Board Of Aldermen - Minutes - 6/9/2016 - P4
So it’s talking here about $3.73 million. Where did that money go?
Mr. Griffin
In some years we escrowed the money forward to future periods and in some years we lapsed it to fund balance
and then used a certain amount of that fund balance to buy down the tax rate.
Mr. Teeboom
Yeah, you have got $28 million in fund balance. Therein lies a lesson for the Aldermen. If you have appropriated
money and the money is passed the spending cap, you do not send that money back to fund balance. It has to be
re-appropriated. It ends all that nonsense about the $2.17 million spending cap override of Aldermen Siegel’s which
is nothing but a ploy to try to raise the spending cap pretty much. The point of it is if you have a surplus and you go
through the escrow, take a close look at the escrow. If you have almost $4 million in surplus in this pension fund
that everyone is complaining about and crying about. Put this $4 million into one of the two expendable trust funds
that exist for the very same purpose. One is called the school expendable trust fund and one is called the city
expendable trust fund. There are blue pages in the back of the book; account #7025 is the city expendable trust
fund and account #7071 is the school expendable trust fund. Take any surplus and put it in one of these
expendable trust funds for which you can then fund whatever you need to fund without further appropriations. In
fact, the way these funds are set up, the Aldermen don’t even get to vote on it. The way the ordinance is set up, the
CFO expends from the expendable trust fund, am | correct?
Mr. Griffin
Just one point of clarification, the funds that you speak of are for final separation payments for school and city
employees so we wouldn’t put pension expenses that are budgeted into those accounts.
Mr. Teeboom
Well, | know that you’ve mentioned this before. You decided to comment on exactly who set up #7025. | won’t take
the time to read it. Account #7025 is the city retirement trust fund. It is set up to fund retirement expenses in
excess of the yearly budgeted retirement appropriations. The fund may continue to increase to a level that is
deemed appropriate by the comptroller. Funds may be transferred from this account into appropriated departmental
accounts only after administrative review by the mayor, by the president of the board of aldermen, by the treasurer
and the comptroller. The aldermen don’t even get to vote on that one. If you look at the description, it’s a general
purpose expendable trust fund for the purpose of funding retirement expenditures. There’s not a single word that
says “final.”
Mr. Griffin
We interpret retirement as a final payment for folks that retire. We don’t consider that fund since I’ve been here and
| think when it was first set up it was for retirement payments to include accrued vacation and sick. It’s not used for
payments made to either the BPW pension or the New Hampshire Retirement System.
Mr. Teeboom
It says establish to fund retirement expenditures in excess of yearly budgeted appropriations. Mayor and aldermen,
you should take a look at that. If you go to school retirements, it’s exactly the same rules. Not surprising because of
R-00-68. | suggest you get a copy of it and read it. The words are the same for the school. You take any of the
surplus money, which is $4 million, and then what is the expected surplus in 52150 this year.
Mr. Griffin
To be determined. That is final pays for teachers. Somewhere probably between $250,000 - $500,000. The reason
for that is we budget for pension expense based on estimated payroll. We don’t factor in any attrition. To the extent
there’s attrition in the salary lines, that’s where the savings come in for pension expense.
