Rotterdam Politics

Rotterdam Town Board strikes retirement incentive

John Purcell 08/26/10
County, Nisky and Glenville also looking into possible cost-cutting solution

Fiscal concerns are on the minds of many as budget deadlines loom over the horizon and municipalities have the option of offering a retirement incentive to possibly create savings. What savings there could be was under dispute in the Town of Rotterdam.

The Rotterdam Town Board held a special meeting on Thursday, Aug. 19, to discuss the option of adopting Part A of the 2010 Retirement Incentive offered by the state. After hearing the publics concerns during privilege of the floor, the board failed the resolution by a 3 to 2 vote. The two board members approving the resolution were Town Supervisor Francis Del Gallo and Deputy Supervisor Robert Godlewski.

“This is insanity — it was already settled weeks ago in your last agenda meeting that you weren’t going to be moving forward with this,” said Kelly Rhinesmith. “Probably sooner rather than later we’ll end up rehiring these people at probably higher salaries … I don’t understand why we’re even talking about it tonight when it was settled this was not something that would realize any savings what-so-ever for the town.”

Kevin March echoed Rhinesmith’s statements on why the issue was being discussed.

“Why are we here on such short notice, because of the fact that we need to get something pushed through that you couldn’t do when it was the appropriate time?” said March.

Any municipalities wishing to explore the New York State & Local Retirement System’s 2010 Retirement Incentive Program Part A need to pass a resolution by Aug. 31 and Part B by Sept. 1.

Part A provides eligible employees with one additional month of service credit for each year of employment, but the total amount of additional service credited can’t exceed three years. The positions also must be targeted and eligibility should be determined based on seniority.

Del Gallo stressed the incentive was being voted on to keep the option available for the board, but if they didn’t pass the resolution they would lose the option.

“If we don’t vote yes tonight we have no other choice,” said Del Gallo. “If we do vote yes, then we have another three months to make a choice.”

Patrick T. Aragosa, comptroller for Rotterdam, attended the meeting and Del Gallo pried Aragosa if the town would be able to save any money.

“Frank, if it was my money, I wouldn’t spend it that way,” said Aragosa. “I’m in a tough spot here, but I’m trying to give you guys everything you need … It is going to be difficult to save based on the premium you have to pay.”

Aragosa said the town would be required to save 50 percent over two years if the incentive was approved. According to Aragosa’s calculations it would be around six to seven years to see a savings if nobody is rehired into the positions. Rotterdam had suggested five targets for individuals to receive the incentive.

“I don’t care what you say, somebody has got to be rehired back, so that delays the process even more,” said Aragosa. “You’re not going to live without some of these positions.”

Rhinesmith stated earlier during the meeting it would be fiscally dangerous to award these incentives to individuals.

“Every single one of you with any fiscal responsibility what-so-ever should just all say no,” said Rhinesmith.

Frank Salamone advised the board to listen to the town comptroller and take the suggestions offered.

“[Aragosa] has never seen this incentive realize any sort of cost savings and I don’t understand why we don’t take his expertise into consideration here and just listen to him,” said Frank Salamone. “I don’t understand why anyone would try to counter that and I hope that this board takes his advice into consideration and votes down this measure. It just doesn’t make sense to me.”

Godlewski referred to figures the board had, which were a composite of the worst case senerio; the board can say no at a later date and “cherry pick” individuals to receive the benefit.

“If we go back and massage the numbers, maybe if you massage the numbers a little and you’re more selective, then the financial scenario might not be as bad as presented here,” said Godlewski.

Aragosa agreed with Godlewski and said if positions were taken off the list it would “soften the blow.” Also, Aragosa said there would be no penalties associated with the incentive if the town approved it and didn’t implement it.

Though the resolution failed in Rotterdam, there will be public hearings and votes on the retirement incentive in other local municipalities before the upcoming deadlines.....................>>>>...................>>>>................http://www.spotlightnews.com/news/view_news.php?news_id=1282837647