FInance Committee
Tuesday February 6, 2018
Rutland Public Library
7:00 p.m.
Present: Karen Nahrwold, Lyndon Nichols, Iain McKinlay, Sheryl Vernon
Absent: Tom Ruchala, Carl Bindoo, Deb Kristoff
Others Present: Margaret Nartowicz – Town Administrator, Leroy Clark – Board of Selectmen, Laura Scannell – Secretary
Mr. Nichols opened the meeting at 7:01 p.m. The meeting was recorded for Channel 191.
APPOINTMENTS
7:00 p.m.: Board of Assessors
Ms. Nartowicz presented the budget on behalf of Diane Peterson, Regional Assessor (RRG). Ms. Peterson has shaved a little more off the budget since submission of the request. Current budget request $104,785.00. Purchased Services reduced to $101,660. The budget request assumes no contract adjustments – RRG would likely come in within requested budget amount. There was discussion of what's included in Purchased Services – all professional assessing, staff, assistant assessor (working 16 hours/week), Vision Software license. A detailed budget justification was provided to the Finance Committee.
There was discussion of office hours. The office is staffed 16 hours a week by the Assistant Assessor. Ms. Peterson's hours are flexible, but she is typically in the office all day on Tuesdays.
7:10 p.m.: Town Accountant
Dan Haynes was in attendance to present the Town Accountant budget. Currently no change from FY18. Town Audit Purchased Services line encompasses more than just the audit – also includes actuarial studies. Any carry forward depends on the timing of the audit. There was discussion of audit timing – Ms. Nahrwold is concerned that the audit is completed too late to adequately fix any problems for the coming fiscal year.
Mr. Haynes stated there will probably need to be a GASB 45 study for the period – GASB 45 is being eliminated and replaced with GASB 75; going forward there will be a bi-annual actuarial study. The carry over should be enough to cover this.
There was discussion about considering other audit firms to get results sooner.
7:20 p.m.: Town Clerk
Anita Carlson presented the Town Clerk budget. The only changes are shifts from other line items. Salary (5110) includes a step increase, as does Assistant's Wages (5120). One of the biggest changes to Assistant's Wages is the workflow between the Town Clerk's office and the Treasurer/Collector – Ms. Carlson is proposing a shift of 3 hours between the departments to add flexibility for the assistant, Lynn Kelly. The additional three hours per week (going from 22 hours to 25 hours/week) is included in the wages line.
The Town Clerk's office recently changed their office hours to 36.5 hours per week, an addition of 3.5 hours. It would be ideal to have coverage for the entire time the office is open – it will take time to reach this point, but the additional shift will help. Ms. Nartowicz added that just this year alone, changes to Open Meeting Laws and records laws have brought tremendous burden on the Town Clerk's office. Additionally, early voting and the potential of same-day voter registration will have an impact. The department is due to get back about $600 after state auditors determined some early voting during the presidential election was an unfunded mandate.
Ms. Carlson discussed the bylaw codification project, started by the Bylaw Subcommittee in October 2017. The bylaws haven't had an overall review in at least 20 years. Codifying will set up the bylaws to have consistent numbering – no changes to the bylaws, but there is a list of certain things that need to be reviewed. This includes Finance Committee bylaws, which have not been revised since 1997 and still include some original language regarding appointments and staggering of terms should be revised. Peter Craine will be meeting with the Finance Committee on February 13th to review the Finance Committee bylaws as well as the codification project.
Town Clerk Purchased Services increased $400 to cover surety bonds for the Town Clerk and Assistant Town Clerk. These have been paid out of town insurance (general liability) for the past few years, but it makes more sense to come out of the Town Clerk's budget.
Supplies increased $300 to cover dog tags and applications ($50) and records preservation ($250). Registrar Purchased Services reduced by approximately this amount. At the November 2017 Special Town Meeting, a warrant article transferred funds to get the Clerk's office up to date with binders and folders for vital records – the $250 will help with this going forward.
Elections Budget request – Wages increased from $3,600 to $12,000 to account for going from one election in FY18 to three elections in FY19. There was discussion of wages for early voting. FY17 was also a three-election year, during which the entire budgeted wages were spent. The November election this year is expected to have as much impact at the presidential election. Other lines could be used to supplement wages.
Elections Purchased Services fluctuates – this year saw $3,600 for one election. FY19 budget requests $7,000 for three elections.
Registrar Purchased Services reduced by $238, includes shifting funds to Supplies as past budget didn't even cover cost of a single ink cartridge. Supplies increased from $45.98 in FY18 to $250 for FY19.
7:30 p.m.: Treasurer/Collector
Rebecca Tuttle presented the budget request for the Treasurer/Collector's office. Treasurer Secretary line reflects the shift of 3 hours per week to the Town Clerk's office. With the shift, the secretary will still be working 520 hours annually, covering vacations and busy periods in the office.
