Meeting opened at 7:05 p.m.

In attendance: Mike Cutting - Chair, Marc Violette, Barbara Bartlett, Harold Whittemore, David Karrick, Peter Newman, and Selectman Richard A. Cook

Recorder of the minutes is Mary Whalen

Others present:

Phil Lord – Warner Village Water District Commissioner

Peg McLaughlin – WVWD Administrative Assistant

Jim McLaughlin – WVWD Clerk

1. OLD BUSINESS

Marc Violette recommends canceling the December 21, 2006 work session. The operating budget has been presented and meets the 2.5% increase. Next scheduled meeting is January 4, 2007, any questions should be sent to the Town Administrator prior to the January 4^th meeting.

Selectman Cook commented that money may be added to the Capital Reserve for fire equipment. The Board of Selectmen will discuss this at the December 26^th Selectmen’s meeting. Engine 2 and Tank 3 are scheduled for replacement within the next three years. The Committee asked if it is reasonable to consider purchasing a used piece of equipment. The Committee also questioned if it is necessary for three vehicles for the Police Department. Could one cruiser and one 4 wheel drive vehicle be sufficient, Marc maintains that the oldest cruiser is the one seen on the road more than the new one, the newer cruiser is not used on weekends. Marc does not believe the size of the force supports the need for a third vehicle. The Committee asked the Selectmen to consider this. The Selectmen will also discuss this concern. The Budget Committee would like feedback at the January 4^th meeting.

The Committee asked if the proposed Capital Expense in the amount of $10,000 for the Transfer Station remaining in the Capital budget. Selectman Cook understands that the Committee is hoping the Selectmen would reconsider that expense. Selectman Hartman added that himself, Director of Public Works and Paul Fouliard are meeting at the Transfer Station tomorrow morning to see if there is a worthwhile portion of a project to rearrange some of the operation. One idea is to move the compost pile. Harold asked if this is a stand alone project rather than further expansion of the facility. Moving the compost pile is one element that would make the facility less congested. There will be a cost associated with the arrangement. The Committee asked if the congestion is related to the hours the facility is open and is the facility trying to squeeze too much into too few hours. If the hours where expanded would the congestion reduce. Selectman Cook disagrees with Selectman Hartman, Selectman Cook feels the Town should be looking at a longer term. A quick fix of the compost pile may help short term; Selectman Cook feels its time to look seriously at changes to lesson liability and increase efficiency. The vision of the $10,000 was to begin planning.

2. WARNER VILLAGE WATER DISTRICT

Mr. Lord presented a letter explaining the cost for a 200,000 gallon storage tank, 10" water line running from the tank down to North Road and a third well far enough away so that when the two current wells are redeveloped one or the other can be shut down and still maintain water for the Precinct all in the amount of $1,170,800. This project is primarily intended to meet the growing demands for water at Exit 9. The Precinct has applied for and received a grant for $263,000 the Precinct must borrow the remaining $907,800. The letter is asking the Town to consider paying a portion of the annual bond payment ($55,000 per year for 30 years). The goal is to keep the Precinct tax within reason. Selectman Cook asked if the Precinct plans to move forward with the improvements no matter what the Town decides. Mr. Lord said "yes". Marc Violette asked why should Precinct taxpayers pay for an 88 room hotel, the projects that are proposed to be built at exit 9 should pay for this project. Mr. Lord explained that the improvements would be a benefit Town-wide; Exit 9 is a vital and growing part of Warner. Selectman Cook asked when the Precinct figures a tie-in fee, does the fee cover the overall costs of improvements to the system that is needed to provide the service. Mr. Lord explained that the tie-in fee pays for what has been paid for in the past, the rate is based on water usage. The hotel tie in fee can be up to $100,000. Marc is not in favor of Precinct taxpayers subsidizing businesses at Exit 9. Selectman Hartman also agreed that the residents of the Precinct should not be responsible for the added growth of Exit 9. Selectman Cook is concerned that the Precinct is accepting debt prior to any action by the Town, which Selectman Cook feels would be defeated if the Town was asked to pay a portion of the bond on an annual basis. Mr. Newman explained that the Precinct needs a third well and the storage tank increases the capacity which is also needed. Selectman Cook asked if the hotel was on site now would there be enough capacity to deal with them. Mr. Lord explained that as far as the well and the treatment plant is concerned, yes. Barbara Bartlett added that when the wells are serviced the water would be shut down and the Precinct would need to haul in a lot of water. Mr. Lord added that the upgrade is not based on whether the hotel is built or not, it is based on future needs.

3. WARNER VILLAGE WATER DISTRICT 2007 BUDGET

- General Government shows an increase in salaries.

- Office Expense has increased due to the need for a printer and a new tower for a computer.

- Legal increased, the Commissioners will consider reducing the line back down to $1,000 because they do not intend to pursue shutting off water services on North Village Road in 2007.

- Sludge Disposal is budgeted for $9,000 in 2007; the Committee looked at the past history and asked why the line could not be reduced to $7,000.

Mr. Lord explained that the 2007 budget is $120 over from last year for the sewer system.

- Building Maintenance was reduced to $1,000; a new roof has been installed.

- Safety Equipment has been reduced to $500

- Materials & Outside Contracts have been budgeted to cover the refurbishing of manholes.

-Tools has budgeted a $900 cut off saw and a pipe locator that will locate shut-off valves.

- Pump Station Maintenance has budgeted for a new pump and a new alarm system.

The Committee recommends that line 2 and 14 should be looked at; there could be at least a $4,000 savings between the two.

- Electricity has increased

Mr. Lord explained that the Precinct will be able to track the water usage better now that there are new meters being installed; another 50 meters are scheduled to be installed in 2007.

Water testing increased this year due to the line break on North Village Road, testing had to be completed on a daily basis.

The Treatment Plant is now owned free and clear. The Geneva Street Project has paid 7 out of the 29 years. The Mill Street Project, which is complete, is a 10 year loan beginning this year.

4. CAPITAL OUTLAY

The State will pay for fencing only around well 3.

System Improvement I consists of another 50 meters being installed, the cost has increased from $18,500 in 2006 to $22,700 for 2007.

System Improvement II, improvements at Exit 9, the Precinct is still waiting to hear from Rural Development about either bonding the total cost or grants that would be applied. The Precinct should know by their next meeting with the Budget Committee.

5. REVENUE ESTIMATES

FEMA Grant in the amount of $11,684

Precinct Tax has been received; there is an outstanding balance of $2,445

Estimated Revenue amounts to $215,811 for 2007

The Committee asked what the estimated Precinct Tax is for 2007. Mr. Lord estimates around $2.20.

The Committee asked if the water & sewer rate would change. The Precinct does not plan on changing the rate at this time.

The Precinct meets again with the Committee on January22, 2006

Next scheduled meeting is January 4, 2007

Motion to adjourn 8:56 p.m.