by Gabe Donio, Gazette Staff Writer

HAMMONTON—During its regular meeting of February 11, the town’s Fiscal Oversight Committee (FOC) unanimously approved a recommendation that the members of Hammonton Town Council no longer accept town health insurance benefits or benefit buyout packages taken instead of accepting health insurance.
According to town records obtained by The Gazette, Councilman Jerry Vitalo currently accepts taxpayer-funded health care and prescription benefits for himself and his wife and has done so since 2007. According to town records, the current monthly payments on Vitalo’s health care coverage are $839.24 a month. The currently monthly payments on Vitalo’s prescription drug coverage are $276.33 a month. According to town records, Vitalo’s health care and prescription drug coverage cost $11,155.70 in 2007.
According to town records, Councilman James Bertino has received two cash insurance buyouts, one in the amount of $6,735.55 in 2005 and another in the amount of $8,924.21 in 2007. Councilman Anthony Marino received a cash insurance buyout in the amount of $2,916.80 in 2007, according to town records.
During the last three years, insurance benefits and buyouts have become additional compensation for members of council who choose to accept them. In the decade prior to 2005, no members of council accepted health insurance or buyouts, even though they had the ability to do so since 2001, according to town records.
All of the health insurance and insurance cash buyouts are funded by taxpayer dollars and are “in the cap” items within the budget, according to FOC Chairman Don DiDonato told The Gazette.
Members of council are paid $6,500 annually. The mayor receives a salary of $8,000.
The remaining members of council: Mayor John DiDonato, Deputy Mayor Edward Wuillermin, Councilman Jerome Barberio and Councilwoman Tracy Petrongolo have not received the benefits or a cash insurance buyout since some council members began taking them in 2005.
Mayor and town council are considered part-time employees, according to Hammonton Town Clerk Susanne Oddo.
During the FOC meeting, the discussion turned to the council members’ pay and benefits. Don DiDonato noted that the members of the Hammonton Board of Education are not paid for their service.
”One of the things that we have to consider is the elimination of pay, medical benefits and the medical benefits buyouts for the mayor and council. It’s leadership in a tough year. You spend $112,000 in it, and you can save that with no pay, no benefits and no buyouts,” DiDonato said.
Former Hammonton Town Councilman Rick Amos, who serves on the FOC, agreed with eliminating health insurance and buyouts for members of council.
“I agree with the recommendation to cut health benefits, but not with cutting compensation. Not every person that is qualified to be a councilmember can afford not to be paid,” Amos said.
FOC member Carmen Martino said he disagreed with members of council receiving health care benefits and buyouts.
“If I’m a councilman, I’m there, but I do my own business. I recommend no benefits or buyouts. That’s like giving a kid a lollypop,” Martino said.
The FOC then voted unanimously, 7 to 0, in favor of recommending that members of the Hammonton Town Council no longer accept health insurance or buyouts.
FOC member Don Terri also recommended the town review the people who receive its family medical insurance, making sure there aren’t people receiving insurance who aren’t entitled to it.
“One municipality had $80,000 more in dependents who didn’t qualify for benefits,” Terri said.
The committee agreed to notify the town clerk’s office about investigating the matter.
Martino also discussed the possibility of saving on electrical bills at the new town hall by installing a solar panel system on its roof.
“As far as the roof, it’s set up perfectly, with a north-south orientation,” Martino said.
If council decided to go out to bid for a system and install it, it would be installed on the roof area behind the building. Martino contacted a company called Energy Enterprises about the system.
“It’s a 55.2K system, producing 6044 kilowatts a month. It would be a savings of approximately $992 in electrical savings per month, and $484 a point in green points,” Martino said.
The cost for a 240-panel system would be $441,600, Martino said. The state would give the town a $132,480 rebate, he said.
“Is there some kind of guarantee of the amount of electricity generated by these panels?’ DiDonato said.
“Yes. I have seen this system work,” Martino said.
The FOC voted unanimously to send a recommendation to council to research the matter further and put together bid specifications for the solar panel system. A recommendation will also be sent to the Hammonton School District.
During the meeting Amos discussed recommendations about investing some of the town funds in “Ladder CDs” a type of certificate of deposit. Amos did a detailed presentation about the current surpluses in the municipality’s general fund, water fund and sewer fund.
“We want to make sure we do a cash flow analysis, because at different times during the year, you may need to use some of the funds,” Amos said.
FOC member Patty Palmieri asked Amos about the laws that govern investing public funds.
“Yes, there are regulations that municipalities have,” Amos said, adding that his recommendations would be very conservative.
Currently, DiDonato said, the town’s funds were in a variety of standard bank accounts.
“How much are we making on that money?” FOC member Shawn McCloud asked.
“It’s not much,” DiDonato said.
DiDonato thanked the committee for their work, adding that currently, there is $1,060,000 in the budget that – if it remained – would lead to a tax increase of 13 cents.
“We’re beginning at 13 cents, but in 2006 we began at 19 cents, and in 2007 we began at 15 cents. So, if you’re looking at a silver lining, we’re heading in the right direction,” DiDonato said.
In 2006 and 2007, the council approved budgets with a zero municipal tax increase.
Hammonton Police Chief Frank Ingemi attended the meeting and addressed the FOC.
“The police budget is a very important budget. Last year there were some cuts, and we went over in some areas, and used some dollars from line items . . . The day of ‘free’ and that bit is kind of over,” Ingemi said.
Ingemi said he was a local taxpayer, and understood the burden on taxpayers. He said he would work with the FOC if cuts needed to be made, but that he felt strongly about the items in the police budget.
“There are concessions to be made, I’m sure. I will answer any questions and justify any expenditure,” Ingemi said.