10/01/1990 FINANCE COMMITTEE Minutes

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,Nt Minutes of the Meeting of the MASHPEE FINANCE COMMITTEE DATE: October 1, 1990 TIME: 6:30 p.m. PRESENT: Jim Vaccaro, Carole Dunivan, Vernice Polka, Carl Heller, Tony Gallo, John Ferriday and Deirdre Greelish ------------------------____------------_-------_----_------_ ----___-___----- This special meeting of the Finance Committee was held one hour prior to the fall annual town meeting to reconsider the Committee's position on several articles. ARTICLE 17 The article seeks Mashpee's adoption of the provisions of the Pension Reform Act of 1987 with regard to the Barnstable County Retirement System. Besides making the pension payments more equitable, it seeks to become self-funding. In order to become self-funding, the interest revenue from the Retirement Fund must be able to cover the cost of pension payments. Previously the Finance Committee believed the increased cost would be $2,500 annually. Jim Vaccaro informed the Committee that the increase would be more on the order of $70,000. Vern Polka made a motion, and Deirdre seconded it, to reconsider the Committee's position on Article 17. All were in favor. Discussion continued. Mashpee has about $400,000 in the Pension Reserve now from which it can draw $70,000 each year toward its increased payments (currently $314,000). When the Reserve runs out, the increase would have to come from the tax levy. Deirdre Greelish asked if it was a good idea, or just another way for the State to increase the appearance of assets, as the Federal Government does with Social Security. Vern said she was concerned about the credibility of the State to manage the fund. Carl Heller made a motion, and Carole Dunivan seconded it, to recommend approval of Article 17. The motion passed 6-1, with Jim, Carole, Carl, Tony, John and Deirdre voting yes and Vern voting no. ARTICLE. 2D Tom Fudala asked the Committee to reconsider its decision to not recommend Article 20. This article seeks $721.56 for the Planning Department's Salary and Wage-Account to pay an Assistant Town Planner for 29 hours per week. At the Mai► annual town meeting, this position. was Beverly cut, causing the Assistant Town Planner to resign. Mr. Fudala hopes to have the funds transferred from the Planning Board's budget, funding the position through a contract to run until June 30, 1990. Jim expressed concern that the person could still claim unemployment, no matter how carefully the contract is worded, as his experience has shown. Deirdre made a motion, and Vern seconded it, to reconsider Article 20. The motion did not pass with a vote of 2-4--1, Deirdre and Vern voting yes, Jim, Carl, Tony and Carole voting no and John abstaining. i