HomeMy Public PortalAbout11-25-2014 Funds Request - Watertown Firefighters - IAFF Local 1347_201411210935408401 TOWN OF
1630 WATERTOWN
Office of the Town Manager
Administration Building
149 Main Street
^r ✓.i" Watertown,MA 02472
Phone:617-972-6465
Fax:617-972-6404
Michael J.Driscoll www.watertown-ma.gov
Town Manager townmgr@watertown-ma.gov
To: Honorable Town Council
From: Michael J. Driscoll,Town Manager
Date: November 20, 2014
RE: Agenda Item—Transfer of Funds Request
Watertown Firefighters, IAFF Local 1347
Attached please find a copy of the Joint Labor-Management Committee Arbitration Panel's
Decision and Award in the matter of the arbitration between the Fire Union and the Town.
RESOLVED ISSUES
The resolved issues in advance of issuance of the above mentioned Award are as follows:
1. Wages
Base wages to be increased annually by these amounts:
0% Effective July 1,2009
0% Effective July 1, 2010
2.5% Effective July 1,2011
2.5% Effective July 1, 2012
2. Duration
The duration of the two unresolved contracts will be July 1,2009 - June 30, 2010, and July 1,
2010 - June 30,2013.
3. Direct Deposit
The parties agreed to adopt the Town's proposal for the direct deposit of wages as follows:
All employees hired on or after the date of the Award and all employees who are currently
signed up for direct deposit with the Town shall be required to remain on direct deposit for as
long as they are employed by the Town. Current employees who are not signed up for direct
deposit as of the date the Award shall be permitted to continue to receive their wages from the
Town via check,however, should such employees elect to sign up for direct deposit in the future,
they shall be required to remain on direct deposit for as long as they are employed by the Town.
4. Staff Positions
The parties agreed to adopt the Town's proposal regarding staff positions at the December 5,
2013 hearing.
The modified proposal reads as follows: Officers holding staff positions shall remain in their
respective staff position for a minimum time period of 24 months regardless of the number of
promotions that are made in said 24 month period; the employee may opt out of the staff position
after 24 months if there is a junior officer or someone wishing to take the position. If there is no
junior officer or anyone wishing to take position, the officer can opt out at the next promotion
made. The next person taking said staff position is now committed to the next 24 month cycle.
_ AWARD
The Award includes the following:
1.Longevity Pay
An increase in longevity pay in the amount of$900 at each longevity step and at each
educational attainment level effective July 1, 2012.
2. EMT/Defibrillator Pay
A 3%increase in EMT/Defibrillator pay effective July 1,2009.
3. Clothing Allowance
An increase in the clothing allowance in the amount of$300,in two separate increments of$150
in each of the third and fourth years (July 1, 2011 and July 1, 2012) of the parties' collective
bargaining contracts.
4.Vacation Pay
Increased vacation entitlement pay effective on the commencement of the 2015 calendar
vacation year, without retroactivity, as follows: 1) a total of five weeks vacation after 15 years of
service through 20 years of service; 2)a total of six weeks vacation after 20 years of service.
5. Sick Leave Buyback
Award the Town's proposal to reduce and restructure sick leave buyback.
The proposal is as follows: All employees will be capped at their sick leave buyback dollar
amount calculated as of June 30, 2012, unless said amount is less than$4,000.00 as of that date,
in which case such employees will be capped at$4,000.00. Employees hired into the
Department on or after July 1, 2012 shall have their sick leave buyback benefit capped at
$4,000.00.
Copies of some of the significant Articles in the Collective Bargaining Agreement that will be
revised as a result of this Award are attached to this correspondence.
Under the provisions of Chapter 1073 of the Acts of 1973, once an Arbitration Award is issued I
am required to submit to the Town Council within thirty (30) days of the issuance of the Award a
request for appropriation to fund the Award and to recommend approval of same. Consistent
with this obligation, I am hereby submitting and recommending for approval the attached request
for an appropriation necessary to fund the Award. The following is a breakdown of monies by
fiscal year needed to fund the Award:
( PRIOR l
- - i
FY j_ _ __ FY YEAR
FY
2010 i 201011 2072 201013 20101 4 1 SUB-TOTAL 20101
5 I TOTAL
BASE - ! "$ 140,000 $ 284,000'.$ 284,000 $ 708,0001$ 284,000 $ 992,000'.
OVERTIME $ 8,000`.$ 14,500'$_ 28,000 $ _ 68.000 $ 68,000 $_ _176 500,$ 88,000 $ 24500
HOLIDAY S 8,400[$ 8400�$ 20.000 $ 36,0001$ 36,000 _$ 108,800.$ 36,000 $ 144,800
CLOTHING $ 12.500 $ 26.000'..$ 25,000 $ 62500 $ 25,000 _$ _ 87,500
'LONGEVITY _ -$ 7,800- $ 71000 $ 71,000 $ 149800 § 71,000 $ 220,800
'EMT/DEFIB S 148000$ 148,000I_$ 158,000 $ 167000:$ 167,000 $ 788000,$ 167,000 $ 955,000'
CAREER INCENTIVE E $ 2,000 S 18000'$ 18.000 $ 38000 $ 18,000 $ 66,000'
-'$ 164,400,'$ 170,900,'$ 368,300 _'$ 65%000'$ 669,006 S 2,031,600,'§ 669.000 $ 2.700,600
-_ .. - -
I : I MEDICARETAX@1.459�3 39,159'
$ 2,739,759
As of October 31, 2014,the Collective Bargaining Stabilization Fund balance is $1,702,410 (see
attached agenda item correspondences). Utilization of these monies would require a Proposed
Amendment to the Fiscal Year 2015 Budget which would not be able to be considered at the
November 251h Town Council Meeting due to the Watertown Home Rule Charter requirement to
advertise any Proposed Amendments to the Budget for a Public Hearing at a future Town
Council Meeting.
Therefore, in order to fund the Award I respectfully request the attached transfer be placed on the
November 25, 2014 Town Council Agenda and, consistent with the requirements of Chapter
1073 of the Acts of 1973, I recommend the approval of same.
If approved, a Proposed Amendment to the Fiscal Year 2015 Budget totaling$1,702,410 would
be brought forward appropriating monies from the Collective Bargaining Stabilization Fund back
to the Fiscal Year 2015 Town Health Insurance and the Fiscal Year 2015 Town Council Reserve
accounts.
If not approved,then pursuant to the provisions of Chapter 1073 of the Acts of 1973 the matter is
returned to the parties for further bargaining.
Thank you for your consideration in this matter.
cc: Mario A. Orangio, Fire Chief
Joseph S. Fair, Esquire,Kopelman and Paige, P.C.
Gayle M. Shattuck,Personnel Director
Thomas J. Tracy,Town Auditor
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TRANSFER AMOUNT $2,739,759
FROM: FY 2015 TOWN COUNCIL RESERVE $ 2,000,000
0111152-570780
FY 2015 TOWN HEALTH INSURANCE $ 739,759
0191200-510180
TO: FIRE PRIOR YEARS FULL TIME SALARIES $ 708,000
0122051-511111
FY 2015 FIRE FULL TIME SALARIES $ 284,000
0122051-510111
FIRE PRIOR YEARS OVERTIME $ 176,500
0122051-511130
FY 2015 FIRE OVERTIME $ 68,000
0122051-510130
FIRE PRIOR YEARS HOLIDAY $ 108,800
0122051-511142
FY 2015 FIRE HOLIDAY $ 36,000
0122051-510142
FIRE PRIOR YEARS LONGEVITY $ 149,800
0122051-511143
FY 2015 FIRE LONGEVITY $ 71,000
0122051-510143
FIRE EMT PRIOR YEARS EMT/DEFIB COMPENSATION $ 788,000
0122051-511144
FY 2015 FIRE EMT/DEFIB COMPENSATION $ 167,000
0122051-510144
FIRE PRIOR YEARS CLOTHING $ 62,500
0122051-511190
FY 2015 FIRE CLOTHING $ 25,000
0122051-510190
FIRE PRIOR YEAR CAREER INCENTIVE $ 38,000
0122051-511191
FY 2015 FIRE CAREER INCENTIVE $ 18,000
0122051-510191
FY 2015 MEDICARE TAX $ 39,159
0191200-510178
1 hereby certify to the availability, authority of fund g source, hematical accuracy
and appropriate fiscal year.
/Idl /
DATE TO N D I-OR
Ji
JOINT LABOR-MANAGEMENT COMMITTEE FOR
MUNICIPAL POLICE AND FIRE,
COMMONWEALTH OF MASSACHUSETTS
In the matter of the arbitration between;
WATERTOWN FIREFIGHTERS, IAFF LOCAL 1347
and - JLMC 12.22F
CITY OF WATERTOWN,MASSACHUSETTS
DE CIS IQN:AND AWARD.
For the Union
R David Wanger, Esquire
I{evin Dasey,Analyst
Thomas V.Thihaut, President
Paul LaFauci, Vice President
Alan R.Morash, Secretary/Treasurer
David Meianson, Captain
For the City
Joseph Pair, Esquire
Toni Tracy,Town Auditor
Gayle Shattuck,Personnel Director
Marto Orangio, Fire Chief
i
1. BACKGROUND
Pc�ocerl r�zrl Histor_
On June 4,7,013,the Joint Labor-Management Committee for Municipal
Police and sire notified the parties that Jt hail appointed a tripartite arbitration #
panel to resolve their bargaining dispute over two expired collective bargaining i
i
contracts, The JLNtC notification said the issues to be arbitrated were wages, t
duration and the following issues agreed to by the parties; i
ouwnl{motes; 1, overtime. 2, direct deposit, 3, staff position minimum
time to serve in promotion language, 4, suck leave buyback
Union Issues: 1, vacation (amend entitlement and accrued vacation/injury);
2. clothing allowance(Increase allowance by two$150 increments) folded into base
pay;3, longevity pay,and 4, 13Mi'pay
Hearings were held in Watertown before the pane12 on November 25,
November 26 and December 16, 2013,and March 7 and March 19,2014, A number
of witnesses testified,and the parties Introduced dozens of exhibits,covering
1 Technically, under Massacliusetts law,Watertown Is a"city,"not a"town."But,for
historic reasons, it calls Itself a "town,"and it will be referred to as a town in this
decision,
2 The jLMC initially designated Marjarita Doherty as the management mem bet,of
the panel. Before the first hearing day,however,Paul Blazar of Hudson,
Massachusetts,replaced her.
2
hundreds of pages, rollowing the hearings,both parties filed extensive briefs. On
August 19,the panel met to review the evidence and consider its award?
Statufoi)L&Wcta•s
Under Chapter 589,Acts of 1987,the following Factors must be considered by
the arbitration panel; the intanlcipality's ability to pay; the Interests and welfare of
r
the public;hazards of employment;physical,educational and mental qualifications;
job training and skiils;comparative wages and conditions with employees
perforating similar work in public and private employment in comparable
communities;the cost ofliving;overall compensation currently received;and
t
changes in circumstances during pendency of the current dispute.
- i
The panel has considered the prescribed statutory factors in reaching its
award, As will be discussed below,the factors requiring detailed review here are
comparative wages between Watertown's police and fire personnel,comparative
wages and working conditions for fire personnel In comparable communities,and
Watertown's ability to pay,
Resolvettis. slier
The parties have resolves! several Issues;
3 This decision has been delayed by the impartial arbitrator's illness,
3
1, Wages. Base wages to be Increased annually by these amounts; 0%on
July 1,2009; 0%on July 1,2010;2.5%on July 1,2011;and 2,5%on July 1,2012.
C
2. ll u atioi1, The duration of the two unresolved contracts will be July 1,
2009-June 30,2010,and July 1,2010-June 30,2013.
3, Dir ect Aepos t, The parties agree to adopt the TowWs ptoposal for the
i
direct deposit of wages.
4. Staff Pgsitians. The parties agree to adopt the Town's modified proposal
1
2
at the Decembef 5, 2013,hearing regarding staff positions,
1
Utesnlv_ec! Issues
1; The Union's proposal to Increase longevity pay by 6%.
2, The UnIon's proposal to increase r,NIT/Defibrillator pay by 3%.
3. The Union's proposal to increase the clotting allowance by$150 hl FY
2012,plus an additional$190 in FY 2013,and to roll the clothing
allowance into base pay.
4. The Union's vacation proposal,
S. The Town's sick leave buyback proposal.
Police/p(refighters Barg fining Iiistor
A crucia)aspect of this dispute implicates the historic relationship between
the Watertown firefighter and police bargaining units, Although there are notable
4
and obvious differences in the training,duties,work schedules and other
employment conditions between these groups,historically they Have maintained
parity in wages and benefits. In this case, the Town and Union have focused on the
most recent police settlement, The Pirefightet-s Union seeks what it calls"econoinic
value eduivalency'4 to tho police settlement.
In November 2010 the Town agreed with the Police Association to a one-year
contract(July 2009-June 2010)and a three-year contract(July 2010-June 2013).
Importantly,the Town agreed to grant police tine full benefits of the so-caller! Quinn
Bill educational benefit,retroactively for the 2009-2010 contract and prospectively s
i
for the 2010- 2013 contract. Previously,the Statehad provided 50%oftile cost of
the Quinn Bill,and the Town bore the cost of 50%, 'I'he'rown agreed, in effect, to i
(lick tip the State's one half share. i
i
i
4 Union's post-hearing brief,9. _
S
11, LONGEVITY PAY
The Union seeks a G% increase in longevity pay in(I a Mneroase In
EMT/Defibrillator pay effective in contractyear OY 2010, both increases to be folded €
Into base salaries. Thu Town has offered$900 for each length,of-service category
F
(i.e,after 5,10,15,20,25 and 30 years of service). The most recent fire contract
t
provides longevity pay based on percentages, and the Town's offer of$900 for each
length-of-service category would acid that flat$900 sr+In on toll the percentages;
rather than treating$900 as a percentage,
.j
i
The Town and police agreed to a$900 increase at each longevity level.
i
Police receive either Quinn Bill educational benefits or longevity pay,not both, Nlost
l
police receive Quinn educational benefits;tnostfirefighters do not, ,
In support of its proposed those Increases Is roughly equivalent to the
amount the'rown has agreed to pay the police bargaining milt to maintain full Quinn
Bill benefits In response of the States withdrawal of its one-half share of the cost.
Mahitaining historical fire-police parityjustifies Its proposal.
The'rown responds that Its agreement to pay the full cost of Quinn Bill
educational benefits In the now police contracts was intended to avoid a sharp
reduction in pay For approximately 80%of police who receive Quinn Rill benefits. It
argues that the State's elimination of its share of Quinn Rill benefits effectively
6
imposer!a pay cut on Quinn bill recipients of 5%,10%or 12.51/6,depending oil the
level of their educational achievement. The firefighters have suffered no
comparable loss. Moreover,the-'Down directly benefits from having abetter
educated police force,Justifying Its paying tine fill costof Quinn Bill benefits. It
notes that tine fire contract also contains educational benefits but that few
firefighters(18%)-have attained that benefit by earning a degree in fire science.
Further,the Town argues that it agreed to pick up the full cost of Quinn Bill benefits
because of pending litigation in tine State courts-Involving North Reading and
Maslipee•-over a municipality's right to decline to up the State's one haifshare of
the cost of Quinn Bill benefits. 'rhe police also agreed to in additionai 1S minutes' i
work at tine end of each shift without additional compensation. j
r
The Unionargues that It was"boxed in"by the Police Union's wage ?
agreement of O(A wage increases in PY 2010 and PY 2011. The Police Union's
agreement to a relatively small wage package was,however,reflective of other
benefits granted police.
The Unlon's justification for its proposed 6%longevity increase rests largely
oil the'Pown's incurring the cost of providing full Quinn Bill benefits to the police. It
argues that police are entitled to increased pay that equals the Town',,;Quinn Bill
obligation. Tile flaw in that argument is that the cost to the Town of providing full
Quinn Bill benefits did not actually increase police compensation. It averted a
reduction in police pay, Its effect was to maintain the status quo for police
7
compensation. Accordingly, gyve find no pei•stiaslve)ustificatiorn for•granting the
Unions proposed 6%increase in longevity pay.
The Union also argues that awarding a flat$900 Increase In longevity pay-
oil top of the prior fire contracts'longevity percentage increases--is unreasonable.
i
The increase should be awarded as a perceitage Increase,not a flat dollar amount.
We are notpersuadeti. Despite the historic pattern of granting longevity increases
to the fire unit hr percentages,rather than flat dollar•amounts,it makes sense to
maintain parity by granting the saille dollar amounts In this contract.
The Town's offer of a$900 Increase in longevity pay at each longevity step
and at each educational attainment level is fair,reasonable and will be awarded
effective July 1,2012.
tl
i
III. EMI'/DEFIBRILLATOR PAY
The Union seeks a 3%Increase in EMT and non-EMT pay,effective July1,
2009,a reduction from its Initial proposal of a h 5%Increase, It notes that 60%of
service calls for the Fire Department ai'e EMS calls and,thus,that self-finding of
i
EMS calls justifies its proposed increase in EMT/defibrillator compensation, During
the four-year period inquestion, 2010, 2011, 2012 and 2013, the Town has received
a total of$2,636,981,which exceeds tine total cost of the Unions four-year package.
GMT compensation for firefighters has been 4.5%since 2000. The Union seelfs an
increase of 3% effective in the FY 2010 contract.
Since1992,newly hired firefighters,unlike police,have been required to
become GMT certified, Further, the Union argues that Its proposal is Justified by Its
agreement to the'rown's sick leave buyback proposal.
The Town contends that tile police agreement to conduct RMT teainl ng on-
duty is a new cost saving to the Town,whereas the firefighters have for over a
decade agreed to on-dirty ENT training.
Considering that EMT compensation has not increased since 2000 and Olaf
GMS service calls generate significant"stream of revenue"for the Town,we
conclude that the Union's proposal to Increase LMT/defibrillator compensation by
9
3%N Justified,and we will award that increase effective in the 2010 contract,via,
july 1,2009,
t
E
{
3
10
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IV: CLOTI•IING&14 WANCE
The linion seeics to increase the current$1,000 clothing allowance by$300 in
separate increments of$150 each. It also seeks to roll the clothing allowance into
base pay,rather than as a stand-alone payment, The police contract provides For a
similar$300 Increase In the clothing alowance ill two:$150 increments on July 1,
2011 and July 1,2012, The Union's proposal to increase the clothing allowance is
consistent with the Increase granted to the police. But the Union's proposal to Fold
the increased clothing allowance of$1,300($1,000 current,plus$300 new)into the .
i .
base would brei lc the police-firehargainingpattern. i
i
Rolling the clothing allowance Into firefighters'vase paywould constitute a
scibstantlal,hdddenwage increase. Itwould increase a fireflghter's pension
{
eligibility by$1,300 with long-terns implications for the Town's pension habllities.
t
Rolling$1,300 into base pay would also raise overtime pay proportionately.
