Budget Committee

Minutes

February 7, 2009

Official as of April 8, 2009

Chairman Daniel McNally calls the meeting to order at 9:12 a.m.

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

ABSENT: Babette Morrill, and Herb Johnson; both excused.

PUBLIC: Ginger Dole, Betsy Colburn, and Bunny Behm

SCHOOL BOARD MEMBERS PRESENT:
Dave Ruth School Board Member, Principal Esther Asbell, and Interim Superintendant Dr. Ludwell.

Mr. McNally explains that this meeting is to review petition warrant articles and to address any other business that may come before the board. Mr. Dill states that the town has not received any petition articles. 

Ms. Behm asks how this meeting can be held as it was noticed for petition articles. Mr. McNally explains that the posting was amended. He read the public notice into the record and it notes that it was posted January 29, 2009. 

SCHOOL PUBLIC HEARING
Warrant Article
Article 2: Ms. Pingree explains that the teacher’s contract is a two year contract with a total of 2.5% increase for both years. She states that long term disability has been added along with an increase to club and athletic stipends, and an increase to workshops. She adds that the total for 2009-2010 is $113,897 and the increase to 2010-2011 is $100,195. Ms. Pingree states that the total percentage increase to the budget, should everything pass, would be 3.63%. Ms. Pingree continues and explains a breakdown provided relative to cost per household.

Mr. Dill states that he thought the contract was a three year contract. Ms. Pingree states that based on the timeline and the economy, the school board was able to reach an agreement for a two year contract instead of three years.  Additional discussion is held regarding the fact that much of the information relative to the contract negotiations is a non-public issue. However, Dr. Ludlow states that the increase to the teachers’s salaries is 2.5% and is the lowest of the three districts. The increase at Nottingham is 3%, and in Strafford the increase is 2.75%. He states that a 2.5% increase is respectful as far as an attempt to provide some increase to the teachers and be responsible as a school district. Further discussion is held regarding the percentage between steps. Dr. Ludlow explains that the schedule is not indexed; however, the average would be a 2-3% increase per step. 

Ms. Pingree continues through the packet of materials provided with the warrant, noting the warrant article has accurate figures and an analysis of teacher’s salaries graph per district and the state’s average. Ms. Pingree states that the school board felt that it was important to move new teachers who are on the first step in order to be competitive with other schools. Dr. Ludwell states that generally it is a two-to-one ratio of the difference of the beginning and ending salaries. He adds that it appears to be higher than this on the graph; however, he states that Northwood does have a more experienced teaching staff, which would move the average up. He adds that the best that Northwood can offer is the lowest of the three beginning salaries and tie for the bottom of the top salary. He states that he believes that this proposal is a very responsible but, unfortunately, is a limited proposal.

Ms. Dole states that she can see the increases connected as far as the salaries and cost items. She asks if the negotiating team came up with any types of savings. She adds that for years the budget committee and tax payers have requested that benefits be addressed as it is the highest cost items involved with the contract. She asks if the school board was unsuccessful in getting any savings. Ms. Pingree replies that there were some savings; however, it is not in health insurance as this was not addressed this year. She explains that the savings is noted in the stipends for athletics and clubs. She refers to the prior contract and states that stipend increased annually. This year the school board asked the teachers to allow them to re-allocate and increase for the upcoming year; however, there will no longer be annual increases to club stipends. There will be some savings in these items.

Ms. Dole states that the saving is only a few hundred dollars. She adds that past boards have assured the tax payers that this is something that would be addressed and the current board has chosen to not address the costliest issues that the tax payers face. She states that she is extremely disappointed and adds that this part of the school board’s job is to protect the tax payer. Mr. Ruth notes that there are former board members present and asks what the savings were for the last contract. Ms. Dole responds that she was a school board member 15 years ago and does not recall; however, this does not eliminate that the past few boards all said they would address these issues and have not.

With no further comments or questions from the public, Mr. McNally recesses the public portion and the board enters into their work session.

School Warrant Articles
Ms. Edwards makes a motion, second by Ms. McNally, to recommend Article 2, as written. Ms. McNally states that included in the packet provided is a listing of FICA, retirement, and worker’s compensation. She asks if life insurance was adjusted and if it is reflected in the items. Ms. Pingree replies that life insurance would not change. Discussion ensues regarding the life insurance rate at two times the total salary and if the salary was changed, then the life insurance would also change. Ms. Pingree states that the rate would remain the same. Mr. Dill explains that the rate will be a small percentage and the change would be minimal per year. 

