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TR-2009-47 CONFIRMING AUTH OF FREE CASH RETAINED EARNINGS FY2010 CA ei-wU r\55 Fv r , i � VIGIC9 TR-2009-47 A RESOLUTION CONFIRMING THE ORIGINAL AUTHORIZATION OF THE USE OF FREE CASH AND RETAINED EARNINGS IN THE FISCAL YEAR 2010 ANNUAL OPERATING BUDGET WHEREAS, the Fiscal Year 2010 Annual Operating Budget for the Town of Agawam was adopted by the Agawam Town Council on July 27, 2009; WHEREAS, the eighth paragraph of the Fiscal Year 2010 Budget Resolution (TR-2009-16) authorized the Assessor to use not more than $2,500,000.00 of"Certified Free Cash" to reduce the Fiscal 2010 Tax Rate; WHEREAS, in the ninth paragraph of the Fiscal Year 2010 Budget Resolution (TR-2009-16), the Council appropriated $65,000.00 from the Agawam Municipal Golf Course Retained Earnings Account (65200-31510) to Fund Balance Appropriations Account-(65210-48500); WHEREAS, the Commonwealth of Massachusetts Department of Revenue certifications of the town's "Free Cash" and Agawam Municipal Golf Course Retained Earnings had technically lapsed at the end of Fiscal Year 2009 on June 30, 2009; WHEREAS, the Commonwealth of Massachusetts Department of Revenue completed its annual certification of the town's "Free Cash" and the Agawam Municipal Golf Course Retained Earnings on October 13, 2009; and WHEREAS, since the Commonwealth of Massachusetts Department of Revenue certifications of the town's "Free Cash" and Agawam Municipal Golf Course Retained Earnings had technically lapsed oii the date of the Council adoption of the Annual Operating Budget on July 27, 2009, it is necessary for the Counc'I to confirm its co "Free Cash" and Agawam Municipal Golf Course Retained Earnings votes now that the Co�hmonwealth of Massachusetts Department of Revenue has completed its annual cerjTic,ation of the town's "Free Cash" and the Agawam Municipal Golf Course Retained Earnings; and 00 NOW THEREFORE, THE AGAWAM CITY COUNCIL HEREBY C=) REg�)LVES TO CONFIRM ITS PRIOR VOTE TAKEN ON JULY 27, 2009 AS F013,OWS: I. That the Assessor use not-more than $2,500,000'00 of "Certified Free Cash" to reduce the Fiscal 2010 Tax Rate; and 2, That $65,000.00 is hereby appropriated from the Agawam Municipal Golf Course Retained Earnings Account (65200-31510) to Fund Balance Appropriations Account (65210-48500). DATED THIS DAY OF 2009. PER ORDER OF THE AGAWAM CITY COUNCIL Giha M. Letellier, f4esident APPROVED AS TO FORM AND LEGALITY Christopher C. John Solicitor MAYORAL ACIION Received this day of n L �, 2009 from Town Council Clerk. Signed by Council President this I day of An oo rx 60h, , 2009. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, f hereby rove the passage of the above legislation on this day of )Q" P�,-Q 2009. Susan R. Dawson, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2009 for the following reason(s): Susan R. Dawson, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this t'-7"-x -dayof Y—�C)Lx 2009. 14—ir TOWN OF AGAWAM INTEROFFICE T q; MEMORANDUM ED To: Solicitor Christopher C. Johnson CC: Mayor Susan R. Dawson From: Laurel A. Placzek Date: November 13, 2009 Subject: Reaffirmation of Fiscal Year 2010 Free Cash Appropriation The amounts of Certified Free Cash and Retained Earnings expire each year at June 30". It' Free Cash appropriations are not voted by June 3 01h, there is no certified amount from which to appropriate, Since the Fiscal Year 2010 Budget Resolution was not acted upon by the City Council until July 27, 2009, there was no "Certified Free Cash" available. The amounts of the Town of Agawam's Free Cash and Retained Earnings as of July 1, 2009 were certified by the Department of Revenue on October 13, 2009. A new resolution is now required to reaffirm the original authorization of the use of Free Cash and Retained Earnings in the Fiscal Year 2010 Budget. I have attached a proposed resolution using the verbiage from the original Budget Resolution, TR2009-16. This should go on the City Council Agenda as soon as possible so that it can be approved before the Fiscal Year 2010 tax rate is set. Thank you. FROMI'llu DESK OF... LAUREi.A.PLACZEK TREASURER-COLUCTOR ToWN OF AGAWAM 36 MAIN STREET AGAWAM,MA 01003-1837 (413)786-0400 EXT17NSION 220 Fax: (413)786-9927 Christopher C. Johnson Page Two October 15. 2009 WHEREAS, The Fiscal Year 2010 Annual Operating Budget for the Town of Agawam was adopted on July 27, 2009; and WHEREAS, The Fiscal Year 2010 Budget Resolution authorized that the Assessor use not more than $2,500,000 of "Certified Free Cash" to reduce the Fiscal 2010 Tax Rate; and WHEREAS, The Agawam City Council authorized and appropriated $65,000 from the Agawam Municipal Golf Course Retained Earnings, account 65200-31510 to Fund Balance Appropriations, account 65210-48500; and WHEREAS, the Massachusetts Department of Revenue Certified the Town of Agawam's Free Cash and the Agawam Municipal Golf Course Retained Earnings as of July 1, 2009 on October 13, 2009; and NOW THEREFORE, THE AGAWAM TOWN COUNCIL 14EREBY RESOLVES AS FOLLOWS: I. That the Assessor use not more that $2,500,000 of "Certified Free Cash" to reduce the Fiscal 2010 Tax Rate. 2. The Agawam City Council hereby resolves, authorizes and appropriates $65,000 from the Agawam Municipal Golf Course Retined Earnings, account 65200-315 10 to Fund Balance Appropriations, account 65210-48500. FRONITHE.DFSK OF... LA URFi.A.PI.ACZEK TREASURER-COLLEC-MR TowN or AGAWAM 36 MAIN STREET AGAWAM,MAOIOOI-1837 (413)786-0400 EXTENSION 220 Fax� (413)786-9927 Page I of 2 barbara bard From: Laurel Placzek Sent: Monday, November 16, 2009 10:15 AM To: barbara bard Cc: Mayor Susan R. Dawson; Cheryl StJohn Subject: RE� TR-2006-47 referred to Finance Comm/Free Cash Authorization Dear Barbara, Here are the certified free cash and retained earnings figures for the last three years: 07/01/09 Certified 10/13/09 07/01/08 Certified 10/06/08 07/01/07 Certified 11/29/07 Free Cash $6,824,712 $5,823,815 $4.753,178 Water Enterprise Fund 2,645,148 2,109,972 1,671,919 Sewer Enterprise Fund 1,602,539 n/a n/a Golf Enterprise Fund 244,532 104,798 180,007 We will most likely be appropriating additional free cash next June as part of the FY201 1 budget, as we usually use some free cash to reduce the tax rate. Please forward this to members of the Finance Sub-Committee. Thankyou. Laurel From: barbara bard Sent: Monday, November 16, 2009 8:15 AM To: Laurel Placzek Subject: FW: TR-2009-47 referred to Finance Comm/Free Cash Authorization Hi Laurel. I am forwarding Councilor Rossi's request to you and will call you later on this morning, If you could just email the info to me I can also make copies for tonight in case anyone else requests it. Thanks and happy birthday to your hubby Make it a great day! �Baz&w Barbara A. Bard Administrative Assistant to the City Council 36 Maiii Strvet A-awain, MA. 01001 (413) 786-0400 x233 (413) 789-9927 fax bbardna agawam.ma.us From: Robert Rossi [mailto:ltrer@msn,com) Sent: Saturday, November 14, 2009 7:50 AM To: barbara bard Subject: Re: TR-2009-47 referred to Finance Comm/Free Cash Authorization 11/16/2009 Page 2 of 2 Barb,, Thanks for the information.. However, I would like to know "how much free cash and retained earnings" were certified by the DOR on October 13, 2009. The last certified number of retained earnings I remember prior to July 1st, was 6.8 million, give or take a few pennies.. I would like to know the current certification level and the probably factor that we will not be dipping into it next June. Laurel can e-mail it to me directly or she can give it to you to e-mail me. If you feel unconfortable with this, it's not a problem, I can do it monclay morning.. Thanks, Just let me know.. B ..... Original Message ----- From: barbara bard To: Youn , Robert M LgQu�Lines M Ln cilizL labr�ese � Rot� rt nn is, Pprry. Sent: Friday, November 13, 2009 9:00 AM Subject: TR-2009-47 referred to Finance Comm/Free Cash Authorization Attached is a memo of back up for this resolution. Laurel Placzek cannot be at the meeting so she wanted to make sure you received this. I will bring hard copies to the meeting for everyone. Thanksi Confidentiality Statement This Town of Agawam electronic iftssage mung with aiLy corresponding atlachnients may commm privileged o�confideriliai itliorniation.This infoirnation is toT ilie use Of the intended recipient(s)Only.Any disclOSUre.copying.(Wribution,oi use of ino contents.ol this message in aiiy maniier is strictly prohibited by Rnyooa cithiar tlian tlic., intended roctpient(s) If you have received this email in error notify tha iender immediately by email and delete all copies from Your oetwor� 11/16/2009 Page I of 2 barbara bard From. Laurel Placzek Sent: Monday, November 16, 2009 10:15 AM To: barbara bard Cc: Mayor Susan R. Dawson; Cheryl StJohn Subject: RE: TR-2009-47 referred to Finance Comm/Free Cash Authorization Dear Barbara, Here are the certified free cash and retained earnings figures for the last three years: 07/01109 Certified 10/13/09 07/01/08 Certified 10/06/08 07/01/07 Certified 11/29/07 Free Cash $6,824,712 $5,823,815 $4,753,178 Water Enterprise Fund 2,645,148 2,109,972 1,671,919 Sewer Enterprise Fund 1,602,539 n/a n/a Golf Enterprise Fund 244,532 104,798 180,007 We will most likely be appropriating additional free cash next June as part of the FY2011 budget, as we usually use some free cash to reduce the tax rate. Please forward this to members of the Finance Sub-Committee. Thank you. Laurel ............ ............ ....... ...... From: barbara bard Sent: Monday, November 16, 2009 8:15 AM To: Laurel Placzek Subject: FW: TR-2009-47 referred to Finance Comm/Free Cash Authorization Hi Laurel. I am forwarding Councilor Rossi's request to you and will call you later on this morning. If you could just email the info to me I can also make copies for tonight in case anyone else requests it. Thanks and happy birthday to your hubby Make ita great day! ,q4ZLM Barbara A. Bard Adniiiiistrative Assistant to the City Council 36 Main Street 11--gawam, MA. 01001 (413) 786-0400 x233 (413) 789-9927 fax bbardna.nawain.mams ....*.................. From: Robert Rossi [maj Ito:Itrer@msn.coml Sent: Saturday, November 14, 2009 7:50 AM To: barbara bard Subject: Re: TR-2009-47 referred to Finance Comm/Free Cash Authorization 11/16/2009 Page 2 of 2 Hi Barb,, Thanks for the information., However, I would like to know "how much free cash and retained earnings" were certified by the DOR on October 13, 2009. The last certified number of retained earnings I remember prior to July 1st, was 6.8 million, give or take a few pennies., I would like to know the current certification level and the probably factor that we will not be dipping into it next June, Laurel can e-mail it to me directly or she can give it to you to e-mail me. If you feel unconfortable with this, it's not a problem, I can do it monday morning.. Thanks, Just let me know.. B -----Original Message From: barbara bard To: Young, Robert M Cq5 s) iqse p qsi�ness _h_Minpq ; ��ecilia_�alaljreaq ; &Q_�ert_RQ I : Qqnnis P"r s5� Sent: Friday, November 13, 2009 9:00 AM Subject* TR-2009-47 referred to Finance Comm/Free Cash Authorization Attached is a memo of back up for this resolution. Laurel Placzek cannot be at the meeting so she wanted to make sure you received this. I will bring hard copies to the meeting for everyone. Thanks! Confidentiality Statement This Town of Agawarn electronic message aiong with any correSporiding attachments may cantain privileged or confidential information.This infoinnatton is fol the use of the intended recipient($)only.Any disclosure,copying,distribution,or use of lhe conlents of this message m any manner is strictly prohibited by anyone other(lian the intended recipient(s).If you have received this email in error.notify the sender iminediately by ernail and delete all copes froill your network. 11/16/2009 TR-2009-47 A RESOLUTION CONFIRMING THE ORIGINAL AUTHORIZATION OF THE USE OF FREE CASH AND RETAINED EARNINGS IN THE FISCAL YEAR 2010 ANNUAL OPERATING BUDGET WHEREAS, the Fiscal Year 2010 Annual Operating Budget for the Town of Agawam was adopted by the Agawam Town Council on July 27, 2009; WHEREAS, the eighth paragraph of the Fiscal Year 2010 Budget Resolution (TR-2009-16) authorized the Assessor'to use not more than $2,500,000.00 of"Certified Free Cash" to reduce the Fiscal 20 10 Tax Rate; WHERE-AS, in the ninth paragraph of the Fiscal Year 2010 Budget Resolution (TR-2009-16), the Council appropriated $65,000.00 from the Agawam Municipal Golf Course Retained Earnings Account (65200-31510) to Fund Balance Appropriations Account (65210-48500); WHEREAS, the Commonwealth of Massachusetts Department of Revenue certifications of the town's "Free Cash" and Agawam Municipal Golf Course Retained Earnings had technically lapsed at the end of Fiscal Year 2009 on June 30, 2009; WHEREAS, the Commonwealth of Massachusetts Department of Revenue completed its annual certification of the town's "Free Cash" and the Agawam Municipal Golf Course Retained Earnings on bctober 13, 2009; and WHEREAS, since the Commonwealth of Massachusetts Department of Revenue certifications of the town's "Free Cash" and Agawam Municipal Golf Course Retained Earnings had technically lapsed on the date of the Council adoption of the Annual Operating Budget on July 27, 2009, it is necessary for the Council to confirm its "Free Cash" and Agawam Municipal Golf Course Retained Earnings votes now that the Commonwealth of Massachusetts Department of Revenue has completed its annual certification of the town's"Free Cash" and the Agawam Municipal Golf Course Retained Earnings; and NOW THEREFORE, THE AGAWAM CITY COUNCIL HEREBY RESOLVES TO CONFIRM ITS PRIOR VOTE TAKEN ON JULY 27, 2009 AS FOLLOWS: I- That the Assessor use not more than $2,500,000.00 of "Certified Free Cash" to reduce the Fiscal 2010 Tax Rate; and 2. That $65,000.00 is hereby appropriated from the Agawam Municipal Golf Course Retained Earnings Account (65200-31510) to Fund Balance Appropriations Account(65210-48500). DATED THIS DAY OF , 2009. PER ORDER OF THE AGAWAM CITY COUNCIL Gina M. Letellier, President APPROVED AS TO FORM AND LEGALITY Christopher C. John , Solicitor