Cohasset Considers Enterprise Fund for Recycling Transfer Facility
Town Faces 15% Health Insurance Cost Increase, Explores Budget Solutions
COHASSET - February 4 - Cohasset officials are exploring the creation of an enterprise fund for the town's Recycling Transfer Facility (RTF) in an effort to make the facility self-sustaining and reduce the current $500,000 annual subsidy. The proposal, discussed at the Feb. 4 Select Board meeting, aims to improve services and potentially restore popular features like the swap shop.
Town Manager Chris Senior presented the concept to the board, explaining that most RTFs in the state are funded through enterprise funds rather than being part of the general budget.
"We're subsidizing it to the tune of four or $500,000 a year," Senior said. "And I'm not sure, you know that that's a lot of money."
The proposed enterprise fund would introduce resident and non-resident permits, with projections suggesting the town might sell 2,000 resident permits and 250 non-resident permits annually. The plan also includes raising disposal fees for certain items.
Senior emphasized that the move would allow for more flexibility in prioritizing budget items. "Fire and police and public works," he said. "And it allows me more freedom to do that. We're really tight all the way around. It's got to get tighter."
Board members expressed support for the concept, with Chris Plecs stating, "I think it's a great idea. The key, though, is something that Chris said, which is, we're going to be charging people more. We've got to demonstrate that it's better."
The enterprise fund proposal comes as the town grapples with a significant 15% increase in health insurance costs for the upcoming fiscal year. This unexpected rise, amounting to $1.2 million, is putting pressure on the town's budget and may require cost-saving measures or plan adjustments.
"We just got news that the base increase is 15%," Senior reported. "It spans 9.9% to 19%. So, we're hoping that we're no worse than the midpoint."
The town is exploring options to mitigate the impact, including potential tweaks to the health insurance plan. Senior noted that meetings with insurance representatives are scheduled to discuss possible cost-reduction strategies.
In response to these financial challenges, Senior also proposed halving the town's contribution to its Other Post-Employment Benefits (OPEB) fund for the upcoming year. "I just, you know, the OPEB will solve itself," he said. "And once the pension costs are done, that will fund. It will be funded."
The Select Board did not take formal action on the enterprise fund proposal or the OPEB contribution reduction at this meeting. However, members expressed general support for continuing to explore these options.
In other business, the board approved a transfer of $63,026.33 from an Avalon gift account to fund an HVAC study for the town hall at 41 Highland Ave. The study is seen as a necessary step in addressing the building's aging infrastructure.
The board also discussed the upcoming spring elections, noting that 15 elected positions will be on the ballot. Additionally, approximately 60 appointments to various boards and committees will be made in the coming months.
"I encourage everybody to look at those and run," said board chair Ellen Maher. "We can't do what we do without everyone participating."
The next Select Board meeting is scheduled for Feb. 11, with regular Tuesday meetings resuming on Feb. 25 and continuing through March as the town enters its budget planning season.