One of the issues that is sure to be before the town given the current tight budget situation is that of borrowing for capital expenses. The FY09 budget included borrowing for upgrades to HVAC equipment, dump trucks and loaders, school windows, and a new roof for the library. Also shown on the capital expense report were police cars which ended up being funded from the tax levy rather than by borrowing. The question is what constitutes a capital purchase ...
...and what is an operating expense? The Town Meeting voted to provide $350,000 to the school department for textbooks citing them as a capital purchase. But are they?
My feeling is that the police cars and the books are operating expenses.
The police drive their cars almost 24 hours a day and rack up lots of miles in a very short time. The minimum number of police cars that our town should purchase every year is probably at least 2, some would say up to 4. Since these cars quickly reach the end of their usable life and we need to purchase new ones on a yearly basis. I don't think that borrowing is a wise way to meet this need. Funds from the tax levy should included in the operating budget to replace 2 cars every year.
Textbooks are also an operating expense in my opinion. Schools need textbooks and they have to be periodically replaced. Either because they are worn out or they are outdated. The state Department of Education (DOE) takes that into account when they calculate their foundation budget. Link here for how that is done. The budget calculation allocates a sum for instructional technology that is included in the foundation budget every year. That indicates to me that the DOE regards instructional materials and technology as an operating expense. I think that funds need to be budgeted for instructional materials, just as should be done for police cars. Some years, the amount may be only for replacement of lost or damaged books and some years, a higher amount will be needed to replace a series of books. But in the long term, the amount should be fairly constant with other items added in such as funds for replacement of computers, software and other instructional materials, higher in some years and lower in others. Now, some will say that funds are budgeted but not enough for the needs. If that is true, the budget should be increased to meet the need for this vital operating expense.
Police without cars and schools without books are not much use. There is no sense in hiring police if we can't put them on the roads or having kids attend schools without adequate instructional materials.
As always, tell us what you think.
Friday, June 13, 2008
Capital expense?
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14 comments:
What defines a capital expense? We are on a slippery slope after town meeting defined textbooks as such. Personally, I'm glad town meeting bought the books because our School Committee sure isn't going to. However, books have always been an operational expense and they should be. Now they will be raiding the reserve fund every chance they get for these and many other things which they will argue are capital expenses. Then when we really need the money for a legitimate capital expense like, say, when the Padanaram Bridge gasps its last breath, there will be none. Don't say Bill didn't warn you.
This is the same old, same old from you people. Alot of questions and complaints but no solutions. Oh yes, I hear prioritize spending but there are no recommendations. I also heard the word "raid" again. This is getting old. Ask for more overrides. Raise the taxes for God's sake. That is the only real solution. I think the proper comment is, Don't say that I didn't warn you that the CFRG has ruined this town.
You want recommendations? Why is Mrs. Riley's contract going to be between $108-$115K, for starters, with wage reopeners during the second and third years (fancy name for "raise," I assume?) Why not start her at less; it would show the school's consideration of the Town's financial crisis as well as consideration of the taxpayers' pockets. She is a new-hire, after all, without a doctorate until next year, and with her superintendent and assistant superintendent's certification still pending besides.
How about starting the new town clerk's salary at a lesser amount than the $62+k that Mrs. White left the position at? How long did it take and how hard did Mrs. White work for that salary that is so generously given to Ms. Medeiros in the first year of her position as town clerk?
How about retaining only the four contracts that are either necessary or mandated by law (executive administrator; director of budget and finance/treasurer; police chief; and library director,) rather than allowing a fifth contract(DPW) to creep in, as well?
How about digging for answers as to why there is no money for books and technology? Why accept lip service and nodding of heads from both the Town and school side when suggestions, opinions, and criticisms are made from residents, parents in particular?
Do you feel that spending is responsibly prioritized when textbooks/technology are not first on the list of importance?
Why is it essential that the taxpayer get the brunt of all this?
Solutions have been offered countless times but you don't want to hear them. They don't fit in with the spend, spend, spend/ lets throw some more money at it mentality.
Finance Committee will not make a habit of slipping money to the schools they have also been very vocal about not giving raises for a year or two because this takes away 1 million from learning materials annually, there has to be a happy medium-middle ground.
The schools are remiss in offering this to Ana Riley. We need a new Supt, but it will cost $500,000 to buy him out, any suggestions? Or the length of his contract/salary-right? Naive SC for giving 3-5 yr. contracts.
Books come first, it is silly the educators have not funded this before raises.