Mr. Holden states that the proposed article seems to be reasonable for a normal day; however, these are not normal days. He states that he has reviewed the averages of the other schools in the district and the state’s average. He states that he would need to defer to the tax payers and voters that elected him and acknowledges the comments of the public present. He is concerned with the fact that the district is paying 95% of a single benefit plan which is high today considering what is happening in the private industry. He does not feel that this is in line with the private industry. Mr. Holden states that he will be voting no today on this article due to the comments received from the public present today.

Ms. Holmes states that there is an error on the step increases sheet provided with the dates listed; it should be 2010 and 2011. Ms. Holmes explains that although she and her husband’s social security have increased slightly, their income from investments has dropped drastically. She explains that their household budget will need to be amended as they are facing a loss in regular income. She states that there is no reason for teachers, according to the schedules provided, to make more working less than a year than for someone who has worked all year, sometimes seven days per week. She is appalled that the teachers feel they deserve raises.

Mr. Rick asks if the school board members have suspended their stipends for this year. Ms. Pingree states that the stipends have been suspended and adds that it is noted in the meeting minutes when the budget cuts were being addressed. VOTE: YES: AD, KM, LE, CP, JJ, KA, RB, DM. NO: RH, KR, NH. Motion prevails; 8/3.

Mr. McNally states that there is no other business to be addressed in the work session and the public session resumes.

RE-OPENS the PUBLIC HEARING:
Mr. McNally explains the budget committee voted to recommend article 2 for the contract; 8/3. With no further comments from the public, Mr. McNally closes the public portion. And the committee enters into their regular meeting work session. 

WORK SESSION
Minutes:
January 3, 2009
Ms. Edwards makes a motion, second by Mr. Dill, to accept the January 3, 2009 minutes, as written.

Amended as follows:
Page 1: Change Ferguson to Persons
Page 1: sp ~ negotiations
Page 2: Amend sentence to …that was purchased over the past …
Page 3 Change Doles to Dole
Page 4: Delete …relevant to the… Add: …based.
Page 4: Delete …are… Add: …obtained, they can see…
Page 4: Delete …academic(s)… Add: progress. 
Page 5: Change …is… to …are.
Page 6: Delete …not.
Page 7: Delete …re-added. Add ~ …included in the proposed budget.
Page 7: Delete …for the…
Page 8: Delete …be… Add …contain… 
Page 9: Change incase to in case
Page 13: Amend sentence to …a single quote…
Page 15: Amend sentence to … move the date of the meeting …
Page 15: Delete …discussion(s)…
Page 20: Change Ms. Pingree to Ms. McNally…
Page 20: Change She to Ms. Pingree…

Motion passes unanimously; 11/0.

Ms. Edwards makes a motion, second by Ms. McNally, to accept the January 5, 2009 minutes, as written.
Amended as follows:
Page 1: sp ~ principal’s
Page 4: Delete …of… and …has been provided…
Page 6: Change …E-camp… to …science camp…
Page 7: athletics department motion to be reviewed

Motion and second are rescinded due to the fact that members have a few questions relative to the motion for the athletics department.
Mr. Rick suggests that a marquis be used for notifying the public of meetings at town hall.

Mr. Dill makes a motion, second by Ms. Edwrads, to accept the January 10, 2009 minutes, as written.
Page 2: Add: …request has decreased.
Page 6: Amend sentence to …not receiving revenue for cardboard.
Page 6: Change costs to …revenues…
Page 10: Change shift to …shifts…
Page 11: Amend sentence to …if the system should go down…
Page 12: Change no to …any…
Page 12: Change consider to …considering…
Page 12: Delete …to…
Page 13: Change he to …the…
Page 13: Amend sentence to …a new contract will be provided.
Page 14: Add: …been…
Page 14: Change taxed to …taxes…
Page 20: Add: …model…
Page 23: Change alternative to …additional…
Page 24: Change he to Chief Ashford…
Page 26: Change clerk to …clerk’s…

Motion passes; 10/1. Mr. Holden is opposed.

FEMA Information
Mr. Holden states that at the December 23 meeting, the budget committee requested a spreadsheet regarding the related FEMA expenses. Mr. Dill replies that the town has not received this information to date. He explains that a number was provided and that it was that amount the town used for the paperwork for FEMA. The numbers are still not finalized and no detail is available.

Signature Sheets
Signature sheets are completed for school, water district, and town. Discussion ensues regarding the review of the final forms. Mr. Holden, Mr. McNally, Ms. McNally, and Ms. Edwards agree to review the forms via email.

Meeting Schedule
The next meeting is scheduled for April 8 at 7 p.m. for the first quarterly reports.

Other
The committee graciously thanks Chairman McNally for a great job this year, especially his commitment to attend meetings after surgery.
 
Adjournment
Mr. Bailey makes a motion, second by Ms. McNally to adjourn. Motion passes unanimously at 10:30 a.m.

Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary