Warner Budget Committee

Meeting Minutes

Thursday, November 13, 2008

 

Meeting opened at 6:04 p.m.

In attendance:   Marc Violette – Chair

                        John Warner – Vice Chair

                        Mike Cutting

                        Clyde Carson

                        Brenda O’Brien

                        Harold Whittemore

                        Peter Newman – Warner Village Water District Representative

                        David Karrick Jr. – Selectman’s Representative

Absent:             None                  

Others present:

Laura Buono – Town Administrator          Richard A. Cook – Selectman                   David E. Hartman - Selectman

Jeanne Hand                                          Martha Mical                                          James Gaffney

Alfred Hanson                                        Judith Rogers                                         Rob Johnson

Ed Mical                                                Fred Hill

 

1. Meeting Minutes

Ms. Buono explained that in the October 23rd meeting minutes it is stated correctly those employees who are receiving 3% or above this year are eligible for another step in 2011.  Those who are receiving anything below 3% are eligible for a step in 2010.  Ms. Buono clarified that the actual process is 4%. Budget Chair recommended changing the October 23rd minutes to read 4% for clarity purposes.  Vote will take place on the October 23 minutes at the next Budget Committee Meeting.  

2. Operating Budget Questions

Mike Cutting read an article pertaining to towns striving to save money.  Some towns are reducing their costs by sharing resources such as assessing, police services, alternatives to health insurance to name a few.  Ms. Buono explained that the Town has worked to reduce health care costs this year by increasing the co-pay.  The Town also tried to include the school when bidding for heating fuel but there was a scheduling conflict.  James Gaffney asked if the article addressed down sizing.  Mike Cutting said the article focused on services.  

3. Capital Improvements Program

Chairman Violette explained that Planning Board representative Ed Mical will present the CIP on November 20th to the Budget Committee.  The BC will also address the Selectmen’s capital budget on that same date.  

4. 2009 Budget Review

Ms. Buono pointed out some changes to the budget.  One change is in the Police Department health benefits; an employee changed to the family plan.  The other change is in the Transfer Station budget; the Guaranteed Annual Tonnage was set at 1,850 tons.  The cost to dispose of the tonnage was set at $51.25 per ton, an increase of $5,000 in the budget.  Another area that may increase is the heating at the Highway Garage.   

Questions on the budget:

Clyde Carson asked if there is any money within the budget that could be spent on energy efficiency or an energy audit.  Ms. Buono explained there is no money in the budget specifically for energy projects.   If the Energy Committee has a project that would require funding, now would be the time to add it to the budget.   

Jeanne Hand said the School Board has hired a company to look at energy efficiency; she recommends pooling with their resources.  Ms. Buono added that the Energy Committee is looking at the entire town, not just the town offices.   

Ed Mical added that Public Service of New Hampshire conducted an energy audit back in 2000.  The Town Hall, Old Graded School , Fire Department, Transfer Station and Highway Department have energy efficient light bulbs.  The windows in the Old Graded School have been changed to double pane.  

Pete Newman asked if the Energy Committee is looking at how to conserve diesel fuel.  

James Gaffney asked where the diesel fuel is purchased.  Marc Violette explained that the fuel is purchased from the State at a lower cost than for the consumer.  Mr. Gaffney asked if the town has the opportunity to buy in bulk.  Marc Violette explained that the town does not have storage capability.   

Clyde Carson expanded his question and asked how to request for a recommendation be added to the budget from the Energy Committee with regards to energy efficiency for the town.  Ms. Buono said that she can contact the Energy Committee Chair and ask if the Committee is at the stage of requesting funding.  

Mike Cutting asked why meetings & seminars increased by $1,000 (Selectmen’s office).  Ms. Buono explained the line covers for six people and there is an increased interest from the staff to attend seminars.  The Finance Department is interested in a course at the Local Government Center ; the text book material is at a cost.  There are free seminars that are also utilized by the staff.  Mike Cutting asked for a list of the seminars that are of interest.  

