2011-07-07-AC-min - Laserfiche WebLink

Browse Search

Minutes Town of Lexington Appropriation Committee July 7, 2011 : Cary Hall, Ellen Stone Room, 7:30p.m. : Glenn Parker, Chair; Joe Pato, Vice Chair; John Bartenstein, Vice Chair and Secretary; Robert Cohen; Mollie Garberg; Alan Levine; Eric Michelson; Richard Neumeier; Rob Addelson (non-voting, ex officio) Also present: Micah Niemy, Budget Officer; Jim Goell, Town Meeting Member The meeting was called to order at 7:35p.m. 1.FY 2011 Salary Adjustment AccountTransfers.Micah Niemy made a presentation on proposed Salary Adjustment Account transfers for FY 2011. The Salary Adjustment Account is acontinuing balance account that is used to fund anticipated but as yet indeterminate salary costs, such as the costs to fund unsettled contracts, incremental overtimecosts,and vacation and sick leave buy-backs at retirement,to the extent theyare not otherwise absorbed by departmental surplusesresulting from unfilled vacancies. Transfers from the Salary Adjustment Account are approvedby the Board of Selectmen but they have traditionally beensubmitted for review by the Appropriation Committee as well. The proposed transfersfor FY 2011, totaling $30,900,aredetailed in a spreadsheetthat was circulatedto the Committee. Theyare needed to covercontract settlements and vacation buybacks for the following departments: Board of Selectmen (staff), Finance, Town Manager’s Office, and MIS. It was noted that the total amount of the transfers required this year isrelatively small (last year’s transfers totaled $316,500), and questions were raised about the level of annual appropriations made to this account and its current balance. Mr. Addelson reported that the fund balance coming into FY 2011 was approximately $1,330,000 and that approximately $540,000 was appropriated forFY 2011, bringing the fund balance as ofthe end of FY 2011 (after the proposed $30,900 transfer) to approximately $1,840,000. An additional amount of approximately $460,000 was appropriated at this year’s annual Town Meetingfor FY 2012, bringing the totalfund balance that will be available in FY 2012 to approximately $2,300,000. In hindsight, this year’s appropriation may have been larger than necessary, and the significant carryover balance remaining in the account will be taken into consideration in setting the budget for FY 2013. Mr. Addelson noted, however, that collective bargaining contracts with the Fire Department employees still remain open for FY 2010 and FY 2011 and that it is prudentto budget the salaryadjustmentline item conservatively so as not to run the risk of a budget shortfall. The Committeeendorsedthe proposed transfers by a vote of 8-0. 1