Budget Committee

Minutes

January 15, 2009

Official as of April 8, 2009

Chairman Daniel McNally calls the meeting to order at 7:02 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Robert Holden, Selectmen Representative Alden Dill, School Board Representative Colleen Pingree, Water District Representative John Jacobsmeyer, Nona Holmes, Kate McNally, Lucy Edwards, Board Administrator Linda Smith, and Board Secretary Lisa Fellows-Weaver.

ABSENT: Kevin Ash, Ken Rick, Bob Bailey, Herb Johnson and Babette Morrill; all excused.

SCHOOL BOARD MEMBERS PRESENT:
Principal Esther Asbell.

PUBLIC:
Ellen Gibson

WORK SESSION ~ SCHOOL (Continued):
Pages 20-23: Dept. 2620~Maintenance and Operations
Ms. McNally makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $443,998.15. Mr. Holden refers to line 5520/000-Insurance Premium-Building and Contents. Ms. Asbell states that the figure she has $20,688. notes the building only. She adds that contents are not noted to be included on the quote. Ms. Pingree states that a single quote was obtained for budgeting purposes only. Mr. Holden requested to see the quotes when they are done. Mr. Dill explains that there are not many companies to choose from and there will not be a huge difference in the rates. Mr. Dill states that the town’s insurance, Primex, has increased. Mr. Jacobsmeyer states that the insurance for the water district has increased by 10%. 

Ms. McNally notes that the increase to the fuel oil, line 5624/000, is an increase of $9,000. Ms. Asbell states that the school figure is based on last year’s usage and is figured at $3. per gallon. Mr. Dill states that the current price is $4.28 through June 30 and the contract cannot be voided, the town and school have tried. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

A discussion is held regarding the six positions that do not fall under the teacher/paraprofessional contracts and nothing has been added to the budget relative to these positions. Ms. Pingree states that these are not in the budget and the school board has agreed to increase the salaries of these positions by 3% and felt that the amount was reasonable. She adds that the board followed the increase suggested by the town. She refers to a handout of the six positions noting all necessary line items affected by the raise.
Ms. Pingree makes a motion, second by Mr. Dill, to reconsider the necessary lines of the following positions to reflect a 3% increase:
  Technology Director: FICA, and Retirement
  Principal: FICA, and Retirement
  Assistant Principal: FICA, and Retirement
  Finance Administrator: FICA, and Retirement
  Facilities Director: FICA, and Retirement
  Food Service Director: FICA, and Retirement

Mr. McNally discusses past practice and states that typically the board reconsiders the section that they have voted on. He states that the committee has not reviewed or voted on the food service department. 

Ms. Pingree states that some of these contracts will end in the spring and these increases will begin July 1, 2009 for the next school year.

Mr. Holden states that the committee needs to decide what the voters will think in March and a 3% raise does not sound like a lot; however, in the current economic times, it is a lot. Additional discussion ensues regarding the Northwood teachers’ salary scale.

Since food service has not been addressed, the motion and second are rescinded.

Page 23: Dept. 2630~Contracted Service-Rubbish Removal
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $12,150. No discussion is held. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page 23: Dept. 2660~Contracted Service-Fire Alarm Service
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the school board’s amount of $6,680. Mr. Holden refers to line 5430/004-Eleveator Maintenance and states that last year it appears that $1,804. was spent. Ms. Asbell explains that the facilities director spoke with the company who recommended $2,500. as they anticipate an increase for the inspections. She adds that it will not be spent if it is not used. Mr. Holden asks if the elevator maintenance is sent out to bid. Ms. Asbell replies that she is not sure.
VOTE: YES: AD, NH, KM, LE, CP, JJ, DM. NO: RH. Motion prevails; 7/1.

Page 23: Dept. 2690~State Mandated-Water Testing
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $2,350. Mr. Jacobsmeyer refers to line 5410/000-Water Testing and states that the amount of $250. is not necessary. He states that this was a previous error and has been carried over and never used. He explains that the water district tests the water every month in the school as it is required by the state. Mr. Jacobsmeyer amends the motion, seconded by Mr. Holden, to reduce line 5410/000 by $250. to $2,100. Ms. Asbell states that she is unsure as to the purpose of this line. She tries to contact the facilities director to no avail. Mr. Jacobsmeyer states that the tests conducted by the water district are required by the state and must be done by the water district. He adds that they test for lead and copper around the drinking fountains. These tests are done monthly with a schedule determined by the state. Amendment-VOTE: YES: RH, NH, JJ, DM. NO: AD, KM, LE, CP. Motion does not prevails; 4/4. Original Motion-VOTE: YES: AD, NH, KM, LE, CP, DM. NO: RH, JJ. Motion prevails; 6/2.

