Shirley has improved its fiscal shape
SHIRLEY » The financial snapshot that Town Administrator Mike Mcgovern gave the Select Board at its recent meeting was all about good news, sketching an upward trajectory over the last four years — his tenure on the job — that would hopefully continue into the future, he said.
“We’re finally past Town Meeting,” he said, referring to the May 9 Annual Town Meeting, when all articles passed and there were no controversial money issues to debate. “People seemed supportive,” of questions that called for spending, he said, with enough money in the bank to cover expenses and then some.
The town’s finances are “in good shape now,” Mcgovern told the Select Board. The question now is where to go from here. So far, it’s headed in the right direction, he said.
For example, the town’s bond rating — a key indicator of its standing in terms of borrowing for major purchases and projects — has gone from AAminus to AA, with another review scheduled in the fall, when he hopes to see it rise to Aa-plus, McGovern said. Also, Shirley’s S&P global rating is high and that’s “very positive,” he said.
Due in part to staff turnover, the town had some troubles with its reconciliation process and other accounting matters that were marked in past audits as a “material weakness,” Mcgovern said. Now, those issues have been resolved.
The ambulance service revolving account, another concern, is also on solid ground now, he added, with $292,000 in “retained earnings,” on the books that will allow the fire chief to hire more firefighters and round out the roster. “He could use three more” firefighters, Mcgovern said.
Funding deficits due to outstanding reimbursements that were not applied for have also been addressed. As a result of back-filling those deficits, the town ends up with more free cash, he explained.
The figures look good, he said, noting $1.75 million in the General Stabilization Fund, well beyond the required 5% of
the town budget. Other dedicated nest eggs totaling over $1 million are also on record now, including substantial amounts added in at the recent town meeting and last year. The added money will go toward municipal projects, Mcgovern said. Center Town Hall repairs, for example, with expert assessments pending.
Over the last four years, the town has accumulated $2.25 million in free cash, Mcgovern said, adding that the account has been certified by the Department of Revenue for fiscal 2021 with a balance of $700,000. “We’re at a comfortable level now,” he said, adding that $2.3 million in federal ARPA funds had helped close remaining gaps, negating the need to borrow for big ticket items such as a new ambulance, fire engine and Department of Public Works equipment.
Select Board Chair Debra Flagg posited that the reason the town’s financial picture looks so much better now is because some issues had been neglected or overlooked before. Conceding that there’s still more work to be done, she agreed that things were looking up and that, as Mcgovern has said, the town is “starting to see the light at the end of the tunnel,” thanks to improved practices and better financial planning, now and in the future.