A comprehensive audit has found the town to have strong reserves, with some interesting funding options in terms of increasing revenue.
Tony Roselli, of the Woburn accounting firm Roselli & Clark, has completed his review of the budget for fiscal year 2007, and he presented his findings at the selectmen’s meeting on Tuesday. Roselli reported that, in his view, the town has “well-funded reserves,” which include a healthy stabilization account and a healthy undesignated fund, as well as the Rantoul Trust Fund, which serves unofficially as a third emergency fund.
“From a reserve perspective, the town’s in very good shape,” he said.
As far as annual expenses and revenues go, however, Roselli expressed more concern. He noted that after many years of successful overrides, the town’s initial attempt at an override this year failed.
“Is this the beginning of a trend?” he wondered aloud. If so, he said, then the town needs to explore additional avenues for generating revenue.
He also noted a looming liability, which he recommended the selectmen begin to address as soon as possible. In the coming years, he said, the costs of post-employment benefits to town employees—and the cost of health insurance in particular—promise to be astronomical.
“In 15 to 25 years, you’re going to have a glut of individuals that will need health insurance,” he said. “At a minimum, the town should create a task force to discuss how they will confront the issue.”
Roselli’s report also included a look at some ways that Harvard might make the most of its available funds. He noted, for example, two capital projects with a “stagnant” combined balance of nearly $27,000.
“If this money was originated through a bond, the town should contact a financial advisor to see how to use the funds,” he said. “If the money was appropriated through an article at Town Meeting, it could be transferred by another article.”
Roselli also noted that the town holds numerous trust funds designated for a range of purposes, including the cemetery and the library.
“It doesn’t seem like you’re tapping any of it for the budget,” he said. “The town could use the interest for the cemetery or library…someone from your financial department should look at each [fund] and pull out the expendable piece.”
Citing the cemetery budget as an example, he explained that currently the bulk of the upkeep for the cemetery comes from the Department of Public Works budget. Instead, he suggested, the town could tap the interest of the existing trust fund that is dedicated to cemetery maintenance.
Roselli also suggested that the selectmen reconsider the cost of transfer station stickers. While he acknowledged that the current sticker costs cover the transfer station’s explicit expenses, there are many more indirect costs, such as accounting and clerical services, that are currently covered by the general fund.
“You could pick it up through additional transfer fees instead of the real estate taxes,” he said.