Mike Cutting asked about the Tax Collector’s salary.  Ms. Buono explained the new grade system put the Tax Collector on a new grade; the same as the Town Clerk.  

Mike Cutting feels the Newsletter should be funded by an outside source such as the Fall Foliage Festival or the Nancy Sibley Wilkins Trust.  Ms. Buono explained the Newsletter for 2008 was fund by the Nancy Sibley Wilkins Trust; the office has received positive feedback about the Newsletter.  Because the office supply line was reduced by $1,000 it was felt that money could be used to fund the Newsletter.  If the Committee feels it should be taken out, then other sources to fund the Newsletter will be looked at.  John Warner feels the Newsletter is an important function of the Selectmen’s office and supports the funding.  

Brenda O’Brien confirmed that Book Preservation is not being funded in 2009, encumbered money will be used instead.  

Mr. Gaffney asked why his property taxes increased by 17%.  It was explained that the increase is a combination of what is voted and approved at Town Meeting and what is applied by the Town (surplus) when the tax rate is set.  This year the Town did not have enough surplus to help offset the tax rate.   

Alfred Hanson asked where was the $150,000 that was left over in the operating budget last year used.  Ms. Buono explained that some of that money was encumbered for paving ($56K), the balance is applied to surplus.  Mr. Hanson asked if the department heads were asked to cut their budget this year.  Marc Violette explained that in the beginning of this budget process the Budget Committee suggested a flat budget.  The Selectmen have proposed a 2.08% operating budget increase.  Also during the process the BC met with school and county representatives to listen to what is being proposed in their budgets; both county and school are looking at the very least a 7% increase.  

Mr. Gaffney feels the school needs to cut back on their spending.  

Mr. Hanson strongly recommended the need for change within the town budget.  Ms. Buono explained the department heads did do a good job and presented only what was needed in their budgets.  The economy was considered during this process.  For one example paving has been level funded for 2009.  The Budget Committees role is to now review the budget and forward their recommendations.  

Martha Mical said the deliberative session for the school budget takes place in January.  That’s when the residents can voice their concerns about the school budget.  

Fred Hill encouraged a 5% reduction to the town budget.  Mr. Hill is concerned for retired people and their ability to afford the taxes.  Mr. Hill asked about the warrant article for Connors Mill Bridge last year for $667,000.  He understands that a warrant article cannot increase the budget more than 10%.  Ms. Buono explained the warrant article was a zero impact article because the town received State and FEMA aid for the bridge project.  The town’s portion is in a Capital Reserve Fund.  The article did not increase the operating budget which can only be increased by no more than 10%.  Mr. Hill asked how the bridge funding is being accounted for if it is not reflected in the budget.  Ms. Buono explained how the money is tracked through the financial system; she also explained how the process with the State has been long.  The town recently received approval from the State for the construction of the bridge.  Ms. Buono also explained that the budget presented this evening is a work sheet, if desired she can add a separate line item for the bridge.  

John Warner reminded the audience the last two years the Budget Committee did not recommend all capital warrant articles some of which were approved at Town Meeting.  Mr. Warner recommended to the audience how important it is to take their energies to Town Meeting and make sure no changes are made to the budget.  John Warner further explained to the audience that earlier in the budget process the BC asked how the town would be impacted with a level funded budget, what services would be cut, what are the issues that the town has little control over such as fuel.  These questions are asked every year.  

Ms. Buono felt it was important to note that the operating budget increased by 2.08% but the decreases in the Capital budget brings the bottom line increase to .25%.  

Jeanne Hand commented on all the cost related expenses in the budget for computers, why are there so many computers?  Mr. Violette explained computers are a tool.  Ms. Buono said the largest expense for computers is the software support.  

Mr. Gaffney asked how much of the budget is dependent on federal grants and other monies that are no longer available and can voters say no to the school budget.  Martha Mical said there are two options for the school budget, the school board budget or the municipal budget committee budget.  Ms. Buono said there are no expenses covered by federal money, only if money is incurred from a declared disaster which is used to offset what was spent from the budget or from a project.  The town is not dependent on federal money, federal money is project driven.  

