Meeting opened at 7:00 p.m.

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

Others present:

Laura Buono – Town Administrator

Martha Mical

Ed Mical

Barbara Bartlett made the motion to approve meeting minutes dated July 24, 2006. Harold Whittemore seconded the motion. The time the meeting opened was corrected. All were in favor. The motion passed.

The Committee has completed facility tours at the Transfer Station, Highway Department and Fire Station. The tour at the Police Department was canceled; the Chair spoke with the Police Chief who would be looking to fund interior painting in 2008, there was no other large expenses expected. The members rescheduled a tour for September 14^th, at 6:00 p.m.

The Committee discussed Mr. Warner’s offer to work with the Transfer Station regarding a plan for expansion. It was agreed that Budget Committee members should remain as an independent board in order to maintain objectivity. The TA explained that Paul Fouliard has presented a plan for a 10 acre expansion to her, and has also submitted the plan to the Capital Improvements Program. Mr. Warner’s main goal was to achieve an understanding about the Transfer Station. It was agreed that members will forward their questions to the TA for clarification (i.e. did the purchase of the horizontal baler achieve proposed cost savings in labor etc.). There will also be opportunity to ask detail questions of the Department Heads during the Oct. 16^th Capital Improvements presentation and during their budget presentation.

David Karrick updated the members regarding the progress of the Road Committee. The charge of the committee is to prioritize needed road construction along with options for funding the projects. Information will be presented to the voters along with a proposal to fund an engineering study.

The Committee began discussion on the 2007 budget process. To date the TA has brought forward some budget proposals. One is a new health insurance plan that has a potential cost savings to the Town in the amount of $37,000.00, no decision has been made by the Board of Selectmen. A meeting has been arranged with the insurance company, employees have been invited to learn about the new option. The plan does not include employee contribution unless the employee would prefer to stay with the current plan, and then the employee would pay the difference.

Mark Violette asked what the taxable property value increase is from 2005. Mr. Violette would like to see the Town tax rate remain the same. Mr. Cutting explained that it would be a 1.8% increase to the bottom line. Mr. Violette recommends a 1.8% increase to the budget. Martha Mical explained that the current tax rate in the amount of 7.01 will not be 2006’s tax rate. Discussion followed regarding different surplus amounts that would affect the tax rate. Last year the Committee proposed a 3% increase to the budget. The Committee discussed by trying to maintain a low tax is the Town providing the services that are needed along with providing the necessary infrastructure. Mr. Violette added that every tax payer that speaks to him thinks the current budget is "ridiculous". The TA explained the tax rate includes the capital expenses that the voters approve. The TA does not agree that capital expenses should be included with the operating budget, the capital expenses stand on their own in a separate warrant article. Mr. Violette feels that everyone looks at the bottom line. The tax rate is affected by the bottom line. The TA agrees, but that is where the town ends up getting hurt, the capital expenses are the things that get cut out. The TA asked the committee to consider that for years it has been asked to establish a capital reserve for bridges, it has never been funded, the Town experienced recent flooding and bridges are washed away, now the Town does not have a choice. The Town now needs to fund 25% of the bridge repairs for Connors Mill ($680,000 total cost for the replacement, $170,000 is the Town share). There are about 22 bridges in the Town of Warner. The tax rate will become stable when you are looking ahead and saving for future capital expenses.

The Chair explained that if the budget is increased by 1.8%, it would be a total of $59,000.00 added to the bottom line. That amount cannot support capital expenses. Last year the proposed 3% increase did not include the escalating fuel costs. The Committee disagreed. Selectman Cook recollects that the Selectmen’s budget did not include fuel, that was budgeted separately, but in the end result the 3% was maintained. The drive of the fuel costs impacts the Town budget in many areas, (paving, tires, trucking costs, etc.).

Mark Violette made a motion to increase the budget by 1.8%. No response. Both Selectman Cook and the TA feel that the 1.8% is unreasonable.

Ed Mical commented that when the re-construction for Roby Road was first funded the cost was estimated to be less than $500,000. At today’s prices, the project now is $750,000.00. If the road goes down, it will affect a lot of commerce. Ed Mical read from the 1988 town meeting that the soul purpose of the capital improvements program shall be to advise and aide the Board of Selectmen, Budget Committee and the voters of the Town in the preparation, and consideration of annual budgets. Mr. Mical commented that the Budget Committee has no idea what is in the Capital Improvements Program for the next six years, and the Committee is voting on the bottom line of the budget. Mr. Violette noted that the Capital Improvements priorities change from year to year.

Mr. Warner commented that if incomes are zero or 1%, and if peoples taxes are rising by 3 & 4%, plus everything else in there lives are going up, then you have to say can the Town do the same thing. The real question is at what point people complain, if the Committee decides on a 1.8% increase, the voters may start complaining eventually, especially if the impact is on weekly services. It is unknown what the impact would be if the Town Clerk was not open 5 days a week or if the Transfer Station is closed on Tuesday or Saturday.

Currently the TA has asked the Departments to present to her a budget that is needed to function, that way when the Budget Committee sets their goal; they will know what needs to be cut out in order to meet that goal. That leaves the Selectmen to decide if certain cuts should be made. The TA explained that her goal is to keep public services the way they are or improve that service.

The Committee asked if the Selectmen began discussing payroll for 2007. Selectman Cook explained that budgets have not been discussed yet, this meeting was hoped to give direction to the Selectmen which would start the discussion at the next Selectmen’s meeting. Marc Violette made the motion to increase the bottom line operating budget by 1.8% for 2007. The Committee asked for clarification, the clarification is bottom line budget, excluding fuel costs. David Karrick seconded the motion for discussion. Pete Newman commented that without the Selectmen’s input it sounds like the Committee is telling the Selectmen what to do. Selectman Cook said that the Board of Selectmen will return with their input. It was agreed to meet on September 14^th with the Board of Selectmen for further discussion. John Warner agrees the Committee should meet and hear the consequences regarding the 1.8% increase. Vote on the motion, 2 in favor, motion failed.

David Karrick made a motion to hold the increase of the total budget (operating & capital outlays) to 3%. Harold Whittemore seconded the motion for discussion. Mr. Violette confirmed that the fuel is included within the 3%, if so what is the difference from his motion. Mr. Warner commented that the Committee will not know what the consequences are for the 1.8%. Barbara Bartlett recommends reconsidering the 1.8% motion. The Chairman explained that this is a beginning point to talk from. September 14th is intended to come to a workable agreement. David Karrick withdrew his motion. Harold Whittemore did not withdraw his second. Vote was taken on the motion. Motion failed.

Marc Violette made the motion to increase the bottom line of the Town of Warner budget by 1.8% excluding fuel costs subject to negotiation with the Board of Selectmen on September 14, 2006. Barbara Bartlett seconded the motion. Vote on the motion. Selectman Cook opposed, the motion passed.

The Chair discussed some suggestions proposed by the TA. The Committee asked why the TA recommends eliminating the Contingency line. The TA explained that she feels it is a bad idea to have a line item that has no reason; it is not a legal line item. It seems better to petition DRA to apply funds from surplus because of a specific reason than to fund a line for no reason. Also, the TA is recommending eliminating the preschool and daycare both the budget and the revenue. The Committee explained that showing the cost on the budget was for the tax payer’s information. The Selectmen’s office has calculated the actual cost for the Old Grade School. The TA explained that the information for the tax payers could be shown in the expenses. The Committee recommended a future discussion regarding the subsidy for the preschool and children center. It’s not a service that is exclusive to Warner residents but is being subsidized by Warner tax dollars. The TA also recommended eliminating the Budget Committee’s secretarial budget and the building inspector secretary; the time has been incorporated within the Selectmen’s secretary hours.

Next meeting is scheduled for September 14^th beginning at 6:00 p.m.

Motion to adjourn at 8:55 p.m.