Blackstone gets high marks (AA+) from auditor

BLACKSTONE — The town has received high marks from its auditor.

The town’s audit report for fiscal year ending 2018 was unveiled this week and shows the city’s finances to be in excellent shape.

Terenzio Volpicelli of the independent certified public accounting firm of Roselli, Clark & Associates, briefed the board on the audit Tuesday, saying there were “no material weaknesses or significant deficiencies” discovered in town operations in his firm’s audit.

Volpicelli says the town is in excellent financial shape and had an unassigned fund balance of approximately $5.3 million, which Volpicelli called “very healthy.” Included in this figure is approximately $3.2 million in stabilization funds.

“The Town’s liquidity continues to be strong,” he told the board.

Volpicelli said the town’s other post-employment benefits (OPEB) funding shows a 22 percent funded ratio as of June 30, 2018.

The town established an OPEB trust in fiscal year 2016 and has made contributions of $250,000 to this trust in each of the past three fiscal years. As of June 30, 2018, the fair value of the OPEB trust’s assets approached $899,000.

“This funding percentage is significant in comparison to other Massachusetts municipalities, many of which have not yet established similar trusts,” Volpicelli said.

According to the audit, the town has insignificant debt burden and continues to maintain a AA+ bond rating, which was recently affirmed by Standard & Poor’s Ratings Services in recognition of the town’s continuing strong budgetary performance, excellent management conditions and fiscal year surplus. The assigned credit rating of AA+ is one step below S&P’s highest rating of AAA and enables to the town to enjoy very favorable terms in the municipal bond market.

A bond rating for a town is like a credit rating for a person. A higher municipal bond rating means a town is able to secure a lower interest rate when it sells bonds to finance major projects.

Town officials attributed the upgrade to a concentrated effort over the past few years to improve the town’s financial position, an effort that included putting together an effective finance team.

Like previous years, the audit recom- mends that the town appoint its municipal treasurer/tax collectors rather than having townspeople elect them.

The selectmen have argued for years that moving to an appointed model for treasurer/collector would be a way for the town to have a larger talent pool from which to draw, but twice it has been shot down at town meeting.

In Massachusetts, boards of assessors may be either elected or appointed, as can the treasurer or collector. Traditionally, treasurers and collectors have been elected. To make the position an appointed one, municipalities must obtain approval of town meeting.

Volpicelli said the board should continue to try and educate voters on the importance of making the position appointed.

“For a community of this size, which is approximately 9,000 people, the talent pool capable of performing this job – which is arguably the most critical financial position in town – is limited and you’re limiting yourself by continuing to have this an elected position,” he said. “If you elect an unqualified person there is the potential for that person to cause really significant harm.”