La Plata finance committee recommends 457(b) plan, dedicated project manager and delay of $90,000 land study

La Plata’s volunteer finance committee urged the Town Council on March 18 to replace the proposed town-funded pension with a 457(b) deferred compensation plan, hire a dedicated project manager to deliver multiple grant-funded projects, and delay a planned $90,000 land-use survey until the town has a planner in place.

The recommendation matters because committee members said the town faces roughly $1.5 million in secured and pending grant funding for a new police station and the Dorchester Community Center that, if not managed promptly, risks being lost or clawed back. The committee said the 457(b) approach reduces fiscal risk for the town while giving employees portable retirement savings.

Randy Sotomayor, a member of the finance committee, framed the first recommendation as a swap of retirement models. “Our first recommendation is to adopt a 4 57 b, deferred compensation plan for all employees instead of funding the custom municipal pension for police officers and eligible public workers, employees,” Sotomayor said. Committee members listed portability, lower administrative burden and lower fiscal risk as advantages of the 457(b) model. They also flagged that the model shifts more investment responsibility to employees, which could require financial literacy support.

Committee members asked that the council consider a 3% town match for all employees and an additional 2% contribution for police and public works. During the council’s budget presentation, Finance Director Corina Larson modeled both scenarios. Larson told the council a pension pathway would require an initial buy-in estimated at about $500,000 and higher ongoing administrative and contribution costs; she estimated $170,000 for initial administration and pension set-up but said firm numbers are not available because no contract to design a pension has been signed.

On grant delivery, the committee recommended hiring a dedicated project manager to oversee implementation. The committee said approximately $1,500,000 in grant funds are secured or pending for the police station and the Dorchester Community Center and that four years of delayed implementation have left deadlines approaching. Committee member Mike Gahan noted the grants’ scopes generally allow for a project manager hired through grant funds. Council members and committee speakers discussed contracting the role (1099 or consultant) as an interim approach until a permanent hire is justified.

On the land-use study, the committee recommended postponing a planned $90,000 land-use survey until a town planner is hired. Nicole Williams, a committee member and land planner by background, said the timing matters because a planner would define survey specifications and ensure the study’s results align with the town’s comprehensive and strategic plans. “It’s a timing issue,” Williams said during the budget discussion.

Larson presented two parallel operating-budget scenarios to the council: one that assumes the town adopts the pension design being explored by outside advisers, and one that assumes the 457(b) model with a 3% match plus the 2% enhancement for police and public works. Her memo and presentation showed projected revenues of about $14.1 million and noted the town has relied heavily in recent years on investment earnings and one-time items; Larson warned the council not to rely on elevated investment income as an ongoing budget-balancing source. She estimated investment revenue around $640,000 for the current projection but cautioned that such receipts fluctuate year to year.

Council members pressed for more detail. Councilman Jenkins and others asked the committee to share its research and case studies on municipalities that have shifted retirement models; committee members said they relied on the USI presentation and independent research and offered to provide their materials to the council. Several council members also stressed the need to protect grant funding by showing timely progress and recommended using contractor project managers where appropriate.

The finance committee emphasized the recommendations are intended to reduce fiscal risk while preserving employee retirement support and enabling timely delivery of priority capital projects. The council did not vote on any of the committee’s recommendations at the March 18 meeting; council members said they needed more time to review materials before adopting budget direction.

Ending: The council kept the budget under review and scheduled further review and public hearings as part of its normal budget calendar. Committee members said they will follow up with the council and provide their research and supporting documents for the council’s consideration.