Loading...
HomeMy WebLinkAboutBoard of Selectmen Minutes January 20, 2009_2014020616121474621 BOARD OF SELECTMEN Minutes of the Meeting of 20 January 2009. The meeting took place in the Conference Room, Town and County Building, 16 Broad Street, Nantucket, MA 02554. Members of the Board present were Rick Atherton, Brian Chadwick, Michael Kopko, Allen Reinhard, and Patricia Roggeveen. Chairman Kopko called the meeting to order at 9:04 AM. FY 2010 GENERAL FUND BUDGET REVIEW AND DISCUSSION Town Manager C. Elizabeth Gibson said she would be sending a communication out to all unions regarding the FY 2010 budget, and said the unions have been informed that the FY 2010 budget forecast is “grim” with fewer revenues projected and higher expenses. She explained that in order to address the projected budget gap, personnel expenses will have to be reduced, and that impact bargaining is likely to occur with several unions in order to address the personnel expense reductions. Ms. Gibson added that the Town Administration preference is to avoid layoffs by agreement with unions to implement other options, such as a wage freeze for FY 2010. Ms. Gibson said at the previous week’s Audit Committee meeting the committee discussed indirect costs and the Finance Department will be working on formalizing a methodology. She said she would like to have the Board endorse the indirect cost methodology at the 28 January meeting and have some discussion about what options are available in the event that enterprise funds decide not to pay indirect costs. Ms. Gibson explained that enterprise funds are allowed to be charged indirect costs for various administrative functions the Town provides for them such as processing payroll and bills. The Airport has disagreed with the Town’s indirect cost methodology and has not paid close to $200,000 believed to be owed for indirect costs. Assistant Finance Director Irene Larivee said the indirect cost methodology has also been reviewed with the Abrahams Group which conducted a review of the Finance Departments operations last fall. Ms. Gibson said this issue may or may not affect FY 2010 budget revenues. Ms. Gibson reviewed the FY 2010 General Fund budget presentation she made to the Board at its 14 January meeting and asked the Board how and what it wants presented to the Finance Committee. Mr. Reinhard said he was concerned with potential cuts to the Nantucket Atheneum budget and questioned whether the money allocated for the surveyor position for FY 2009 can be redirected to the Atheneum. Ms. Gibson said the money for the surveyor has already been reallocated to a Human Resources assistant position per the Abrahams Group Report conducted last fall. A discussion followed on the approximately $1 million remaining budget gap (after certain proposed reductions and new Town revenue are accounted for) for FY 2010 which Ms. Gibson said would have to come from personnel cuts, either through layoffs, or alternative options such as a salary freeze. The options will be determined through union negotiations. Mr. Rice said the cost drivers need to be identified in the gap, such as personnel spending increases, the General Fund subsidy to the landfill, utilities, legal services, etc. Ms. Gibson said the General Fund subsidy to the landfill is partially from two overrides approved in previous years, and the rest is what the landfill cannot generate on its own, as a result of a decline in volume and revenue and costly regulatory requirements that the Town is going to have to meet beginning in FY 2010. She went on to say that the Board's Solid Waste Work Group is looking at ways to address this, including possible contractual changes to the Waste Services Agreement and fee increases. A discussion then ensued on possible increases in landfill fees, new fees, and/or raising taxes to address the landfill deficit. Chairman Kopko reviewed some questions he had with various department budgets. Ms. Roggeveen asked about the status of legal budget. Ms. Gibson said cost estimates are being 2 obtained prior to proceeding with various types of legal services. Mr. Chadwick suggested the Town put litigation out to bid and Ms. Gibson said there may be regionalization opportunities for legal services. Mr. Rice said the Town’s legal services retainer is significant, about two times larger than what other similarly-sized towns pay. He suggested the Board may want to consider either reducing the amount of the retainer or increasing the services covered under the retainer. Funding for Other Post Employment Benefits pursuant to Government Accounting Standards Board Advisory 45 was questioned and Mr. Atherton said he wonders if it is appropriate to fund it at $100,000. The Board reached a consensus to establish the fund now but not to include funding it this year. Chairman Kopko asked about the stabilization fund. Ms. Gibson said the stabilization fund is always an option to use for operating or capital expenses. She noted an existing Town stabilization fund use policy. The consensus of the Board is to not tap into it at this time. Chairman Kopko also asked about the Capital Program Committee Report and Finance Committee chair Jim Kelly said the committee accepted the report last week. Expense reduction and program reduction recommendations were reviewed and discussed. The meeting was unanimously adjourned at 10:58 AM. Approved the 6th day of May, 2009.