Winchendon to decide how to cut deficit and whether to keep Kreidler

Winchendon to decide how to cut deficit and whether to keep Kreidler

Winchendon Town Manager ames M. Kreidler Jr. speaks to the School Committee last month about the town's deficit. (T&G Staff File Photo/CHRISTINE PETERSON)

 

 

 By Paula J. Owen TELEGRAM & GAZETTE STAFF

WINCHENDON — A special town meeting called to deal with a $3.8 million deficit in this budget cycle is scheduled for 7 p.m. Monday at Murdock Middle/High School, 3 Memorial Drive.

Voters will decide on budget cuts to reduce the deficit and also on articles asking for an investigation into how the deficit occurred and for the termination of Town Manager James M. Kreidler Jr.

Voters must re-approve the fiscal 2015 budget with $175,000 cuts to town services proposed. School Superintendent Salah E. Khelfaoui said the School Committee also cut $350,000 out of the school budget for this fiscal year.

Proposed cuts to the town's operating budget include nearly $44,000 to the Police Department, $28,000 to the Fire Department and $75,000 to the Department of Public Works.

Selectmen approved the deficit reduction plan, which the town was required to submit to the Department of Revenue. The plan also includes a proposal for a $700,000 Proposition 2½ tax cap override and borrowing from the state, which requires passage of deficit legislation.

Mr. Kreidler said he was told by the revenue department that town meeting approval of the proposed override was not needed. A special election for the measure is scheduled for Dec. 20. If the $700,000 override passes, it would increase the tax rate by $1.16 per $1,000 property valuation annually, equating to $232 a year increase on a house valued at $200,000.

Auditors have attributed the town's financial breakdown to a deficit in the insurance trust fund, a lack of communication, double accounting entries and inaccurate reports, and a crash in the town's financial software, which permanently damaged records.

An article on the warrant submitted by citizens petition asks selectmen fire Mr. Kreidler.

It calls for "selectmen to take affirmative action terminating or otherwise removing the current town manager from his position, including but not limited to seeking and accepting the town manager's resignation or voting to terminate him, or act in relation thereto."

The non-binding resolution says that Mr. Kreidler failed or refused to share information about the deficit — which he under-estimated at $2.3 million — with selectmen immediately; that the deficit, according to auditors, was caused by poor communication, inaccurate accounting, inaccurate reports and a significant problem with the town's financial software; and that the duties of the town manager include keeping selectmen fully informed of the financial condition and needs of the town, and assuring that complete financial and administrative records are kept.

"The voters express their lack of confidence in the town manager and call upon him to resign," the petition says. "The voters seek affirmative action by the Board of Selectmen to achieve the town manager's resignation, or otherwise terminate him from his position forthwith."

The School Committee also submitted an article asking for up to $50,000 to have the state auditor investigate the Health Insurance Trust Fund and other trust funds, and the financial accounting operations.

The School Committee said previously it wanted an investigation into "what really happened" to create the deficit. Money in the schools' revolving accounts is missing, school officials say.

In a letter dated Friday to Gerard Perry at the state revenue department, the School Committee writes the relationship between the schools and town is "at its worst."

"This deficit might not have occurred if the town practiced transparency and communication; upheld the common standards of accounting and reporting; upheld expectations of professional conduct; or perhaps if there had ever been true collaborative constructive functioning efforts with stakeholders," the letter says.

"Far from a détente, the relationship is now at its worst between schools and town," it continues. "Even when state regulations are clear on certain processes, Winchendon seems to find a way to fall out of compliance, i.e. funding school transportation, indirect costs agreement, and procurement of contracted services. This is not a result of any lack of effort from our administrators and superintendent, but rather results imposed by the town administration and forced on the schools."

There are also several zoning articles on the warrant.

Contact Paula Owen at powen@telegram.com. Follow her on Twitter @PaulaOwenTG