FINAL
CHILMARK PERSONNEL BOARD MEETING JULY 21, 2005 – CHILMARK TOWN HALL
CALL TO ORDER: 8:07 AM
PRESENT: Members Jennie Greene, Max McCreery, Richard Williams, and Henry Burkin. Also present: Tim Carroll, Polly McDowell, Riggs Parker, Chief Rich, Martina Mastromonaco, Deb Cini, Tom Wilson, Melanie Becker, Jonathan Klaren, Rodney Bunker and Chuck Hodgkinson. Absent: Lois Norton.
NEW BUSINESS:
PROPOSED PAYROLL CHANGES WITH DEPARTMENT HEADS: Ms. Greene opened the meeting and summarized the proposed changes to the Town’s payroll system and solicited input from the audience. Representatives from Town Hall, the Police Department and the Beach Department were present and explained their personal or department’s concerns with changing the payroll cycle from 52 paychecks/year to 26 paychecks/year. Each asked the Personnel Board to keep the current 52-week payroll cycle. The consensus of the employees present felt a 26-week payroll cycle would add employee stress and create budgeting and cash flow problems.
Mr. Williams asked what special circumstances existed that caused the Town to change from 26 paychecks/year to 52 per year? He added that it was his understanding that the 52-paycheck cycle was a temporary decision and that it was not clear how long it would stay in place. The discussion that followed pointed out that the 52 week cycle was instituted to have all Town employees paid for the same work week at the same time – in arrears rather than in advance. The change to 52 weekly paychecks was done to help ease the short-term cash flow burden of the change for those employees that were being paid in advance.
Mr. Carroll asked what savings would be realized if the Town switched back to a 26 week cycle. Ms. Greene responded the Town would save just under $4,000 in out of pocket costs and additional staff payroll processing time would be saved. Tom Wilson added his data entry time would be cut in half and that in the summer season it takes three to four hours per pay period. Melanie Becker continued that she spends about five to six hours per week on payroll in the summer and it is about one half that in the winter.
Chief Rich asked why the Town has an outside payroll service if Tom and Melanie still need to spend 8 to 10 hours per week processing the data. Several alternatives were then proposed such as having two payroll cycles – 26 weeks for year-round employees and 52 weeks for seasonal employees or, keeping the 52-week schedule and reduce cost by bringing payroll processing in house. It was discussed that these are not viable alternatives because they will increase internal processing time, require additional and expensive computer software and expose the Town to excessive risk and liability through mistakes made on payroll withholding taxes.
The audience supported the Personnel Board’s proposed recommendation to have the Town’s payroll service, ADP, track future accrued and used benefits for eligible employees. It was also clarified that the Police Department and Library already maintain accurate benefits records.
Personnel Board Minutes July 21, 2005 (continued)
It was also confirmed that the current payroll swipe system has enough capacity (up to 60 days) to manage a two-week pay cycle.
The audience was thanked for their comments and was assured that the PB is mindful of their opinions and concerns. Mr. Williams pointed out that keeping the 52-week cycle might have an additional lost opportunity cost for the Town. The change to 26 weeks would free up some of the Town Accountant’s and Treasurer’s time to work on more important Town financial matters.
JULY 28 MEETING: The PB decided to delay making a final decision until Thursday, July 28 @ 8:00 AM. This will give them ample time to consider the employee comments and contact other towns to solicit their opinions and experiences with different payroll cycles. They will then evaluate the pros and cons for changing the payroll cycle from 52 to 26 pay periods. A final recommendation will be submitted to the Board of Selectmen for consideration and vote at their August 2 meeting.
Mr. McCreery made a motion to adjourn the meeting. Mr. Williams seconded. It was voted and so carried. The meeting adjourned at 9:12 AM.
Respectfully submitted by Chuck Hodgkinson, CAS.
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