Selectmen discuss split of trash fee funds
Published on August 8th, 2007
STONEHAM, MA - The town's Board of Selectmen recently accepted four warrant articles that will be featured at this Aug. 16 Special Town Meeting.
Perhaps the most important proposal up for consideration, as the entire purpose of the gathering ties into the measure, the Selectmen are asking the assembly to amend the FY'08 budget to reflect the receipt of $1.3 million in trash fee revenues.
Based upon the recommendation of Town Administrator David Ragucci, the school system would receive $800,000 worth of the rubbish money, while the town would get the remaining $500,000.
Two other proposals, one from the town's Library Board of Trustees and the other from Recreation Dept. Director Christine DelRossi, would also seek to supplement operating budgets for this year.
DelRossi, whose department is zero-funded for the third straight year, is seeking $15,000. As no funding from the trash fee would benefit the recreation program, the money, if approved, would have to come from either the stabilization account or by an amendment to the trash fee split.
The Library Board of Trustees, sponsoring their own article, are seeking $92,000 in funding, money that is required if the library is to be state certified this year.
According to Library Director Mary Todd, the state would provide $25,000 worth of additional aid to the facility when it's certified. The Selectmen's budget amendment would allot $40,000 to restore library services.
The fourth and final article, pitched by Franklin Street resident John DeGeorge, seeks to force any free cash into the stabilization account, once it's received by Stoneham officials.
DeGeorge, who brought a mirroring proposal before the assembly last year, has repeatedly rallied against the practice of using free cash to supplement the budget during October's regular Town Meeting.
Acceptance of the Franklin Street resident's article would make that practice more difficult to continue, as a two-thirds vote of Town Meeting is required in order to withdraw money from the savings account. Currently, only a simple majority is needed to spend free cash.
Could the rubbish fee be trashed?
After hearing about the plight of Springfield's garbage charges, Selectman John DePinto has proposed creating an enterprise fund to store trash fee receipts.
According to the two-term Selectman, he recently learned that a judge ordered Springfield officials to terminate its trash fee after a group of taxpayers challenged the legality of the charge.
The judge ruled that Springfield implemented the costs in order to fund budgetary items outside of refuse disposal that had previously been slashed due to a deficit.
According to DePinto, all trash fee revenues would go directly into the enterprise fund, and could only be used to pay for bills associated with the service.
By creating the accounting mechanism, the Selectman explained, Stoneham officials could prove that the fee was paying for garbage expenses, and not to restore other municipal services.
"Basically, 10 people in Springfield sued the city," the Selectman explained. "I'm worried that we could have the same problem this year, that 10 residents can go to a court and say we raised a trash fee and we're not spending it on trash."
"If you don't want to do this, that's fine," added DePinto, who voted against restoring a $200 trash fee. "But if we get an injunction against us, we lose that $1.3 million."
According to Town Counsel Bill Solomon, he sees little threat from a lawsuit, as it has been made clear that the trash fee is paying for garbage expenses, while the money freed up from that charge is being utilized for other municipal services.
Let the negotiations begin
The Selectmen unanimously authorized the Town Administrator to kick-off talks with Stoneham's collective bargaining units on the town's potential inclusion into the Mass. Group Insurance Commission (GIC).
According to Ragucci, based upon state regulations, local cities and towns must receive permission from its employee unions before a shift is made into the GIC.
The GIC, which is responsible for the health insurance coverage of state workers, has been argued to have far more negotiating power with providers because of the size of the employee pool.
Local cities and town's, previously prohibited from joining the GIC pool, have heralded a recently passed law that lifts the ban as a huge financial break for municipalities struggling with soaring health insurance costs.
"I've sent notices to each union, and they have 30 days to respond, but the notice to the state must be given by October [if we're going to join]," said Ragucci. "I'm going to give my best effort to do that. But if it doesn't happen this October, we'll shoot for next October."
"The timing is terrible for this, to get the unions to agree to the GIC in a matter of 20 business days," the Town Administrator vented.
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