Vote NO on Question 5 - Danvers doesn't need the CPA

Vote NO on Question 5 - Danvers doesn't need the CPA

On November 8th in Danvers, Question 5 will ask for your vote on the Community Preservation Act. I’m writing to ask voters to go to the ballot box and please vote no on Question 5, simply because there is no need for additional revenue in the Town of Danvers.

As a Selectman for nine years, my favorite annual publication was the Comprehensive Annual Financial Report. This book provides accountability for every dollar raised, every dollar spent and every dollar saved by the Town of Danvers. I reviewed the last five Comprehensive Annual Financial Reports (available on the town’s website) and found that the town runs a surplus every year. The combination of excess revenue and unspent appropriations have added up to over $12.4 million dollars in just five years. This is the money that flows into the Free Cash account every year and is used on various projects around town in the following years.

The town also currently has $8.98 million as an Unassigned Fund Balance (free cash), which is 10.1 percent of General Fund expenditures (See FY15 CAFR - Page 19).
In addition to $8.98 million in Free Cash, and an average of $2.5 million dollars per year in excess cash flow, the town has many stabilization accounts. Some of these accounts don’t exist in any other city or town in the state.

The town has a school building stabilization account, a special education stabilization account, an equipment stabilization account, a health claims reserve account, a general claims reserve account, a finance committee reserve account, and an Other Post Employment Benefit stabilization account with combined balances of $7.98 million dollars (See FY15 CAFR - Page 5).

Combining these accounts with the Free Cash account makes the total General Fund balance of $17.8 million, which is 20.1% of general expenditures. (See FY15 CAFR - Page 19).

Moody’s and Standard & Poor’s recently reaffirmed the town’s bond rating as Aa1 and AA+. Both are the second-highest rating available. The town would not have achieved such high ratings if it were in need of additional revenue.

There is no shortage of money.

Danvers does not need a new CPA tax.

Vote no on Question 5 on Nov. 8.

https://www.facebook.com/NoCPAinDanvers

Keith Lucy
Danvers
Keith Lucy is a former selectman and former member of the Danvers Retirement Board.