Finance Committee Meeting Minutes
Thursday April 26, 2018
Rutland Public Library
7:00 p.m.
Present: Lyndon Nichols, Iain McKinlay, Karen Nahrwold, Tom Ruchala, Sheryl Vernon
Absent: Carl Bindoo, Deb Kristoff
Others Present: Margaret Nartowicz – Town Administrator, Leroy Clark – Select Board Chair, Michael Pantos – Select Board, Laura Scannell – Secretary
Mr. Nichols opened the meeting at 7:00 p.m. The meeting was recorded for airing on Channel 191.
MINUTES
Ms. Nahrwold moved to approve the meeting minutes from April 19, 2018 as presented. Mr. Ruchala 2nd. Vote unanimous.
Fire & EMS Transfer Requests
Chief Seth Knipe requested transfers of $15,000 from Ambulance Wages (001-231-5120-000) to Fire – Purchased Services (001-220-5200-000; current balance $3.234.81) and $15,000 from Ambulance Wages to Ambulance Supplies (001-231-5400-000; current balance $3.25). The current balance in the Ambulance Wages account is $170,972.03; funds were transferred after the Fall Town Meeting to cover contract adjustments. Total FY18 EMS wages are budgeted at $586,978.36 broken out over 26 pay periods. Chief Knipe expects a $48,249.56 surplus & recommends leaving an $18,000 surplus in Ambulance Wages.
Chief Knipe apprised the Select Board of the situation and will bring the request to their next meeting. Town Accountant, Dan Haynes, has signed off on the request, to be effective May 1st.
Mr. McKinlay asked Chief Knipe whether there should be concern if there were to be another major fire. Chief Knipe stated there could be a busy spring with brush fires, but that will come out of Fire Wages. $18,000 remaining in Ambulance Wages should be enough to cover.
Mr. Ruchala moved to approve the transfer of $15,000 from Ambulance Wages to Fire – Purchased Services as of May 1, 2018. Ms. Nahrwold 2nd. Vote unanimous.
Mr. Ruchala moved to approve the transfer of $15,000 from Ambulance Wages to Ambulance Supplies as of May 1, 2018. Ms. Nahrwold 2nd. Vote unanimous.
Joe Scanlon – WRSD Budget Follow-up
Mr. Scanlon provided the Finance Committee with information in response to the Committee's questions on staffing, reimbursements, and turf field funding.
Mr. Scanlon gave a breakdown of the nine new positions being added in FY18. Ms. Nahrwold expressed that the Finance Committee was led to believe specific positions or individuals were being eliminated to offset the new positions. Mr. Scanlon clarified that they generally make projections based on step and raise increases and breakage for retirees, however positions are not technically eliminated. Mr. Nichols believes the school should work the same as any industry – while they can't guarantee the unknown, the budget should still be planned around it.
Due to the timing of the House Ways and Means budget release, the district is not changing assessments. Chapter 70 is projected to increase by $226,955 and Regional School Transportation to increase by $43,122. Charter Tuition Reimbursement is down $17,537. If the net difference were applied to the Operational Assessment, $79,349 would come off Rutland's assessment.
Eligible transportation expenses were submitted, expecting 63% reimbursement. Mr. Scanlon has heard it could be more, but for now is sticking with the cherry sheet. If reimbursement comes in higher the School Committee could re-vote assessments after the budget has passed. Legislature has also created the ability for towns and districts to do transportation funds – extra state aid in a revolving fund for the following year. The District is expecting 72% Circuit Breaker reimbursement. They have been advocating for 75%; state receipts are okay but not fantastic.
Mr. Scanlon discussed other funding options considered for the artificial turf field replacement, including new borrowing, financing, and paying portions out of the athletic revolving fund. There is not enough in the revolving fund to cover the whole project or annual payments. The Business/Finance Subcommittee determined a separate question would be the best option. If one town doesn't pass, the conversation will start again next year. The district will be placing an advertisement in the paper, pending funding, for construction bids – if passed by all towns, the bidding process will be out of the way. They are not spending money that hasn't been approved, just beginning the bid process.
There was discussion about the district's plan for the next field replacement. The new field would have an 8-year warranty. There was discussion about building reserve funding, could come up with $1 million over 10-12 years. The district will be paying off the high school in 2026 and may need to do additional borrowing to replace rooftop units, and perhaps the field again in 2027 – Mr. Scanlon stated it's too early to know.
Ms. Nahrwold asked for confirmation whether the teachers' contract is included in the budget or not. Mr. Scanlon stated it is included, working off assumptions. Once the contract settled this year and raises were implemented, the district anticipated $1.2 million to cover raises and step increases. Next year's number was the assumption made on top of this year's assumption. Next year will cover a 2% raise.
Ms. Nahrwold stated that the district budget will need to be cut somewhere if the teachers come back with higher than 2%.
Michael Pantos – Select Board joined the meeting at 7:34 p.m.
Ms. Nartowicz asked if the district has any plans to establish a capital stabilization fund. Mr. Scanlon stated capitalization is not on the radar; the district is still struggling to come up with a plan for OPEB. They are in compliance; the trust will be populated with $10,000 by the end of this fiscal year. Currently at $130 million based on the latest update.
Ms. Nahrwold requested a line-by-line budget from the district. Mr. Scanlon stated one could be provided after the budget is accepted. The budget it based on a certain number of assumption, not line item.
Mr. Scanlon presented a sample of the new turf field technology compared against a piece of the existing field removed from the sideline. The existing field has fibers installed in rows; the fibers tend to break off and pellets come out. The new field has two different fibers, is softer and more durable. There will be an additional concussion pad. An engineer in Princeton is working to help build bid specifics; if the project is not approved, the engineer will be paid out of contracted services.
General FY19 Budget Discussion
Ms. Nartowicz provided an update on the budget gap. The contingent reduced budget gap is closed thanks to additional reductions from DPW ($3,485.87 DPW Garage Construction excess debt proceeds to debt service) and $1,000 from a one-time fund that was found and can be applied (Sale of Land fund from the original Community Center purchase). Cuts total $128,185.13 – or the amount that the requested budget exceeds the contingent reduced budget. If the contingent reduced budget is recommended by the Finance Committee, Ms. Nartowicz could start working on the Town Meeting budget.
There was discussion about the WRSD budget and guidelines for use of excess & deficiency funds. The district does not typically report back to the towns with what E&D funds were spent on; listed year-to-year in their cherry sheet.
Ms. Nartowicz calculated the reduced school budget percentage – by reducing the amount over minimum by $128,185.13 the district percentage would change to a 15.7% increase over FY18; bottom line increase of 3.7% over FY18 would be in line with that requested of Town departments.
There was discussion about presenting the reduced budget amount at Town Meeting. Ms. Nartowicz will provide a two-column budget document at Town Meeting like last year. There will be a two-step process for the amendment – first move to make the amendment, then Town Moderator allows discussion on the amendment.
The Select Board voted to approve the change in the wage matrix for non-union positions, subject to funding – bottom line FY18-FY19 increase would be $45,918.23. Wage-only adjustments represent $22,231.45 out of total number – all else is represented by hourly adjustments. The adjustments are not COLA, but equity adjustments to bring positions on scale with local comps. Ms. Vernon asked to have a handout at Town Meeting clarify these are wage adjustments, not COLA.
Review STM/ATM Warrant Articles
Motions are not yet included in the articles presented.
There was discussion about the timing of the Select Board's review of articles leaving the Finance Committee with only one meeting to review. Mr. Pantos and Ms. Nartowicz discussed scheduling a Select Board meeting in conjunction with the upcoming Roundtable Discussion on Monday April 30th.
Special Town Meeting Articles
Article 1 – Snow & Ice Deficit – a mix of DPW account lines will be used to fund the amount over what Free Cash can fund. Free Cash will fund $77,458.96 of the $156,119.25 deficit.
Article 2 – Unpaid Bills of Prior Fiscal Year – Payment of invoices for landline telephone services rendered in FY 2012. Mr. Kellaher explained the Verizon bill is associated with the onset of regional dispatch. Equipment and cell phones were purchased without straightforward approval of process. Ms. Nahrwold recommended adjusting the article to state "equipment purchases" instead of "landline services."
Ms. Vernon moved to favorably recommend the article for approval. Ms. Nahrwold 2nd. Vote unanimous.
Article 3 – Sewer Enterprise Appropriation Transfer. The motion will be written as the article is worded, with an explanation under the article. Ms. Vernon recommended spelling out the acronym WWTP for clarification on the article.
Ms. Vernon moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Vote unanimous.
Article 4 – Unpaid Bills of Prior Fiscal Years (Sewer Enterprise) - payment of invoice for services rendered from April 2017 to June 2017; invoice was received in FY18.
Ms. Vernon moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Vote unanimous.
Article 5 – Glenwood School Paved Walkway – construction of a paved asphalt walkway approximately 460 feet long by 5 feet wide from the rear pod exit to the front of the building. The walkway will join the side door by the parking lot out and across to meet with the other side door that is handicap accessible.
Mr. Ruchala moved to favorably recommend the article for approval. Ms. Vernon 2nd. Vote unanimous.
Article 6 – Library Computers – funds the purchase of new desktop PCs for the Children's Librarian, Assistant Library Director, and circulation desk.
Mr. Ruchala moved to favorably recommend the article for approval. Ms. Vernon 2nd. Vote unanimous.
Article 7 – Municipal Parking Area – Ms. Vernon moved to discuss.
The funds were originally for demolition of the primary building and would've ultimately reverted to free cash. The money was not intended for any other use & is being repurposed. There was discussion about the cost of maintenance and plowing of the potential new parking lot.
Mr. Ruchala moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Motion passed 4-1.
Annual Town Meeting Articles
Articles 2-12 will be held.
Article 1 – Annual Reports of the Town Officers and Committees
Mr. Ruchala moved to favorably recommend the article for approval. Ms. Vernon 2nd. Vote unanimous.
