Acton Finance Committee reviews quarterly finance report; members press for fund-level detail on enterprise and revolving funds

The Acton Finance Committee reviewed the Town of Actonquarterly finance department report for the period ending Sept. 30 during its Dec. 10 meeting. Staff presented General Fund results, enterprise fund status, and a new roll-up of the town's revolving funds.

Finance staff said General Fund revenues were about 25.42% collected through Sept. 30, with property taxes at 25.88% and state aid around 17%. The town's free cash certification as of July 1 was reported at $5,137,003. Committee members were told expenditures were 33.89% expended at the quarter, a figure the presenter said is skewed higher because the Middlesex retirement assessment and OPEB contributions are paid in full on July 1.

Staff then reviewed enterprise funds. Highlights included: - Septic Enterprise Fund: FY25 balance about $158,272; 35% of revenue target collected to date, 11.3% expended. - Transfer Station Fund: roughly 48.7% collected, 12% expended; a CIP request for a $225,000 front-end loader was noted and would be paid from the transfer station free cash balance (presented as $652,005.44) if approved. - Sewer Enterprise Fund: about $400,000 collected (26.18% of target) and $411,000 spent; a new financial model and rates were developed and presented to the Select Board earlier in the year. - Ambulance Enterprise Fund: free cash certified at $313,232; collections around 25% of target and expenditures just under 20% of budget. Staff said the department is developing a financial model and anticipates returning with rate recommendations after the budget season.

Committee members pressed staff for more clarity on enterprise fund subsidies from the General Fund and for better visibility into retained earnings usage. One member noted that the ambulance fund showed retained-earnings usage of $542,000 in the current year's budget and asked how the fund would look in next year's budget without that draw. Staff acknowledged the presentation omitted a breakout showing subsidies versus retained-earnings usage on this year's materials and said they will include that breakdown in future presentations and bring a financial-model presentation and fee recommendations for the ambulance fund to the Select Board after the new year.

The meeting included an extended exchange on ambulance billing and collections. Staff and the committee described the town's contracted billing with ProEMS and the role of the stateDepartment of Health Care Finance and Policy (as described by staff) in establishing a formulary method that affects reimbursements. Speakers said collected revenue is "net" of insurer and Medicare reimbursement rules and the town's collections rate; staff estimated typical net collections around 30% to 33% after those adjustments.

Finance staff also presented, for the first time in this quarterly slide package, a summary of the town's revolving funds and their balances and uses. Revolving funds shown included building inspector permits (used for shared inspection services and related salaries), fire alarm network, weights and measures, food service inspections, hazardous materials, historic district fees, stormwater inspections (presented as 37% collected, 5% expended) and a proposed $100,000 stormwater utility-feasibility study request as a possible use of that fund balance, Crosstown Connect, roadway maintenance, Public Shade Tree (no balance yet), a recently approved fire prevention revolving fund (collected $8,600 as of Sept. 30), and the recreation programs revolving fund (collected 19% of expected revenue, about half of the budget already expended; staff noted most recreation revenue is seasonal and comes later in the fiscal year).

Committee members asked for more context on several items: planned uses for large retained balances, the degree to which some funds receive General Fund subsidies (transportation and ambulance were cited), and whether some funds are carrying more than a yearof operating budget in reserves. One member suggested the committee explore options for using surplus fund balances (for example, accelerating OPEB funding) but staff responded that many of the funds are fee-restricted and have statutory or policy limits on uses.

Staff said they will return with additional detail in future meetings: a breakout of subsidy versus retained-earnings use for enterprise funds (ambulance and transportation), a commuter lot special-revenue fund update including debt service, and further work on enterprise financial models and rate recommendations to be presented to the Select Board after the new year.

No committee motion or formal vote on budgets or reallocations occurred at the meeting; the committee asked staff for follow-up information and scheduled those topics for future agendas.