The Union advocates this proposal oil the ground that its cost represents
only a Fraction of the Town's cost For replacing the State's one-half share of Quinn
Bill benefits, This contention is made throughout the Union's case, viz,,that its
proposals are economictilly Justlfied on the ground that the police benefited from
the Town's decision and that the amount of that benefit. The flaw In this argument
Is that the Town's decision to pay the full cost of Quinn Bill benefits for eligible
police.does not colnstitut,e a wage hicrease, It staved off whip would otherwise have
11
i
been a decrease in police pay, In<dodngso, the Town effectively preserved the
historic police-fire wage relationship. if the Town had not picked up the State's
share of the cost of Quinn Bill benefits,and If police pay thereby had been sharply
reduced,would not the Town be entitled to argue that firefighter wages should also
be reduced proportionately in order to maintain the historic police/fire bargaining
relationship?
t
No outer bargaining unit In Watertown has such a benefit. And it wonld {
significantly undercut the police/firewage pattern, Accordingly,we wittawarcl the
Urtion's proposal to increase in the clothing allowance by$300 in two$ISO }
q
Increments,in years three and four of the contracts, In order to maintain parity with
the police settlement, We cio not award folding the clothing allowance into base
Pay. t
12
k
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V. VAGATIONPA'Y
The Union seeks increased vacation entitlement"effective on and after the
i
commencement of the calendaryear 2015 vacation year,with no retroactivity." Its
proposal would provide five weeks vacation after 15 years of service through the
2011,year of service,Whereas the most recent fire contract provides for five weeks
vacation after 17 years of service. Additionally, the Union's proposes to add a new,
vacatlon benefit of six weeics vacation after 20 years of service.
hr support of Its proposal,the Union stresses that the recent police {
settlement caught up with file current fire contract by providing a fifth week of
i
vacation after 16 years of service. The prior police contract provided for•five weeks
vacation after 20 years of service, Tice fife contract historically has been ahead of
the police contract in vacation benefits.
The Union further argues that Its vacation proposal is justified because police
receive seven clays for each vacation week,while firefighters receive only four clays
for each vacation week. But that disparity appears to be a result of their different
work scinedules. Firefighters'work schedule Is 24 hours oil,72 hours off,and again
24 hours on, Most police work four clays on,followed by two clays off, (Police who
are assigned to an administrative schedule worts five clays on and two days off.)
13 '
Some comparable communities grant firefighters the enhanced vacation
benefits that the Union seeks Isere, Throughout this proceeding,the Union has
maintained that historically the most Important consideration has been parity
between Watertown police and firefighters. With that in mind,it is fair to grant the
fire Union's enhanced vacation proposal which will have the effect of maintaining
the fire bargaining unit's slight historical advantage over the police unit's vacation
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benefit, r
t
The cost of the Mien's vacation proposals is quite modest. And it is Justifier)
by comparlson with the police's settlement. Accordingly,we will award the Union's {
vacation proposal.
,
t
14
VI, SICK LEAVE BUYBACK
The Town's sick leave buyback proposal has been much discussed by the-
partes.. it has been agreed to by the police. Without need for further elaboration
and for reasons well-known to the parties,we will award the Town's proposal to
reduce and restructure sick leave buyback,
i
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• i
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VII, CONCLUSION AND AWARD
This has been a long and difficult proceeding, And here,as Is typical In
municipal interest arb1tration cases,there can be no perfect resolution. Our award
represents our bestjudgment of what Is fair to the firefighters and the municipality,
Itseeks to weigh each patty's legitimate needs and interests In the light oftheir
historical bargaining pattern of maintaining rough parity between police and
,
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firefighters. We have considered the nimildpality's ability to afford the Increases
we have awarded,and we are satisfied that their cost is well within its financial
ability to pay,
E
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16
AWARD
1, ,Ciiibrev[J:y.I?st�.
We_hereby award an increase In longevity pay in the amount of$goo at
each longevitystep and at each educational attainment level effective July 1,
2012.
2, EMT/Defibrillator Pav
f
We hereby award a 3%increase in EMT/Defibrillator pay effective
July 1, 2009,
i
3, ci-6t�j,��ntto�vt,4 jee ,
We hereby award an increase In the clothing allowance in the
amount of$300;,hi two separate increments of$150 ineacit of the i
third and fourth years of the parties'collective bargaining
contracts.
4, W 'Albin Pay_
We Hereby award increased vacation entitlement pay effective
on the commencement of the 2015 calendar vacation year,without
retroactivity,as follows: 1)a total of five weeks vacation after 15
years of service through 20 years of service;2)a total of six weeks
vacation after 20 years of service.
17
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S. Slelc Leave liuvbacic
We hereby award the Town s proposal to reduce and restructure
sick leave buyback.
` hn Boi•»stein
Neutral Arbitrator and Chairman
October 27, 2014
/s1 PauCrBCairar
a
Paul Blazar
Management Panel Member
October 27, 2014
/s/. Matthew Reddy
Matthew RecItiy
Union Pastel Member
October 27, 2014
- 18
TOWN OF WATERTOWN
and
WATERTO WN FIREFfGHTER.S ASS O CIATION
LOCAL 1347
COLLECTWk BARGAINING AGREEMENT.
ART1 6LF W VACATfONL-H AVE'
Section A. BargaWhg Unit employees shall be entitled to-annual vqc4ticknq with-pay,piu suant
To.the following sehcduid:
Effective JUIV 1,1995
Beginning with 30 weeks tbrough'3 years 2-weeks.
Beginning with the 4th,year through 8th year 3,ymeeks,
Beginning with the 9th year through 16th year 4 weeks
Beginning with the 17th year through retirement 5 Weeks
0 -u s length
The amount of-vacation t which an employee is entitled shall be based upon
of accumulated service In the employ of the Town of)Vat&r0)Wh as of December 31, of 11
calendar year involved
For vacation schedule purposes, each week of vacation shall rim from 8:00 a•m. Saturday to 8:00
a.m, on the following Sunday. One week of vacation shall equate to two consecutive cycles, not
i withstanding anythhrg to the contrary in Article VI, Section C of the Collective Bargaining
Agreement. ,
Section B. All one,two or three week special vacations shall be chosen on the basis of seniority
within each of the separate groups regardless of rank,one week at a time.
Section C. Any employee covered by the Agreement may take all of his vacation weeks (other
than the scheduled summer vacation), one tour at-a time. The employee will express this intent
during the selection of special vacations. A week shall be considered for the purpose of this section
to be two (2) 24-hour tours being two (2)consecutive cycles, A member would not be allowed to
accumulate more than seventy-five,percent(75%a)-of these.totirs.either as day tours or-night tours
without(lie pernssion of the-Chief-of Department.
Section D. Any employee who does not wish to take a summer vacation may, with the
permission of the Chief of Department, change his vacation to a period outside the sumlmer
schedule. -
Section B. If an employee is on injury leave later than September 0 of each year, he/she may
carryover one additional week of vacation leave.
Any employee covered by this Agreement may carry one week or up to Four P - Tours of vacation
over into the following calendar year. Such time must be,used by Apri130"'of that year.
Selection shall be according to the provisions of Article VI,Section D of the Agreement.
Effective October 14, 2008,if all employee is on injury leave later than September ls"of each year,
he/she may carryover one additional week of vacation leave and can cash out one additional week
of vacation.
ARTICLE VII SICK LEAVE
All employees hereunder shall be entitled to receive sick leave in accordance with the provisions of
the Ordinances of the Town of Watertown, Chapter X, attached hereto as Appendix "A". It is
expressly understood and agreed that if an employee disputes the determination of the Town
Manager with respect to whether an absence is properly charged to sick leave, the dispute may be
submitted to arbitration pursuant to Article lI of the Agreement..
For the purpose of consumption and use of sick leave each 24-hour tour of duty shall equate to two
sick leave days.
Ali employee covered by this Agreement shall, upon request, have available to him information
regarding,the number of his used sick leave days and the number of his accumulated unused sick
days.
Upon an employee's retirement or death, the Town shall pay to all employee or his designated
beneficiary or, in the case he fails to designate a beneficiary,to his estate all amount equal to 25%
of his accumulated sick leave upon his retirement or death at the mate of pay he is earning on such
date.
ARTICLE XI I nNGEMY. PAY
Bmployees with five or more years of service will be paid as part of their regular compensatiop;in
addition to their regular salary a.career service increment pursuant to thc:following schedule.hased
uponflie,top step fire fighter rank salary:
Years of Service (as.o£December M) Anmtaf Payment
Beonningwith the 5thyearthrough9years 1;175K
Beginning with the 1 Ofh'year through 14 years 2.115%
r
Beginning Nvith the.15th year through 19 years 3.055%
egituungwith the 20th year through 24 years B 0340A
beginning with the 25th year through 29 years 7.649%
Beginning with the 30thyear through retirement 7,754%
13
i
1
i
Longevity payments may be paid quarterly and shall be included in base pay for purposes of
computing overtime, sick pay, injury pay, holiday pay or vacation pay, and shall be considered
regular compensation for pension and retirement purposes, to the extent permitted by law. It is
expressly understood and agreed that employees eligible for longevity payments are entitled to the
entire longevity amount each year.
In the event of an employee's retirement or death, his entire longevity pay increment for the fiscal
year of such termination will be paid to said employee or the employee's heirs at law on the next
pay day following his retirement or death.
