2012-06-26-AC-min - Laserfiche WebLink

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Tune 26, 2012 4. End -of -Year Transfers: Rob Addelson distributed documents describing his end of the year transfer recommendations, including Salary Adjustment Account transfers and 3% Rule Transfers. Salary Adjustment Account Transfer. The Salary Adjustment Account is a continuing balance account that is used to fund anticipated but as yet indeterminate salary costs, such as the costs to fund unsettled contracts, incremental overtime costs, and vacation and sick leave buy- backs at retirement, to the extent they are not otherwise absorbed by departmental surpluses resulting from unfilled vacancies. Transfers from the Salary Adjustment Account are approved by the Board of Selectmen but they have traditionally been submitted for review by the Appropriation Committee as well. Mr. Addelson explained: • There is a carry - forward balance of $1.8 million in the Salary Adjustment Account from prior fiscal years, as discussed at earlier Committee meetings. • In addition, there is $541,000 in the Salary Adjustment Account that was appropriated for FY2012 [and an additional like amount for FY2013 ?] • A transfer of just $30,000 from the Salary Adjustment Account is being recommended to cover FY2012 salary settlements, vacation buybacks, unused vacation time for recent retirees, and payments to LMEA and Police Superior employees related to the October 2011 storm. • The contract with the fire department is not yet settled, creating a need to hold some additional funds to cover potential settlement obligations. • In view of the substantial carry - forward balance, it is anticipated that there will be a close -out of a significant amount of the funds in the Salary Adjustment Account cumulative balance to the General Fund balance at the end of Fiscal Year 2012; this will result in a one -time addition to the Free Cash balance this year. VOTED: Recommend to the Board of Selectmen approval of the Salary Adjustment Account transfers as recommended in the documents prepared by Rob Addelson. Passed: 7 -0 3% Rule Transfer. The 3% rule, enacted by the State legislature several years ago, allows cities and towns to balance their budgets administratively at year -end, by transferring appropriated but unexpended amounts of up to 3% of any line item to any other line item. These transfers require approval of both the Board of Selectmen and the Appropriation Committee. Mr. Addelson advised that: • A transfer of $8,000 under the 3% rule option is being recommended to cover additional staff hours in the Selectmen's Office and in the office of Human Resources. VOTED: Approval of the three percent rule transfer as presented on the sheet presented by Rob Addelson. Passed: 7 -0