The Finance Committee approved the following (read the report and watch the meeting video):
- Appointment of Patrick Song to the Financial Audit Advisory Committee (7-0)
- Authorization to enter into a 5-year contract for the City’s Deferred Compensation Plan (7-0) Treasurer Ron Mendes “explained that the current plan has been in place since the early 1990s and it is akin to a public sector version of a 401k plan, which is allowed under Section 457 Clause B of the Internal Revenue Code. This plan is separate from the Newton Retirement System, and it is intended to supplement the retirement pension an employee would receive from the Newton Retirement System. There are no taxpayer funds included in the plan, as it is 100% employee contributions.” He has convened a committee to review proposals for a new 5-year contract. About 40% of City employees participate in the plan. He stated that there is also an option to merge the City’s Deferred Compensation Plan (DCP) with the state’s SMART plan, but first, he wanted to see what the City could get alone. The DCP has over $115 million in assets. Teachers can join the plan. Part-time employees can also join but must contribute 7.5% of their gross pay to stay exempt from Social Security taxes.
- Request for authorization to transfer and expend $45,000 to settle a worker’s compensation claim (7-0) $45,000 will be transferred from Sewer Maintenance and Repair, Full-Time Wages to the Sewer Fund Employees Worker’s Compensation to settle a worker’s compensation claim. A 32-year-old male working in the Sewer Division of DPW has been out since June 4, 2024, due to injuries to his right elbow and, subsequently, his back. The City has denied part of the claim because of a lack of medical evidence, which was later provided. The settlement was reached after negotiations, considering potential long-term costs of up to $183,000 if the claim remained unresolved.
- Request for authorization to transfer and expend $49,000 to settle worker’s compensation claim (7-0) The claim involved a Heavy Equipment Operator from the Sewer Division who suffered a back injury. The City initially denied the claim because the Operator had a DUI and was without a license on the day he was driving. In addition, the accident appeared to be staged in front of a security camera. The Operator took the City to court, and a judge sided with him. The City settled to avoid higher costs of a five-year exposure under Worker’s Comp Partial, which would have been about three times as much.
Present: Councilors Malakie (Vice Chair), Grossman, Bixby, Humphrey, Greenberg, Lipof, and Micley
Absent: Councilor Gentile
City staff present: Comptroller Steve Curley; Financial Planning & Analysis Manager Perry Rosenfield; Financial Analyst Trevor Goehring; Treasurer Ron Mendes; Worker’s Compensation & Medical Leave Manager Kelly Brown