Warner Budget Committee

Meeting Minutes

Thursday, January 15, 2009

 

Meeting opened at 6:04 p.m.

In attendance:   Marc Violette – Chair

                        John Warner – Vice Chair

                        Clyde Carson

                        Harold Whittemore

                        Peter Newman – Warner Village Water District Representative

                        David Karrick Jr. – Selectman’s Representative

Absent:             Mike Cutting, Brenda O’Brien                

Others present:

Selectman Richard A. Cook                     Laura Buono – Town Administrator

Selectman David E. Hartman                    Jeanne Hand                                         

Jim Hand                                               Barbara Annis                                       

Ed Mical

Martha Mical  

1. Resignation

Chairman Violette read into the record a letter of resignation submitted by Brenda O’Brien.  Brenda’s residency has changed to the Town of Bradford .  The Committee decided to leave the position open until the March elections.  John Warner moved to accept the resignation submitted by Brenda O’Brien.  Motion was seconded; all were in favor, the motion passed.  

2. Meeting Minutes

Motion was made and seconded to approve meeting minutes dated December 18, 2008 .  All were in favor, the motion passed.  

3. 2009 Budget

Town Administrator, Laura Buono explained there were some minor changes such as a recent change in the unemployment extended benefits figure as well as the cap rate for unleaded gasoline ($3.00).  These changes did not increase the bottom line (.60% increase), they were a wash.  

Chairman Violette called for questions from the Committee, none were received.  Chairman Violette then callED for questions from the public.  

Jeanne Hand asked why salaries were increased more than the cost of living.  Ms. Buono explained the average wage increase is 4%.  A new wage grid was also developed which will need approval by the Board of Selectmen.  Chairman Violette explained to Ms. Hand that the Budget Committee decided years ago that the Budget Committee is not the appropriate vehicle to dispute wage increases.  John Warner also added that if the Budget Committee did not agree with the percentage of the wage increases discussion would have taken place earlier in the budget process.    

Jim Hand asked about the new wage grid.  Ms. Buono explained there are new grade and step levels.  This year employees will be placed on the closest step to their current wage in 2008, eligibility to the next step is every other year.  John Warner explained the previous system gave no preferential treatment in the sense of a management tool for people who were doing well and for people who were not doing as well, so another tool was created.  Jeanne Hand confirmed that the new tool covers people whether they do well or not.  John Warner said no, he explained the opposite.   Ms. Buono said another part is employee evaluations; you can’t not show up for work, abuse policies and expect a pay increase.  Selectman Cook also added the direction that has come from Town Meeting is the voters do not want to see employees on the floor at Town Meeting asking for pay raises.  Ms. Buono has worked with the Department Heads and has created a system that is fair and equitable to the employees.  Jeanne Hand asked if it is ever considered fair to the taxpayers when salaries are increased, especially during these tough economic times.  John Warner asked Jeanne what evidence is there that the Budget Committee is not concerned about that; the proposal is for a minus .6% increase in the taxes for next year.  Jeanne said, why not go lower.  Chairman Violette explained that Laura Buono and the Board of Selectmen have presented a fiscally responsible budget exceeding the Budget Committees request of a flat budget.  Selectman Karrick suggested to Ms. Hand that perhaps her efforts should be more focused on the county and school budget.  

John Warner explained that he has completed research on the history of tax rates and learned that a homeowner who has not completed any renovations experienced about a 3% per year increase in their tax rate which is similar to the cost of living from year to year.  Another factor is the surplus (amount in reserve for cash flow purposes); there are no longer large amounts of surplus available to off set the tax rate because budgets are tighter and revenues are estimated closer.  The Town experienced a spike this year in the tax rate because of the lack of surplus.  The Department of Revenue Administration explained that if the Town does a good job in budgeting the recommended amount of surplus will only be maintained, there will not be any surplus available to apply to the tax rate.  

Jeanne Hand asked if the proposed 2009 budget is the best that can be done.  Chairman Violette said that he feels the budget is fiscally responsible without impacting services to the Town.  

4. Revenues

Revenues show an approximate $50K decrease for 2009.   

Jeanne Hand said her bottom line worry is there are parts of the budget that can still be lowered.   

Martha Mical explained that the revenues are looked at twice a year, if it shows that revenues are lower than expected the Selectmen have the ability to freeze budget.  Ms. Buono added that freezing the budget does not lower the tax rate because the money has been raised and appropriated.   

John Warner explained to Ms. Hand that in the beginning of the process there was discussion on what budget items the Town has control over.  This year the budget presented showed little change from last year without impacting infrastructure projects and services.   

Selectman Cook explained that the Board of Selectmen does not receive much feed back from the taxpayers on the budget.  The Selectmen have not heard from people to cut services and make drastic changes, he feels the budget presented to the Budget Committee is a fiscally responsible one.  

5. Public Hearing

The Budget Committee Public Hearing is scheduled for February 5, 2009 beginning at 6:00 p.m.   At this hearing the Budget Committee will recommend/not recommend the petition and warrant articles as well as approving/approving the Selectmen’s operating and capital budget.  Pete Newman requested that the Warner Village Water District be first on the agenda.   

6. Adjournment

Motion to adjourn was made and seconded.  All were in favor, the motion passed.          

 

Respectfully submitted,

Mary Whalen

Recording Secretary