Finance Committee Meeting Minutes
Thursday April 19, 2018
Rutland Public Library
7:00 p.m.
Present: Lyndon Nichols, Karen Nahrwold, Carl Bindoo, Tom Ruchala, Iain McKinlay
Absent: Sheryl Vernon, 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 later airing on Channel 191.
MINUTES
Ms. Nahrwold moved to accept the meeting minutes from April 12, 2018 as presented. Mr. Ruchala 2nd. Vote unanimous.
General FY19 Budget Discussion
Ms. Nartowicz provided two versions of the budget – requests budget and draft contingent reductions. Proposed wage adjustments were plugged into the requests budget; wage adjustments were expected to be an increase of $47,000 but have since been reduced to $45,918.23. Wage adjustments are not included in the contingent reductions scenario & the inclusion in the requests budget is contingent on the Select Board approving the equity wage adjustments.
There was discussion about the risk associated with increasing ambulance revenues by an additional $11,450. This year saw several out of service issues, if that continues there could be a decline in revenues next year. Ms. Nartowicz is waiting to hear from Dan Haynes and Becky Tuttle regard the increase; it's possible the $11,450 will have to come out. $411,450 is currently applied as revenue in both budget scenarios.
The contingent reductions budget scenario would reduce the gap to $8,831.49 with some painful reductions - i.e. streamline permitting software would be cut and the Town Planner position would be scaled back. The Town received a $15,000 state grant for the permitting software, which it would have to decline, and an application has been filed for an additional $18,800 toward the up-front cost that hasn't been awarded yet from which the Town would have to withdraw.
Two scenarios were provided for the elimination or reduction of additional hours requested by the Town Clerk, Inspections, and Library. Reductions are built into the contingent budget scenario except for the Building Commissioner, who has reduced alternate wages. Ms. Nartowicz expressed major concerns with some employees not being compensated for the hours they must work; as an employer it is not right or fair to make the reductions.
Ms. Nartowicz reviewed adjustments made to local receipts. Water & Sewer Indirects reflect updates to FY18 insurance premiums for buildings and infrastructure and worker's comp. Water increased by about $10,000 and sewer by a couple thousand.
Free cash & other available funds will include funds remaining in the DPW garage construction project ($3,034.93) - total one-time revenue $173,075.87.
Wachusett local aid estimates – Ms. Nartowicz had estimated Rutland's assessment could be reduced by $74,000, updated numbers from the district show a $79,349 reduction. There's no indication the school committee will be re-voting on its budget.
Ms. Nartowicz reviewed other changes to the budget and discussed her willingness to reduce the Town Administrator salary to the final FY18 budgeted level, reduce other charges and expenditures by 16%, and reduce professional development dues and subscriptions written into her contract.
Conservation Commission (ConCom) wages are paid 50% out of special revenue, 50% out of budget. There was discussion about the special revenue fund; the fund is comprised of fees collected by ConCom.
The Town Planner position budget request originally included 37.5 hours a week at $58,000 salary plus $9,000 from the revolving fund. The contingent reduction scenario reduces the hours to 32 per week; the Planning Board would still contribute $9,000. Ms. Nartowicz feels the bottom line is that the town cannot afford to go without a Town Planner; further reductions to the planner's hours will make it more difficult to find a highly qualified candidate.
The RDIC budget request was pulled out; $25,000 will be on a separate Town Meeting article. The funds will come from the Sale of Property – Rutland Heights fund. On budget amount remains at $200.
Chief Knipe had initially requested $28,500 for Public Safety supplies. Five-year actuals showed no year exceeded $22,000; Chief Knipe okayed request to reduce the amount to $22,600. Purchased Services is staying at the requested $42,000. Fire Wages-Training contingent reduction would bring the amount from $39,000 to $37,647 to reflect the elimination of non-union wage increases. Chief Knipe believes the staff would unionize in those circumstances.
Building Inspector – Contingent Reductions would retain the requested 4-hour per week increase, but level funds the pay rate. Alternate's wages would be reduced from $3,000 to $2,000 and clerical wages request reduced by one hour.
DPW – Mr. Kellaher has recommended that his salary be level funded from FY18 in the contingent reduction scenario.
Board of Health – clerical wages are 90% budgeted, 10% from a revolving fund.
Library – the Children's librarian requested an additional 4 hours per week, the contingent reduction scenario reflects an additional 3 hours per week.
Veteran's Services – contingent reduction scenario reduces Veteran's benefit payouts to $1,000 over what the Town is currently paying. Any additions mid-year would lead to deficit spending or looking at reserve fund transfers.
Ms. Nartowicz stated there are two options on the budget, neither recommended – first is the reduction of all additional requested hours, the other is further reduction of the Town Planner. She will review the $11,450 increase to ambulance revenue with Mr. Haynes and Ms. Tuttle.
Ms. Nahrwold stated that even with budget requests as they are, with minor equitable wage increases, so many departments will still have cuts.
Depending on ambulance revenues, the gap would be either $129,185.13 or $140,635.14. The proposed school amendment amount would be $129,185.13. If the school district were to amend their budget request to reflect House numbers, the gap would be close to $60,000.
There was discussion about the audit. Ms. Nartowicz does not expect it to happen before the end of the fiscal year. Ms. Nahrwold emphasized this should be corrected – if there are any errors, they will be carried through another fiscal year.
Ms. Nahrwold believes the streamline permitting software would pay for itself by ensuring everything is done accurately, especially with the rampant building in Town. Ms. Nartowicz reviewed the timeline of the initial grant awarded toward the software. The software takes a while to implement – for grant funding, the implementation must be completed by July 1, 2019. The possibility of holding off on using grant funding until the Fall for free cash appropriation was discussed, though that would only give the Town six months to implement the software. Ms. Nartowicz can speak to the consultant about whether that scenario is doable.
The Select Board will be having a managed growth kickoff presentation with CMRPC on a fiscal impact study and buildout analysis during the first Board meeting after the Town Election – this will start Phase II.
Mr. Ruchala inquired how much is in the Planning Board revolving fund. Ms. Nartowicz stated approximately $44,000. Funds are taken in from permit fees; the Planning Board secretary is completely off budget and paid from the revolving fund. The fund would also contribute $9,000 toward the Town Planner and could sustain the contribution for a few years, but any increase to the amount would be stretching too thin.
There was discussion about any other lingering articles that could be cleared out and brought to the bottom line. Money left from the primary school building remodel will be put toward the Library parking lot; Ms. Nartowicz will confirm with Mr. Kellaher if any funds would remain. The funds in the RDIC sale of Rutland Heights land can only be used for RDIC.
Regarding closing the $8,831.49 gap scenario, Ms. Nartowicz could go through the list of special revenue funds and capital items, rather than imposing further reductions.
The $129,185.13 gap would come out of the amended school amount. Mr. McKinlay added that close to $80,000 of that should be cut anyway.
There was discussion about the May 7th pre-Town Meeting meeting. CMRPC will present an abbreviated smart growth study. Ms. Nartowicz has asked department heads to speak to their budget needs and concerns, and she will go through Town Meeting articles to prepare a Q&A.
The Finance Committee received a draft Special Town Meeting warrant. Draft motions will be supplied next week. The Select Board voted to include all proposed STM articles.
Mr. Bindoo moved to adjourn the meeting. Ms. Nahrwold 2nd. Vote unanimous.
The meeting adjourned at 8:09 p.m.
Respectfully submitted,
_____________________ Laura Scannell, Secretary
Approved on: _________
_____________________ Lyndon Nichols, Chairman
| 
