Finance Committee Minutes
Thursday April 5, 2018
Rutland Public Library
7:00 p.m.
Present: Karen Nahrwold, Lyndon Nichols, Sheryl Vernon, Tom Ruchala
Absent: Iain McKinlay, Carl Bindoo, Deb Kristoff
Others Present: Margaret Nartowicz – Town Administrator, Leroy Clark – Select Board Chairman, Laura Scannell – Secretary
Mr. Nichols opened the meeting at 7:00 p.m. The meeting was recorded for airing on Channel 191.
MINUTES
Mr. Ruchala moved to accept the meeting minutes from March 22, 2018 as written. Ms. Nahrwold 2nd. Vote unanimous.
Town Clerk Budget Discussion
Anita Carlson – Town Clerk and Becky Tuttle – Treasurer/Collector were in attendance. Ms. Carlson presented an updated budget request sheet for the Town Clerk's office. The budget was revised due to a change in staffing for the Assistant Town Clerk position. When the budget was initially presented, the position was shared with the Treasurer/Collector's office with a request to adjust 3 hours per week from the Treasurer/Collector's office to the Town Clerk's office. After the Assistant Town Clerk's resignation, Ms. Carlson and Ms. Tuttle decided not to share the position. The revised Town Clerk's budget shows a potential increase from 22 hours per week to 25 hours because the outgoing assistant was at OAD 3 Step 4 and the new assistant is at OAD 3 Step 1. The adjusted figure shows six pay periods at OAD 3 Step 1 with a proposed
increase to Step 2 after a 6-month review.
There was discussion about the Town policy to give reviews for new employees after 6 months.
The Town Clerk's budget is down by about $3,000 due to a change in wage.
There was discussion about potential certifications and courses for the new Assistant Town Clerk. Certifications are elective and not funded by the Town.
There was discussion about the Treasurer/Collector's budget changes. From Indirect Charges – VADAR was transferred back to Water & Sewer Purchased Service accounts. Ms. Nartowicz confirmed that DPW and the Board of Assessors added back indirect costs from VADAR.
General FY19 Budget Discussion
The Library budget request was updated. The 3 requested PCs will be proposed under a separate article. They expect building energy savings from a solar net metering power purchasing agreement. Other charges and expenses for materials are based on a calculated formula from state regulations. If necessary, the Library would have to go to the state aid account for extra expenditures.
There was discussion about the Holden Finance Committee's decision to support a budget approximately $1 million less than the amount requested by WRSD. Ms. Nartowicz discussed the options to present the school budget request and immediately amend it to a reduced amount, versus presenting an override. Ms. Nahrwold stated that WRSD is publicizing their budget request as having only increased 4.8% but noted that this is based on total assessments and does not accurately reflect the additional 20% increase on other budget items in the school budget.
Ms. Nartowicz added that in the past 10 years, minimum contribution has increased 131.3% and in the past 5 years (including the current year) it has gone up 159.6%.
Ms. Vernon discussed presenting information to the Town to help people understand these increases compared to those requested from other departments in Rutland.
There was discussion about the override versus amendment scenarios. There are concerns that presenting the full budget and an amendment could see the amendment fail and the full budget go through, which could wipe out the Town budget. Wage increases are not included in the current working budget yet, could potentially run $25,000-35,000 more. Ms. Nartowicz stated that whether an article is presented contingent on an override, or presented and amended, there must be contingent reductions prepared to present one way or another.
The Select Board voted to have the ambulance and cruiser presented as debt exclusions. Ms. Vernon suggested informing the public of the items that have already been taken out of the budget. There was discussion of presenting the public with tax rate impacts as well as service impacts.
Sheila Dibb, Select Board, joined the meeting at 7:40 p.m.
Ms. Dibb expressed that this may not be the year to go for an override; given anticipated budget concerns in the coming years, this year the Town may be in a position to give residents a break. Pushing for a small override now could put the Town in far worse positions when bigger corrections need to be made.
There was discussion about the Town departments consistently working with less, having to make cuts to service and equipment, as well as the areas in which the schools are lacking. Ms. Nahrwold stated that even with an amended school budget, the departments are still cutting; people have been working with very little to nothing for years. Money hasn't been going into the stabilization fund, there is nothing to protect from something catastrophic.
Ms. Nartowicz stated that with all allocations potentially scheduled for the Annual Town Meeting, Free Cash would have $482 remaining. There would be no flexibility to patch budget issues.
The Finance Committee took a brief recess at 8:26 p.m. and returned at 8:28 p.m.
Ms. Nartowicz stated that the Finance Committee needs to make a recommendation regarding an override as the Select Board is scheduled to set the articles at their upcoming meeting on Monday April 9. Ms. Vernon asked when COLA would be added to the budget. Ms. Nartowicz clarified that it is wage adjustments that will be added – she expects the adjustments to run between $25,000 and $35,000, should be able to provide the numbers next week.
There was discussion about managed growth. Ms. Dibb stated that people move to Rutland for affordable houses and a good school district, we don't want to reach a point where the Town has a lot of people and a subpar school district.
There was discussion about a special purpose stabilization fund. The Town would have to establish a special stabilization fund for anything the Town would want to fund through this mechanism. There are two years left on the 2014 debt exclusion; this scenario presents and override in 2021 for $110,000. The override would be restricted to the purpose; could potentially fund a replacement ambulance in FY23 and a replacement schedule every two years.
Such funds could be set up for building maintenance, DPW large equipment, etc. Ms. Nartowicz spoke with CIPC and this could open the door for other capital items to go on.
The Finance Committee discussed going with the amendment instead of an override. Every department would be prepared to get up and speak to the cuts that would be made. The proposed Town Planner position and permitting software would be at risk, may have to cut back to a part-time planner position but that would not meet the Town's needs.
NEW BUSINESS
Mr. Nichols provided information for review on the role of the Finance Committee in the development of the budget.
There was discussion of having additional budgets as backup if the school budget passes at the full amount. There was discussion about the order of the articles on the warrant. Budget items are typically at the top – school then municipal. It's up to the moderator to take items out of order based on motions.
Ms. Vernon moved to adjourn. Mr. Ruchala 2nd. Vote unanimous.
The meeting adjourned at 9:06 p.m.
Respectfully submitted,
____________________ Laura Scannell, Secretary
Approved on: ________
____________________ Lyndon Nichols, Chairman
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