Ms. Tuttle wished to express that Assistant Treasurer, Lisa Schiemann, has been a huge asset to the office. Ms. Schiemann is very efficient, posting and general bills. Ms. Nartowicz stated that the office overall has accomplished remarkable things with tax title and collections, and it shows in the projected revenues.
Purchased Services increased $800 for the Time & Attendance software from Harpers Payroll. This will include updating the time clock at DPW and Recreation so they can scan and upload directly to the payroll system. Cost savings should easily exceed $800. Ms. Tuttle is working with Gary Kellaher, DPW, to set up costs. The software will save Nancy and Donna a lot of time. Also included in Purchased Services is the full cost of VADAR software support – the entire amount had previously been put in the budget, but a portion should be allocated back to Water & Sewer as the software is used for utility billing at this point, too. Ms. Tuttle has not yet worked out exactly how much of the costs should go back. Purchased Services also included the cost of insurance bonds for Ms. Tuttle and Ms. Kelly, and Harpers Payroll.
Supplies line is the same. It went up in FY17 to provide a little breathing room for additional folders, envelopes with pre-printed return address.
Tax Title Purchased Services increased by $1,300 to continue with aggressiveness of collections. The current number of properties in tax title is 106, a total of $629,000. There was discussion about the status of 259 Main St. – currently $130,000 owed, not including interest. The property was conveyed last July to a corporation registered to the owner, currently the Town is at a standstill and pursuing options in bankruptcy court. The owner is scheduled to present a payment plan to the bankruptcy court tomorrow morning – last payment due on February 1st was not paid. 259 Main St. is about 20% of the overall tax title accounts. A lot of the costs incurred this past year were legal costs.
Ten additional parcels went into land court in November – a few payment plans are in place.
Ms. Nartowicz discussed the tax title revolving fund. Money is starting to trickle in, moving forward the fund can be used to keep tax title work going. Ms. Tuttle removed $750 from Purchased Services for recording fees, this will be taken from the revolving fund. $700 also removed for certified mailings, to come from the revolving fund as well.
$300 increase to Postage due to USPS rate increase in January.
Toner was re-classed from Machine & Paper Purchased Services to Supplies.
There was discussion of debt. This is the final year for middle school renovations – largest amount debt excluded $1,126,000. $1,172,000 requested for FY19. The ambulance will come off in 2021 – the fire department's request proposes building in an ambulance lease payment into their operating budget. Ms. Nartowicz discussed considering additional debt exclusion versus building it into the operating budget as it's a capital item. CIPC is meeting next Thursday to discuss. Ms. Tuttle discussed a possible 7-year serial note. If debt falls off there should be a plan to renew, we want to keep debt at an even level.
Overall debt for this year is .74% decreased from the previous year and steadily going down.
Benefits & Insurance – the assessment for Worcester County is a 9.36% increase. More retirees and more people retiring will raise costs. This is factored into the calculation for assessment. Unemployment increased last year; put away $7,000 in FY18 instead of the previous $3,000. They were hit a couple years ago with having to pay out, are trying to build a base. Maximum payable amount of $22,000 per person.
Health Insurance – estimated 11.6% increase for health insurance, 5% for dental. Fallon presented a 4.6% increase, no changes to the policy. The Town is down a number of employees and Ms. Tuttle is trying to build in 7 employees that the Town is budgeted for – 3 DPW employees, filling vacancies; 2 new police positions started this fiscal year; 1 new fire department position started this fiscal year; and a potential full-time town planner (the only new position going into FY19).
The Health Insurance Advisory Committee is scheduled to meet tomorrow to discuss benefit amounts, and copay changes to further reduce the overall premium. Ms. Nartowicz stated the goal is to get the increase under 3.5% through design changes that won't have a significant impact on employee.
There is a small increase for life insurance. Active employees are offered a $10,000 plan, retirees $5,000 plan. There are 40 active employees enrolled and budgeted for an additional 6. Medicare has a 3% increased for rates of employees as the Town seems to be running $3,000 short ever year. There was a discussion of the incentive program – insurance buyout for members who come off the Town plan and join a spouse's plan. One person took advantage of this with a family plan. The Town will continue to offer this incentive at the next open enrollment period.
Ms. Nartowicz provided the Committee with an updated levy sheet that had the Governor's proposed budget for cherry sheets built in. $7,000 increase in new revenues; the numbers are starting to move, currently waiting on the House and Senate numbers.
Ms. Vernon moved to adjourn the meeting. Mr. McKinlay 2nd. Vote unanimous.
The meeting adjourned at 7:55 p.m.
Respectfully submitted,
______________________________ Laura Scannell, Secretary
Approved on: __________
______________________________ Lyndon Nichols, Chairman
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