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Warner Budget Committee Meeting Minutes Thursday, December 4, 2008
Meeting
opened at In
attendance: Marc Violette – Chair
John Warner – Vice Chair
Mike Cutting
Harold Whittemore
Brenda O’Brien
Peter Newman – Warner Village Water District Representative
David Karrick Jr. – Selectman’s Representative Absent:
None
Others
present: David
E. Hartman – Selectman
Peg McLaughlin – WVWD Administrative Assistant
Phil Lord –
WVWD Commissioner
Martha Mical Jim McLaughlin
– WVWD Clerk Mr.
Violette learned that the County budget for 2009 increased by 1.5%.
Mr. Violette also informed the Committee that on December 16th
there will be a hearing on the school budget held at the High School.
1.
Warner Village Water District 2009 Proposed Budget Mr. Violette
requested that budgets be presented to the BC before the scheduled
meeting to allow time for review. General
Government Mr.
Lord explained that the budget increased by 1.4% from last year.
The largest change is within the General Government budget. Sewer
System has decreased as well as Capital Outlay.
Mr. Lord explained that up through November, 91% of the budget
has been spent. Mr. Lord
explained there is an increase in the General Government budget that is
related to the cost of billing software for $3,800, the cost of an audit
for $8,000 and employee benefits. Questions: Mr.
Violette asked if WVWD can be included with the Town’s auditing firm.
It was explained that the Town’s auditing firm is not
interested. Mr.
Violette asked if the WVWD pays 100% of employee benefits.
Mr. Lord said yes, it’s the same plan as the Town.
Mr. Violette asked why the Town’s insurance cost went down and
the WVWD increased. Ms.
McLaughlin was not aware of any negotiated changes.
Mr. Violette asked the WVWD to contact Laura Buono for the
changes the Town made. Mr.
Carson asked the size of the WVWD staff.
Mr. Lord said 2 full time employees and an Administrative
Assistant. Mr.
Cutting asked how the salaries are broken down between water &
sewer. Ms. McLaughlin
explained in General Government there is her salary as well as the
Commissioners, the Clerk and the Treasurer.
For water & sewer the two employees are split 70% sewer, 30%
water. Mr. Cutting asked how
much the Commissioners make per year.
Mr. Lord said $1,200. Mr.
Violette asked why the WVWD audit cannot be included with the Town’s
audit firm. Ms. McLaughlin
said it has to do with the lack of personnel.
Mr. Lord said WVWD is in the process of looking for an auditor
and will return with an update. Mr. Warner recommended checking with the
Library. Mr. Violette
recommended that the Selectmen speak to Laura Buono about including the
WVWD in the next audit bid. Can
the WVWD be included, if not, why. Mr.
Cutting asked if software update is going to be a yearly expense.
Ms. McLaughlin explained the software will allow for different
modes. This software can be
used for current customers as well as future customers.
Ms. McLaughlin explained that first changes to the billing need
to be decided upon before the software is written.
Mr. Cutting feels that if the WVWD is not positive about changing
the billing system then funding should not be in the budget.
Mr. Violette agreed if the WVWD cannot justify the cost the BC
will cut it from the budget. Mr.
Warner said it was mandated by a public meeting to look into the billing
software and asked what the status is of the WVWD deciding if they are
going to use the software. Ms.
McLaughlin explained that Commissioner Perkins, who is not present this
evening, has been doing the research on the billing software.
Mr. Violette said the WVWD will need to return with more
information. Mr. Newman
added that since it was mandated at the last WVWD annual meeting to look
into the billing software that further approval would need to be granted
at the next annual meeting. Mr.
Newman feels the funding needs to be in the budget whether it’s spent
or not. Mr. Cutting feels
there are too many unanswered questions; the Commissioners should be
coming to the BC with their decision that can be later decided upon by
the voters. Mr. Warner asked
if there is any estimate on what the increase in revenue could be from
using this software. Topic
was tabled until Commissioner Perkins is available.
Sewer
System Mr.
Violette asked how the WVWD came up with their fuel figure.
The cost per gallon used was not known.
Mr. Violette explained that the BC requested the Town to revisit
their fuel costs which are budgeted for $4.00 per gallon as recommended
by the State. Mr. Violette
is recommending the same for the WVWD.
This request is based on the recent cost reduction for the
average consumer. Mr.
Carson asked how the WVWD applies their surplus.
Ms. McLaughlin said surplus is applied to the tax rate. Mr.
Violette asked why there is a $3,000 increase for propane.
Mr. Newman explained that the WVWD budgeted $2.699 per gallon for
2,400 gallons. Ms.
McLaughlin explained the WVWD is included in the Town’s contract.
Brenda
O’Brien asked about the tires budgeted for the 2008 Ford Ranger.
How many miles are on the vehicle?
Mr. Lord believes tires will be needed by the end of the year.
Ms. O’Brien pointed out that a set of new tires should last
about 35,000 miles. Mr. Lord
will return with the amount of mileage on the 2008 Ford.
Mr. Lord further explained that there is one employee responsible
for the entire precinct, he does live out of town and is on call 24/7. Mr.
Lord said there is an increase in trucking costs for sludge removal.
Mr.