Pages 23-24: Dept. 2721~Elementary School Transportation
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the school board’s amount of $416,352. Ms. McNally asks what the average is of students who ride the high school bus daily. Ms. Asbell explains that the amount varies based on weather conditions and high school scheduling. Ms. McNally suggests that the title of the 2721 category be changed to School Transportation since this category also includes transportation for CBNA. 

Ms. Dill asks if the transportation will be going out to bid for 2009-2010. Ms. Asbell states that this year is the last year of a three year contract. There will be a new bid for school year 2010-2011.

Mr. Jacobsmeyer asks if the 3% increase was a part of the contracted agreement and Ms. Asbell replies yes. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page 24: Dept. 2722~Special Education Transportation
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $172,143.90. Mr. Dill notes that the amount budgeted is less than what was spent two years ago. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page 24: Dept. 2724~Athletic Transportation
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $4,960. Mr. Dill asks if this is for both schools. Ms. Pingree replies that this amount is for the elementary school only. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page 24: Dept. 2725~Class Field Trip Transportation
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $7,280. Ms. McNally notes that the amount is less than the actual amount provided for two years ago. She asks if this is due to less field trips. Ms. Asbell explains that each year the school tries to have one filed trip per grade level. The cost varies based on the distance; however, the average is approximately $600.

Mr. Holden notes that the 2008-2009 budget lines in this department were cut to $3. and asks if this was due to removing field trips for this year. Ms. Asbell replies yes. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page 24: Dept. 4200~Architect and Engineering
No discussion is held as there is no money allocated to this department. 

Pages 24-25: Dept. 5100~Payment of Interest
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $389,941.25. Mr. Holden asks if these are the actual required numbers. Ms. Asbell replies yes.

Mr. Dill asks what this is the payment of. Ms. Asbell replies that this is for the new building and the loan is for 15 years. Ms. Pingree believes that there are seven years left.

Mr. Jacobsmeyer feels that the line items are incorrectly marked and should be interest and principal. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Pages 25-26: Food Service
Page 25: Dept. 3120 Food Service Operations
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the school board’s amount of $168,661. Mr. Dill notes that the salary of the food service director is less this year due to a new director, line 5110/001. Ms. Pingree refers to the updated salary sheet provided tonight, which includes the 3% increase approved by the school board for a new salary total of $28,842.06.

Mr. Jacobsmeyer notes that the food/milk line is less, line 5630/000. Ms. Asbell explains that the decrease is due to the analysis completed by Mr. Demko who felt that the amount budgeted last year, $47,000., would be sufficient. Mr. Holden adds that the food/milk line projected through June 30, 2009, is $44,400. VOTE: YES: RH, AD, NH, KM, LE, CP, DM. NO: JJ. Motion prevails; 7/1.
Ms. Pingree makes a motion, second by Mr. Dill, to reconsider the following line items for the following positions to reflect the school board’s recommended 3% increase:

2225-5110-002/Technology Director: 3% Increase $1,792.20
2225-5220-000/FICA: Additional $137.10
2225-5232-040/Retirement: Additional $162.91
SALARY TOTAL: $61,532.20

2410-5110-101/Principal: 3% Increase $2,457.
2410-5220-000/FICA: Additional $187.96
2410-5232-020/Retirement: Additional $171.01
SALARY TOTAL: $84,357.

2410-5110-102/Assistant Principal: 3% Increase $1,965.60
2410-5220-000/FICA: Additional $150.37
2410-5232-020/Retirement: Additional $136.81
SALARY TOTAL: $67,485.60

2510-5110-000/Finance Administrator: 3% Increase $1,260.
2510-5220-000/FICA: Additional $96.36
2510-5232-040/Retirement: Additional $114.53
SALARY TOTAL: $43,260.

2620-5110-901/Facilities Director: 3% Increase $1,366.11
2620-520-000/FICA: Additional $104.51
2620-5232-040/Retirement: Additional $124.18
SALARY TOTAL: $46,903.11

3120-5110-001/Food Service Director: 3% Increase $840.06
3120-520-000/FICA: Additional $64.26
3120-5232-040/Retirement: Additional $76.36
SALARY TOTAL: $28,842.06

Additional Amount to Budget Total: $11,207.36.

VOTE: YES: RH, AD, NH, KM, LE, CP, JJ. NO: DM. Motion prevails; 7/1. Mr. McNally explains that a number was presented at the first public hearing by the school board. There will be a number presented at the second public hearing and will be the recommended figure of the budget committee. Mr. McNally states that it will appear that the budget committee has raised the school’s budget. Ms. Pingree adds that during the public hearing she did explain that the increases were not allocated in the budget. Ms. McNally adds that the figures have always come forward as whatever the amount the school board has agreed to, understanding that the figures are determined when the performance reviews are completed. She adds that the only item that has been modified is the CBNA tuition line based on trustees; therefore, it does appear that the budget committee did, in fact, increase the budget when, in fact, the school board did not bring the information forward.

A discussion is held regarding the new bottom line total. Ms. Pingree states that the budget reflects the school board’s amount and the committee will need to reduce their recommendations from this document.  

Ms. Edwards makes a motion, second by Mr. Dill, to add $11,207.36, which is the adjusted salary and applicable lines, per worksheet provided, for the aforementioned six positions.

Mr. Dill asks if a wage study has been done recently. Ms. Asbell states that the wages in Northwood are less. She explains how the school’s salary of the principal compares to other schools in the state of the same size. She adds that the information has been gathered from the NH School Principals Association, a book showing this year’s salaries for schools similar in size with a K-8 configuration.

TOWN STUDENT POPULATION PRINICPAL’S SALARY
Auburn 562 Students $88,000
Barnstead 536 Students $84,086
Candia 462 Students $80,627
Conway 312 Students $88,562
Deerfield  514 Students  $81,772
Epsom 447 Students $77,020
Fall Mountain 469 Students $81,120
Greenland 360 Students $92,925
Henniker 428 $80,000
North Hampton 490 $93,215
Plymouth  420 $80,000
Alton  600 $89,250
Strafford 460 $85,830
Nottingham  512 $85,169

Ms. McNally asks how Ms. Asbell’s qualifications compare. Ms. Asbell replies that the other principals in SAU 44 have Master of Education degrees. She states that she has a Certificate of Advanced Graduate Study (C.A.G.S.), which is a post-master’s level certificate, as well as a superintendent certification which neither of the other SAU principals has. VOTE: YES: AD, NH, KM, LE, CP, JJ. NO: RH, DM. Motion prevails; 6/2.

New school bottom line total is $11,851,028.80. This has been determined by reducing $14,999. from computers, line 2225/5737/001-Replacement of Equipment, and adding $11,207.36, which is the total of the 3% increase proposed by the school board for six non-contractual positions.  

Warrant Articles
1. School Operating Budget: Amount is $11,851,028.80.

2. Collective Bargaining Agreement: No figure has been provided and no further discussion is held.

3. Special Meeting: No discussion is held.

4. Accepting Provisions of RSA 198:20-b: No money is involved.

5. $10,875. Lighting Proposal: Ms. Edwards makes a motion, second by
Mr. Dill, to recommend the warrant article for $10,875. for the upgrade to the lighting, as written. Mr. Dill asks if the school board has voted on the
warrant articles and if the articles have all passed. Ms. Pingree replies yes. Ms. McNally requests the vote count and Ms. Pingree replies that the vote count was 4-in favor, and 1-unavailable. Ms. McNally then asks about the 3% salary increases. Ms. Pingree explains that the votes for the salaries were conducted via phone. Ms. Smith asks is there was a public meeting held and adds that the public must be able to be present when voting of record is conducted. Ms.
Pingree states that this process has been done before and adds that she was at the SAU.

Discussion ensues regarding votes on warrant articles. Ms. Smith states that the budget committee can not vote on a warrant article that has not been voted on by the school board at a noticed, public meeting. Ms. Pingree states that the salary increases were discussed at a meeting but were not voted on to add to the budget. Ms. Smith asks if the 3% increases presented earlier tonight were voted on at a public meeting. Ms. Pingree states that the increases were discussed at a public meeting; however, were not voted on at a public meeting. Ms. Smith questions if the budget committee should have even consider discussing the increases, since this is not a recommended figure of the Northwood School Board.

Mr. Dill asks what the difference is between a member of the budget committee providing a worksheet, rather than the school board. Ms. Smith states that the increase sheet has been submitted to the budget committee as a school board recommended amount and it was presented as such. She adds that the handout was not presented as a suggested amount of figures for increases from a member of the budget committee.