Mike Cutting said the only two revenues received from the State are Highway Block Grant and Rooms and Meals Tax that are continually used to support the budget.  

Fred Hill asked how much longer the town pays for the Hopkinton landfill.  Ms. Buono said the closing payment is in 2017 but monitoring the landfill will be indefinite.   

Jeanne Hand asked why the town can’t share computers.  It was explained that software requirements are different for each department.  

Alfred Hanson feels if the department heads are asked to cut their budgets by 5% they will look at their budgets closely and find things to cut back on.  

Judith Rogers would like to see the budget process return to meeting with the departments heads in order for the BC to go through their budgets line by line.  Having several eyes looking at the budget may be another way to lower the budget.  Marc Violette said the BC decided a few years ago not to meet with the department heads because the town has a Town Administrator that completes that process of reviewing the budget line by line.  The BC can further discuss if there is a need to meet with the department heads.  

Jeanne Hand asked if each department head is audited every year.  Ms. Buono explained the town hires a professional firm that completes a municipal audit.  

Mike Cutting commented about how the budget process has changed to “just because you have the money doesn’t mean you have to spend it”.  

Questions concerning the 2009 proposed budget submitted by Pete Newman.  

Selectmen’s Office

Expenses of Town Offices

What items does this line cover? This line covers items such as criminal background checks, donations, driving records and other similar items.

Meetings/Seminars

Why a $700 increase for 3 employees and 3 selectmen?  This was discussed earlier in the meeting.  

Finance

Auditor

Is there an outstanding balance due to the auditor? There is a balance; final billing has yet to be received.  

Total Benefits

This title is misleading as it only refers to the employees paying Social Security and Medicare. The HEALTH, LIFE, and STD INSURANCE and NH RETIREMENT lines apply only to employees working in Town hall.  Ms. Buono said she made a change to the work sheet by adding a TH for Town Hall.  The other departments have the benefits listed in their budget.  

Land Use (Planning and Zoning)

Professional Services

Why has this line increased by $4500? The increase is for Phase II of the Master Plan.  Marc Violette asked how many phases there are.  

General Government Bldg – Town Hall

Custodian Salary

What are his responsibilities, hours, and how does he record his time? Weekly time sheets are completed.  This position performs general cleaning at the Town Hall.  The secretary at the Police Department cleans that facility.

Bldg Maint Tech Salary

What are his responsibilities, hours, and how does he record his time? Responsibilities include general maintenance on the building, plumbing, electrical, etc.  Time is recorded on a time sheet.

Grounds Maint Salary

What are his responsibilities, hours, and how does he record his time? Responsibilities are lawn care as needed.  Marc Violette asked if the same rate of pay is paid for custodial services at the Town Hall and Police Department. Ms Buono said the rates will be the same in 2009.  Marc Violette asked the same question for the mowing.  There are two employees that mow, one for Parks & Rec, the other for the Town Hall and Police Department grounds.  Ms. Buono said the pay rates are different.  Marc Violette asked why the individual who does all the field maintenance doesn’t complete all grounds maintenance.   Ms Buono said his suggestion can be considered by the Selectmen.

Maintenance/Repairs

What does this line cover? This line covers building repairs for the Town Hall, furnace maintenance, elevator maintenance, etc.

Mileage

Who is this for and is it only for this building? This line covers mileage for Ed Mical who uses his own vehicle for parts pick-up and going from building to building.

Equipment

What does this consist of and for whom? This line covers Town Hall equipment such as copier contracts, stamp meter, elevator inspections.  

General Government Bldg – Old Graded School

Custodian Salary

What are his responsibilities, hours, and how does he record his time? Same explanation as the Town Hall.

Sprinkler/Fire Alarm

Why is this $200 more than Town Hall? The Town Hall does not have a sprinkler system.

Maintenance/Repairs

What does this cover? This line covers the same types for repairs as the Town Hall.  

Other Gen Gov’t

What are the three lines for Contingency, CAP, and Donations for and to what department(s) do they apply to? Contingency Fund is there to cover unexpected expenses.  CAP is for Community Action Program which provides services for the town residents such as heating assistance, meals on wheels etc.   Jeanne Hand suspects there could be an overlap in services and asked the town to look into it.  Marc Violette asked Jeanne Hand to look into her concern and return to the BC with information.        

Police Department

Lawn care

Was $0 now is $300?

Building Custodian

Was $0 now $1796?

Both of these functions were being done in the past. Why is there a charge now and if there was payment before which department budget was reduced?  Previously, Lawn Care and Building Custodian were included in the Building Maintenance line.  These lines were created for quarterly payroll reporting purposes to the State.

Cruiser Expense

Why isn’t this line split between fuel and maintenance?

Fuel is shown in the notes as $4.00 a gal x 4,500 gallons = $18,000. This will only leave $3320 for all the other maintenance.  Ms. Buono said if the BC wishes for more detail this line can be broken down into two.  Mike Cutting asked if the town is going to readdress fuel costs.  Ms. Buono said the town uses the figure provided by the State; she can relook at the cost again in January.

Utilities

Why isn’t this line split up to show the individual utilities?

Propane is shown in the notes as $2.699 a gal x 2500 gallons = $6,748. This will      leave $3,940 for electric and water and sewer charges.  This line can be broken out also.  

Fire Department

Truck Maintenance

This line should be split to show fuel and maintenance as separate lines.

The notes have no reference to fuel galleons budgeted or the costs.

Building Maintenance

This line should be split to show heat (oil cost), utilities, and building maintenance. The notes have no reference for oil and electric budgets.  

Marc Violette asked the members if they would like the previous line broken out.  The members feel it would be beneficial.  A motion was made to have lines with multiple uses broken down for clarity purposes.  Motion was seconded; all were in favor, the motion passed.  

Emergency Management

EOC Operations were budgeted for $850 in 08 of which $345 was spent as of September. The total for the new lines (telephone, computer, supplies, and program expenses) is $1150, a $300 dollar increase. What was the reason for this?  The increase is for a virus protection program, PO Box rental and EMA program.  

LEPC Administration

Is this a new line? This line is not new, the title is changed.  

Comments:

The BC had a pros and cons discussion about voice over internet system.

Jeanne Hand asked if the town has considered freezing pay raises and hiring for one year.  Selectman Karrick said no.  

Highway Department

Hydrant Maintenance

What is this line used for? A fee is paid to the Precinct annually to maintain the hydrants.

Paving

Notes say new price is $80 a ton and budgeted for 2032 tons.  2032 x 80 = $162,560. Budget line requests

$129,000. Why? Paving will be completed as afforded.

Outside Repairs

What is this line for? This line pays for repairs completed by outside vendors.

Heat

Budget request is for $7,000. 7,000/$2.699 (gallon of propane) = 2,594 gallons. The notes have no reference for 2008 usage, but the line is over spent in September by $1,346. What will it be at the end of December? Without the number of gallons used it is difficult to predict 2009 usage. Will $7000 be enough to cover 2009 at the current price?  This line may be increased.

Uniforms

Line is overspent by $850 in September. What will it be in December? The cost for December is unknown at this time.  The cost is not a set amount.  This line item is under discussion for making a change.  Usage and increase in fees have contributed to the line being overspent.

Supplies

What is included in this line? It is overspent in September by $2,312 what will it be in December? The cost for cutting edges has increased because of usage.

Gas/Diesel

Line should be split. Gas and diesel have different costs and are obtained from 2 different sources. The state (diesel) is controlled, while the commercial cost of gas has fluctuated greatly in today’s economy.

Parts

Over spent by September by $8,614. What is included in this line? Should it be split to separate vehicle and maintenance parts?  This line item is for parts for the vehicles.  The engine in the 1986 Mack recently blew.

New Equipment

What is included in this line? The purchase of new equipment such as rakes, shovels etc.

