, then that amount would be committed to and need to be funded which would raise a priority question or potentially force a raise in property taxes.

Links for additional info on 'free cash' from the MA.gov website
  • DOR certification
http://www.mass.gov/dor/local-officials/local-information-technology/gateway-help/taxrate/b-1-free-cash-certification-and-appropriation.html

  • Data bank reports on 'free cash'
http://www.mass.gov/dor/local-officials/municipal-data-and-financial-management/data-bank-reports/debtfinancial-indicators.html

Capital Plan draft for FY 2014
https://drive.google.com/file/d/0B0wjbnXDBhczV1FPWU1pMXg1bzA/view?usp=sharing




One of the more interesting items in the proposal is that of a 'sprinkler park' to be added to Fletcher Field. Specifically where remains to be determined. The $150,000 amount is estimated to be 75% reimbursed by the state with a grant. The money does need to be spent up front however.

What would the sprinkler park look like?
The photo below is a sample of what it could look like.

possible sprinkler park for Fletcher Field
possible sprinkler park for Fletcher Field

Friday, October 21, 2011

A "free cash" battle?

Ed Cafasso wrote a letter to the editor that was titled "Free cash is Franklin's best-kept secret" and opened with:
It's time for Franklin to become more transparent with its taxpayers about the annual financial windfall inappropriately known as "free cash." 
Free cash is the extra money left over after the city balances its budget every June 30. It's revenue that Franklin collected from taxpayers but didn't spend. The free cash amount for the fiscal year that just ended is rumored to be nearly $3 million, although whether the official figure will be disclosed and discussed before the Nov. 8 municipal election remains to be seen.

Read the full letter here: http://www.milforddailynews.com/archive/x1876835722/Cafasso-Free-cash-is-Franklins-best-kept-secret#ixzz1bPMiRqyp

The Town Council has responded with their letter titled "'Bewildered' by free cash concern in Franklin"
We are somewhat bewildered by Ed Cafasso's recent Letter to the Editor (Oct. 14) titled "Free cash: Franklin's best-kept secret." Let's start with the title of his letter and the use of the word "secret." Franklin's free cash policy is anything but secret. Anyone can go to franklin.ma.us, enter "free cash" in the search string and be delivered a trove of information about Franklin's free cash, including the policy itself, historical amounts, etc. Further, each and every Finance Committee meeting cites the current amount of free cash as part of its publicly posted agenda.
Read the rest of the Council's letter here: http://www.milforddailynews.com/archive/x804699069/Bewildered-by-free-cash-concern-in-Franklin#ixzz1bPNclpbo

Each of the past two years as part of the tax rate hearing, I have published my analysis of "free cash". You can view the slides and hear the audio from Dec 2010 here:
http://www.franklinmatters.org/2010/12/fm-79-slidecast-tax-hearing-info-for-fy.html

and from Dec 2009 here
http://www.franklinmatters.org/2009/11/fm-50-slidecast.html


I add my two cents on this matter over here:
http://steves2cents.blogspot.com/2011/10/words-carry-price.html


Wednesday, October 5, 2011

Live reporting - Action Items



I. SUBCOMMITTEE REPORTS - none

J. LEGISLATION FOR ACTION
1. Resolution 11-52: Appropriation – Capital – FY 12- Police Cruisers
motion to approval for use of money from "free cash"; passed 9-0

Nutting - opportunity to purchase some used vehicles at a good price to keep the fleet similar
Chief Williams - life expectancy is about 405 years and then another dept gets to use them
every police dept uses these Crown Victoria for the reason that they stand up to the requirements
The Crown Vic is being replaced, we'd like to see how they are being used and stand up by others before we get into those.
I was going to be looking for 6 cars but I really need two and we can get them now for a real good price.

Kelly - commend you on a good cost savings move for the department
McGann - overseas, I see those small Volkswagon?
Williams - can you see me in one? or trying to stuff you in one?

Williams - thank you for your support, my last time before the election. I can't ask for better support. I don't envy the seat that you are in. Not too many thank you so I want to say that, thank you!


2. Resolution 11-53: Appropriation – Partridge Street Culvert Emergency Repairs
motion to approve; passed 9-0

several months ago the culvert collapsed, the bids are in, we would like to get the work started soon, it may take a month or so

ripe up the road, take up the old culvert, replace it and then repave. It should go the same size as it was.
They'll start in 2 weeks and the repairs will last about a month. Detours will be in place.

3. Bylaw Amendment 11-665:Amendment to Chapter 82, Appendix A – List of Service Fee Rates
1st Reading

motion to move to second reading, passed 9-0

resetting fee at cost of inspections

Monday, May 31, 2010

What in the world is free cash?

The first thing to remember is that it is not free and it is not cash, to quote a former Deputy Commissioner of Local Services. The Bureau of Accounts (BOA) defines free cash as the amount a community has accumulated when actual revenue collections exceed the budget estimates used when setting the tax rate and/or actual expenditures or encumbrances (committed funds not yet expended) are less than appropriations. 
----

Since free cash is a non-recurring revenue source, good financial management dictates that it should not be relied upon to fund operating budgets but rather should be used for one-time purposes such as capital purchases or appropriations to supplement the stabilization fund.
From Dec 2000 MA Gov publication found here (PDF)

So what does this mean in everyday English?

Suppose in your household budget you allocate $100 per week for food. You track all expenses diligently and at the end of the period you realize that while the budget for the year was $5,200 you actually spent only $4,900. The difference between the budget amount and actual expenditures would be money that you can use for other purposes in the household. As controller of the household funds, this would be an easy decision. At the Franklin budget level, the funds need to be certified by the State before they can be determined as "free cash" and used for another purpose.

Suppose in your household budget, along the way, you realize that while you budgeted $100 for electricity, you tend to be running expenses more than $100. If you can cut your usage, you should try. Otherwise, at some point you need to find another account (source of money) to cover for running over budget. Combining the example above, you might be able to take the extra food money to cover for the electricity shortage. If you don't have such a source, then you look to cut something somewhere to meet the budget without going into debt.

Does this help?


Franklin, MA