Killington Struggles in Switch to Fiscal Year Accounting

Vermont Standard

9/22/16

By Curt Peterson

Standard Correspondent

After 10 minutes of reviewing year-to-date figures from July and August 2015 with those from 2016, selectman Chris Bianchi said, “It’s become obvious that the transition from a calendar year to a fiscal financial year basis is a full three-year process.”

The conversion was necessary in order to use the NEMRC (New England Municipal Resource Center) software to manage the town’s finances, as NEMRC’s system is based on a July 1 to June 30 fiscal year, and it required a one-time eighteen-month budget to bring starting and finishing dates in line with NEMRIC’s format. Any year-to-date figures have to be interpolated from an actual January 1 start date to a calculated July 1 start date.

Confusing?

In order to give the select board estimated YTD monthlycomparisons between the two financial periods, town employees have to create custom spreadsheets showing NEMRC figures and estimates from Killington’s prior system.

Bianchi questioned whether the exercise is worth the effort and asked Schwartz how much time employees have to spend on the customization, a question for which she did not have a ready answer.

The July and August figures presented more confusion. Parks and Recreation Department revenues were higher than last years, but other revenue receipts were down. Bianchi explained that the last four tax payments, one of which was received during the July and August period last year, were higher because they included taxes for an extra half year, which would have inflated the tax receipts for that period.

There was also a question about when the town’s significant options taxes are received, which Select Board chair Patty McGrath confirmed is 45 days after the end of the quarter to which they apply. If accounting for options tax receipts were affected by the fiscal period change, it would affect the YTD revenue figures.

Schwartz said total general expenses were 5 percent lower for the two-month period this year than last year.

In her regular report on collection of delinquent taxes Schwartz said there is still about $258,100 due. She sent out 64 certified letters to property owners who owe delinquent taxes over a year old, including those who have been performing according to payment plans but whose agreements have expired and needed recasting. She has signed receipts indicating that 51 of the letters have been received by the addressees.

“Thirteen taxpayers have paid their delinquencies in full,” she said, “amounting to $52,311.”

In addition, six taxpayers have signed or have pending new payment plan agreements to retire their delinquent taxes.

“We are working with individuals to make sure payment of their old taxes doesn’t interfere with payment of current obligations,” Schwartz said. “We don’t want to trade paying off delinquencies just to create new ones.”

McGrath applauded Schwartz’s efforts, saying her success in making tax receipts more predictable makes budgeting for the town a lot easier, which provided a segue into discussion of next year’s town budget.

Using past budget preparation timeline documents, Schwartz created and presented the board with a new one, showing deadlines for department budget submissions and time goals for board review. The selectmen are considering multiple meetings to get the job done.

The Town Manager said she has a goal for the upcoming budget to make it reflect both actual expenses and actual needs in an effort to avoid either deferred investment or moving funds around within the budget during the year to adjust to reality. As an example she cited the town’s commitment to updating its technology equipment and systems. Instead of repeating the “usual” $12,000 line item, she said, which would be more than gobbled up by any upgrade, she would like to get some hard numbers for what is needed and use them when budgeting.

“I’d like to see us discontinue underfunding,” she said.

Items for which town departments will want budget expansions include, she said, GIS Mapping for the Listers, a budget for the Shelburne Memorial Library to host events and to cope with additions to their reroofing costs, and a bigger expense and revenue budget for Parks and Recreation to reflect their growth and successful expanded programs.

The town is beginning to gear up for hosting the 2016 Audi FIS World’s Cup races over Thanksgiving weekend. Amy Morrison, representing Killington Piko Area Association and Killington’s Economic Development Committee, got approval from the selectmen to market 3-by-5-foot banners to local businesses that they can display on their premises during the event. The cost will be $100 each.

Schwartz said the World Cup weekend will bring people from all over the world to Killington, which will create unusual logistical and security challenges. For that reason she has begun what she calls “Tabletop Exercises,” bringing together State Homeland Security and Emergency Management people, the Killington Police Department and other participants and advisors to set up a coordinated security plan for the event. The first meeting will be at the Resort’s Base Lodge on Friday, Sept. 23 from 8 a.m. until 11 a.m.

McGrath said she thinks this is a good idea, remembering how the town’s Emergency Planning helped coordinate services, communications and rescue efforts during and following Tropical Storm Irene in 2011.