The special meeting of the Waterford-Halfmoon Union Free School District Board of Education held Monday, June 28, 2010 was called to order at 7:00pm by Richard Charron.

PRESENT: Richard Charron, Marcia Ricci, Robert VanBramer, Thomas Lansing, Sandra Clow, Denise Keyoskey

ALSO PRESENT: Timothy Lange, Carol Lyon, Paul Sylvester, Patricia Day, Joseph Day, Karen Diener, Carole Kruse, Patricia Merola

ABSENT: Carol Cooper

There were no comments from the public regarding items on this evening’s action agenda.

Comments from the Administration

Mr. Lange said Saturday’s graduation ceremony was beautiful and the student musical performances were outstanding. Brittany Dawson, Valedictorian and Mitchel Clow, Salutatorian gave meaningful speeches. The entire morning ceremony was appropriately paced and went off without a hitch. Mr. Lange heard many positive comments on Mr. Charron’s speech. Everyone wishes all the best to the Class of 2010.

Presentation: Chapter 105, NYS Retirement Incentive, Mr. Lange and Mrs. Lyon

Mr. Lange and Mrs. Lyon have been working diligently all week with information obtained by the Teachers’ Retirement System, the Employees’ Retirement System and legal council on the financial impact of the NYS early retirement incentive. Names of eligible employees were provided by TRS.

See attached presentation.

Comments and questions followed:

The latest the incentive can be offered is August 31, 2010 but employees must notify their employer 21 days in advance. The District would develop a specific time line, likely with an earlier end date.

Districts are required to pay into the system for each retiree and, once the cost is determined, can choose a one time payment or be billed over five years with added costs similar to an interest rate of approximately 8%. The Waterford-Halfmoon UFSD has enough money in EBLAR reserves to make the one time payment to the State and save on the 8% interest, if such funding is deemed appropriate.

Superintendents are excluded from the incentive.

This district does not have anyone who qualifies for the Chapter 105, Part B plan.

Salary Step 1 was used for calculations in the example chart titled "An Analysis of Part A-TRS". An adjustment of $1,000 for each Step could be used if anyone wanted to use another Step as an example.

Health insurance costs were not used in the examples because the differences were not significant.

Many variables, including which employees would take advantage of the incentive this year as opposed to waiting one or more years to retire, make it almost impossible to project exact cost savings to the district.

There are employees in the Employees Retirement System who would create a net loss for the district if they were to retire under this offer. However, there are ways to offset the loss if other targeted positions were figured in to the equation.

In either system, the Board may or may not target positions.

Passing the resolution gives the Board the option to work the numbers and decide if the district has a targeted area.

The district has to pay into the State if either option is taken (local incentive and/or State incentive.)

It is important to keep in mind the 50% rule. The district must be able to save 50% of the employees salary with a new replacement, during the first two years.

If the resolution is passed tonight by the Board, a general survey will be distributed to employees. The State is trying to get eligible people to retire and to keep others working.

The plan would start to take place after BOE adoption, followed by non-binding information gathering, and a decision by the administration and the BOE. Time frames were discussed. The district would need time to complete forms and affidavits and to notify the retirement systems. The district believes that there are WTA members who meet the criteria.

Mr. Lange stated it was the Board’s prerogative to adopt the local and/or state incentive. Both would potentially save money and jobs.

There was a concern about having enough time to hire new employees.

The second action item on this evening’s agenda is the Memorandum of Agreement with the Waterford Teachers’ Association to extend the deadline for the local retirement incentive.

Mrs. Clow recommended the Board adopt both motions noting that the employees can only take advantage of one or the other.

The potential cost savings for the district for non-teaching positions is not as clear-cut. There are positions that would actually cost the district money instead of saving money. More consideration is needed.

A discussion followed on the stability of the state budget development and how it may effect this incentive. The incentive is now a law but some are concerned that the rules may be changed. The administration does not think that the details on TRS contributions would change.

On motion by Mrs. Ricci, seconded by Mrs. Clow and by a vote of 6 - 0 the Board went into executive session at 7:58pm to discuss a negotiated employment contract item. They returned to regular session at 8:24.

On motion by Mrs. Ricci, seconded by Mr. VanBramer and by a vote of 5 - 1 (Mrs. Ricci opposed) the Board adopted the resolution electing to provide the benefits of Part A of Chapter 105 of the Laws of 2010 of the Sate of New York.

On motion by Mrs. Ricci, seconded by Mr. VanBramer and by a vote of 6 - 0 the Board approved the Memorandum of Agreement between the Waterford Teachers’ Association and the Waterford-Halfmoon UFSD extending the date for submission of letter of resignation for the purpose of retirement per the district retirement incentive (attached).

On motion by Mrs. Ricci, seconded by Mr. VanBramer and by a vote of 6 - 0 the Board approved general fund warrant #88 for $184,432.97. These are certiorari final payments to Cascade Paper and Mohawk Paper Mills, Inc. The district has met the full commitment for reassessment for these two companies. There is one other company that the district still owes.

Comments

Mrs. Ricci said the graduation ceremony was perfect. All the hard work showed in the preparations, speeches and student achievement.

Ms. Diener requested the deadline for the local district retirement incentive be extended from June 30^th to match the NYS incentive deadline (sometime in August) leaving the options open for employees. Mr. Lange said the motion was made and adopted and wouldn’t be changed tonight. A discussion followed. There may be additional consideration and, if so, could be addressed at the July 8, 2010 BOE meeting.

Mr. Lange said that employees who are eligible for the retirement incentive would be contacted.

On motion by Mrs. Ricci, seconded by Mr. VanBramer and by a vote of 6 - 0 the Board adjourned at 8:40pm.

Julie Caulkins

District Clerk

NYS Retirement Incentive Presentation (pdf file - 274 KB)
NYS Retirement Incentive Presentation

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