Budget Committee Meeting Minutes 12/10/09

Warner Budget Committee Meeting Minutes Thursday, December 10, 2009

Meeting opened at 7:05 p.m.

In attendance: Marc Violette - Chairman

Mike Cutting – Vice Chair

Kimberley Edelmann

Alfred Hanson

Martha Bodnarik

Richard Cutting

Clyde Carson – Selectman’s Representative

Peter Newman – Warner Village Water District Representative

Absent: None

Others present: Selectman David Karrick, Selectman David E. Hartman, Martha Mical, Marianne Howlett, Jeanne Hand, Judy Rogers, Barbara Annis, Jim Hand.

1. Meeting Minutes

Motions were made and seconded to approve meeting minutes dated October 28 and November 12. All were in favor; motions passed.

2. Fire Station Land Acquisition Committee Representative

Kimberley Edelmann volunteered to be the Budget Committee representative. The Committee will be charged with laying out the criteria for a new fire station, evaluate the sites available as well as determine a site. A time frame has not established. The Fire Department has applied for a grant to help off-set the cost of the building; grant acceptance is still unknown at this time.

3. Capital Budget

Selectman Carson explained that the paving and repair projects for the Highway Department have not been determined for 2010.

Richard Cutting asked what the Highway Equipment reserve involves. Selectman Karrick said the replacement of the F350 Ford pick-up truck ($30K) and money towards the replacement of the 1986 Mack in 2011 ($163K).

4. Operating Budget Discussion

Martha Bodnarik spoke about the operating budget. She said the Selectmen presented a budget that has been reduced by $52.5K; she also said revenues are down $36.5K. Ms. Bodnarik feels because of the revenues, the Selectmen’s budget is reduced only by $16K. She is strongly recommending a wage freeze for one year that amounts to $15,343, removing $1,500 from the police budget for dry cleaning uniforms as well as removing $3,000 from the highway department uniform line. This would add another $19,848 decrease to the operating budget. Ms. Bodnarik feels these cuts would not affect overall town services. She also added that the wage freeze would not effect the additional 100 hours for the Assessing Clerk because of the property revaluation that finishes in 2010.

Mike Cutting asked the Selectmen if the budget prepared is what the town can afford or is the budget based on what was spent last year. Selectman Karrick said the budget prepared is what the town can afford.

Martha Bodnarik said the budget presented should be less than or level funded from last year. Selectman Karrick said the operating budget presented this evening shows a 1.81% decrease from last year. Ms. Bodnarik said the lack of State revenue needs to be considered in the budget cuts.

Martha Bodnarik made a motion to freeze all wage increases for 2010, cut $1,500 from police department uniform line, and $3,000 from highway department uniform line resulting in a $19,848 savings. Motion was seconded. Martha Mical noted that the Budget Committee can only cut from the bottom line of the budget not individual line items, she also said as a department head she created her budget by what is needed for 2010. She also agreed that it is helpful during Town Meeting when the Budget Committee justifies what they have cut from the budget. Jim Hand who is Warner’s representative to the Kearsarge Regional School District Municipal Budget Committee said the MBC voted not to give wage increases to the staff less the teachers. Mr. Hand said there was a bad reaction to Warner’s budget because of the wage increases. Mr. Hand feels the school budget and the town budget should not be compared. Selectman Carson said it is important to understand that benefits are part of the overall compensation package. Insurance cost rose by 16.4%; the Selectmen have decided that the employees will begin to contribute to part of the premium thus reducing their compensation. There will be no cost of living increases. Selectman Carson said uniforms are also part of the compensation package, employees washing and dry cleaning their own uniforms or clothing, that cost will be coming out of the employee’s net pay. Martha Bodnarik does not feel this is the year for wage increases when there are so many residents that are out of work. She feels the employees are being paid well and can afford what she is proposing. Judy Rogers agrees that the Budget Committee should justify their budget but it is the Selectmen’s responsibility on where to make the cuts. Alfred Hanson feels the budget could be reduced by eliminating the “wants” in the budget. One area is the capital budget, keep the operating budget as is and cutting some capital expenses. Martha Bodnarik said the job of the Budget Committee is to prepare and present a budget. Mike Cutting said with what Martha Bodnarik is proposing plus the current reduction in the operating budget reduces the tax rate by .24¢. Jeanne Hand feels the elderly and poor of the community need to be considered. Kimberley Edelmann feels taking away wage increases, and increasing insurance as well as increasing clothing costs, in targeting those items she feels it is potentially dangerous because there will be a larger expense in recruiting and training employees if some choose to leave. Ms. Edelmann recommends maintaining the wage increase program. Ms. Bodnarik feels if employees leave because of no wage increases there will be people standing in line for their job, she does not feel the amount being cut from the budget is a massive amount. Ms. Bodnarik targeted the Town Administrator position and the proposed wage increase of $2,700 for that position, she said it is the largest wage increase scheduled for 2010; she feels that position can wait another year. Kimberley Edelmann asked Martha Bodnarik what happens if she feels wages should be frozen next year or the year after, she said there are no guarantees the economy will turn around. She said delaying wages increases for a year could put next year’s budget into a tighter situation. Kimberley Edelmann feels additional cuts should come from the capital budget, Alfred Hanson agrees. Marc Violette said whatever is done this evening is not final. Mike Cutting recommends no final decisions this evening; he recommends listening to everyone’s comments and returning at a later date to make their decision. Alfred Hanson recommends switching the discussion to the capital budget. Martha Bodnarik changed her motion to a consideration. Second to the motion was withdrawn.

