Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Hubbardston Select Board orders fiscal cleanup, considers 0‑based budget to stabilize town finances
Summary
At its Jan. 20 meeting the Town of Hubbardston Select Board heard a finance update that outlined overdue reconciliations, coordination with auditors and the Department of Revenue, and a recommendation to adopt a 0‑based budget to clarify line items and guard the town’s thin levy capacity.
On Jan. 20 the Town of Hubbardston Select Board received a detailed finance update as staff and an outside finance lead described ongoing work to reconcile FY2024–FY2026 records and set a clearer budget path for FY2027.
The presentation, led by Sean, said the town is working weekly with a CPA and expects to finish reconciliations and state reports within about a month. "We still don't have a clear idea of when we're gonna really have that budget reconcile for the whole thing, sometime in the next month," Sean said, adding the team is coordinating with the town auditor and the Department of Revenue to complete required filings and certify free cash.
Why it matters: Officials said accurate closeout and certification determine the town’s ability to use free cash for capital projects and to present reliable figures at Town Meeting. The finance lead urged a more detailed budget format, recommending a 0‑based budgeting approach that starts from zero and builds justified line items rather than applying flat percentage increases.
Sean explained the rationale for 0‑based budgeting: "It really requires a lot more in‑depth conversations about what invoices you did approve, what are the bills that you actually spent town appropriations on," and said the approach helps departments justify needs and spot miscodings. Board members noted the approach will be more time‑intensive than prior budgets but could yield clearer spending priorities.
The board also discussed debt and cash flow. Staff flagged a 2017 fire truck loan as an item requiring a schedule to show total borrowed, annual payments and FY2027 impacts; members asked the finance team to provide a detailed schedule once Schedule A is filed with state authorities. Sean said the town is also discussing a bond anticipation note as a short‑term option while longer‑term financing is evaluated.
During the update staff disclosed bookkeeping issues that have carried forward (an initial discrepancy mentioned at roughly $1,200) and several miscoded accounts, particularly revolving and special appropriation funds that require reconciliation. Board members and staff agreed that those items are non‑material but must be corrected to certify free cash. A board member said she expected free cash to be certified before June and that certification should not necessarily delay capital planning, though some projects might need alternate funding if free cash is not yet available.
The finance lead urged ongoing monthly presentations to keep the board informed: charts showing revenue year‑to‑date, overtime, and major program spending. He also recommended the board invite regional school representatives before budget deliberations, noting the town’s levy capacity is extremely limited and school costs can materially affect municipal budgets.
Next steps: staff will continue reconciliations, meet with auditors and DOR representatives, produce a draft 0‑based budget format for board review at a future meeting and provide a specific schedule for the 2017 fire truck debt. The board expects regular monthly financial updates leading up to Town Meeting.
Ending: The Select Board will follow up with the finance team and auditors over the coming weeks; the next regular meeting is scheduled for Feb. 9.