Mr. Holden asks if it would be possible for the school board to hold a public meeting to vote on the increases so that the budget committee could proceed. Discussion ensues regarding holding another work session and when the school board is meeting again

Ms. Smith suggests that the committee vote to strike the record. Ms. Edwards makes a motion, second by Ms. McNally, to strike the vote based on the information that was just received that the proposed changes to increase salaries of the aforementioned six positions totaling $11,207.36 has not been recommended by the school board. VOTE: YES: RH, AD, NH, KM, LE, JJ, DM. NO: CP. Motion prevails; 7/1.

Ms. McNally states that at a previous meeting it was stated that the articles were being reviewed by the school’s attorney. She asks if the new documents reflect the review of the school’s attorney. Ms. Pingree states yes and adds that there is an additional article tonight as well.

Ms. McNally states that she thought the gymnasium lights had been replaced at some point. Ms. Asbell replies no, the lights have not been changed. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0. 
 
6. $16,300. Heating Controls Upgrade: Mr. Dill makes a motion, second by Ms. Edwards, to recommend the warrant article for the upgrade to heating controls in the amount of $16,300., as written. Ms. McNally asks if all 3-8 classrooms are in the new building. Ms. Asbell replies yes and adds this warrant article will replace the thermostats in all 3-8 classrooms that are in the new buildings. In addition, Ms. Pingree states that over the course of 2-3 years there will be a savings. Ms. Asbell adds that the savings will be 30-40%.

Mr. Holden states that he will be voting no on this article, although he feels it is a good idea; however, he would recommend waiting until next year for the upgrade. VOTE: YES: AD, NH, KM, LE, CP, JJ, DM. NO: RH. Motion prevails; 7/1.  

7. $25,000. Capital Reserve Fund– RSA Ch. 35: Mr. Dill makes a motion, second by Ms. Edwards, to recommend the warrant article for $25,000. to be placed into the capital reserve fund, as written. A discussion is held regarding the current balance. Ms. Pingree states that she believes the amount is $115,000. Ms. McNally notes that the document is dated 12-31-08 and asks why something more recent is not available. Ms. Pingree states that with the current situation with the books, they are being meticulous with the figures and are making sure that the figures provided are accurate. VOTE: YES: AD, NH, KM, LE, CP, DM. NO: RH, JJ. Motion prevails; 6/2.

8. $25,000. Capital Reserve for Capital Improvements: Mr. Dill makes a motion, second by Ms. Edwards, to recommend the warrant article for $25,000. to be added to the capital reserve fund for capital improvements, as written. VOTE: YES: AD, NH, KM, LE, CP, DM. NO: RH, JJ. Motion prevails; 6/2.

Mr. Dill suggests that the wording for articles seven and eight be changed as the articles are very similar and it may cause some confusion.

9. $100,000. Roof Repair: Ms. Edwards makes a motion, second by Mr. Dill, to recommend the warrant article for 100,000. for roof repairs, as written. A discussion is held regarding this project and the placement of the funds. Mr. Dill states that this is worded so that the funds will be added into the existing capital improvement fund. He asks why not have just one warrant article for improvements or have another fund specific to the roof project. Ms. Pingree explains that the intent for the article is for the roof.

Ms. Edwards recalls a lengthy discussion at a selectmen’s meeting relative to repairs, maintenance, and capital improvements. She states that wording needs to be specific in how to designate funds and have a specific purpose. Ms. McNally feels that this is not a capital improvement. Mr. Holden likes how the items have been separated out as it identifies where the funds will be spent. 

Ms. Pingree states it is the intent of the school board to separate the items to continue to add $25,000 in the fund for unforeseen issues. She adds that the articles have gone to counsel for review.

Mr. Jacobsmeyer notes that article wording is the same except for Article 8, which states that the school board is named as the agents to expend the funds. Ms. Pingree states that she will ask the school board to revise the articles to avoid confusion and will note to add roof repair specific to Article 9. Mr. McNally states that the naming of agents is usually a separate article.

Ms. Edwards withdraws her motion and Mr. Dill withdraws his second.

Ms. Smith refers to Article 7 and notes that this article is also a capital reserve fund, and it appears that there is a change in naming the school board as agents of this article as well. She asks if the committee members were clear in understanding that this was a change as well when the vote was taken. Ms. Edwards states that she did not understand that this was the intent of the article and Mr. Jacobsmeyer agrees. General consensus of the committee is that this was not clear when the vote was taken.

Ms. Smith suggests the committee remove the recommendation and request the school board to clarify Article 7. Ms. Pingree states that the school board as agents should not be added to the article relative to the building improvement fund. She states that the school board, as agents, has been added to the special education capital reserve fund because the board is requesting that this fund be an expendable trust fund. Ms. Edwards explains expendable trust funds and states that the purpose is to have an agent so that in an emergency the agents do not need to wait until town meeting to address the issue. Discussion ensues regarding the process and Ms. Pingree states that she believes that the articles are correct as they have been reviewed by the school’s attorney.
 
