Warner Budget Committee

 Meeting Minutes - UNAPPROVED

Thursday, January 13, 2011

                                                                       

The meeting opened at 6:03 p.m.

In attendance: Marc Violette, Mike Cutting, Paul DiGeronimo, Alfred Hanson, Kimberley Edelmann, Martha Bodnarik

Peter Savlen – Warner Village Water Precinct Representative and Selectman Clyde Carson 

Others present: Laura Buono – Town Administrator, David E. Hartman – Selectman, David Karrick, Jr. – Selectman, Martha Mical, Jim Hand, Jean Hand, Ed Mical. 

1. Meeting Minutes

Mike Cutting moved to approve meeting minutes dated January 6, 2011.  Kimberley Edelmann seconded the motion. 
One correction was noted which was to remove Mr. Hartman as attending.  All were in favor, the motion passed. 

2. 2011 Capital Budget

Selectman Carson reported that the Selectmen have reduced the following capital expenses:

  •                      Town Hall Renovation was reduced by the Selectmen to $20K.  The Selectmen prioritized the projects as being first a new furnace, second, leveling the granite steps and third insulation with other energy projects for an estimated $82K.  The Selectman would like to fund these projects with $20K over the next three years.

  •                      Revaluation was reduced by the Selectmen to $15K.  There will be an estimated $80K left over from the last revaluation that was completed in 2011.  The Selectmen have 5 years to fund the reserve with $15K each year with the understanding that the amount may need to be adjusted as the revaluation year approaches and quotes can be obtained.

  •                      Radios/Pagers was reduced to $15K; this is a federally mandated item and in 2012 the Selectmen will relook at what needs to be purchased in order to come into compliance with the mandate.  The $15K will cover 9K for the Fire Department and the balance will be for Highway and Emergency Management. 

The Budget Committee figured the tax rate for the 2011 budget would be approximately $8.71; the current rate is $8.99. 

3. Operating Budget

Marc Violette asked the Committee members what they wish to do with the operating budget.  The Town Administrator pointed out two changes to the operating budget, one being additional money was added to the Town Hall heating expense and the other was a $1,000 reduction in Outside Services in the Assessing budget. 

Mike Cutting said he went through the operating budget himself and reduced certain line items back down to last year’s numbers (all accept wages) and found that there was not a significant impact towards reducing the tax rate.   

Alfred Hanson spoke about the increase in health insurance.  The Town Administrator explained that the increase is due to an employee addition, not because of increased health care costs.  Alfred Hanson asked what the cost is for the family plan.  The Town Administrator said the cost is about $1,600.00 per month, for a single plan the cost is about $600.00.  The employee contribution for 2011 is 5% for health insurance and 100% for dental.  Alfred does not feel the employee contribution is enough.  The Town Administrator explained that there have been changes made to the health plan annually, such as increasing the co-pay to $20 from $10 as well as deductibles on certain services all in trying to save money on the Town level before looking at employee contribution.  Paul DiGeronimo asked if the Town looks at other sources for health insurance.   The Town Administrator said for this year the Town obtained costs from Health Trust, Primex and two independent contractors, Health Trust proved to be the cheaper.    

Alfred Hanson proposes reducing the budget by 3% ($115K); he said he included wage increases as one of the line items to be reduced.  Marc Violette added that the budgeted wage increases are for those employees who did not receive an increase last year; this year is the second phase and he asked if it is fair to penalize those employees who did not receive an increase last year.  Alfred Hanson said he believes in fairness on an entire town level and asked Selectman Hartman for his opinion on what he feels is fair.  Selectman Hartman said it is fair to continue the step increase program; the Board is in agreement with this.  Kimberley Edelmann feels the two year step increase program is an implied contract; she recommends not interrupting the step increase program.   Audience member Jeanne Hand believes wage increases should be based on merit.   

Marc Violette called for a motion on the operating budget.  Martha Bodnarik moved to review each department.  Mike Cutting seconded the motion; Alfred Hanson questioned the action when the Committee feels the operating budget is a responsible budget.  Mr. Violette called for a vote, 4-3, Selectman Carson abstained. 

