Warner Budget Committee

Meeting Minutes

October 23, 2008
 

Meeting opened at 6:05 p.m.

In attendance:   Marc Violette – Chair

                        John Warner – Vice Chair

                        Clyde Carson

                        Brenda O’Brien

                        Harold Whittemore

                        Peter Newman – Warner Village Water District Representative

                        David Karrick Jr. – Selectman’s Representative

Absent:             Mike Cutting        

Others present:

Selectman David E. Hartman

Selectman Richard A. Cook

Martha Mical

 

1. Meeting Minutes

A motion was made and seconded to approve meeting minutes dated August 13, 2008 .  All were in favor, the motion passed.  

A motion was made and seconded to approve meeting minutes dated September 10, 2008 .  All were in favor, the motion passed.  

2. Capital Improvements Plan

Marc Violette explained that the Budget Committee will move forward with the budget process until review of the CIP which has been rescheduled for mid November.  Martha Mical added that the CIP was approved by the Planning Board on Monday, October 20th.  

3. Tax Rate

The Board of Selectmen met on October 22nd with the Department of Revenue Administration to set the tax rate.  After final review from DRA the tax rate will then be announced.  

Ms. Buono explained that in past years substantial amounts of town surplus was placed toward the tax rate (last year $300K was used), to off set the tax rate.  Ms. Buono explained that this year the Town does not have a large surplus to off set the tax rate($25,500 was applied), when you don’t have a large fund balance there is a dollar value that must be made up when the tax rate is set.  DRA requires that the Town retain 5% surplus (Town, State, School, County cash flow obligation) at all times.   

John Warner asked what the tax rate is based on.  Ms. Buono explained that the tax rate is based on the budget that was approved in March 2008.  The tax rate set in October covers the tax bills issued in December and July.   

4. School Budget

Marc Violette reported that the school budget is at a 7.3% increase prior to being presented to the Municipal Budget Committee.  

5. Town of Warner 2009 Proposed Operating Budget

The budget presented this evening has increased by 1.81%, minus the Capital Budget.  The Selectmen have begun capital expense discussions; they are currently waiting to hear from Conservation Commission, Transfer Station Facility Committee and the Planning Board.  The total increase to the budget is not expected to be over 2% (including Capital expenses).  Mr. Warner asked how this was achieved; Ms. Buono explained the Department heads did a very good job. Medical insurance also decreased by .8%.; the Selectmen are implementing an increase in the co-pay from $10 to $20.  Another factor is last year there was an extra pay period which is not in the 2009 budget.  Ms. Buono also explained that depending on where the 2008 budget falls, a large expense at the Transfer Station which is the disposal for the sheet rock and ash may be considered and or encumbered.   If this expense is paid from the 2008 budget, the 2009 budget will be reduced by almost another percentage.   

This evenings meeting will touch upon the 2009 Budget Highlights.  At the November 13th meeting the BC will begin their budget review line by line.  Ms. Buono encouraged the members to forward any questions they may have before the November 13 meeting.  

□        One highlight that was questioned was the cost for the Newsletter ($2,500), Mr. Violette questions the need to mail the Newsletter to every property owner; the Newsletter is available to read on the Town’s website.  Ms. Buono explained that the Selectmen’s office has received a lot of positive feedback, without the Newsletter being mailed out the information would not reach as many people.

□        John Warner asked how Medicare costs increase.  Ms. Buono explained that Medicare costs are payroll driven; it’s a percentage of the payroll.

□        John Warner asked why the retirement rates changed.  Ms. Buono explained there is a deficit in the retirement system that the employers are making up for.

□        Salary procedure (pending Selectmen’s approval):  Last year everyone where it was possible received a 5.8% increase in gearing up to putting the employees on the new salary grades and scales.  This year everyone was placed on the step closest to their salary without going below.  The procedure is that those who are receiving 4% or above this year are eligible for another step in 2011.  Those who are receiving anything below 4% are eligible for a step in 2010.  The scale is adjusted based on the State of NH wage scale.  Mr. Warner asked what the average percentage increase. Mr. Violette would like that percentage available at the next BC meeting.

□        Mr. Carson asked if there were any increases or decreases in personnel.  Ms. Buono said there is a decrease in the Highway Department.   The Transfer Station budget has the remainder of the settlement for the Manager that resigned and the Foreman position.

□        Pete Newman asked why there is $17K budgeted for the Transfer Station Manager.  Ms. Buono explained that is the remainder of the settlement, $10K plus remaining accruals.  This line may also be reduced based on what is left over in 2008.  Ms. Rogers clarified that the 2009 budget does not support replacing the Manager at the Transfer Station, Ms. Buono said not in the 2009 budget. 

□        Brenda O’Brien asked if the Town looked into other health benefit packages.  Ms. Buono said not for this year, only an increase to the co-pay as well as a cost reduction for the benefit.  The cost decreased by .8%.  Mr. Carson asked if the Town knows how the co-pay compares to other municipalities.   Ms. Buono explained that the current co-pay is $10 which will be increased to $20, she feels that is a fair amount considering there is no employee contribution to the health plan. 

□        Revaluation of the Town begins in 2009, Mr. Warner asked Martha Mical if she senses any change in valuations.  Martha said no, the general rule is 1/3 go up, 1/3 go down and 1/3 stay the same, that will change.  There is a large group of homes that have sold for more than what they were assessed for.  Mr. Carson asked if the Town is obligated by the State to use a formal tax assessing agency as opposed to using a committee of volunteers.  Martha said they would need to be trained as well as having a licensed supervisor. 

□        Marc Violette asked what the status is regarding the cost per square foot at the Old Grade School ; he understood there may be an adjustment.  The Selectmen have met with the tenants and discussed how a rent fee would impact them.  Further discussions have not been scheduled.  Marc Violette asked if the Town is making, breaking even or loosing money on the building.  Ms. Buono explained the Town does not break even, the Town carries that building, but what has not been visited is whether or not the Town wishes to carry the building as it was voted in the 80s.  The senior room is no longer covered by CAP; there has been minor discussion about utilizing the room as a community room  in conjunction with Parks & Rec. 

□        Marc Violette recommended relooking at the fuel costs later on in the budget process.  Selectman Cook added that for the last few years having a professional administrator has contributed to a more accurate budget which reduces the yearly surplus.  Reducing the fuel costs makes the budget even tighter which will again affect the yearly surplus. 

□        Pete Newman asked why the sheet rock is not being added into the demo box at the Transfer Station.  Ms. Buono explained the sheet rock has been added, but right now it is unclear where the whole budget will end up in 2008.   If there is money left over in 2008 money will be applied to the disposal of the sheet rock. 

□        Mr. Carson noted that hazardous waste disposal costs increased in 2008; he asked if the budget amount for 2009 is realistic.  Ms. Buono explained the reason why the disposal costs increased was because some product needed to be shipped out over and above what was budgeted.  Currently, the Town has not been approved by DES to accept hazardous waste again.  At the very least the Town will apply for a hazardous waste grant that will be used for a hazardous waste day.

□        Mr. Carson asked if any fees will be increased at the Transfer Station.  Ms. Buono said the Selectmen are considering increasing fees especially for demo.  This year the revenues are up slightly from last year but the demo is still and historically does not cover its own cost.  Selectman Cook said the goal is to cover expenses.   

Mr. Warner asked if the Selectmen anticipate presenting items that require a bond, Ms. Buono said no.   

Harold Whittemore asked when the Towns obligation for the Hopkinton landfill ends.  Martha Mical said the obligation will be forever as far as testing the wells; the bond itself will come to term.  

November 13th will be for budget review & questions.  Ms. Buono asked the Committee their feelings on the first budget draft.  Marc Violette is pleased with the 1.8% increase; there are still items such as fuel that may need a second look.  John Warner said he too was pleased with the bottom line but also skeptical, most of his questions are in the interest of trying to figure out whether there’s any issues that may not have any control that could increase the budget; insurance, gasoline, oil and propane are the big issues.  

Harold Whittemore asked if the proposed budget is putting off work that will need to be done in the future.  Ms. Buono explained the items that have been removed are book preservation and some paving.  The Capital budget in the past has been hit and that is where you fall behind by not funding the Capital budget.  

The members were encouraged to further review the budget as presented and to forward any questions they may have to the Town Administrator by the November 13 meeting, all questions will be addressed during the November 13 meeting.  

Motion was moved and seconded to adjourn at 7:40 p.m.  

 

Respectfully submitted,

Mary Whalen

Recording secretary