ARTICLE,XXVI CAREER]INCENTIVE PAX PROGRAM
Effective 7/1/04 employees who qualify for the Career Incentive Pay Program will be paid
according to the compensation listed below and. included in the base pay. The applicable
percentages will be calculated in the same manner as longevity.Dire Department incentive pay shall
be computed annually on the basis of the number of semester hour credits earned and accumulated
toward an associate's or bachelor's degree according to the following schedule:
Credits(Desrees Compensation_
3-30 credits $ 12.00 per credit
31-59 credits $ 17.00 per credit
60 credits plus A.A,degree in Fire Science q%
B.S.or B.A.degree plus A.A,degree or
60 credits in Fire Science program. 7.75%
Effective October 14,2008:
B,S. or B.A.degree plus-A.A.degree or 7.754%
60 credits in Fire Science program.
All semester hour credits and said degree shall be earned in an educational institution accredited by
the New England Association of Colleges and Secondary Schools or by the Board of Higher
Education Additional compensation paid under this program shall be included in base pay for the
purpose of computing overtime, sick pay, injury pay, holiday pay, vacation pay, and shall be
considered for pension and retirement purposes,to the extent permitted by law. This program shall
be administered by the Personnel Department in accordance with the following procedures: 1)the
Chief of the Fire Department must approve in advance the professional appropriateness of the
courses of instruction to be undertaken: 2)on or before the first day of September in a given year an
applicant for educational incentive pay hereunder shall submit to the Personnel Department
evidence of satisfactory completion of the courses of instruction taken and of the munber of credits
20
carried and accumulated as aforesaid: and 3) the Personnel Department shall then compute the
amount of additional compensation due to the applicant and authorize payment-thereof beginning
on the first pay period in the month of October next ensuing. The effective date for the
commencement of this program is July 1, 1974, but credits earned prior thereto and accumulated
toward an associate degree in Fire Science as above stated shall be included in the computation of
additional compensation hereunder,provided,however,that the following conditions exist,namely:
1) the applicant was a permanent full-time employee of the Watertown Fire Department at the time
such credits were so earned and accumulated, 2)the Chief approves. Those employees who qualify
for payments under both the Career Incentive Pay Program and the Longevity Plan as described in
Article M shall receive the higher payment to which they are entitled, but not both. It is expressly
understood and agreed that employees eligible for the career incentive pay program are entitled to
the'entire career incentive pay amount each year based upon the level attained as of September I"
of each fiscal year.
In the event of all employee's retirement or death, the employee's entire career incentive pay
increment for the fiscal year of such termination will be paid to said employee or the employee's
heirs at law on the next pay day following the employee's retirement or death,
ARTICLE XXIX PROTECTIVE CLOTHING AND UMFO UMS -
Effective 7/1/00,the annual clothing allowance shall increase to one thousand dollars($1000)of
which tbrec hundred and fifty dollars ($350)will be paid to the employee for the maintenance of
the dress and work uniforms.
Effective 6/30/05 all members will receive,a clothing allowance of$S00 in January and$500 in
July of each year.
It is expressly understood that all personnel shall wear NFPA compliant station/work garments
while oil duty.
ARTICLE XXX EMERGENCY MEDICAL TECENICIANS
Each employee who is a registered Emergency Medical Technician(EMT)shall be paid an annual
payment, which may be paid quarterly, pro rated, according to the date of certification or
recertification. The Town shalt continue its practice of paying for the costs associated with
certification, training and.recertification of EMT personnel. The Chief of the Department shall.
21
have the discretion to determine whether employees shall participate in training and for
recertification programs which will require their attendance on their regularly scheduled days off. If
the Chief authorized employees to participate in such programs,then all time spent by employees in
said programs on regularly scheduled days off shall be included for overtime purposes.
If is expressly understood that the Town will require all newly hit-cd firefighters to be EAST certified
within one year after being hired and that those individuals will be required to maintain their EMT
certification as a condition of employment. All EMIT and non EMT personnel who are defibrillator
trained shall be compensated on an annual basis,paid quarterly,as follows:
Effective July, 12000: Each employee who is a registered Emergency l4ledical Technician
(EMIT)and Defibrillator trained shall receive annually four,and one-half percent(4,5°/u)of the
top step Firefighter rank salary to be paid in quarterly installments. The amount received
pursuant to the foregoing,which is four and one-half percent(4.5°/n)of the combined Firefighter
rank maximum base pay and shift differentials, shall be added to•each employee's individual
base pay and differentials for the purpose of calculating the dollar value of such employee's _
overtime,holiday pay and retirement contributions.
Each employee who is Defibrillator trained and who is not a registered Emergency Medical
Technician (EMIT) shall receive annually two and three-quarters percent (2.75%) of the top step
Firefighter rank salary to be paid in quarterly installments. The amount received pursuant to the
foregoing, which is two and three-quarters percent (2.75%) of the combined Firefighter rank
maximum base pay and shift differentials, shall be added to each employee's individual base pay
and differentials for the purpose of calculating the dollar value of such employee's overtime,
holiday pay and retirement contributions.
TOWN OF
1630 WATERTOWN
Office of the Town Manager
i s 1 Administration Building
149 Main Street
Nvatettown,MA02472 - -
Phone:617.912-6465
Michael J.Driscoll Fain 617-972-6104
wvnvlvatenown-m?.gov
- Town Manager rnwnmviGkrateimwivom:vov
To: Honorable Town Council
Front: Michael J.Driscoll;Town Manager
Date: July If,2013
RE: Agenda Item—Establishment of Collective Bargaining stabilization Fund;and ail
Initial Transfer of Funds Thereto
As you are aware, monies for a Proposed Fiscal Year 2010-2013 Collective Bargaining Agreement
with the Firefighters Association are included In the"02"Town Couneil.Reserve and the Fiscal Year
2013 Town Council Reserve.
During the ongoing Full Financial Management Review, tine Division of Local Services (DLS)
officials have indicated funds for employee contracts may be emcuutbered only if the employer and
employee bargaining representatives agree to contractual terms by duty lSr'with a final ratification.
The DLS Indicated the establishment of a stabilization find would be appropriate to account for
nionies related to it prior year contract where an agreement has not been reached.
Therefore, given all of the above, I respectfidly request the attached Resolution establishing the
Collective Bargaining Stabilization Fund be placed ort the July 16,2013 Town Council Agenda.
For background purposes or the establishment of Special Purpose Stabilization Fluids, enclosed
please find a copy of the August 2008 City and Town article and the Informational Guideline Release
(IGR)04.201 regarding Creation ofMuitiple Stabilization Funds from the Deparitinent ofRevenue.
Additionally, I respectfully request the attached transfer to the Collective Bargaining Stabilization
Fund be considered nt the July 16,2013 Town Council Meeting.
Thank ybu for your consideration In this matter.
cc: Honorable School Committee
Honorable Library Board ofTrustees
All Department Heads
John T.Loughran,Director of Business Services
Gayle McCracken,Director of Human Resources
RESOLUTION# R-2013
WHEREAS, a Proposed Fiscal Year 2010-2013 Collective Bargaining Agreement with the
Firefighters Association has not been reached;and
WHBREAS, fiords for employee contracts may be encumbered only If the employer and employee
bargaining representatives Agree to contractual teens by Judy 15th with a final ratification;and
WHEREAS,pursuant to the provisions of O,L,c.40, §SB,the Town may establish a special purpose
stabilization fund by a two-thirds vote ofthe Town Council,
NOW THBREFORE,BE IT RESOLVED that the Town Council of tine City known as the Town of
Watertown hereby establishes the Collective Bargaining Stabilization Fund and appropriates thereto
the sum of$710,000.
Council Member
I hereby certify that at a regular meeting of the Town Council for whioh a quorum tvas present, the
above Resolution was adopted by a vote of�for,_against and_present on July 16,2013.
Valerie Papas Mark S.Sideris
Council Clerk Council President
TRANSFER AMOUNT $7101000
FROM: FY 13 TOWN COUNCIL RESERVE $ 429,676
0111152-670780
FUND 02 TOWN COUNCIL RESERVE $ 280,426
0211152-570780
TO: FY 13 TRANSFER TO COLLECTIVE BARGAINNING STABILIZATION FUND $ 429,675
0194000-596806
FUND 02 TRANSFER TO COLLECTIVE BARGAINNING STABILIZATION FUND $ 280,426
0294000-06806
I hereby certify to the availability,authority of funding source,mathematical accuracy
and appropitate fiscal year,
DATE TOWN AUDITOR
U g Nattiest K gal,Cmwtieoner a RobertR Nunes Deputy CoMsslcner&Onyx of Municipal ARays
� �11 Y � 1a4SP3_3
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�_-f.--z-���.���d- -�11' `51 llan 1"Ii�M�asase�s t7eD�it(dCpPo-l�nua's l�vr_cons/,LoC`aL ei�k�cs
Volume 21,No.7 August 2000 Special Purpose Stabilization Fundso
A Long-Term Planning Tool
pL5 Comm ntaYyst to municipalities
Threeproposalsof Joe Markatran,Drearier of.Teohnical Asslstanoe,Muniolpal Data Management
thotereheleginatureiliesalast and Technical Asslstanoo,Uufaau
through the legislature al the fast -
moment Of their two-year Session! The 1945 statute that Initially author- and retain Interest earned.In the past,
expanded intermunk ipal agreements, Ized cities and towns to establish a sta. municipalities would noed slate ap-
a municipal spending commission, bllizatlon fund restricted ilia use of any prove(of special legislation to.set up
and broadband funds for unserved fund balance to capital expenditures. such a reserve.
communities..... .............2 In 1991,permitted uses were expanded Aspecial purpose stabilization fund:
Hest Praottoas Wellesley uses a to include any lawful purpose,but still
dashboard to stay on track with financial funds could not be reserved fora spa- • Encourages a community to think.
planning efforts and keep all parties attic purpose.However with the adop- long-form. Programs 10 replace vehl-
Informed with real-time Information ...2 lion of legislative amendments toM.Q.L. cloy,maintain buildings and Improve
Ch,40§5B In 2003,municipalities can roads requlre an evaluation of all assets.