Article 13 – Capital Budget (CIPC) - Ms. Nartowicz stated the language "and authorize the Selectmen to take by eminent domain […]" will not be shown in the motion as no land is to be taken.
Ms. Nahrwold moved to favorably recommend the article for approval. Mr. Ruchala 2nd.
There was discussion about the Public Safety Building roof.
Mr. Ruchala recommended including in the motion what would happen to the old vehicle if approved. There was discussion about the best use for the old vehicle, depending on its disposition.
Mr. Nichols called for a vote on the open motion. Vote unanimous.
Article 14 – Board of Selectmen/Fire Department – appropriation of $24,500 from Free Cash for the purchase of seven complete sets of Firefighter Turnout Gear. The article is the result of union negotiations to provide a complete 2nd set of gear to collective bargaining unit members.
There was discussion about staggering the gear to extend life. Mr. Ruchala stated that turnout gear typically must be replaced by the label recommendation – in years, not in terms of usage.
Ms. Nahrwold moved to favorably recommend the article for approval. Ms. Vernon 2nd. Vote unanimous.
Article 15 – Wachusett Greenways – to appropriate $1,000 free cash as a grant to Wachusett Greenways for the maintenance and upkeep of its recreation paths.
Mr. Ruchala moved to favorably recommend the article for approval. Ms. Vernon 2nd. Motion failed; vote 2-3.
Article 16 – Rutland Heights Site Readiness (RDIC)
There was discussion about the wording of the article being too broad. Ms. Nartowicz discussed the $25,000 appropriated from Free Cash at the Fall STM for Phase I. RDIC had requested a budget line, but knowing funds were available in the Sale of Property account, the budget item was removed.
Mr. McKinlay moved to favorably recommend the article for approval. Mr. Ruchala 2nd. Motion passed 4-1.
Article 17 – WRSD – transfer $11,525.00 from Naquag Green Project Fund to fund the Town's portion of a parking lot repair project at the Early Childhood Center and District Office with a budget of $50,000.
Ms. Nahrwold moved to discuss. Ms. Nartowicz stated the capital funds can only be spent on something that qualifies as a capital purpose. Mr. Ruchala asked whether the funds could be used for the Library roof.
Mr. McKinlay moved to table discussion of the article for future meeting. Ms. Vernon 2nd. Vote unanimous.
Article 18 – WRSD Turf Field Replacement Project – to raise and appropriate $148,320 to fund the Town's portion of the $600,000 project cost; contingent on voter approval of a Prop 2 ½ capital expenditure exclusion question.
Ms. Nahrwold moved to discuss and requested clarification on the Prop 2 ½ wording. There was discussion about the impact on the tax rate.
The Finance Committee would like more information on what is included in the maintenance fees for the field.
Mr. McKinlay moved to table discussion of the article for future meeting. Mr. Ruchala 2nd. Vote unanimous.
Article 19 – Board of Assessors – property tax abatements for National Guard and reservists on active duty in foreign countries.
Ms. Vernon moved to favorably recommend the article for approval. Ms. Nahrwold 2nd. Vote unanimous.
There was discussion about the wording of "criteria to be established".
Article 20 – Board of Assessors – to increase the income (gross receipts) threshold for eligibility from $20,000 to the maximum allowed income limit for the "circuit breaker" state income tax credit for certain elderly single non-head of household filers; to further reduce the interest on deferred taxes from 8% to 5%.
Ms. Vernon moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Vote unanimous.
Article 21 – to authorize the Board of Selectmen to apply for, accept and expend any grants or donations from State or Federal governments or private agencies, individuals or institutions.
Mr. Ruchala moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Vote unanimous.
Article 22 – to authorize the Board of Selectmen to enter into contracts for goods and services with duration in excess of three years under the provisions of MGP Chapter 30B, Sec. 12, paragraph (b).
Ms. Nahrwold moved to discuss. There was discussion about including wording in the article to include how many years a contract could go up to.
Ms. Nahrwold moved to table the article for future discussion. Mr. Ruchala 2nd. Vote unanimous.
Article 23 – Board of Selectmen/DPW
Ms. Nahrwold moved to favorably recommend the article for approval. Mr. Ruchala 2nd. Vote unanimous.
Article 24 – Board of Selectmen
Mr. Ruchala moved to favorably recommend the article for approval. Mr. McKinlay 2nd. Vote unanimous.
Article 25 – Marsh Field Lease Agreement (BOS)
Ms. Vernon moved to favorably recommend the article for approval. Mr. Ruchala 2nd. Vote unanimous.
Legal is still working on bylaw amendments. Ms. Nahrwold stated the Finance Committee should not vote either way until legal has approved.
Remaining articles will be tabled for future discussion.
Mr. McKinlay moved to adjourn the meeting. Mr. Ruchala 2nd. Vote unanimous.
The meeting adjourned at 9:32 p.m.
Respectfully submitted,
_____________________ Laura Scannell, Secretary
Approved on: _________
_____________________ Lyndon Nichols, Chairman
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