Commonwealth of Massachusetts
COUNTY OF DUKES COUNTY
ADVISORY BOARD ON COUNTY EXPENDITURES
June 29, 2010
9 Airport Rd, Edgartown, MA
Members Present: Arthur Smadbeck – Edgartown 35.96%
Jeff Kristal – Tisbury 14.86%
Skipper Manter – West Tisbury 14.20%
Ron DiOrio – Oak Bluffs 14.87%
Not Present: Frank Fenner – Chilmark
Jim Newman - Aquinnah
Also present: County Commissioners: Melinda Loberg
County Manager Russell H. Smith
County Treasurer Noreen Mavro Flanders
Asst. County Treasurer Carol M. Grant
Airport Manager Sean Flynn
Airport Financial Administrator Elaine Graves
Exec. Assistant Martina Thornton
Mass DOR – Local Services Division: Joe Markarian, Zack Blake
IPM Director – T.J. Hegarty
Mr. Smadbeck called the meeting to order at 1:10pm.
- Airport FY2010 Supplemental Budget #3 – Sean Flynn said that that Airport Commissioners approved the supplemental budget #3 and is bringing it in front of the County Advisory Board (CAB) as courtesy. Skipper asked if the CAB needs to approve it. Noreen said yes and explained that the law suit did not clarify the word “appropriation” and she and Sean disagree on the meaning. All prior CABs were approving the Airport’s budget and any supplemental budgets and that CAB required prior to voting for all the budgets to be recommended by the County Commissioners. Noreen feels that unless the budgets are approved by CAB she is not legally allowed to pay according to it (pay the COLA etc.) Mr. Smadbeck asked the DOR representatives if they could look into this. Mr. Markarian said that both organizations should get legal opinions on this
from their counsels.
Skipper/Ron moved to approve the FY2010 Airport Supplemental Budget #3. Discussion: Sean explained that the extra expenses are 2.75% COLA retroactive for FY2010 to the non-union employees, some transfers and in capital improvement account – two new snow removal vehicles were purchased and they received grant from the state for 80% of that and moved it to replace two vehicles at the Airport
So voted. Edgartown – aye, Oak Bluffs – aye, Tisbury – aye, West Tisbury – aye. Motion approved.
- FY2011 Budget – Martina sent out Memorandum covering most of the questions the CAB raised prior to the meeting. Russell informed the CAB that the DCC will hold a public hearing on the budget on July 14th at 4pm at the Oak Bluffs Library.
Additional budget questions & answers (Noreen):
Art - Registry of Deeds budget - funding and costs to the County? The Registry has two funding sources. They receive certain percentage from the deed’s excise tax and then there is the portion that you see in the general fund budget, which is the County’s “Maintenance of Effort” (MOE) required by MGL Chapter 64 (d). The MOE increases 2.5% every year (FY11 – general fund Registry revenues $285K, MOE - $282K, the full Registry budget is over $360K and the difference is paid from their share of the deed’s excise tax revenue). The auditor wanted for the CAB to approve the whole Registry budget.
Art - Allocation of Indirect Cost is going down? It is based on the Treasurer’s Office expense and as the expense goes down so does the Allocation of Indirect Cost. We are in transition year and we will work with the auditor and might have to adjust it for FY2010 for the Airport once we have all the data. We anticipate receiving after the final accounting as the last payment for FY2010 from the Airport $17,000 but we will not know the exact amount until after the audit.
Art - $501K Sheriff’s MOE – how much longer we have to pay? There is an actuarial study being done which will show the total liability and PERAC will inform us regarding the final numbers. According to MGL Chapter 61 of Acts 2009, once the County pays off the obligation the MOE shall terminate. It does not say that it will terminate and reduce the assessment to the towns by that amount. The DCC and CAB will have to address this issue when we get there.
Skipper – change in health insurance? Russell - The employees’ share of the health insurance cost is changing for FY2011 from 10% to 25% of the premiums. The employees are being held harmless by adding the difference to their salaries. No employee made out. Sean said he negotiated the change with the unions but the change is not reflected in the Airport’s budget at this point.
*Lenny entered the meeting.
Noreen said that the there has been no COLA in FY2010, there is no COLA budgeted for FY2011 and no step either. Skipper said that the employees should receive a step increase after positive evaluation. Ron agreed and asked how much it would cost. Noreen said she could figure it out. (The scale changed, the steps are now 4% and people are placed differently on the new scale to compensate for the health insurance change.)
Skipper – It looks like the County is planning to spend additional $25K compared to the prior year. Russell confirmed it.
Noreen – the anticipated revenue for FY2010 will be over what we budgeted. Courthouse rent is $6K above – We received administrative fee $5K – first time in 5-6 years and we also for the first time in 19 years received the four quarter payment before the end of the fiscal year. The parking fees are up by $9K.
Melinda said that the County Commission’s Personnel Sub-committee voted an increase for the County Manager and the two elected officials to offset the change in the health insurance. They also considered COLA 2 – 2.5% if the revenue allows it and are proposing a process to figure out the COLA in future year by taking median COLA from all island towns from the prior year. Martina said that the budget already includes the increase for the elected officials and the County Manager to hold them harmless after the health insurance change as well as a salary increase of $2,400 for the County Manager (equal to receiving a step increase). He did not receive any increase last year. Melinda said that there is no requirement to give the increase in the Manager’s contract. It was done after Manager’s annual review.
The Treasurer’s office picked up the billing for the alarm fees from the Sheriff’s office, which increased the work load at the office by about 10 hour per week. Before it was done by the Sheriff’s office and we paid him for it $12K. The $135K revenue goes into the general fund as it always did.
The next CAB meeting will be on Friday July 16th at 3pm after the DCC public hearing on Wednesday July 14th at 5pm at the Oak Bluffs Library. DCC can change the proposed FY2011 budget after the public hearing by a vote if they so choose and it will come to the CAB for approval on Friday July 16th.
Ron/Skipper moved to adjourn the meeting at 1:55 pm.
Respectfully Submitted by:
JOSEPH E. SOLLITTO JR., Clerk of the Courts