Meeting opened at 7:05 p.m.

In attendance: Mike Cutting - Chair, Barbara Bartlett, Harold Whittemore, David Karrick, Peter Newman, and Selectman Richard A. Cook

Arrived Late: Marc Violette

Recorder of the minutes is Mary Whalen

Others present:

Laura Buono – Town Administrator Selectman Wayne Eigabroadt

Martha Mical William Chandler – Police Chief

Ed Mical Selectman David E. Hartman

1. MEETING MINUTES

Barbara Bartlett made the motion to approve meeting minutes dated December 14, 2006. Pete Newman seconded the motion. All were in favor. The motion passed.

Barbara Bartlett made the motion to approve meeting minutes dated December 18, 2006. Pete Newman seconded the motion. All were in favor. The motion passed.

2. BOTTOM LINE OF THE BUDGET

Mike Cutting reviewed the long sheet and noted that last year the budget totaled $3,283,410.77, this year the proposed budget amounts to $3,254,418.14, a .88% reduction. Mike feels the reduction is misleading because of the $250,000 grant match that was appropriated last year for a fire truck, understanding that if the grant was not approved the money would not be spent. Mike subtracted the $250,000 from the $3,283,410.77 which means the budget amount for 2006 was $3,033,410.00. Mike feels the real difference from last year to this year is a 7.8% increase in the budget. Mike asked the Selectmen to comment. Selectman Cook explained that in the beginning of the budget process it was stated that the Selectmen were not willing to go along with a cap on the Capital Budget, the Selectmen feel that there are items that need to be put into the Capital Budget in order to limit the variation in the budget over the next coming years. For example the Fire Department Capital Reserve for equipment has been added to the Capital budget in the amount of $100,000. There is a potential need to purchase 3 new vehicles in the next 5 years; the Selectmen felt it was wise to begin funding that reserve. Laura Buono added that agreed 2.5% increase was applied only to the operating budget which increased by 1.62%. Martha Mical added that the number that should be used is $237,500 (grant amount) not $250,000. Mike stands corrected, the difference amounts to a 6.8% increase in the budget (including Capital Expenses). Laura explained that the Town’s current Capital budget is poorly budgeted and at some point the Town needs to raise the money whether it is a little at a time or when it is desperately needed. What’s more responsible, starting to build up the reserves or waiting until there is no choice? David Karrick would like to see more bonded debt so that the future can help pay for the debt. Martha Mical added that "you" are now benefiting for the things that someone else paid for. Mike added that the taxpayers only have so many dollars and agrees from the standpoint that you shouldn’t be looking at a combination of the Town, Precinct and the school. But the bottom line is the taxpayers only have so many dollars. Laura added that the key is does the Budget Committee feel this budget is fiscally responsible, if not then that is where you move forward, not can we compensate for another entity. The budget needs to be looked at on its own. Marc asked why the target was hit last year, and this year the target has doubled. Selectman Cook believes that the Selectmen not only need to be responsible in creating this year’s budget but also budgets for the future. The Selectmen cannot continue to put off paying for things that are known to be coming up in the future. The road fund and the fire vehicle fund is the total difference in the budget this year, it is the Town’s investment in the future. By putting them on the warrant the citizens can say yes or no. The Selectmen feel they need to look to the future and give the citizens the opportunity to decide. It would not be in the Town’s best interest for the Selectmen to continue avoiding the future costs. Selectman Eigabroadt wanted to make a point in regards to bonding, once all the information is received from the Roads Committee, it was agreed that the Selectmen and the Budget Committee would sit down and look and figure the money schedule. The intent was to seek bonding by grouping several projects. The Selectmen are trying to look ahead by utilizing the Capital Improvements Plan. It would not be responsible of the Selectmen to continue cutting the budget in order for the next set of Selectmen to worry about it. It is the Selectmen’s responsibility to smooth out the tax rate as best as possible. Selectman Eigabroadt added that knowing that the Selectmen have no control over the school budget maybe the voters will begin to become more involved, but the Selectmen must concentrate on what the Town can live with and do without. Selectman Eigabroadt feels that the budget is coming to close toward effecting services. Marc Violette agrees about bonding big ticket items and recommends waiting a year to hear the recommendations from the Road Committee and removing the $200,000 from the Road Construction fund. Selectman Eigabroadt added that the funding for the Road Construction could be used for engineering studies.

