Another stabilization fund?

In the normal course of events, Town Council agenda items regarding money usually get to go before the Finance Committee (FinCom) for a vote. The vote becomes part of the record for the Town Council to consider the matter. How the FinCom votes can help determine what the Town Council will do.

Aside from the election as being the major event of today, the FinCom meeting tonight will get to decide on the possible creation of another stabilization account. We already have several accounts in this space. Per the FinCom agenda these are the accounts and current amounts held:

General stabilization:  $4,806,571
Public Works: $275,494
Traffic: $4,565
OPEB: $170,253
Senior Center: $150,579
Recreation fields:  $150,579
Fire Truck: $75,290
Free cash : $3,580,481

The General Stabilization is supposed to be around 5% of the Town budget as a good fiscal practice as well as Town Council policy.

The OPEB, Senior Center, Recreation Fields, and Fire Truck accounts are all holding money being put aside to accumulate for the time when we will need it. OPEB for the outstanding funding required. The Senior Center for the build out of the 2nd floor. The Recreation fields to re-do the artificial turf fields in a couple of years. The fire truck to purchase a replacement in a few years.

With some extra money over and above what was budgeted for FY 2013, there is now a proposal for an "Operating Budget Stabilization Fund".

The Town Council will vote on Wednesday these two items (among other actions on the agenda)
1. Resolution 12-72: Establishment of an Operating Budget Stabilization Fund
2. Resolution 12-73: Appropriation: Operating Budget Stabilization Fund

Money put aside in this new account would help to offset a future need for an operational override. Yet money from the general stabilization fund had been previously used for this purpose. Why create a separate account? Why not use the one that has been used?


The full FinCom agenda can be found here
http://www.franklinmatters.org/2012/11/finance-committee-agenda-nov-6-2012.html

The full Town Council agenda for Wednesday's meeting can be found here
http://www.franklinmatters.org/2012/11/franklin-ma-town-council-agenda-nov-7.html

"we can't do business as usual and survive"

By Joyce Kelly/Daily News staff

GHS

Posted Dec 04, 2008 @ 12:05 AM

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FRANKLIN —

Town Council last night unanimously voted to create a fund to pay for repairs to buildings and infrastructure, and put $50,000 in it.

At Town Administrator Jeffrey D. Nutting's recommendation, the council voted to deposit the $50,000 - money that developer Toll Brothers donated for infrastructure improvements in exchange for accepting new streets and easements.

In other business, Nutting told the council he and leaders from other communities testified at the State House yesterday, advocating for municipal relief and reforms that would save Franklin time and money.

"We're asking the Legislature to look at a wide array of municipal relief," he said.

Read the full article in the Milford Daily News here

In the News - stabilization fund, bridge closure

Town Council may set up infrastructure stabilization fund

By Joyce Kelly/Daily News staff

Tomorrow night, Town Council will likely establish a stabilization fund for municipal infrastructure and facilities improvement. The council will also vote whether to appropriate $50,000 for the new account, money that will come from a legal settlement with Toll Brothers of Huntingdon Valley, Pa., a luxury home developer, Town Administrator Jeffrey D. Nutting has said.

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Bridge in troubled water

By Joyce Kelly/Daily News staff

Based on inspections indicating drivers may not be safe, the Massachusetts Highway Department today will indefinitely close an old wooden bridge over the commuter rail line that once served Rte. 140 West, according to Klark Jessen, director of communications with the Executive Office of Transportation. MassHighway's District 3 Bridge Maintenance team found some of the stones in the walls supporting the timbers appear to have moved, raising concerns about the stability of the walls under heavy traffic, Jessen said. The bridge has a timber deck on timber supports situated on stone abutments.

"it's a discussion worth having"

By Joyce Kelly/Daily News staff

GHS

Posted Jun 20, 2008 @ 11:28 PM

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FRANKLIN —

The school district could save up to 20 teacher jobs, officials say, if Town Council agrees to Councilor Robert Vallee's request to give schools $1 million from the stabilization account in July.

Taking action to prevent 47 teacher layoffs is "critical," Vallee said at the council's June 18 meeting, then making a motion to put the subject on Town Council's July 9 agenda for discussion. Only five councilors were present for the meeting, and the item barely made it on the agenda.

In anticipation of possible pressure from various town departments for further funding for operational costs from the stabilization account, the Finance Committee at its June 17 meeting unanimously voted to send a strong message to Town Council that such action is "inappropriate," except for unemployment costs, said Finance Committee Chairman Jim Roche.

The cost of laying off 45 people is about $675,000 in unemployment costs, according to Superintendent Wayne Ogden.

Bonding companies downgrade towns that continually use stabilization funds, Roche said, noting that Franklin has been taking money from that account for operational expenses for the last four years.

"We can't afford our interest rate to go up because we're foolishly spending our stabilization funds," Roche said.

Read the full article in the Milford Daily News here

Q & A 6 - "emergency repair and replacement fund" Nutting, Doak, Zollo respond (audio)

From the Franklin Override Information Forum coordinated by the Joint Parent Communication Councils and held on Wednesday, 5/28/08.

Q - What about the "emergency repair and replacement fund"? Can we dip into that?
A - Nutting, there is a minimal cost to the interest. The overall factor is that 4M on an annual budget of 100M is not a lot of cushion. It is not a lot of money in a savings account for a good business. it is similar to our debt. Our debt is going down next year to less than 3%. we are looking to continually reinvest an appropriate amount over time.

A - Doak, over the years from the power plant settlement we have benefited that we did not need to use the money for which it had been set aside to mitigate the power plant.

A - Zollo, to address another myth, 4500-5000 per year in taxes, three children in school, the Zollos are receiving a subsidy for the school education. K-12, would amount to a 275,000 subsidy. You never pay the town back to pay for your children to go through the school system. The value that the average citizen receives is great.

Time: 6 minutes, 47 seconds



MP3 File

Franklin may have to dip into savings

Franklin may have to dip into savings
http://www.milforddailynews.com/news/x195546037


Finance Committee update for 3/4/08

Town Council Meeting 2/13/08 Agenda

You can review the agenda for tonight's Town Council meeting here (PDF).