What an excellent opportunity the SC members had with the hiring of Mrs. Riley to begin scaling down salaries to the more realistic figures of what the Town can afford to pay, rather than what the SC would like to pay or maybe even what the position should pay, if the Town could afford it. (Key words here are "if the Town could afford it.") But they chose not to. A complete disregard for the taxpayer, in my opinion, at least.
And the Town had an excellent opportunity to set a salary in line with what our finances can withstand, with the setting of the new town clerk's salary, rather than giving her the salary Mrs. White ended her career at. What a slap in the face to Mrs. White. Again, my opinion. I'm sure Mrs. White is far too kind to think that.
And the Select Board had an excellent opportunity to show a commitment to implement cost-saving measures in the best interest of the taxpayers, for once, if only it chose to follow the DOR recommendations for three contracts only, plus the additional library director's contract mandated by the state, rather than tagging on one more contract to the mix, bringing the total number of contracts to five.
And it was the SB that asked the DOR to present a report.
The Personnel Board was against a fifth contract. So much for a Personnel Board "reenergized" by the SB and tasked with making recommendations. Why even have a Personnel Board if the SB is at the ready to argue it down?
Is the SB even listening to the people it asked recommendations of?
Bill Trimble should be applauded for remaining adamant in opposition to a fifth contract.
Actually the Personnel Board recommended 5 contracts but they included the Town Accountant and not the Director of the DPW. So it is the same number but different position. The Mass General Law in question is Chapter 41 section 108N, Chapter 41, section 108O, and Chapter 78, section 34. The first MGL section covers that Executive Administrator and Budget Director(town accountants...or the person performing such duties having a different title.)THe second MGL section covers the Chief of Police, and the third covers the Library Director. Note that the library contract is prescriptive (shall), a contract is required, while the others are not(may). The Personnel Board is a recommending body for the Town Meeting. The Select Board as the executive board must make the decisions.
The Town Clerk is elected and the salary is set by Town Meeting. It seems equitable to me that the salary be based the position and not on who is elected.
I think the reduction of personal contracts is a step in the right direction. Five of them is a heck of a lot better than the 24 that we had, and I'm sure that the fifth one(DPW) was debated before being added. Does anyone know what would have happenned if town meeting had made a motion to fund only a part of the new clerk's salary? I disagree with Bill that the new clerk should start at the same pay as Ellie White got. What would happen if a town meeting member made a motion that carried to only fund $55k for this position?
The motion may or may not have passed, you can do it with any salary any spring.
Only the Town Mtg. can change the salary of an elected position. In my opinion, there was an opportunity(we knew Ellie was retiring)to make a change in the town clerk's salary,but it would have to have been voted on fall TM last year, before the election.
Again, that would have required leadership from the top.
She ran for the position for that salary. We can't take it away now.
2 comments:
A while back I was on a committee that recommended that we look into leasing Police vehicles as many other communities do. A sample community had a 3 year replacement cycle for Police cars, and when they obtained the new one it came with all necessary equipment, computer, radar, etc. The cost for this was $36K, and some/all of this was defrayed by sponsorships from local businesses. No one was interested in following up on any of this, including the leasing part.
We lease things like copy machines because they have no value after their useful life, and I have heard that exact description used for our Police vehicles, yet we buy not lease. Then we have to buy upgraded equipment to put into the new vehicles. If we keep the old equipment we have to pay to have it transferred to the new vehicle. Getting the Police the equipment and tools they need to stay current is always a discussion that takes place. I still believe that the leasing approach should at least be explored, and helps solve both the vehicle and equipment concerns.
Salaries - During my BRTF days one thing was clear. Most communities have pay ranges for their jobs, we don't. This allows an employee to keep going higher and higher in pay structure without regard to what the actual job is worth to the Town.
In industry no one would higher a replacement for an employee who has been in that position for a long time, and pay the replacement what the leaving employee was getting. That is where a pay range would come in handy.
Someone like Lynn who has some experience would not be required to start at the bottom, but in no way would receive what Ellie was paid. Lynn should have received a decent raise from where she was and allowed to increase her pay as she accumulated seniority and more experience.
Since there is no upper limit defined for that job, and she is young, if she keeps that job until she retires she will be making much more than even our Executive Administrator gets now. This is especially true since raises are automatic and not based on goals and performance... but that is a different topic and another beef I have with the system.
Actions such as this and what the SC did with their new hire is simply more business as usual and part of the reason we are in the pickle we are in. We don't seem to be learning anything as we try to move forward.
Bill any influence over the teachers' union and this bweekly pay mess?
from what ive seen the teachers union has never been formally asked and the town has to do it first anyway
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