Wayne select board reviews financial-policy rewrite, fund-balance method and banking options
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Summary
Finance staff recommended adopting a median MMA fund-balance calculation, clarified investment benchmarks and proposed banking changes (analysis account with positive-pay and courier deposits); the treasurer reported foreclosure timelines for delinquent taxes and presented cash-flow and capital-reserve reconciliations.
Staff presented proposed revisions to the town—s financial policy and the treasurer gave a quarterly financial update, covering fund-balance methodology, fixed-asset accounting and short-term investment options.
On fund balance, staff presented three calculation methods (the town—s prior policy, MMA guidance and GFOA recommendations) and recommended adopting the median MMA calculation, which uses a formula tied to recent monthly expenditures rather than a fixed percentage. The presenter said the recommended benchmark approximates two months of expenditures but would be reviewed annually.
The fixed-asset section was updated to add infrastructure categories (roads, bridges, utility systems) and to revise useful-life tables based on auditor recommendations. Staff also clarified that certain appropriations that show as budgeted "expenses" in accounting software do not represent cash outflows at the time of booking.
Treasurer—s points included a tax-foreclosure window (certified notices between Dec. 31 and Jan. 15 and a foreclosure date cited as Feb. 14 for properties at the top of the delinquency list) and a recommendation to engage a real-estate agent for any properties the town acquires. The treasurer also walked the board through cash-flow projections, capital-reserve reconciliations and a suggested schedule for annual policy review.
On banking, staff proposed moving to an "analysis" account structure with positive-pay fraud protection and the option for a courier deposit service to reduce staff driving time and risk. The treasurer noted the analysis structure could increase effective yields (quoted as roughly 2% in the presentation) compared with the current sweep account and that short-term CDs (one- and three-month) are an option but should only be used for truly excess funds with clear timing for when money will be needed.
Board members asked staff to ensure proposed investment timing does not conflict with spring expenditures and to confirm policy language will be written so it does not require constant manual updates. Staff said they would bring a redlined policy back to the board for formal action.