2011-02-23-AC-min - Laserfiche WebLink

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February 23, 2011 $1,300,604 from the Community Preservation Fund to retire the note when it comes due in July. This amount should ultimately be offset by the $500k LAND grant as and when that grant is received, for a net cost to the CPF of approximately $800,000. o FY2012 Budget. Mr. Addelson summarized the status of discussions about hiring a new Assistant Fire Chief and reinforcement of the fire station floor. There was a recommendation for $108,000 in total for this new hire, to include $15,000 for benefits, but the BOS is still reviewing the need for this position. The selectmen voted to move approximately half of this appropriation to the expense budget to fund a needs evaluation. If the need is confirmed, the remaining half would be available to fund the position beginning January 1, 2012. The expense budget also includes $3,500 for uniforms. The selectmen also adjusted the fire department's original request for $750k for capital projects, which included $450k for the floor reinforcement and $250k for an office trailer. The $250k has been removed from the request as it needs further justification. Mr. Levine inquired whether the benefits calculations used in projections of the cost of an additional hire includes a component for future pension and retiree health benefit (OPEB) costs. Mr. Addelson said that it did not. There was general discussion of how pension and retirement costs are funded, and Mr. Cohen noted that newly hired employees are now required to contribute from their salaries much higher pension contributions than prevailed before the 1980s (11% versus 5 %), and that this reform should result in a gradual reduction of required contributions by the Town to the pension fund overtime. Mr. Addelson explained that employees make a contribution to their current health benefits but are not assessed for retirement health benefits. Mr. Addelson advised that the Brown Book will be available electronically Monday, February 28, 2011, and will be printed next week for later hard - copy distribution. Mr. Addelson noted that preliminary MWRA assessments have been posted and will be reflected in the Brown Book. In the White Book, they were level- funded from last year's amounts. Preliminary water rates are up 5.6% from FY11 and sewer rates are up 7.2% for a combined increase of 6.5 %. Mr. Bartenstein pointed out that there will not necessarily be rate increases of the same magnitude because MWRA costs represent only about half of the water and sewer enterprise fund budgets, and the remaining components of the budget are not inflating as rapidly; also, final MWRA assessments made in July are often lower than the preliminary assessments. Mr. Addelson added that the rate increases could be further mitigated by appropriations from retained earnings. -2-