Clarksburg Receiving $600K in Free Cash for Fiscal 2015
 The Selectmen received good news about the town's free cash situation on Monday night. |
CLARKSBURG, Mass. — After nearly three years of financial struggles, Clarksburg received an early Christmas present: $600,000 in certified free cash.
Town auditor Thomas Scanlon, of Scanlon Associates, reported Monday night to the Selectmen that the town's accounts are finally balanced.
Scanlon said the town will receive $485,662 in certified free cash and $163,723 for the sewer enterprise fund. He said the town's books are squared away.
"I know the town has been through some tough times the past couple of years trying to get their free cash certified," Scanlon said. "You have the finacial information now when before it was kind of like a guessing game.
"Now you just have to worry about balancing your budget."
Selectman William Schrade Jr. thanked the town's financial team for correcting the books.
"I think Clarksburg should start looking on the upside ... the books are in order, we have a Finance Committee that has worked hard on the budget, and those are all real numbers in there," Schrade said. "It should make a budget season a good discussion on how to spend money and how to save money."
Scanlon recommended putting the majority of the money into the stabilization account and use it to replenish any money used. He said to avoid using any more than 20 percent on recurring budget items because the town only generates $90,000 to $100,000 a year.
"Be aware that is from years and years of accumulating. The state has been penalizing and holding it back so you didn't generate that all within one year," Scanlon said.
He recommended using the free cash for one-time capital purchases. He said using it for recurring budget items could trigger a Proposition 2 1/2 override.
"You should be using free cash for those one-time things," he said. "You just don't want to build it into your tax rate, salary increases then have a bad year and you don't have your free cash."
Scanlon said although the books are mostly cleared, there is still some work to be done on things such as the town's Chapter 90 state highway aid account.
"There are still a few minor areas to go over to clean up the ledger, but they are small areas to have moving forward," he said.
In other business:
• Town Administrator Carl McKinney told the board he anticipates a $7,500 deficit in the street light budget because of the 37 percent electricity increase.
He said the town should figure out a plan to remedy the situation before the special town meeting scheduled in December.
He added appropriating the $7,500 will not go over the town's levy cap.
• The board renewed the Golden Eagles liquor and entertainment license.
• The board set the new tax collector/treasure hours to Mondays and Thursdays from 8 to 5 and Wednesdays from 8 to 8.
• The board appointed itself as the acting Zoning Board of Appeals until new members come forth.
• The board set overnight parking ban, effective immediately, for the winter months. No cars will be able to be parked on town roads and streets from 10 p.m. to 6 a.m. until April 15.
Tags: fiscal 2015, municipal finances,
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