1.e gal SomeruJlo mayor takes The tight now create multiple special purpose formulation of a replacement or repair,
to appoint off the way to the Mass- stabilization(undo.Each of those funds schedule,and calculation of long-term
achuselts Supreme Judicial Court can be assigned a different purpose projected cools.
and wine........................3 allowing municipalities to take advert.
Cage of a new management and fund- ' Helps a community Savo money.
Foome A 10-year look at Propositlon 2i4 Ing option. Rather than pay cash,If the$400,000
Overrides.Are override approvals Influ- _purchase price of-a fire truck were bor-
encedbycommunilysiza,property As a result,at a time when many cities rowed over 15 years.Interest payments
wealth and ilia number of public and towns are faulted for operating in could addaround$150.000 to Ilia total
school children?...................4 perpetual crisis mode,for allowing mu- cost,depending on Interest rates.Even
The community Preservation. nlelpal assets to deteriorate, and for fl this additional cost would have a
Aces reporting Form 0P.2 gets an general short-sightedness, a special nominal tax rate Impact,It can instead
update that promises to make the form purpose stabilization fund can be an be saved or expended elsewhere.
easier tocomplale................ i i eNaclive,planning loot. . Helps a community manage debt.A
Mark your calendars for upcoming A fund might be established, for In- plan to accumulate cash over time and
training classes..................12 stance, to pay solely for the marts- pay outright for a mcderate•range cap-
fiance and repair of municipal build- Ilan expenditure helps preserve debt
Profile Sector Deputy Commissioner Inge,Another might be created to capacity for major, high-dollar pur-
James Reynolds celebrates 30years supplement slate highway funds, to, chases or projects, An approach that
with the Department of Revenue and calved under Chapter 90,and to cover balancer debt with pay-as-you-go
talks about his work along the way...13 the cost of an ongoing street improve- practices,and protects against unlore.
Munlolpal Flscal calendar moot program.A spacial purpose eta- seen costs is viewed In a posithia light
September-Oclober ...........,14 b(Iization fund might also be set up to by credit rating agencies.
finance a government-wade vehicle re• , Builds resident confidence In gov-
placement program.For example,if a ernmenl.Special purpose stabilization
community anticipated the need to
purchase a$400,000 fire truck In fie funds directlynprovide assurance that
address resident con-
years,it could reserve$Ei0,000 a year terns and
In a special purpose Stabilization fund, continued on pogo 9
3
i
City&Towit•Aueuet 2008 Dlvleion of Local Sanrlm•mnv.maas,govrdla 9
Special Purpose Stabilization Funds conumod from page
money appropriated for a particular a capital protect stabilization fund in Ultimately,special purpose stabilization
purpose will be used for that purpose FY2008 and town meeting votes to ore• funds are most effective as a revenue
and will not be diverted. ate the fund and appropriate$100,W0 source,or savings account,for anticl-
Creationofa special purpose stabilize- to It. In FY2009, W2,500(1.026 x paled expenditures.They wark best
ticn fund,and an appropriation to that $1 W,OW , 1.025 being 2.5 percent of when used to build moderate balances
fund,requires two-thirds vote of a city the original override amount) Is avail- and to pay mid-lovef experld0ures that
council, town meeting or district pru- able for'appropriation'and that entire the community will eventually have to
dentist(or similar)committee,The vote make,like building maintenance,road
must clearydefinetlte purpose ofeach = x _ repairs and vehiclepurchasos.
fund established.Under the amended Building stabilization balances through
law, creating and appropriating to a 11 � � ,s r "an override unquesi(onably involves an
general stabilization fund now also re• r 4 Increase to the tax levy,but special pur-
quires two-thirds vole. (.`A j pose stabifizaifon funds provide an(m-
There are hvo options for building bal. e { portartt response to resldents concerns
ances in a special purpose stabilize r - about the absence of long-term plan-
Ron fund.One is the traditional spore. Wag In munkipal government,If consld-
priallon in a budget line-item,or In an s�r " 'i _ ered UtoughtfUlyand Implemented pru- -
article, from within the levy or from denly,they offer avelgcfo that can lietp
other general fund revenues,Balances a comntunlWhlnkand act in aforavicrd
can also be transferred In from other - : -" ' t ' _ looking manner,and eflectivey plan tot
existing accounts. future costs.
A second new funding option Is re- �.t� r� j - For more Information, please seethe
tarred to as an override, but in fact, DON Information Guideline Release
has characteristics of both a Proposl- r : r 1' , (IGN)04.201 which Is accessible from
lien 2%override and exclusion.Like an the DLS webslte. Go to yrvrw mass
ovarrido,additional tax revenue can be ti- 3. ov ; click on Quick Links(more)
and than the Information Guideline Re-
raised year-after-year without town- L
vAdeor cityvilde referendum votes be-
yond the year of Inception, However, f
like an exclusion under Proposition2%,
the levy limit Increase need not be per- amount is"appropriated°For FY2010,
manent.Solely through the action each $105062(1.025 x$102,500) Is avaff•
year of the selectmen,or oil/council.it able,but only,$60,000is'appioprialed."
can be continued,towered or deferred The amount available in FY201 t now
entirety and resumed In a later year. In becomes $82,0W(1.025 x$80,OW),
anyavenk each yea,the amount Avalb but the selectmen choose to make no
able Increases by 2.6 percent. appropriation.The amount avatlable In _ • '' �
For example, tet's say that the covms FY201219$82,000(1-025xlast appro-
voters approve a$100,OW override for prialion made,l.e.,$50,000).,
Informational Guideline Release(IGR)No.04-201
January 2004
CREATION OF MULTIPLE STABILIZATION FUNDS
AND
PROPOSITION 21/2 OVERRIDES FOR STABILIZATION FUNDS
Chapter 46§§14 and 50 and Chapter 140§§19 and 137 of the Acts of 2003
(Amending G.L. Ch,40§5B and Ch.59 621C(g))
SUMMARY.
These guidelines explain new legislation that gives cities,towns and districts the
flexibility to create multiple stabilization funds for different purposes. The legislation
amends G.L. Ch.40§513, which previously provided for a single stabilization fund Into
which cities, towns and districts could appropriate monies to be reserved for future
appropriation for any lawful purpose. Under the amendment,a community may now
establish one or more stabilization funds for different purposes by a two-thirds vote of
its legislative body. It may amend the purposes of those funds at a later time in the
same manner, Appropriations both into and from the funds require a two-thirds vote
of the legislative body, previously, appropriations to the stabilization fund only
required a majority vote. Interest earned on all stabilization funds remains with the
funds. The interest provision had been Inadvertently omitted when the statute was
amended, but it was restored by a recent technical amendment and applies
retroactively, Ch.140§§19 and 137 of the Acts of 2003.
In addition, a new paragraph has been included In G,I Ch. 59 §21C(g), which
authorizes a property tax levy limit override under Proposition 21h. Under this new
provision,a city or town that has an override approved by its voters for the purpose of
making appropriations to any stabilization fund must now allocate or dedicate the
additional levy capacity resulting from that override to the same purpose in subsequent
years. Ordinarily,monies from an override are only earmarked for the stated purpose
in the fiscal year the override is effective, Two-thirds of the selectmen,town council or
city council, with the mayor's approval if required by law, must vote 10 "appropriate"
the additional capacity for the same stabilization fund purpose each year after the
override takes effect. If"appropriated," the assessors must raise the amount in the tax
rate and the municipallty's levy limit is Increased accordingly for that year. Voters may
approve a change in the purpose for which the additional levy capacity can be used in
future years, Approval of any change is by majority vote at a referendum.
These changes became effective Tuly 31,2003, They apply to any appropriation
voted and levy limit override approved for a stabilization fund after that date.
PROPERTY TAX BUREAU pANIEL J.MURPHY,CHIEF
i
-2-
GIIID$LIJOS;
11 MULTIPLE STABILIZATION FINDS
A, Creation of Funds
Stabilization funds may be created for one or more different purposes, OX, Ch.
40 §513. A fund may be created for-a broad category of spending purposes,e.g„
any lawful purpose, capital budget purposes or purposes for which the
community may borrow money, It may also be created for a specific purpose or
project, e.g., acquire a new fire truck or undertake a particular school
construction project.
Creation of a fund requires a two-thirds vote of the legislative body of the city,
town or district. The vote must clearly define the purpose(s)of the fund.
B, Pre-existing Fund
Any pre-existing stabilization fund balance should continue to be treated as a
reserve for any lawful purpose,i,e, a "general' stabilization fund, The city,town
or district can reallocate or earmark all or part of that balance to any new
stabilization funds it creates by a vote to transfer monies from that !'general'
stabilization fund to the newly created fond. See Section I-D below.