3. FOUR WHEELED VEHICLE – POLICE DEPARTMENT

Police Chief William Chandler explained that for the past 6 years the department has been running two sedans. The allocation for the current SUV is for inclement weather, accessing Class VI roads and carrying crime scene equipment etc. Right now the current SUV vehicle that is a 1981 is a liability to operate and is not being utilized. The 2003 cruiser mileage came under this year and the Chief recommends replacing the SUV this instead of the 2003 cruiser. The longevity of the SUV will be from 7-10 years. The Chief feels that this would not be economical to replace the 2003 with a SUV using it on the weekly rotation. The Chief has recommended in the past establishing and funding $10,000 a year for capital expenses, it is a known purchase. Marc asked if scheduling $10,000 a year could be added to the Capital Improvements Plan. Mike added that there are 4 full-time officers and 1 part-time officer; can it be justified to the Town of Warner 3 relatively new cruisers when there are only 4 full-time and 1 part-time officers? The most there is on the road at any one time is 2 officers. The Chief added that there are grants that come into play that pay the Town’s patrolmen to provide added patrol. Mike asked how many hours attributed to such a grant was received last year. The Chief said that last year there were no extra hours because grants were not applied for. The grants come with stipulations; the duty unit cannot be utilized in the grant through their 10 hour shift. The grant can be utilized either 2 hours before or 2 hours after the shift, calls of service cannot be answered during this time, and the grant pre-requisite must be followed. The Chief does not want to get into a situation were grants are applied for and then not use them. The Chief is not implying that the SUV would be for grant work. The application and use of the vehicle will have a 7-10 year use. Selectman Eigabroadt added that the SUV is a necessity; there are roads that are difficult to access. There have situations where the Highway Department had to assist the Police Department. The Budget Committee needs to decide whether to recommend or not recommend at Town Meeting. David Karrick asked if the SUV needs to be new. The Police Chief explained that brand new with warranties does not compare to a used vehicle. The Chief added that whatever the consensus is of the Budget Committee can be dealt with and another consideration is a lease. Ed Mical commented that the Chief has stated the current SUV vehicle is unreliable, the Committee has been speaking about public safety for the last 15 minutes, if the Chief needs to respond in a situation that requires an SUV and he has to find another source, you are only looking at $31,000. Selectman Cook added that the question in his mind has been the possibility of having an SUV and one cruiser and in speaking with the Chief, he would rather have the 2 cruisers and the SUV than one and one. Selectman Cook agrees with the Budget Committee regarding the question of taking the step toward a new SUV and a fairly new fleet. Mike asked if the Chief could work out a schedule for the next 12 years showing the replacement schedule including the SUV and adding an additional year to the cruisers (sedan’s replaced every three years instead of every 2 years).

4. CHANGES IN THE CAPITAL BUDGET

Selectman Cook explained that the leveling of the Town Hall front steps ($20,000) has been removed from the Capital Expenses, added is the sprinkler system for the Fire Department in the amount of $20,000. The Selectmen determined that the sprinkler system is a higher priority. Marc is interested if surrounding Town’s has sprinkler systems in their stations. Keeping in mind that there is a new facility in the future and the sprinkler system has never been the Capital Improvements Plan. There is currently a sprinkler system in the Police Department but not the Highway Department. Mike asked what the $10,000 for the Transfer Station would be spent on. Selectman Cook explained that the Selectmen’s plan is to form a committee to look at the future of the Transfer Station and its needs for the next twenty years. The committee may require engineering, if the money was not needed for engineering the money would be applied toward implementing the plan.

5. GENERAL COMMENTS

Marc asked if information regarding SUV’s in relationship to the surrounding Town’s could be obtained along with the sprinkler system. Selectman Hartman commented that he asked questions about the Fire Station and the equipment that it holds and felt that it would be a wise investment to install a sprinkler system especially not knowing when a new station would be built. Selectman Hartman learned this evening that the newer equipment does not fit in the back of the current station. If he knew of this information he may not have considered funding a sprinkler system. Laura will research if the current Fire Department Building/Renovation Fund can support the sprinkler system or present a warrant article to expend from the Capital Reserve.

Mike asked if the $200,000 for Road Construction is going to be used for a project. Selectman Cook explained that the expected use is for the engineering for the up-coming road projects.

Mike asked the Town Administrator to project a tax rate for the next meeting.

Ed Mical added in reference to the Highway Construction Fund, Hazard Mitigation Funds are needed to finish the projects related to flood damage. Laura explained that some of the money is in the general fund. Connors Mill Project may require additional funding outside what has been placed in the general fund. Selectman Cook explained that the Town is trying to coordinate with FEMA, the State and the Town to have FEMA support the State’s project. It will cost the Town the same amount of money ($40,000) for a better quality structure. A meeting is being arranged with FEMA, State & Town.

Mike asked the Committee their position on the budget. Marc stated that the difference in the Capital Expenses is $51,000 from last year. Pete explained that based on that figure he is in favor of the budget; the Town cannot continue avoiding the inevitable. Martha Mical added that more voters should be attending the school district meeting on January 20^th and voice their concerns about the school budget that increased $1.34 per thousand last year, the Town’s increase was .32¢.

The next meeting is scheduled for Monday, January 15, 2007. The 2007 budget and revenues will be finalized.

Motion to adjourn 9:15 p.m.