Lord explained that the WVWD learned from RSA 149-1:7 that the district
can charge a surcharge on certain parts of the sewer system if it
benefits only a few people. A
letter has been drafted for those businesses that use the pumping
station at exit 9. Since
2000 when the WVWD obtained ownership of the pumping station from
McDonald’s maintenance costs amount to $29K.
The letter explains that the businesses will be charged a
surcharge in the amount of $2.10 per 1,000 gallons.
Mr. Lord said the WVWD needs to speak with the Department of
Revenue Administration on how to put the surcharge money into a separate
account; $5,000 is estimated per year.
Replacing the pumping station would cost about $90K. Any new
development at exit 9 will have their own pumping station. Mr. Violette
noted that a new pumping station was not included to the CIP.
Mr. Violette recommended including such an expense next year.
Mike Cutting confirmed that an annual meeting is not needed to
implement the surcharge. Mr.
Violette spoke about line 13; $7,500 was budgeted only $3,300 has been
spent to date. Mr. Lord
explained that another sludge pump needs to be built.
At this time the WVWD needs to find out the cost to replace a
rotor. Before that can be
done a crane needs to be arranged to pull the rotor up and out.
Right now there is construction on Parade Ground Cemetery which
is the only way to get a crane to the site, so it will be a couple of
weeks before the rotor can be addressed.
Ms. McLaughlin added that the money could also be encumbered. Mr.
Carson noted that line 7 has been overspent continually over the years.
In 2009 the line was decreased by $3,000 and he wonders if this
is appropriate. Mr. Lord
explained why the line decreased and feels the amount is adequate. Water
System Wage
increase for both employees is budgeted for 2009.
Mr.
Violette asked if line 4, Building Materials could be cut, based on
history the line is always under spent.
$700 is budgeted and no more than $180 is spent for the past 5
years. Mr. Violette asked
the Commissioner to re-look at line 4 as well as line 11, System
Maintenance. The
BC and WVWD discussed why the precinct buys chemicals (chlorine) in
bulk, is it economical in the long run.
The Commissioner explained that buying in bulk saves money and
the material does not go to waste. Mr.
Lord explained under System Maintenance they are looking to locate and
replace all the curb stops. This
year because of budget constraints the project was put on hold, but next
year WVWD would like to begin the project. Mr.
Violette asked who takes care of the fire hydrants.
Mr. Lord explained that the WVWD maintains the hydrants in the
summer months and the Highway Department takes care of winter
maintenance. Hydrant
replacement is within the Fire Department budget.
Mr.
Warner asked Mr. Lord to explain the pattern of spending on line 11, is
it necessary to budget $5K? Mr.
Lord said $5K is budgeted in case of a line break; it’s more of a
contingency figure. Mike
Cutting confirmed that the budget has two contingency funds; the other
is in General Government. History
reflects the bottom line is not under budget by very much. Clyde
Carson asked if there is a type of mutual aid with other precincts.
Mr. Lord explained most towns run with minimum personnel; there
is mutual aid set up for emergencies.
Capital
Outlay – Debt – Capital Reserve Mr.
Lord explained the bond principal for the new tank is down. Mr.
Violette asked about the lease for the new truck.
Mr. Lord said the WVWD obtained a municipal lease; at the end of
4 years $1 is paid and ownership is obtained.
One payment is made a year in the amount of $4,982.92. Mr.
Lord explained System Improvement includes meter replacement.
The program is a four year program, coming into the last year the
WVWD decided to break the last year up; instead of $25K for meters in
one year a figure of $15K (32 meters) was decided upon, the balance will
go into a Capital Reserve for wells on North Village Road (4 wells for
between $25K - $30K). Mr.
Cutting asked if there are new statistics with the new meters.
Mr. Lord said some households have gone up where others have gone
down. Mr. Cutting asked in 4
years the WVWD spent $79,123 for meter replacement, was this worth it.
Mr. Lord explained the State which inspects every 5 years said
that meters need to be replaced. Mr.
Cutting’s point is the WVWD has not developed an extra $79K in revenue
by adding new meters. Mr.
Carson asked if there are plans to update the meters so drive by
readings can be done. Mr.
Lord said no, it’s very expensive.
Mr. Lord said for a new hand held reader the cost was $500, they
were using a loaner. Revenue
Estimates Mr.
Lord said Water Supply pulled in $106K ($65 is estimated).
Mr. Carson asked if there was an effort for water conservation
reducing the amount of water going to the precinct how would that impact
the precinct, for example energy saving toilets.
Mr. Lord said there would be an impact to the precinct in
revenue, but there would be a savings on electricity and water.
The
WVWD will meet with the BC on December 18th at January
meeting schedule will be determined on December 18th.
Selectman
Hartman informed the BC that bids were opened for the Martha
Mical heard some of the board members sent questions by email and she
was wondering what those questions and answers were.
Mr. Violette said he received one by a citizen regarding a truck
purchase but he didn’t have an exact answer; Mr. Violette will forward
the question to the members. Martha
Mical noted that these questions should be discussed in the public
forum. Selectman Karrick
recommends when an email is sent all members should be copied as well as
the Town Administrator. Motion
was made and seconded to adjourn at Respectfully
submitted, Mary
Whalen Recording
Secretary
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