November 15, 2011 Budget Public Hearing Continuation Minutes for the 2012 Budget

November 15, 2011 Budget Public Hearing Continuation Minutes for the 2012 Budget

At 7:00 Supervisor Traudt opened this public hearing continuation with all Town Board members, Gina Fox, Joe Gelb, Dan Staley and Bruce Washburn, present.  Also in attendance were 27 residents and employees.

Tom explained that the Board has considered the economy, increasing insurance costs, significant escalations of employee benefits, state mandates, projected staff attrition, and stagnant revenues.  We considered many options and alternatives in our workshops.  This preliminary budget has an overall levy increase of $42,292.  There will be no increases in wages for non-union employees.  Changes in medical insurance payments and eliminations of jobs will occur in September of 2012.  This timeline provides adequate time for the departments affected to identify and implement efficiencies that could result in proven and sustainable expense reduction.  Officials can also try to forge sharing with other municipalities to cut costs.  This is a relatively modest increase when compared to our neighboring towns.

Joe Gelb read a statement why he and Gina will be voting against this budget as presented tonight:  The Board is trying to deal with the reality that our medical and pension costs are rising faster than our income.  We also need to start putting aside funds to replace capital equipment.  There are no salary increases again for the 3^rd year in a row for non-union employees and now they will have to start paying for health benefits which will be phased in at 12.5% of cost effective September 1, 2012 and an additional 12.5% on April 1. 2013.  In addition, some Board members feel that there must be at least two layoffs in union personnel in the Highway and Maintenance Department.   These layoffs would occur in September 2012.

Joe continued that in order to avoid layoffs in 2012, union members have offered to forego a 3% salary increase which is in their contract which would amount to a savings of $15,888 and they will not challenge the decision to change the medical plan to an in-network only policy which would save the Town between $35,000 to $42,000 depending upon how much use is made of the medical benefits.  Union members have also proposed they could perform certain non-Highway functions which would save hiring part-time personnel.  Another union member has volunteered to forgo the health insurance coverage since he can get it through his wife's employer, which would save the Town approximately $12,500.  This budget rejects all the union proposals and Gina and I believe this budget is a mistake.  The Board will reexamine implementing the two layoffs, depending upon actual revenues and expenses from January - August 2012.

He and Gina believe the potential savings and cost reductions proposed by the union are worth more than the possibility of layoffs in the last quarter of 2012.   These layoffs would approximately save the Town $34,000 from September 1^st to December 31^st.  Four members of this Board have put in many hours in developing this budget with an unprecedented number of workshops.  Joe's final point is that until this past weekend the budget process had decided that there would be a 2% increase in the dollar amount of the tax levy, which is the maximum the State allows; changes were made.  Therefore he and Gina will vote to reject this 2012 budget. 

Gina commented that she is not comfortable with the public only seeing this document for a couple of days.  This is the 23^rd budget we have seen and she would like clearer budgets with the changes outlined in the future. 

The supervisor then welcomed comments from the public.

Dod Crane asked what the dollar amount is to avoid the 2 layoffs and Joe replied about $34,000 for the 4 months.  Dod then asked why not override the 2% tax cap mandated by the State as so many other communities have done.  Tom does not agree with Joe's numbers and pointed out that Hype Park will have a 28% tax increase and Red Hook is proposing a 42% increase.  Our responsibility as a Town Board is to a responsible budget to our residents.  Joe feels we can go into the fund balance for the $34,000 and Dan does not agree with dipping into the fund balance once again.  Dod thinks the fund balance is higher now than when he was on the Town Board; it is not deteriorating.  Why not take from the fund balance?  The Supervisor feels that is a bandade solution and does not address the real problems. 

Joann Gelb thinks it might be time to do some creative accounting.  The loss of personnel services will affect all the residents of the Town.  Please don't layoff any employees.  Let's save the jobs. 

Steve Block believes that laying people off should be the last resort.  He doesn't see the mathematical certainty to justify the 2 layoffs.  This budget process has not been an open procedure.

Tony Capalbo, Jr. feels there is a safety issue involved with laying off 2 people.  The union has given up their 3% raise and he is baffled why this isn't being considered, they are trying to work with the Board.  The savings by not contracting out for services such as lawn mowing would certainly save money.  Also when Nancy retires at the Transfer Station the highway crew could rotate up there. 

Bob Wyant stated the highway crew is trying to save the Town money by giving up their anticipated 3% raise.  You are compromising safety and there are projects where the Town crew has already saved the Town money by doing work that would normally have been contracted out; such as the stone work on bridges.  Please re-consider the layoffs; we have all worked hard for this compromise.

Mike Krentsa said he will be one laid off since he is the newest employee.  I need this job and I have worked hard for the Town.  Please re-think this proposed lay off.

At 7:20 on motion from Dan and second by Bruce this public hearing was unanimously closed.

Tom thanked everyone for their comments and explained that many options were considered.  The overall levy increase is modest.  By delaying the medical insurance reimbursement until September will help employees prepare for this cost.  We are hopeful that come September we will be able to maintain these 2 union positions - operational opportunities can save money and hopefully avoid these layoffs. 

Joe asked if the Board would consider at least raising the tax levy amount to the maximum of the 2% mandated State cap.  Everyone was in agreement with this increase.  Bruce stated in his mind we should be able to find monies to save 1 job.   If we keep going down the same path; the highway will be fiscally broken by 2013.  We need to address longstanding issues while still being compassionate.   He stated by leaving the 2 positions in the budget after September the Board would be guaranteeing jobs which we cannot do at this point in time.  We crawled through every line in this budget trying to keep costs down.   Joe thinks if we all do our job we can find some efficiencies, we need to focus on productivity.  He encouraged the Board to accept the union members offer.  Gina has spoken with the Mayor about sharing some services and reiterated that she is not happy with this budget. 

On motion from Dan and second by Bruce this 2012 budget was adopted by a 3(Tom Traudt, Dan Staley, Bruce Washburn - 2 (Gina Fox, Joe Gelb) vote with the modification of a tax increase of $62,055 which is equal to the 2% mandated tax cap. 

At 8:00 Dan motioned and Bruce seconded to adjourn this meeting.  All were in favor.

Respectfully submitted,

Barbara Cunningham

Town Clerk