Special Town Meeting began to address Dedham's huge retirement liability Monday night, approving the creation of a group insurance liability fund. Through the special investment fund, the town could eventually pay for what it will owe to retired employees for benefits, mainly health care.
After OKing Article 11, Town Meeting quickly passed a corresponding item, Article 12, which will allow Dedham to manage the new fund and invest money put into it. Both items were approved without debate.
The moves could eventually save the town tens of millions of dollars. By moving to start "pre-funding" its retirement benefits now, Dedham has a liability of $56.8 million - about half of the $112.6 million liability the town would face if it does nothing.
"We're pleased that they were passed, and the next step is to submit those to the Legislature" as home-rule petitions, Finance Director Mariellen Murphy said yesterday.
If the state Legislature approves the petitions, the next step would come during budget season in late January or early February.
Depending on the status of the petitions and the overall financial situation of the town then, town officials will decide whether Dedham will make its first contribution to the investment fund in 2009, Murphy said. Setting aside money to invest into the fund will require another approval by Town Meeting, which next meets in May.
Murphy said the investment fund will be funded over 30 years.
The Government Accounting Standards Board has asked Bay State municipalities to add up how much they could owe for retirement benefits. Next door, Norwood has estimated its figure is likely between $40 million and $60 million.
Town Meeting approved most of the articles that came before it Monday night. With Article 10, meeting members voted for a new five-year contract with Russell Disposal Inc. for curbside collection of trash and recyclables, and for a new 91/2-year contract with Wheel-A-Brator for waste disposal.
In Article 9, the meeting cleaned up language and modernized definitions in the sex offender residency bylaw.
Town Meeting supported various line-item transfers under Article 2. Among the transfers was $25,000 that will be used, along with a recent $60,000 state grant, to set up comprehensive online permitting in town.
Article 6 would have forced any "grandfathered" nonconforming signs to conform to the town's sign code whenever a business owner or tenant changes at a given property. Instead, however, Town Meeting approved a substitute motion by Selectman Michael Butler, giving the go-ahead to form a sign bylaw review committee that will mull changes to the sign code.
Town Meeting indefinitely postponed a few articles - including Article 5, which would have allowed the use of sandwich board signs in certain places in town. Butler has said that proposal will be reworked.
Daily News staff writer Edward B. Colby can be reached at 781-433-8336 or ecolby@cnc.com.