C. Changing Fund Puruose
The purpose of a stabilization fund may be changed at any later• time by a two-
thirds vote of the legislative body. For example,if a community had established
a fund in order to reserve monies to acquire a new fire truck and a balance
remains after the purchase,the legislative body could vote to change the purpose
to meet some new savings objective.
If a Proposition 21/2 levy limit override was approved for the purpose of funding
the particular stabilization fund,however, the city or town must also follow the
referendum procedure explained in Section II-C below to be able to change the
fund purpose and then continue using the additional levy capacity resulting
from that override in future years•
D. Anorouriations and Tzansfera
Appropriations into And from any stabilization fund require a two-thirds vote of
the legislative body,
-3-
Monies may also be transferred from one stabilization fund to another by two-
thirds vote, If the monies in the fund from which the transfer is made could not
be appropriated directly for the purpose of the fund receiving the transfer,e.g.,a
transfer of$50,000 from a fund for a particular school construction project to a
fund to construct a new senior center,the vote also serves as a change In purpose
to the extent of the amount appropriated,
E. Investment and Interest
The treasurer may Invest stabilization funds in national, savings or cooperative
banks, Massachusetts trust companies, federal savings and loans associations
located in Massachusetts or securities that are legal investments for savings
banks tinder Massachusetts law.
All interest earned on the investment of stabilization fonds belongs to the funds.
The treasurer may pool monies from all stabilization funds for investment
purposes, but the accounting officer must account for them separately in the
general ledger and allocate interest earned on the pooled monies proportionately
to each stabilization fund.
F. Limits on Funds
1. Annual Aourooriations
Total annual appropriations to all stabilization funds are limited to 10
percent of the prior year's tax levy. This includes "appropriations" of
additional levy capacity resulting from Proposition 21/2 overrides
approved for the funds. See Section I1-13 below, The limit on total
appropriations may be exceeded with approval of the Director of
Accounts.
2. Balance
The total of all stabilization fund balances cannot exceed 10 percent of a
camnunhty's equalized valuation,
1'I, STABILIZATION FUND OVERRIDES
A, Presentation and Anoroval of Override Referendum
Cities:and towns may ask voters to approve a Proposition 2r/z levy limit override
referendum for the purpose of funding_ any of the stabilization funds It
establishes.
4-
If approved, the additional levy capacity is earmarked for the same stabilization
fund hi the fiscal year the override is effective and subsequent years. GX, Ch.59
§21C(g).
Therefore, the amount of any override for a stabilization fund must be clearly
identified, preferably by presenting a separate override question for each
stabilization fund being funded. For example:
Shall the city/town of be allowed to assess an additional
$100,000 in real estate and personal property taxes for the purposes
of funding the municipal capital stabilization fund for the fiscal
year beginning July 1,____?
$hail the e town of be allowed to assess an additional
$100.000 in real estate and personal property taxes for the purposes
of fundine the school capital stabilization fund. for the fiscal year
beginning July 1,_?
if the amount is included in an override for multiple purposes, however, the
exact amount allocated to the particular stabilization fund must be stated. For
example;
Shall the city/tow of be allowed to assess an additional
$10100_000 in real estate and personal property taxes for the
purposes of fundine the Town and school operating budgets, the
municipal capital stabilization fund ($100000) and the school
g9oltal stabilization fund ($100,0001, for the fiscal year beginning
July 1,_?
B. Appropriation of override in Future Years
1, Annual Anorooriation Procedure,
In the year the override is effective, the appropriation of the funds
generated by the override to the particular fund is made by the usual
appropriation procedure,Le.,a two-thirds vote of the legislative body.
Each year thereafter,however,the selectmen,town council or city council,
with the mayor's approval if required by law, must decide whether to
"appropriate" any of the additional capacity resulting from the override
for the same stabilization fund purpose. A two-thirds vote is required to
make any"appropriation".
-5-
2, Aunrovriation Amount
All or some of the additional levy capacity may be"appropriated," In the
first year after the override is effective, the additional levy capacity that
may be appropriated is 102.5 percent of the override amount. In
subsequent years, it is 102.5 percent-of the amount of additional levy
capacity appropriated in the last year it was appropriated.
For example,a $100,000 override is approved for a school capital project
stabilization fund for fiscal year 2005 and the legislative body
appropriates the same amount from that year's tax levy for that purpose,
In FY2006,$102,500 is available for"appropriation"by the selectmen,town
council or city council,with the mayor's approval if required by law. That
entire amount is "appropriated" In FY2007, $105,062 (1.025 x PY2006
appropriation of$102,500) is available,but only$80,000 is"appropriated."
The amount available in FY2008 now becomes $82,000 (1.025 x FY2007
appropriation of$80,000). No appropriation is made In FY2008,however.
The amount available in FY2009 is $82,000 (1.025,x last appropriation
made,Le.,FY2007 appropriation of$80,000).
3. Tax Rate
i
The assessors must raise the amount "appropriated" in the fax rate, This
"appropriation" is reported oil page two of the tax rate recapitulation
under"Other Amounts to Be Raised" and documented by a certified copy
of the "appropriation" vote, as explained in the annual tax rate
recapitulation instructions issued by the Bureau of Accounts.
4. Levv Limit Calculation
The municipality's levy limit for any year is increased by the amount of
additional levy capacity that Is appropriated for the stabilization fund
purpose. The new limit must still be within overall levy ceiling of 21/7.
percent of the full and fair cash value of taxable property,
C. Chanae in Override Furvose
1. presentine Referendum
The selectmen, town council or city council,with the mayor's approval if
required by law,may ask the voters to approve a change in the purpose of
the override, This change can result ht(lie additional levy capacity being
allocated to another stabilization fund or to any other municipal purpose.
A two-thirds vote is required to place the referendum before the voters.
.6.
2. Referendum Form
The following question form should be used to present a referendum to
change the override purpose:
Shall the city/(own of be allowed to
change the purpose of a Proposition 21h override
referendum approved at an election held - on
for the (caultal stabilization fund)
to the following new purpose(s): for the
fiscal year beginning July 1,—?
3. Referendum Aooroval
The referendum is approved if a majority of those voting on the question
vote"yes:'
4. A roortattoninFutureYears
If the purpose of the override is changed to another stabilization fiord,or
other purpose, the additional levy capacity would have to be
"appropriated" to the new propose each year or the levy limit would be
reduced. See Section 11-B above.
TOWN OF
1650 WATERTOWN
Office of the Town Manager
T ' Administration Building
149 Main Street
Waterrown,MA 02472
Phone:617-972-6465
MtcliaelJ.Driscoll Fax:617-972-6404
Town Manager vnnv.watertown-ma.gov
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To: Honorable Town Council --
From; Michael J.Driscoll,Town Manager
Date: June 19,2014
RE: Agenda Item-Transfer of Funds Request
As you recall, the Honorable Town Council established a Collective Bargaining Stabilization
Fund at the July 16,2013 Town Council Meeting(see attached July 11,2013 Agenda Item
correspondence).
Collective Bargaining is one of the Budget issues that was identified in the Fiscal year 20I5
Budget Message, As of this date,four Town union groups(Firefighters Association,Library,Police
Association and Police Supervisors)are or will be engaged in negotiations for a successor collective
bargaining agreement.
As indicated in the July 11,2013 Agenda Item correspondence,the Division of Local Services
(DLS)officials have indicated funds for employee contracts may be encumbered only if the employer
and employee bargaining representatives agree to contractual terms by July 151"with a final
ratification. The DLS indicated the establishment of stabilization Hind would be appropriate to
account for monies related to a prior year contract where an agreement has not been reached.
Therefore,given all of the above,I respectfully request the attached transfer be,considered at the
June 24,2014 Town Council Meeting. The proposed transfer is to account for monies related to a
prior year(Fiscal Year 2014)contract in which an Agreement has not been reached with the
Firefighters Association,Library Union,Police Association and Police Supervisors,
Thank you for your consideration in this iMtter.
cc: Honorable School Committee
Honorable Library Board of Trustees
All Department Heaths
Joseph S.Fair,Inquire,Kopehnan and Paige,P,C,
i
i
TRANSFER AMOUNT $985,000
FROM: FY 14 TOWN COUNCIL RESERVE $ 985,000
0111152-570780
TO: FY 14 TRANSFER TO COLLECTIVE 13ARGAINNING STABILIZATION FUND $ 985,000
0194000-696806
I hereby certify to the availabli ty, authority of funding source, mathematical accuracy
and appropriate fiscal year.
D E
AT / T WN AUDITOR
TOWN OF
1630 WATERTOWN
tl, Office of the Torun Manager
Administration Building
I49Mainstreet - -
%tertown,MA 02472. -
Phone:617.972.6465
Michaell.Driscoll Fax:617-972-6104
Town Manager
- iwnxivatertorvn-ma,gov
rnwmm�rQwatnrnwn-mom env -
To; Honorable Town Council
From: Michael J.Driscoll,Town Manager
Date: July 11,2013
RE: Agenda Item—Establishment of Collective Bargaining Stabilization Fund;and an
JON1 Transfor of Funds Thereto
As you are aware, monies for a Proposed Fiscal Year 2010-2013 Collective Bargaining Agreement
with the Firefighters Association are included in(lie"02"Town Coutrcll.Reserve and file Fiscal Year
2013 Town Council Reserve.
During the ongoing Full Financial Management Review, the Division of Local Services (DLS)
officials have Indicated funds for employee contracts may be encumbered only if the employer and
employee bargaining representatives agree to contractual terms by-7uty 15th with a final ratification.
