Submitted by Finance Committee Chairperson Michael Seibert at the request of The Bedford Citizen
The Finance Committee’s dashboard makes it easy to keep track of Bedford’s financial situation.
![Microsoft PowerPoint - speedomoeters 2013 [Compatibility Mode]](https://cdn.thebedfordcitizen.org/wp-content/uploads/2013/04/Stabilization.jpg)
The stabilization fund is our long term rainy day fund. We drew it down to the red a couple years ago, and it kept us safe from an override. We’d like to keep it to 2-6% of the overall budget. It’s at 3.1% now. I’d personally be more comfortable if it were closer to the green, and I hope we address it in the fall.
![Microsoft PowerPoint - speedomoeters 2013 [Compatibility Mode]](https://cdn.thebedfordcitizen.org/wp-content/uploads/2013/04/Free-Cash.jpg)
Free cash is our hedge against overestimating revenue sources, and our goal for it is 1% is of the budget. We’re good.
OPEB is the amount we’re squirreling away to cover the unfunded retiree healthcare expenses. Our Annual Required Contribution to eliminate the liability would be about $1M. We’re making some progress, actually much better than most municipalities, but we’re still falling behind in terms of the growth of our long-term liability.
Reserve is our fund to cover smaller unexpected budget shortfalls. Our policy is 1/2 % of the operating budget. We’re good there.
Unused levy is the amount of levy capacity we don’t use. As I showed earlier, we’re only using $276K of $1.276M of new growth, leaving $1M unused, giving ourselves a small tax break, and protecting ourselves from an override.
And lastly, we like to keep debt service (our payments of principal and interest) to 10% or less of the budget. We’re close, but safe. Note that I indicate orange, or caution, for small debt because small debt indicates that we’re probably not investing to maintain our infrastructure. We’re good there.
This was the best Finance Committee report I have ever seen at Town Meeting. Clear, easy to understand (the graphics were fabulous!) and informative. Thank you Mike Siebert for such a great presentation!
Thank you Bedford Citizen for providing real information to the residents of Bedford!!
Well done Mike.
This is outstanding – thank you.