Meeting opened at 5:30 p.m.

In attendance: Mike Cutting, Barbara Bartlett, David Karrick, John Warner, Harold Whittemore, Precinct Commissioner Pete Newman and Selectman Richard A. Cook

Others present:

Laura Buono – Town Administrator

Selectman David E. Hartman

Martha Mical

Judith Rogers

The Committee members reviewed the 2006/2007 meeting schedule. No significant changes were made.

David Karrick, as the Budget Committee representative, will now be a member of the Road Committee. Selectman Cook explained that the Road Committee’s charge is to develop a road/bridge repair project priority list. The goal this year is to report to the voters the priority list that may lead to a major bond. Preliminary engineering costs may be presented in a warrant article this coming year in order to present accurate costs. Barbara Bartlett volunteered to be the alternate representative to the Road Committee (Road Committee meets on the third Wednesday of every month up until the Town Report prints).

The Committee reviewed expenses to date:

Outside Services is 81% spent due to recent flooding. An outside contractor was required to repair Howe Lane. FEMA funding will reduce the cost (Public Hearing will be held). The Committee asked where does the received FEMA/State money from past/recent flooding appear on the revenue sheet. The TA explained that any money received in 2006 would be indicated under grants. No monies have been received yet for the May 2006 flooding.

The Committee asked about the rental costs for the bridge located on Connors Mill Road. The TA explained that FEMA will be covering 75% of the installation cost. The reconstruction will cost approximately $685,000.00 of which the State would pay 80% if the Town waits until 2012. There is another option were the Town manages the process then the State reimburses the Town after completing each phase.

The TA will e-mail to the members information regarding Forest Fire reimbursable expenses.

Highway Block Grant is 95.84% spent. The TA explained that the expenses are for gravel & culverts from the floods. Once the FEMA reimbursements are received it will be applied to the appropriate lines (Public Hearing will be scheduled). The reason that these revenues will be applied to the specific line items is because the damage incurred from the flooding was not budgeted for in 2006. The Committee discussed being able to indicate the actual expenditures of the line items that will be offset by the FEMA reimbursements (i.e.: footnotes, separate sheet showing expenses less revenues), the TA will create a separate spread sheet.

The Committee discussed if they should set their proposed budget increase before or after reviewing the Capital Improvements Program. Other factors need to be considered like the continued increase for fuel and health insurance. CIP’s will not be presented until October 16^th, which may effect the development of the department budgets. Selectman Cook added that they are looking at options that would allow savings for the Town toward health benefits costs. Judith Rogers commented that when you look ahead in the future the medical costs will always overcome the cost of salaries. Selectman Cook said not if some of the health costs are passed onto the employees. Judith Rogers feels that wages and health costs should be dealt with separately. Martha Mical commented that setting guidelines in the beginning of the budget process helps the department heads create their budget and allows communication between the Selectmen of what can and cannot be accomplished within the limits set. The Committee’s concern is the budget has become so lean that what needs to be accomplished becomes impossible yet can the Town afford to go the other way. John Warner recommends creating a rough calculation of proposed increases in the budget (i.e. fuel, health costs) in order to look at the factors in setting a cap. Selectman Hartman feels that the things that will be severely impacted 3-4 years out are mainly road projects that have not been introduced yet. The Committee will establish their direction at the August 24 meeting.

Motion to adjourn at 7:18 p.m.