Mr. McNally explains that the committee can only reconsider the specific topic once and the committee should wait to address these articles until the school board checks the wording and the information is provided to the committee. Ms. Smith expresses concern with the fact that members have stated that they did not understand the intent or they question that the information presented was a legal option to be voted on. Ms. McNally states that the votes taken have been based on uninformed information.

The committee agrees to leave the votes as is until additional information is provided and no further action is taken relative to the school budget. No vote is  taken on Article 9.

WORK SESSION ~ TOWN:

Page: 1: Dept. 41301~Selectmen
Mr. Dill makes a motion, second by Ms. McNally, to recommend the selectmen’s amount of $11,250.25. Ms. Edwards amends the motion to reduce the line to $10,751.25, second by Mr. Dill. Mr. Dill states that per discussion, the reductions are to the training, line 820 to reduce to $300., and to line 830, travel, reduce to $1.

Mr. McNally calls for a recess at 8:45. Session resumes at 8:49 p.m.

Amendment-VOTE: YES: AD, NH, KM, LE, CP, JJ, DM. NO: RH. Motion prevails; 7/1.

New department total is $10,751.25. Original Motion-VOTE: YES: AD, NH, KM, LE, CP, JJ, DM. NO: RH. Motion prevails; 7/1.

Page: 1: Dept. 41302~Town Administrator
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the selectmen’s amount of $84,540.43. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page: 1: Dept. 41303~Moderator
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the selectmen’s amount of $215.30. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Pages: 1-2: Dept. 41309~Executive Office
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the selectmen’s amount of $167,956.82. Ms. Holmes asks if the contracted services can be reduced, line 330. Ms. Smith states that this includes rental agreements, maintenance agreements, and copier lease. Mr. Dill replies that he will provide a breakdown for the next meeting. The motion and second are withdrawn.

Page: 2: Dept. 41401~Restoration of Records
Ms. Edwards states that she believes that this is for rebinding of the old records. Ms. Holmes asks why nothing was spent from this line last year. Ms. Smith states that this is an ongoing process and adds that the town reports are bound every five years and that may be a part of this line. Mr. Dill states that he will find out more about this line.

Page: 2: Dept. 41402~Voter Registration
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the selectmen’s amount of $2,553. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page: 2: Dept. 41403~Elections
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the selectmen’s amount of $1,822.95. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0. 

Pages: 2-3: Dept. 41501~Finance Administration
Ms. Edwards makes a motion, second by Mr. Dill, to recommend the selectmen’s amount of $73,001.08. VOTE: YES: AD, NH, KM, LE, CP, DM. NO: RH, JJ. Motion prevails; 6/2. 

Page: 3: Dept. 41502~Audit Services
Ms. Edwards makes a motion, second by Ms. McNally, to recommend the selectmen’s amount of $16,200. Ms. Holmes asks if the town has a contract for this service. Mr. Dill explains that the town is in a contract at this time for the 2007 audit. The selectmen plan to go out to bid for the 2008 audit. He adds that this figure is what the current company has provided to the town for audit services for 2008. He notes that there are not too many options available when it comes to companies that provided this service and what is required. Mr. Holden states that a $4,000. increase is a large amount to increase over one year. VOTE: YES: AD, NH, KM, LE, CP, DM. NO: RH, JJ. Motion prevails; 6/2. 

Page: 3: Dept. 41503~Assessing Administration
Mr. Dill makes a motion, second by Ms. Edwards, to recommend the selectmen’s amount of $56,837. Mr. Holden refers to line 330/Contracted Services, and asks why there is such a large increase proposed. Mr. Dill replies that this is the last year of a five year contract. Ms. Edwards adds that the town will be re-assessed this year. Mr. Dill notes that the salary has also increased. Mr. Jacobsmeyer states that he feels that the selectmen are under estimating the amount of this line due to the economy and reduction of home values. VOTE: YES: RH, AD, NH, KM, LE, CP, JJ, DM. Motion prevails; 8/0.

Page: 3: Dept. 41504~Tax Collector/Town Clerk
Mr. Dill states that he has a spreadsheet of information from the town clerk/tax collector relative to the contracted services, line 330. Copies will be provided at the next meeting.

Bob Holden makes a motion to recess to Tuesday, January 20; 7:00 p.m. Lucy Edwards seconds the motion. The motion passes unanimously 8/0 at 9:00 p.m.

Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary