Friends and the Capital Fund

​​In 2007 the residents of Guilford voted to "replace the system of equipment earnings established in the 1962 town meeting with an accounting method which considers real and planned expenditures to begin in FY09."

Guilford residents have been transferring money into a Capital fund ever since. From 2011 to 2016 the budget was $150,000. It jumped to $200,000 in 2017 and has leveled out at $225,000 from 2018 to our current budget.

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The 2014-15 Town report stated that there was a change on the horizon concerning the Town’s focus on Capital Budget Planning. “The goal of this program is to care for our assets in a way that imposes the least financial burden on the taxpayers, minimizes unanticipated budget increases and thus helps to stabilize the tax rate. We will be working with all Town departments and some recipients of Town funds to create rolling 5-year capital needs assessments, plans, and budgets to allow us to maintain, improve, and preserve or replace capital assets proactively, avoiding debt as much as possible."

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In August of 2015 the original Capital Policy was signed into effect by Selectboard member Sheila Morse. The policy read in part: The Selectboard will adopt a five-year Capital Improvement Plan for the Town of Guilford. This plan will include the Town's plan of capital projects proposed to be undertaken during each of the following five years, the estimated cost of those projects, and the proposed method of financing. The Selectboard will review and update the CIP annually.

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In 2018 Sheila Morse was the Selectboard Chair and wrote this in Guilford's Town Report. Late in the summer of 2018, Town Office renovations were completed. (…) and we are pleased that the town incurred no debt in completing this ambitious project. How was this possible? These renovations launched our Capital Program and Budget Plan, first envisioned in 2014 -15. (...) It is a brilliant guiding document, available for public education on the Town’s website.

 

The selectboard also hired a company to perform a Capital Needs Assessment report which was completed in January of 2018. According to that report, Guilford needed to budget $596,875.69 over the next 20 years to protect current assets.

 

​Concerned about the fund, Tammy Sargent asked for the five-year Plan including the Selectboard’s annual updates that the policy required. At this time, Sheila was Guilford’s Finance Advisory Committee Chair and the selectboards appointed Town Administrator so she responded to Tammy's request.

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Sheila states:

​“We need to create that report. It doesn't exist. (…) Believe me, if I could print and post such a report, I would. The Finance Advisory Committee has also been seeking this information for quite some time as well.

Best, Sheila”​

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Shortly thereafter, Morse and the Selectboard were confronted about not adhering to the Capital Program and Budget Policy. So, the selectboard created an entirely new policy.

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The renamed Asset Management Program Policy now reads: the Select board may annually project an Asset Project Plan for the Town of Guilford. Such a plan could include proposed capital projects, the estimated cost of those projects, the proposed sources of funds, and any impacts on the annual operating budget. It will also take into consideration unanticipated or emergency project expenses.

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It's time to take another look at Guilford's Asset Management Policy.

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