Saturday, March 2, 2013

The Norwich Finance Committee Position On The Town Budget


2013-2014 Proposed Norwich Town Budget:

The Norwich Finance Committee voted 4-0 (one member was absent from the meeting and two seats are vacant) not to support the proposed Norwich Town Budget.

Members of the Committee are concerned that the large raises proposed for several positions are excessive and, as currently proposed, are not supported by a majority of voters based on voter feedback provided to members of the Committee. An annual VLCT survey of Vermont Municipal Director Elected positions based on 2011 data, shows that Vermont towns with populations under 5,000 generally paid Municipal Director positions between approximately $32,000 and $60,000.  The inflation adjusted salaries proposed in the FY14 budget are at the top end of that range ($57,422), but the data does not demonstrate a compelling need to increase the salaries of these positions to be in line with other communities. The current salaries for the Norwich positions are in the mid- to high-$40Ks, which is squarely within the survey range.  In addition, the Consultant used by the Town justified the raises based upon three local Towns with much larger populations (and much larger overall budgets) than Norwich’s:  Hanover, Lebanon, and Hartford. The Consultant’s report appears to be designed to support a predetermined outcome as opposed to providing an objective analysis.  Accordingly, the survey also does not demonstrate a compelling need to increase the Director or Elected position salaries by such large percentages.  The Committee is not opposed to the objective of equalizing town employee pay, but is opposed to making large increases all in one year when the town tax rate is already increasing by approximately 6% (before other monetary articles).  Furthermore, lack of turnover in these Town positions supports the opinion that the positions are not significantly underpaid.
In addition, while members of the Committee appreciate the Selectboard’s willingness to reexamine the budget to reduce the initially proposed 10.65% tax rate increase to approximately a 6% increase, the Committee urges the Selectboard to critically evaluate the needs (versus wants) to provide a necessary level of services to the town and find additional ways to reduce the budget.


Norwich Finance Committee
Nate Stearns, Chair

Published on the Norwich listserv on March 1, 2013
http://lists.valley.net/lists/arc/norwich

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