Signs

Is there a State/Federal law requiring street signs to meet a uniform standard? If so is Warner providing for this change? The new requirement takes place in 2011 and will be addressed in the 2010 budget. 

Meetings

Line was over spent by $345 in 08 but nothing has been allocated for 09. Are no meetings scheduled or anticipated in 09?  Meetings are now covered under Safety Programs.

Salt

Line is over spent by $1300 in September. Is no more salt purchases expected in 08? Is $64.75 a fixed price for 2009 or are increases expected? $41,440 does not allow for any changes to the price in 2009.  The town has been able to secure the price for 2009 and may even be able to cut back on the tonnage.  

Transfer Station

Heat

What is the price of kerosene and how many gallons are needed? The line is over spent in September by $395. The notes say that the used oil furnace has been serviced and it will now run more efficiently. If this is so then the line maybe over budget, as the oil furnace was not running for most of the heating season in 08-09.  The line was overspent because the used oil furnace was not operational.  400 gallon of kerosene is budgeted costing $4.53 per gallon.  Mike Cutting feels the used oil furnace should be fixed and used and if it can’t be used get rid of it.  Mike is sick of hearing about the furnace year after year.

Building Maintenance

What is planned for 2009 that will increase the line by $1000? Repairs to the building.

Fire Alarm System

What is a Pull Station and how much does it cost? The Fire Extinguishers were serviced on a monthly schedule and replaced as needed and the alarm system was serviced for $450. The increase is $600.  The increase covers for a new Pull Station and inspection.  A Pull Station is the red unit you pull if there is a fire.

Office and Shop Supplies

Line is over spent in September. What was purchased to cause this and were the items one time purchases? What purchases are planned for 2009 that will cause the line to increase $1500? This line covers supplies and the cost of new locking file cabinets.

Equipment Maintenance/Repairs

The balers and compactor were serviced as well as any box repairs in the past by the present amount. What is anticipated in the future to require a $1000 increase?  Some repairs scheduled for 2008 are scheduled for 2009.

Grants

How do you over spend a Grant?  The line has not been overspent; expenses need to be transferred to encumbered funds from 2007.  

Mike Cutting asked if the boxes are being sent out full from the Transfer Station.  Ms. Buono explained that the tonnage for each box has increased which started at the end of 2007.    

Parks & Recreation

Maintenance Salary

What are the responsibilities and number of hours worked? Who does he report to?  780 hours has been budgeted.  Direction is given by Parks & Rec but the employee reports to the Highway Department.

Sanitation

Is this line only for Porto- Potties? Yes

Improvements

What was done in 2008 and what is planned in 2009.  2008 there was tree removal.  In 2009 the Babe Ruth in-field is scheduled for rehabilitation.  Marc Violette said there are now fields available at the new and old Middle School.  The field at Riverside Park has not been used for two years and he feels that it would be a waste of money to rehab the field if it is not going to be used.

Maintenance Supplies

The budget amount is the same for 2008 and 2009, yet 2008 was over spent by $1920. Was there a one time           problem that occurred in 2008? There was a large purchase of fertilizer.

Beach

Line over spent in 2008? What work is done at the beach and by who does it? There doesn’t seem to be much done to maintain the area or improve it.  There is State mandated water testing.  Volunteers and field maintenance maintain the beach.  

Comments:

Rob Johnson recommended those budgets that have increased should go back and sharpen their pencils to find areas that can be cut.  Mr. Johnson asked why benefits increased in the Police budget.  Ms. Buono explained that an employee changed their health insurance to the family plan.  

Alfred Hanson confirmed that employees do not contribute to the health insurance costs.  Marc Violette said contribution has not yet been discussed in the process.  Mike Cutting noted that employee contribution has been discussed by the BC for many years.  Selectman Cook said that the town has been proactive in reducing health insurance costs by changing plans and increasing the co-pay.

Next scheduled meeting is for November 20th.  The meeting will be dedicated to the Capital Improvements Program; questions should be forwarded to the Town Administrator.  

Motion was made and seconded to adjourn.

 

Respectfully submitted,

Mary Whalen

Recording Secretary