The DLS Indicated the establishment of a stabilization fluid would be appropriate to account for
monies related to a prior year contract where air agreement has not been reached.
Therefore, given all of the above, I respectfully request the attached Resolution establishing the
Collective Bargaining Stabilization Fund be placed on(tie July id,2013 Town Council Agenda.
For background purposes on the establishment of Special purpose Stabilization Funds, enclosed
please find a copy of the August 2008 City and Town article and the Informational Guideline Release
(IGR)04-201 regarding Creation of MultipleStabilization Fluids from tire Department of Revenue.
Additionally, I respectfully request tine attached transfer to the Collective Bargaining Stabilization
Fund be considered at the July 16,2013 Town Council Meeting,
Thank you for your consideration in this matter.
ce: Honorable School Committee
Honorable Library Board of Trustees
All Department Heads
John T.Loughran,Director of Business Services
Gayle McCracken,Director of Human Resources
RESOLUTION# R-2013
WHEREAS, a Proposed Fiscal Year 2010-2013 Collective Bargaining Agreement with the
Firefighters Association has not been reached;and
WHEREAS,fiords for employee contracts may be encumbered only if the employer and employee
bargaining representatives agree to contractual terns by July 15th with a final ratification;and
WHEREAS,pursuant to the provisions of 01,e.40,§ 5B,the Town may establish a special purpose
stabilization fund by a two-thirds vote of the Town Council,
NOW THEREFORE, BE IT RESOLVED that the Town Council of the City known as the Town of
Watertown hereby establishes the Collective,Bargaining Stabilization Fund and appropriates thereto
the sum of$710,000,
CouncilMember
I hereby certify that at a regular meeting of the Tmwr Council for which a quorum was present, the
above Resolution was adopted by a vote of_for,_against and present on July 14,2013.
Valerie Papas Mark S.SiderIs
Council Clerk Council President
TRANSFER AMOUNT $710,000
FROM: FY 13 TOWN COUNCIL RESERVE $ 429,576
0111162-670780
FUND 02 TOWN COUNCIL RESERVE $ 280,425
0211162-670780
TO: FY 13 TRANSFER TO COLLECTIVE BARGAINNING STABILIZATION FUND $ 420,576
0194000-596606
FUND 02 TRANSFER TO COLLECTIVE BARGAINNING STABILIZATION FUND $ 280,425
0294000-606806
I hereby certify to the availability,authority of funding source,mathematical accuracy
and appropriate fiscal year.
DATE TOWN AUDITOR
C
D Naviaal K.Cal,COfM1'il WOCIer,R00a0 Nunes Deputy CerN55'onaf&Daeolor of MunMpalAifaira
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Warm;2f,No.7 August 2008 special Purpose Stabilization Funds:
A Long-Term Planning Tool
DLS Commentary Three proposals Joe Markarian,Director of 7echnfoal Assistanco,Municipal Date fdanagamont
Of interest to municipalities pushed and Technical Assistance Bureau
through the.legislature at We last
moment of their hvo-year session: The 1945 statute that Initially author- and retain Interest earned,In the past,
expanded Inlermunicfpal agreements, ized cities and towns toestobtfsh asta• municipalities would need state sp-
a m inicipal sponding commission, billzatton fund restricted the use of any prove)of special legislation to set up
and broadband funds forunserved fund balance to capital expenditures, such a reserve.
communities.....................2 In i991,permitted uses were expanded A special purpose stablllzallon fund:
Hest Practices Wellesley uses to Include any lawful purpose,but still p
dashboard to siaycn track with financial funds could not be reserved for a spa- - Encourages a community to think
planning efforts and keep at[parties 011ie purpose.However vdlh the adop- long•term. Programs to replace vohb
Informed with real-time Information ...2 llonofieglsfative amendments toM.G.L. oleo, maintain buildings and improve
Ch.40§5BInM,municipalities can roads requIre an evaluation of all assets,
_ Legaf Somerville mayor takes the fight nor,create multiple special purpose formulation of a replacement or repair.
to appoint all the way to the Mass- stabilization funds.Each of these funds schedule,and calculation of long-term
achuselts Supreme Judicial Court can be assigned a different purpose projected Costs,
and wins..................:......3. allowing municipalities to lake advan• , Helps a community save money. -
FocusA 10-yearlcok etProposiiIon 2y. rage of a new management and fund- Rather than pay cash,if the$400,000
overrides;Are override approvals Influ- frig option, purchase price of a fire truck were bor-
snood by community size,property As result,at a time when many cities rowed over 15years,interest payments
wealth and the number of public and loving are faulted for operating in could add around$160,000 to the total
schoolchildren?..................4 perpetual crisis mode,for allowing mu, cost,depending on interest rates.Even
The Community Preservation. niclpai assets to deteriorate, and for If this additional cost would have a
Aces reporting Farm OP-2 Preservation.
general short-sightedness. a special nominal tax rate Impact,it can Instead
ose stabilization fund can tioan be saved oreKoerxledelsewhere.
update]hat promises to make the form pulp
easier to carnptete.. .•...,.....1} effective pfanning took � Helps a community menage debt A
Nark your oatandars for upcoming A fund might be established, for In- plan to accumulate cash over lime and
Nark your ealenda. fora comings stance,to pay solely for the mafnte- pay outright for a moderate-range cap-
nance and repair of municipal build- list expenditure helps preserve debt
Profile Senior Deputy Commissioner ings..Another might be created to capacity for major, high-doNar pur-
James Reynolds celebrates 30 years supplement slate highway funds, fe- chases or projects.An approach that
with the Department of Revenue and ceivedunderChapter go,and tocover balances debt•with pay-as-you-go
talks about his work along the way.,;.13 the cost of an ongoing street Improve- practices;and projects against unfore-
nlotpai Fiscal Calendar men?program.A special purpose Me- seen costs is viewed Ina positive light
Mu
September-October..nicipal ,......14 bllizatlon fund might also be set up to by credit rating agencies.
- linanco a government-wide vehlclo re-
piacement program.For example,If a ` need.resident purpoconfidse
ili goon
community anticipated the need to funds di Special propose stabilization
can-
purchase a$400,000 fire truck in live funds directly praddress resident con--
years, II could reserve$flo.�a year cerns and provide assurance that
in a special purpose stabilization fund, oennnued on page 9
City&Tov+n A99ust2000 OtWstan or Looal Services twrw.m681.0ev/dle 9
Special Purpose Stabilization Funds conrinusdf rn.aAe r -
money appropriated for a particular a capital project stabflizaiton fund in Ultimately,special purpose stabilization
purpose swill be used for that purpose FY2008and town meeffng votes to are- funds are most effective as a revenue
and NA not be diverted. We the fund and appropriate$100,OW source,or savings account, lot anliol-
Creation of a special purpose stabilize. to It. In FY2009, $102,500(1.025-x paled expenditures.They work best
lion fund,and ad appropriation to that $100,000, 1.025 bafng 2.5 percent of when used to build moderate balances
fund,requires two-thirds vote of a city the original override amount)Is avail- and to pay mfd•level expenditures[hat
council,town meeting or district pru• able for"appropriation"and that entire the community will eventually have to
dential(or similar)committee,The vote y r make,like building maintenance,road
must clearly derine(he purpose o(each F repairs and vehicle purchases,
fund established.Under the amended r� Building slabll)zallon balances through
law,, creating and appropdattng to a � •an override unquestionably Involves an
general stabilization fund now also re- ;.� Increase to the tax levy,but special put-
quires hrodhirds vote. x pose stabilization funds provide an im•
There are two options for building bat• = _, _ `� portanlresponse to resident's condoms
antes in a special purpose stabilize _,• at out the ebsence of long-term pion•
lion fund.One Is the traditional appro ; �r ning in muNcipat government.If consid-
naffon in a budget line-item or In an n "�-•" ered thoughtfully and Implemented pru•
article, from within the levyor from 1 i denlly,they offer a vehicle that can help
other general fund revenues.Balances a community think and act in a foreword
can also be transferred In from other -_ y£mot looking manner.and effectively plan for
exisling accounts. „ ' --' future costs.
A second new funding option is re- For more information, please see the
forred to as an override, but in fact, DOR Information Guideline Release
has characteristics of both a Pro sl- -i (IGR)04-201 which is accessible from
lion 2Y,overrfde and exclusion.Liken ;r.'. s the DLS webslte. Go to Yct+w.mass,
overrido,additional tax revenue can be _ I- Qgvfta. click on Quick Links (more)
raised year-alter-year without town- - ' ^r AWL and(hen the Information Guideline Re-
vddeorclly-wldereferendum votes be fyc lease llnk,la
yond the year of Inception, However,
like an exclusion under Proposition 2y:, `' d ' z•. � .
the levy limit Increase need not be per- amount Is"appropriated`For FY2010, -
manual.Solely through the action each $105,062(1.025 x$102,500)Is avail-
can r r
year a contthe inued'Lowe ed or deferred
It able,but only$80,000 is°appropdated"
be continued,lowered or Deferred The amount available in FY2011 now .
entirely and resumed in a later year.In becomes$82,000(1.025 x$80,000),'
any avant.each year,the amount avail.
able Increases by 2.5 percent but the selectmen lion, he choose availableappropriation, Ol _
For example, let'ssay that the town's FY2012 Is$82,000(1.025 x last appro•
voters approve a$100,000 override for priation made,le.,$80,000)..
