Meeting opened at 5:30 p.m.

In attendance: Mike Cutting, Chris Perkins, David Karrick, Pete Newman, Marc Violette, Jere Henley and Selectman Wayne Eigabroadt.

Recorder of the minutes is Mary Whalen.

Others present:

Selectman Richard A. Cook

This meeting was scheduled as a work session; meeting minutes will be approved at the next scheduled meeting.

The Committee members discussed possible candidates to fill the current vacancy. The Committee will arrange interested candidates Joan Zia, Harold Whittemore, John Warner and Henry Garcia to meet with the Committee on August 29, 2005 beginning at 5:30 p.m.

This meeting was scheduled to establish the Budget Committee goals for the upcoming budget season.

Mike Cutting began by asking if the paving of Diamond Lane was in last years schedule, recollection says no. Also, it was asked about what happened with the calcium chloride. Selectman Cook explained that due to the increase in fuel costs, a minimum amount was used based on request only.

** Note: Diamond Lane was scheduled for an overlay per the Director of Public Works

The Committee stressed that what is decided during the budget process, those programs need follow through. Townspeople listen to what is proposed during the Town Meeting.

Selectman Eigabroadt asked what the average increase was to the operating budget in the last five years.

13.8 % increase from 2004 to 2005

18.9 % increase from 2003 to 2004

$1,200.00 increase from 2002 -2003

Over a three year period, the operating expenses increased $659,000.00 from 2002 to 2005 (11.8% per year).

The Committee looked at revenues:

$981,977.00

$906,812.00

$982,485.00

From 2002 to 2003 the revenue went down by 7.7%. From 2003 to 2004 the revenue increased by 8.3%. The revenue increased only $515.00 over three years.

The Committee members discussed presenting a bottom line figure to the Selectmen for them to work toward. The goal of the Committee is to keep the tax rate down. There was a 39.3% increase in the budget from 2002 to 2005.

The Committee set the budgetary bottom line goal at $3,046,481.00 (3.77% increase) and projects the revenue at $1,046,464.00.

The Committee and the Selectmen discussed the escalating fuel costs and the effects it will have on the operating budget along with the projected capital expenditures. Prioritizing capital expenditures and stretching the length of use was discussed.

Motion to adjourn 7:35 p.m.