Warner Budget Committee Meeting Minutes August 27, 2007
Meeting opened at
In attendance:
Mike Cutting - Chair, John Warner, Harold Whittemore, Peter Newman,
David Karrick, and Selectman David E. Hartman Absent: Marc
Violette, Barbara Bartlett Recorder of the
minutes is Mary Whalen Others present: Selectman Richard
A. Cook Laura Buono �
Town Administrator Martha Mical Richard Senor 1.
DEPARTMENT OF REVENUE MEMO The
memo informed the Town that the 2007 bottom line has been adjusted to
include $20,000 drawn from a Capital Reserve that is funding the
sprinkler system installation at the Fire Department.
2. REVIEW Mike
asked if the municipal software has been installed.
Laura said yes, the software will be used beginning January 2008.
Mike asked if the Bookkeeper will run a redundant system between
now and 2008. Laura said no,
because when the first payroll is run a representative from Munismart
will be available. Currently
the system is being set up with accounts.
Mike confirmed that the audit has been completed.
Laura is waiting for the final management letter from the audit
company. Mike
asked how the change from Finance Director to Bookkeeper is going.
Laura said the Bookkeeper came on board at the end of last year
and transitioned very well. Mike
asked about the two large purchases, a loader for the Highway Department
and the Ford Expedition for the Police Department.
Laura said the equipment has been purchased and are both
operational. Also the new
fire truck is currently being assembled. Mike
asked the Selectmen if they are going to consider single-stream
recycling. Selectman Hartman
explained that the Concord Regional Co-op is studying the impact of
single-stream recycling. General
discussion took place. The
main concern surrounds the proposed capital projects for the Transfer
Station. There is a
substantial amount of funding requested for projects and facility
expansion. Should those
projects be placed on hold until there is a better view of the
single-stream recycling program? Laura
added that as far as the cost of the scales ($65,000) those will be
utilized even if the Town changes to single-stream and the need for
expansion will be reviewed by a Facility Committee.
Richard Senor added that the lease for the Transfer Station is
due to expire, the State is generating a cost for either leasing or
purchase. Selectman Hartman
said that the Selectmen have been working with DOT since January of 2007
in regards to the lease that expires in December 2008; the State has
indicated that they will not lease the property for another 20 years in
the amount of $1. The Town
is currently waiting to hear from the State on their proposed figures.
Mike
asked if the Highway Department has done any reclamation at the gravel
pit. Selectman Hartman does
not believe that the Highway Department has done a lot about reclaiming
the embankments that have been excavated.
What has been taken from the original area is being used as a
processing area. The Highway
Department has used the compost material from the Transfer Station at
the gravel pit. Laura
explained that the area dug out on the left of the processing area that
has been sloped. The
Committee is concerned about the potential large cost for reclamation.
3. MEETING SCHEDULE Mike
passed out a proposed Budget Committee schedule for review and input.
Conflicts were noted. 4. YEAR TO DATE
SPENDING AND REVENUE Laura
explained that advertising is running high this year, there is also an
increase from last year in workers compensation insurance, all other
spending is on target. Laura
reviewed the projected revenues. 5. 2008 BUDGET PLAN John
Warner presented a taxation history from 1998 to 2006 with estimates for
2007. The important number
is the amount raised by taxation. John�s
recommends the Budget Committee focus on not just how much gross
appropriations go up but how much the Town is asking the townspeople to
pay. Mike Cutting asked
Martha Mical what she has seen for real estate sales.
Martha said values are not going down, she has seen only 4 sales
in Town that have sold for what they were assessed for or lower. John
Warner recommends educating the voters by explaining how approved
expenditures at Town Meeting will impact the tax rate. This may help the
decision process. John said
if you constrain certain budget items to meet a target then the most
flexible item is salary increases, you then end up balancing the budget
on the backs of the employees. Selectman
Hartman stands firm by saying employees are the most important
possession that a Town has and does not see salaries as flexible.
Selectman Hartman feels that capital investment holds the most
flexibility; last year at Town Meeting an additional $187,000 for the
Precinct and an employee salary petition was approved by the voters that
resulted in an 11.4% increase from the previous year.
Without those items the budget would have increased close to a
flat rate. Mike
Cutting asked if the dates indicated in the Capital Improvements Program
are realistic. Selectman
Cook said that he went through the CIP and laid everything out on a
spread sheet. This exercise
was helpful to move numbers around and see what the effect is.
Selectman Cook feels that capital expenses could be lowered by
bonding some items in a planned rotation in order to keep bond payments
and capital investment level. The
Committee discussed bonding the entire CIP, it was agreed that bonding
for more than 6 years would not work because the CIP is projected for
only 6 years. Laura
explained that if the Town bonded for road projects, the amount borrowed
would not be spent all in the first year, the debt that is not spent
will earn interest hopefully more than what you are paying on which will
help on the revenue side. Because
bonding has a minimum term of 10 years the CIP would need to be
expanded. Laura feels that
bonding is a good idea as long as the interest made is more than the
interest paid. Mike
Cutting asked if the Selectmen have looked at the budget process.
Selectman Hartman said that salary and benefit discussions have
begun, next will be capital expenses.
Laura has asked the Department Heads to create a budget that is
needed without a percentage. Last
year a budget cap was discussed (amount raised by taxation).
A limit on salary increases was discussed along with a fixed
limit for capital expenses and a limit with a goal trying to maintain a
stable increase in taxation. Laura
recommends if the Committee is looking at a percentage increase it
should be applied to the bottom line of the operating budget.
Mike
asked the Selectmen if they are considering bonding for road
construction. Selectman Cook
explained that no money has been spent on a preliminary cost estimate,
the funding for that is not clear at this time because money that was
set aside may be needed to finish paving on Discussion
continued about the effects of establishing caps on the budget and the
effects that the voters have on the budget at Town Meeting.
Selectman Cook commented that the Board of Selectmen and the
Budget Committee have showed good faith in trying to maintain limited
growth in the budget. Selectman
Cook struggles with what more can be done when last year the budget was
kept to a 1.5% growth and yet the amount raised by taxation increased by
11.4%, Selectman Cook does not see how the Selectmen are going to
control that. John Warner
explained the variables, one is revenues, the other is applied surplus
and the results of Town Meeting. Selectman
Cook added that the Town is not spending unnecessarily; he doesn�t
know how to change that with the current tax system.
Martha
Mical recommended that since both the Selectmen and the Budget Committee
have been working well why not let the Selectmen create a budget,
present the proposed budget to the Budget Committee and go from there.
Richard
Senor feels that it would be none productive to sit back and let the
Selectmen create their budget; Mr. Senor thinks the Budget Committee
should also create a budget. Selectman
Hartman reflects to his first year doing the budget as an extremely
tedious process, since then the process has wound down.
Last year the Budget Committee was receptive to have the
Selectmen prepare the budget working within a cap, the final budget
presented was a little below the target.
Mike
is wondering if all the scheduled meetings are necessary, maybe sitting
down on October 15th and looking at the prepared
Selectmen�s budget is enough. Laura
recommended having the Department Heads attend the meeting in order to
be available for questions and also highlighting the changes that have
been made. Laura asked what the Committees concerns are by not
establishing a cap on the budget process.
One concern is not being on the same page.
Mike is concerned about not meeting with the Department Heads;
they may feel left out of the process.
Laura does not feel that would be the case.
John Warner felt that the Department Heads have more of a strong
input during the CIP process. Martha
Mical added that if a Department Head wants to attend the Budget
Committee meeting they can, let it be their decision.
Mr. Senor added that it should be known to the Department Head
that if they don�t come to the meeting they may not get what they want
or what they need. Mike said
they won�t have any input, not that they won�t get what they need. Mike
asked the Selectmen to present the total operating and capital budget
along with impact including revenue on October 15th.
Laura said the insurance numbers will not be available on October
15. The Committee
agreed to still meet on October 15th.
Next
scheduled meeting is October 15th, the balance of the meeting
schedule will be determined. Motion
to adjourn at
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