Highway Department operating budget; Martha Bodnarik recommends based on past history the following reductions:

  •               Reduce guardrails to $750

  •               Reduce calcium chloride to $2,000

  •               Reduce signs to $2,000

  •               Reduce salt to $40K – Selectman Carson is not in favor of reducing the salt line, he said the money will be spent only as needed.  Mike Cutting commented about not being able to predict how a winter will be.

  •               Reduce line-striping to $5,000 

Alfred Hanson asked if the Highway Department completes vehicle inspections.  The Town Administrator said yes, all but the Police Department. 

Audience member Jeanne Hand recommends increasing the employee contribution towards health care costs. 

The total reduction proposed by the Budget Committee for the Highway Department is $11, 448.00.  Mr. Violette called for a motion on the proposed changes.  Martha Bodnarik moved to first finish the review of the operating budget.   Alfred Hanson seconded the motion; all were in favor, the motion passed.  

Paul DiGeronimo asked if there is any feed back from Public Service of NH regarding the streetlights.  At this time there is no feedback available; Selectman Carson is trying to connect with PSNH.  

Police Department operating budget;

  •                The total budget increase is approximately $7K, of that includes $4,000 for the increase in retirement, $1,380 increase for health insurance which will leave about $1,500 to reduce. 

  •                The Town Administrator cautions against reducing heating fuel. 

  •                No reductions were recommended by the Budget Committee.

Transfer Station operating budget:

  •                No reductions recommended 

Mike Cutting asked the Committee if they are micro-managing, so far only $11K can be reduced.  Alfred Hanson said when he looks at the budget he looks at the entire picture including where the Town will be 10-years from now, he feels where there can be control should be control; for him every penny counts.  Marc Violette feels the capital budget is where an impact could be made, not the operating budget. 

Selectman Hartman does not feel the town budget is the place a difference can be made up in the total tax rate when the town presents a zero increase and the school district presents a 4% increase with no teacher contract.  He said it isn’t fair for the Town of Warner to say the tax rate can be leveled out at the town level when the school, state and county have increased.   

Kimberley Edelmann made a motion to not request any change to the 2011 operating budget but move onto the capital budget at the next scheduled meeting.  Motion was seconded; all were in favor, the motion passed.  The Committee members then decided to move onto the capital budget at this meeting. 

4. 2011 Capital Budget

  •               Marc Violette recommends reducing Property Revaluation to $10K; the Selectmen have already reduced it down to $15K.  Marc’s reasoning is rather than level funding the reserve every year, make up the difference closer to the reval year.  Selectman Karrick is concerned about not level funding this reserve because the revaluation is mandated by the State.  Mike Cutting asked what happens if the Town does not complete a revaluation.  Martha Mical said the State will come in and complete the revaluation and then bill the town for services.

  •               Marc Violette recommends reducing the Fire Equipment reserve.  There is currently $65K in reserve for a forestry vehicle. An estimate for a vehicle was received in the amount of $75K; Marc is recommending not funding the reserve this year with $30K.

  •               Alfred Hanson asked the Selectmen for their rationale in reducing the Road Construction reserve by only $25K.  Selectman Carson said the Selectmen will be looking at and trying to determine how much should be spent on the roads knowing full well that funding a reserve with $200K per year is not enough to maintain needed improvements. 

  •               Marc Violette also recommended reducing the Transfer Station Equipment reserve by $3,000. 

  •               Martha Bodnarik recommends not reducing the funding for Fire Department Equipment and the Revaluation. 

Marc Violette called for a motion. 

March Violette moved to reduce the capital budget by $33K ($30K for Fire Department Equipment & $3K for Transfer Station Equipment).  No second to the motion; motion failed.  Kimberley Edelmann said reducing the capital budget by $33K does not significantly reduce the tax rate, she said for a $350K home the impact is a $41.00 reduction.  Alfred Hanson believes every penny counts. 

The Budget Committee members decided to meet on January 18 at 7:00 p.m. to further discuss the 2011 proposed budget.  

4. Adjournment

Motion was made at 8:35 p.m. to adjourn