Finance Committee Meeting Minutes
Thursday April 12, 2018
Rutland Public Library
7:00 p.m.
Present: Lyndon Nichols, Karen Nahrwold, Carl Bindoo, Sheryl Vernon, Tom Ruchala, Iain McKinlay
Absent: Deb Kristoff
Others Present: Margaret Nartowicz – Town Administrator, Leroy Clark – Select Board Chair, 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 meeting minutes from April 5th with corrections. Ms. Vernon 2nd. Vote unanimous.
Sewer Transfer Request
Gary Kellaher, DPW, requested a Reserve Fund transfer to the Sewer Supplies account (201-440-5400-000) in the amount of $5,318.27 to pay outstanding invoices incurred during an unforeseen sewer main break on Miles Rd.
The October 2011 STM allocated money for a sewer WWTP study that failed, money is left over. An article will be presented at this this year's ATM to close out the WWTP study article and transfer $26,597.15 to the Sewer Operating Enterprise, at which point a portion of those funds would replenish the Reserve Fund.
Mr. Bindoo moved to approve the transfer request from the Reserve Fund in the amount of $5,318.27 to transfer to Sewer Supplies (201-440-5400-000). The present balance in said appropriation in $2,001.48. Reason for request is to cover sewer emergency repairs in the amounts of $2,812.00 and $2,506.27. Mr. Ruchala 2nd. Vote unanimous.
Sewer Free Cash currently $70,859.
General FY19 Budget Discussion
Ms. Nartowicz stated the House Ways and Means budget is in; it's good news as long as the numbers stick. There are three areas of benefit: the formula for minimum local contribution changed a bit and may result in further reduction; regional transportation received an additional $1 million funding; Chapter 70 state aid – the WRSD request expected $27,472,242 but House Ways and Means increases it by $226,955 (Rutland portion - $52,721.65). This gives a little flexibility under operations assessment unless the district comes back with a reduced budget based on chapter 70. Will have to wait on the new number for minimum local contribution.
There was discussion about wages. Ms. Nartowicz will be presenting a proposal to the Select Board. Rather than rescinding the entire wage adjustment done in 2010, she will propose an amendment to shift the steps. Some positions have fallen so far behind it will take multiple years to adjust (one position is more than 40% behind). Most positions fall between minimum and maximum comps.
The Select Board will do a final review and sign the STM/ATM warrants on Monday April 23rd. Ms. Nartowicz will give the Board wage proposals – looking at $34,000 maximum, though she is going to try to present something a little less to provide for reasonable increases.
There was discussion about potential unfairness to employees whose positions aren't adjusted; some positions will be frozen while others are raised to meet minimum comps, which could take a few years.
There was discussion about asking departments for additional cuts. Departments have not yet been asked. Without the override, the budget will have to be presented based on the school's request. Ms. Nartowicz stated the gap was down to $100,000 in the last recommended revisions; will have to get contingencies in. She has been trying to keep from cutting the Town Planner position, but there is not much left. There was discussion about the importance of the streamline permitting software. Ms. Nahrwold feels as developments continue to go up, the software would help prevent mistakes. The Town has grant money to help through the software set up process; losing the software would hurt the Town.
Ms. Nahrwold stated making cuts without the wage adjustments will just lead to more cuts. There was discussion about looking at the requests for increased hours from some departments, may have to trim back. Inspection Services is picking up a lot of work; additional hours were requested and could really be used, and the department generates funds. Other departments with requests for increased hours are the Town Clerk and Library.
Ms. Nartowicz discussed indirects on the enterprise accounts, reduced from $285,000 to $267,000. Reductions don't take the school difference into consideration. The House Ways and Means report was received just this week, likely going to Town Meeting with just that. There was discussion of the importance of the school budget noting reductions for Town Meeting.
A roundtable meeting hosted by the Select Board, FinCom, and CIPC is scheduled for Wednesday April 25th, all department heads are invited to attend. There will be a discussion on where the Town has been in the past, as well as the present and future. The intent is to have a general discussion, but it will be important to talk about this year's reductions, budget sustainability and revenue controls.
There was discussion about holding a "pre-Town Meeting" meeting, open to the public, to discuss budget cuts and their effects. Ms. Nartowicz will reach out to CMRPC to ask someone to do a brief review of the managed growth presentation. The meeting would be an opportunity to discuss where revenues come from and where potential hours may be cut; department heads would be encouraged to speak. A tentative date of May 7th was set for the "pre-Town Meeting" meeting, to be held after the Select Board's regularly scheduled meeting.
Ms. Nahrwold asked if there was any update on Christopher Heights. Ms. Nartowicz stated a pro forma was submitted to assessors, but no other movement. The RDIC budget was cut down, but thy could still pursue the Heights property – Christopher House, grocery store, etc.
There was discussion about reductions to bring the gap down without losing the Town Planner position. If the school budget is reduced and permitting software cut, the gap could be down to about $35,000-$40,000.
Ambulance revenue was bumped to $400,000, slightly below last year's actual. Revenues can't be overestimated; if there is an ambulance breakdown ALS intercepts would have to be called in. FY17 actual revenue was $433,000 – Ms. Nartowicz can consult with Dan Haynes about bumping it up $10,000 but does not recommend bumping to $433,000.
Ms. Nahrwold expressed the need to get the message across at the information session that there is no wiggle room in the budget. One overage and the Town will be in trouble. Mr. Nichols recommends a representative from the Planning Board should be there to talk about the importance of the Town Planner position.
As of March 26th, the snow & ice deficit is $147,779.86 but could still change. Only about $77,000 can be funded from free cash, the remainder will have to be appropriation transfers. The two highest priority roof projects will be tackled this Spring – the Public Safety Complex and Library. The Jefferson School parking lot won't be funded by free cash; there is a proposed appropriation transfer from the Naquag Green account.
There was discussion about Wachusett Greenways. They've requested $1,000 to maintain bike paths. The Select Board has not voted yet.
The ATM warrant will be finalized April 23rd. The Board voted to include all but 4 outstanding articles – two from assessors, two from the chief of police, plus street acceptances.
Ms. Nartowicz added that police sergeants are still in the negotiation process and not currently included in the working budget. Ms. Nahrwold asked about Wachusett including an increase for their teacher's union; Ms. Nartowicz will have to follow-up to ask what their plan is.
Mr. Nichols suggested having departments discuss individual impact at the "pre-Town Meeting" forum and possibly compiling a slideshow from different departments to highlight outreach and the dedication of Town employees to the Town.
Ms. Vernon moved to adjourn. Ms. Nahrwold 2nd. Vote unanimous.
The meeting adjourned at 8:13 p.m.
Respectfully submitted,
____________________ Laura Scannell, Secretary
Approved on: ________
____________________ Lyndon Nichols, Chairman
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