HomeMy WebLinkAbout2006-05-08-AC-min
May 8, 2006
Minutes
Town of Lexington Appropriation Committee
May 8, 2006
Members present: Deborah Brown, Rod Cole, Richard Eurich, Paul Hamburger, David
Kanter, Alan Levine, Eric Michelson, Pam Hoffman, Rob Addelson (Assistant Town
Manager for Finance; non-voting)
Others present: Linda Vine (Assistant Town Manager), Michael Young (Budget Officer)
The meeting was called to order in Room 111, Town Office Building, at 6:34 PM by
Alan Levine (Chair), who then said that he would take minutes.
Linda Vine presented the request to cover expenses in Unemployment Benefits
($70,000), Police-Fire Medical ($32,000), and Worker’s Compensation ($47,500) in
Shared Expenses (specifically line 2100) by transfers from the Reserve Fund. The
requests were also described in a hard copy that Linda distributed at the meeting.
In regard to unemployment benefits, Linda stated that usually there is activity early in the
fiscal year but that it drops off later in the year. This year, the unemployment expenses
have continued at about $11K or $12K per month. The $70K request includes projected
amounts for April, May, and June. Discussion revealed that some of the expenses are
related to the layoffs in the School Dept. that took place last fall when the new School
Supt. acted to reduce the anticipated overrun of more than $1M to the amount that could
be covered by an appropriation at the Special Town Meeting. Rob Addelson noted that
6.5 positions were affected. The $70K request is roughly consistent with benefits for
about 6 former employees.
Linda noted that an employee who earns $50K per year would typically receive $16K in
unemployment benefits if unemployed for the full 30 weeks of eligibility plus $25 per
week per dependent. The Town’s liability to pay up to 30 weeks of unemployment
continues for 18 months after an employee is laid off, even if the employee is temporarily
reemployed during that time period by another employer.
In response to a question from David, Rob explained, with the help of a one page
summary that he distributed, that a bill was recently signed by the Governor (Chap. 77 of
the Acts of 2006 which revises Chap. 44, Sec. 33B) that allows interdepartmental transfer
of funds (with limitations on departments and amounts) with approval by the Selectmen
and the Appropriation Committee.
Linda said that the Town contracts with a company, John Jay Assoc., to track the total
unemployment benefit liability but she didn’t have the information on hand as to the
present liability. John Jay Assoc. also helps with claim administration.
R. Eurich moved to approve the transfer of $70,000 from the Reserve Fund for
Unemployment Benefits. The motion was seconded. The Committee voted 7-0 in favor.
May 8, 2006
In regard to Police and Fire Medical expenses (the equivalent of worker’s compensation
for police and fire employees who are injured on the job), Linda stated that there have
been 48 claims, which is not unusually high, but that there have been a few expensive
cases which make the total amount higher than usual. Expenses in individual cases above
$400K are covered by insurance.
David requested that the Reserve Fund transfer approval forms each contain a sentence of
explanation about the request. Linda said she would add the sentences afterward. David
also requested that the space for Board of Selectmen approval not be included in future
forms.
In regard to Workers Compensation expenses, events were recorded by 58 employees of
whom 44 needed medical care and 10 resulted in financially significant claims. The
Workers Compensation cases often involve injuries to the backs of custodians or
firefighters. The Town’s insurance company gives the advice on programs to help
employees avoid injuries. Linda noted that Carol Gregory in School Dept. also is helpful
in this respect.
There was discussion of the rates charged by the Town for ambulance services and
Advanced Life Support services in particular.
It was noted that the budgeted total of Police/Fire Medical and Workers Compensation
will increase from $153,965 in FY 2006 to $190,000 in FY 2007.
Deborah moved that the transfer from the Reserve Fund of $32,000 for Police/Fire
Medical and of $47,500 for Workers Compensation be approved. The motion was
seconded. The vote was 8-0 in favor.
AL signed the Reserve Fund transfer request forms.
The AC decided to meet at 6:30 PM on Monday, June 26, 2006, to consider end of the
fiscal year Reserve Fund transfer requests.
Starting from the list in the agenda, the Committee discussed topics to work on. Rod
offered to complete the simple explanation of tax increases that he had drafted several
months ago. In response to a counter-suggestion, the AC agreed to let this be done by the
“Yes for Lexington” group if that group should feel that it is needed.
Paul and Al agreed that it is not worth worrying about rounding errors in the updated
version of Appendix B or other documents.
Rick asked whether anyone on the AC is receiving monthly reports on school finances.
No one is. AL will ask the School Committee about this as requested at the March 29,
2006 Budget Collaboration Meeting
May 8, 2006
AL explained why he thinks that the growth in employee benefit costs is a big problem
and that something needs to be done about it. He said that it isn’t the details that are of
interest but the overall cost. The AC should discuss this from a big picture perspective.
The AC agreed to meet at 7:30 on May 18 and on June 8.
The meeting was adjourned at 8:03 PM.
Respectfully submitted,
Alan M. Levine
Approved June 26, 2006