Mike Cutting asked for clarification on the Fire Department budget and the $6,500 for building maintenance, what this amount encompasses. Selectman Carson said he will find out. Is some or all of the money slated for interior painting or has the painting already been completed.

Richard Cutting asked the Selectmen within the Highway Department budget how much of the labor dollars is non-highway related and is it accounted for on a weekly basis. Mr. Cutting also asked if separate maintenance activities are being coded to separate numbers. He feels this would be a good budgeting practice. He also spoke about different methods that could be trialed to see if labor hours could be saved especially in the Highway Department. Selectman Hartman explained that the Bookkeeper has developed a method of tracking project costs.

Richard Cutting asked what the cost of winter sand includes. Selectman Hartman said the budgeted number is for the purchase of the sand, not the processing or hauling.

5. Capital Budget

Land Acquisition Fund $30K - Martha Bodnarik asked why the Selectmen added to the Land Acquisition Fund when it was recommended by the Capital Improvements Committee not to fund this year. Selectman Hartman explained the Conservation Commission came before the Board of Selectmen and requested the $30K which would allow the Commission to close on a current project, he also explained the CIP is a guide for the Selectmen. Martha Bodnarik is not in favor of funding Land Acquisition this coming year, Mr. Violette also agrees. Selectmen Carson recommends letting the voters decide. Mike Cutting asked if anyone knew how many total acres are in conservation easement. Selectman Hartman said there is about 3,000 acres acquired in conservation easements over the last 10 years. Selectman Karrick explained the current project is for the Gore Farm, 471 acre easement, of that, 348 acres are in Warner and 123 acres are in Sutton. The cost of the project is estimated to be $276,500. The Conservation Commission is asking for $30K, they would take out $40K from the existing fund towards the $70K that is needed as a match to a proposed State LCHIP grant of $138,250. Martha Bodnarik feels the $70K that is needed could be drawn from their existing Land Acquisition Fund that has $119K.

Police Cruiser $15K – Alfred Hanson asked Selectman Karrick about the research he has completed on alternative cruisers and if that research plays a part in the requested amount. Selectman Karrick said that he has looked at alternative cruisers, he said the Police Chief does not agree that alternative cruisers are appropriate. Selectman Karrick said he went to the Town of Newbury and looked at their Ford Taurus. The one thing the Taurus offers is better gas mileage. The vehicle has all wheel drive, smaller on the outside but they don’t appear to be smaller on the inside. There are a number of people in police work that do not believe the Taurus is as durable or as safe as the Crown Victoria or Dodge Charger, especially on the highway. Alfred Hanson asked for cost savings figures. Selectman Karrick said the cost is about one-third less overall. The last vehicle purchased cost about $30K. Selectman Karrick said the Town of Newbury is very pleased with the Ford Taurus. Alfred Hanson asked if this is an alternative for 2010. Selectman Karrick said as far as he is concerned it is an alternative. Martha Bodnarik asked if the vehicle that is due to be changed out is able to run for another year. Selectman Carson said another year has already been added. The Police Chief informed the Committee there has been a lot of maintenance on this vehicle. Mike Cutting said the Town years ago had smaller vehicles for a number of years, he said the only reason the Town changed to larger vehicles is because Ford discontinued the smaller vehicle. Selectman Carson is interested in moving towards a green vehicle that also meets the needs of the Police Department.

Road Construction $200K - The Committee asked the Selectmen why $200K. Selectman Hartman explained that $200K is only a portion of the total amount of millions of dollars that is needed to reconstruct roads. He said over the last 4-5 years money has been used to reconstruct roads, the Town has tried to take advantage of some assistance due to disasters. Poverty Plains Road , Mill Street , Newmarket Road and a portion of Melvin Road were all reconstructed from the Road Construction Fund. Next on the schedule is Pumpkin Hill Road and North Village Road ; they are both disintegrating. Selectman Hartman stressed that $200K would not be enough to repair either road; the money would be placed into the reserve because currently there is no money in the reserve. A bond has been considered but it is felt paying as they go is more economical than carrying a 30 year bond.

Highway Equipment $50K – Martha Bodnarik asked if the truck that is scheduled to be replaced costs $30K why did the Selectmen raise the amount to $50K. Selectman Hartman explained the following year the 1986 Mack will need to be replaced for $163K, there is money in the reserve but the Highway Department did purchase a chipper this year. The goal is to fund capital expense items evenly over a period of time. Selectman Carson added that traditionally $110K has been added annually, this year the Selectmen cut it back to $50K.

Bridges $50K – North Village Road bridge is targeted.

Exit 9 $5K – Planning Board Chair Barbara Annis said no definite decision have been made on anything regarding exit 9. She said she is in the process of researching a grant that has come available.

Kimberley Edelmann moved to meet on Wednesday, December 16 and finish the capital budget and discuss the information that will be placed in the Newsletter. Motion was seconded. The Committee decided to meet on December 17^th. All were in favor, the motion passed.

6. Adjournment

Motion was made and seconded to adjourn at 9:12 p.m.

Respectfully submitted,

Mary Whalen

Recording Secretary