Delay in settling highway contract costs town
by JESSICA L. FINCH Associate Editor

Not until May will the Town of Amherst receive its official 2007 audit but Comptroller Darlene Carroll provided some insight into major budget variances.

(See editorial on page four)

During its Monday work session, the board got an earful from Carroll on finances in the town.

"We were short in health care because of the highway contract being settled later. It was budgeted to be settled in the first two to three months," she said.

In reality, the unionized highway workers didn't accept the contract until September, placing them on one insurance provider. The delay in settling cost the town an additional $50,000 each month.

The town had budgeted $4.5 million but paid an additional $359,010.

Battles between Supervisor Satish Mohan and the Highway Department union representatives were made public during the negotiation, each blaming the other side for failing to meet and nail down a contract.

Also, the town felt a financial hit from the October 2006 storm, owing $300,000 in interest for a bond taken out for cleanup costs.

Jim Zymanek, director of emergency services, said that in the past the Federal Emergency Management Agency hasn't reimbursed for interest costs.

Another noted underbudgeted item was utility costs but only by $14,000. Carroll said with $4.5 million budgeted in 2007 that isn't a major shortfall.

But there was some good news, she said. The interest income was $471,000 more than anticipated; PILOTS were $236,000 more, interest and penalties for property taxes totaled an additional $301,000 and the town received $863,500 more in sales tax than expected. The mortgage tax was also more, by $982,500.

Although the building permits were $22,000 more than anticipated in 2007, Carroll is still concerned with the volume.

"There has been a decline in permits taken out. We will continue to monitor that as the year goes on," she said.

The town will release its information to its auditing firm, Drescher and Malecki, with a report expected the end of May.

When asked by Council Member Dan Ward why the town wouldn't have a compete audit until five months into the year, Carroll said the books have to be kept open as significant transactions still filter in through March.

The audit process is scheduled to start April 8.

Initial review of the 2007 budget looks good, Carroll said.

"Some expenditures came in over budget, others under," she said. "Revenues are coming in higher, which is a plus."

Planning for the future, the department heads have been asked to submit their three-year budgets by April 18. That includes their requests for 2009 and budget estimates for 2010 and 2011.

Carroll also reviewed the average age of all town employees, realizing 42 percent of the 675 employees are 50 and older.

"There is a potential for savings in the next 10 years with significant turnover," she said.

Savings will be realized by negotiated contract changes in which the town pays less for those employees' benefits.

But it also draws another issue.

"There is a lot of knowledge in those employees; you may want to have a transition plan," Carroll said about training new employees.

In other news, Carroll addressed the cell phone policy, informing the board that the IRS has investigated Clarence, Kenmore and Tonawanda.

The town will review its policy of cell phone use, ensuring that it's not paying for personal use.