The challenge for Westport’s finance officials to tackle the town’s swollen retiree medical payments liability comes at a time of change at the town hall and the Board of Finance.
Town Finance Director John Kondub, who has been in the role since 2008, will retire at the start of February 2012. He has also been acting personnel director since Tom Hamilton left that position earlier this year.
Board of Finance chair Helen Garten has long called for new town hall bargaining on employee contracts to help squeeze down the town’s long-term unfunded other post employee benefits (OPEB) liability, which stands at close to $80 million.
The cost of OPEB ``is simply too high,’’ said Garten. The change of finance director, without a personnel director in place, ``is a complicating factor’’ she said.
Garten said she believes a new personnel boss should be hired to take the lead on employee negotiations. First Selectman Gordon Joseloff did not respond to questions regarding a new personnel director.
In addition to the change at the town hall, four seats on the seven-member Board of Finance are opening up at the November municipal elections.
Garten will stay on the board, as will Avi Kaner and Brian Stern. Ken Wirfel is seeking a second term and Tom Lasersohn is also up for reelection. Allyson Stollenwerck and Ed Ianonne are stepping down.
Michael Rea, currently chairman of the Finance Committee for the Representative Town Meeting, is one of the Republican nominees seeking election to the Board of Finance.
There’s a ``whole array of financial challenges,’’ said Rea. He too stressed that sustainable employee benefit plans need to be put in place.
``We’ll drown in the benefits we’re giving unless we do something about it,’’ he said. ``You have to attack the [OPEB] problem in many areas. It’s not going to happen overnight. We’ve got some real challenging times.’’
The Board of Finance agreed Wednesday to put aside $8.2 million this year into the OPEB fund.
The increased focus on OPEB comes after the town’s actuarial firm discovered earlier this year that a previous report from 2008 significantly undercounted the number of relevant employees. It also underestimated medical inflation costs.
``This should be a slap in the face for all of us’’ said Rea. ``There’s still a lot of questions. Do we really understand what went wrong?’’
Rea, who has served on the RTM for nearly 12 years, called for closer oversight of the operations of the finance department following the OPEB report error. That estimate put the OPEB liability at $50 million.
Nor am I denying the seriousness of the present OPEB problem. I just don't think that the form of government at the top is necessarily the cause or the solution. John, thanks. I agree with you, too!
We should be aware though, that while elections are a costly and time-consuming process, I doubt they are as high as retiring/firing/releasing a contracted employee such as a town manager. This can be time-consuming and -- expensive. In fact, in such a situation, a town manager may choose to sue (e.g. for wrongful termination or something else.) And at the end of the day, regardless, the contract is probably going to be bought out. So, if you're looking at disposition of taxpayer money, that's a part of the picture, too. I don't think changing our system of government is the key to remediating the present OPEB situation we have found ourselves in, nor to any other situation. I suspect that the OPEB problem was a long time coming, and the way out will be long, too. Personally, I believe that the Board of Finance takes it seriously and deserves credit for that.
John, I think it's without dispute that you care about this town and all your comments are with that concern in mind. And I agree with your suggestion that -- at nearly 5:30 on a Friday afternoon -- it's time to go enjoy some quality weekend time. I think I'll do just that!