Informational Guideline Release(IGR)No.04-201
January 2004
CREATION OF MULTIPLE STABILIZATION FUNDS_
AND
PROPOSITION 21/2 OVERRIDES FOR STABILIZATION FUNDS
Chapter 46§§14 and 50and Chapter-140§§19 and 137 of the Acts of 2003
(Amending G.L,Ch,40§5B and Ch,59 521C(g))
SUMMARY:
These guidelines explain new legislation that gives cities,towns and districts the
flexibility to create multiple stabilization funds for different purposes. The legislation
amends G.L, Ch.40§513, which previously provided for a single stabilization fund into
which cities, towns and districts could appropriate monies to be reserved for future
appropriation for any lawful purpose. Under the amendment,a community may now
establish one or more stabilization funds for different purposes by a two-thirds vote of
Its legislative body. It may amend the purposes of those funds at a later time in the
same manner. Appropriations both into and from the funds require a two-thirds vote
of the legislative body, Previously, appropriations to the stabilization fluid only
required a majority vote. Interest earned on all stabilization funds remains with the
funds, The interest provision had been inadvertently omitted when the statute was
a recent tecluilcal amenthnent and applies amended, but it was restored by
retroactively, C1i,140§§19 and 137 of the Acts of 2003,
In addition, a new paragraph has been included in G,L, Ch. 59 921C(g), which
authorizes a property tax levy limit override under Proposition 20. Under this new
provision,a city or town that has an override approved by its voters for the purpose of
making appropriations to any stabilization fund must now allocate or dedicate the
additional levy capacity resulting from that override to the same purpose In subsequent
years. Ordinarily, monies from an override are only earmarked for the stated purpose
in the fiscal year the override is effective, Two-thirds of the selectmen,town council or
city council, with the mayor's approval If required bylaw, must vote,to "appropriate"
the additional capacity for the same stabilization fund purpose each year after the
override takes effect. If"appropriated," the assessors must raise the amount in the tax
rate and the municipality's levy limit is increased accordingly for that year, Voters may
approve a change in the purpose for which the additional levy capacity can be used in
future years. Approval of any change is by majority vote at a referendum.
These changes became effective lulu 31,2003, They apply to any appropriation
voted and levy limit override approved for a stabilization fund after that date.
PROPERTY TAX BUREAU DANIEL J.MURPHY,CHIRP
i
_2-
GUIDELINES:
1. MULTIPLE STABILIZATION FUNDS
A. Creation of Funds
Stabilization funds may be created for one or more different purposes. G& Ch.
40§513. A fund may be created for-a broad category of spending purposes, e.g„
any lawful purpose, capital budget purposes or purposes for which the
community may borrow money. It may also be created for a specific purpose or
project, e.g., acquire a new fire truck or undertake a particular school
construction project.
Creation of a fund requires a two-thirds vote of the legislative body of the ciEy,
town or district. The vote roust clearly define the purpose(s)of the fund.
B. Pre-existineFund
Any pre-existing stabilization fund balance should continue to be treated as a
reserve for any lawful purpose,i.e. a"general'stabilization fund. The city,town
or district can reallocate or earmark all or part of that balance to any new
stabilization funds It creates by a vote to transfer monies from that "general"
stabilization fund to the newly created fund. See Section I-D below.
C. Chanmina Fund Puroose
The purpose of a stabilization fund may be changed at any later time by a two-
thirds vote of the legislative body. For example,if a community had established
A, fund in order to reserve monies to acquire a new fire truck and a balance
remains after the purchase,the legislative body could vote to change the purpose
to meet some new savings objective.
If a Proposition 2r/z levy Iimit override was approved for the purpose of funding
the particular stabilization fund, however, the city or town must also follow the
referendum procedure explainedin Section II-C below to be able to change the
fund purpose and then continue using the additional levy capacity resulting
from that override in future years.
D. Avoronriatious and Transfers
Appropriations into and from any stabilization fund require a two-thirds vote of
theleg181ativebody.
-3-
Monies may also be transferred from one stabilization fund to another by two-
thirds vote. If the monies in the fund from which the transfer is made could not-
be appropriated directly for the purpose of the fund receiving the transfer,e.g„a
transfer of$50,000 from a fund for a particular school construction project to a
fund to construct a new senior center, the vote also serves as a change in purpose
to the extent of the amount appropriated.
E, Investment and Interest
The treasurer may invest stabilization funds in national,savings or cooperative
banks, Massachusetts trust companies, federal savings and loans associations
located in Massachusetts or securities that are legal investments for savings
banks under Massachusetts law.
All interest earned on the investment of stabilization fonds belongs to the funds.
The treasurer may pool monies from all stabilization funds for investment
purposes, but the accounting officer must account for them separately in the
general ledger and allocate interest earned on the pooled monies proportionately
to each stabilization fund.
F. Limits on Funds
1. Annual Anorooriations
Total annual appropriations to all stabilization funds are limited to 10
percent of the prior year's tax levy. This includes "appropriations" of
additional levy, capacity resulting from Proposition 2n/1 overrides
approved for the funds. See Section I1-B below. The limit oil total
appropriations may be exceeded with approval of the Director of
Accounts.
2, Balance
The total of all stabilization fund balances cannot exceed 10 percent of a,
community's equalized valuation.
II, STABILIZATION FUND OVERRIDES
A. Presentation and Annroval of Override Referendum
Cities and towns may ask voters to approve a Proposition 21h levy limit override
referendum for the purpose of funding any of the stabilization_funds it
establishes
i
4
If approved, the additional levy capacity is earmarked for the same stabilization
fund in the fiscal year the override is effective and subsequent years, G.L. Ch.59
§21C(g)•
Therefore, the amount of any override for a stabilization fund must be clearly
identified, preferably by presenting a separate override question for each
stabilization fund being funded, For example: .
Shall the City/tow of be allowed to assess an additional
$100,000 in real estate and personal property taxes for the purposes
of fundine the mtmicinal capital stabilization fund for the fiscal
year beginning Judy-1, _?
Shall the e town of_be allowed to assess an additional
$100.000 In real estate and personal property taxes for the purposes
of fundine the school can_ital stabilization fund for the fiscal year
begimttng July 1,_?
If the amount Is Included in an override for multiple purposes, however, the
exact amount allocated to the particular stabilization fund must be stated. For
example:
Shall the city/tow of be allowed to assess an additional
$I 00,000 in real estate and personal property taxes for the
purposes of funding the town and school oneratine budeets, the,
municipal capital stabilization fund ($100,000) and the school
capital stabilization fund (.$100,000) for the fiscal year beginning
July 1,`?
B. Aunrourlatlon of Override in Future Years
1, Annual Appropriation Procedure
In the year the override is effective, the appropriation of the funds
generated by the override to the particular fund is made by the usual
appropriation procedure,i.e„a two-thirds vote ofthe legislative body.
Each year thereafter,however,the selectmen,town councilor city council,
with the mayor's approval if required by law, must decide whether to
"appropriate" any of the additional capacity resulting from the override
for the same stabilization fund purpose. A two-thirds vote is required to
make any"appropriation".
2, AnnroorIation Amount
Alt or some of the additional levy capacity may be"appropriated." In the
first year after the override is effective, the additional levy capacity that
may be appropriated is 102.5 percent of the override amount. In
subsequent years, it is 102.5 percent of the amount of additional levy
capacity appropriated in the lastyearit was appropriated,
For example, a $100,000 override is approved for a school capital project
stabilization fund for fiscal year 2005 slid the legislative body
appropriates the same amount from that year's tax levy for that purpose.
Ia PY2006,$102,500 is available for"appropriation"by the selectinen,town
council or city council,with the mayor's approval if required by law. That
entire amount is "appropriated." In FY2007, $105,062 (1.025 x PY2006
appropriation of$102,500) is available,but only$80,000 is "appropriated."
The amount available in PY2008 now becomes $82,000 (1.025 x PY2007
appropriation of$80,o00). No appropriation is made in FY2008,however.
The amount available in PY2009 is $82,000 (1.025,x last appropriation
made,Le.,PY2007 appropriation of$80,000).
3. Tax Rate
The assessors must raise the amount"appropriated" in the tax rate. This
"appropriation" is reported on page two of the tax rate recapitulation
under"Other Amounts to Be Raised"and documented by a certified copy
of the "appropriation"'vote, as explained in the annual tax rate
recapitulation instructions Issued by the Bureau of Accounts.
4. Levv Limit Calculation
The municipality's levy limit for any year is Increased by the amount of
additional levy capacity that is appropriated for the stabilization fund
purpose. The new limit must still be within overall levy ceiling of 2r/2
percent of the full and fair cash value of taxable Property-
C. Change in Override Purpose
1, Presenting Referendum
The selectmen,town council or city council,with the mayor's approval if
.required by law,may ask the voters to approve a change in the purpose of
the override. This change can result In the additional levy capacity being
allocated to another stabilization fund or to any other municipal purpose.
A two-thirds vote is required to place the referendum before the voters.
_6.
2. Referendum Form
The following question form should be used to present a referendum to
change the override purpose;
Shall the city/town of be allowed to
change the purpose of a Proposition 21h override
referendum approved at an election held • on
for the (capital stabilization fund)
to the following new purpose(s): for the
fiscal year beginning July 1,-?
3. Referendum Annroval
The referendum is approved if a majority of those voting on the question
vote"yes:'
4. Anorooriation in Future Fears
If the purpose of the override is changed to another stabilization fund,or
other purpose, the additional levy capacity would have to be
"appropriated" to the new purpose each year or the levy limit would be
reduced. See Section 1I-13 above.