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Budget Committee Minutes January 28, 2006 Oficial as of May 30, 2006
Chairman Dan McNally calls the work session to order at 9:10 a.m.
PRESENT: Chairman Dan McNally, Vice-Chair Shelley Bobowski, Selectmen Representative Scott Bryer, Ben Edwards, Nona Holmes, John Jacobsmeyer, Mark Edwards, Steve Foley, Board Administrator Linda Smith, and Board Secretary Lisa Fellows-Weaver. Douglas Briggs arrives at 10:39. Bob Jean arrives at 11:00.
ABSENT: Richard Gendron, Robert Jean, and Cindy Jones-Bryer (excused). Robert Bailey.
PUBLIC: Ginger Doles, Doug Shaffer, reporter from Fosters Daily Democrat.
SCHOOL BUDGET:
SCHOOL REPRESENTATIVES PRESENT:
Steve Foley School Board Chairman, Judy McGann Superintendant
Page 2: Dept. 1100/563 – Tuition-Coe Brown:
Mr. Foley provides updated information relative to Coe Brown tuition rates. He states that the CBNA tuition rate was budgeted for 8% and came in at 8½%. for a total of $3,166,156. Mr. Foley states that the school board and the budget committee have amended their figures according to that number.
Page 4: Dept. 1200/563 – Spec. Ed. Tuition-Coe Brown:
Mr. Foley states that this line changed as it has been reduced to $576,190.
Page 19: Dept. 5200 – Total General Fund Operating Budget:
Mr. Foley states that the school board’s recommended amount for the total general fund operating budget is $9,787,436.41.
Page 21: Dept. 3100 – Food Service:
Mr. Foley states that the school board’s recommended amount for the total for Food Services is $140,133.
Total Operating Budget:
Mr. Foley states that the school board’s recommended amount for the total operating budget is $9,927,569.41.
Proposed Budget Committee Total General Fund Operating Budget:
Mr. Foley states that the budget committee’s recommended amount for the total general fund operating budget is $9,870,087.07.
Proposed Budget Committee Total Food Service:
Mr. Foley states that the budget committee’s recommended amount for food services is $140,133.
Proposed Budget Committee Total Operating Budget:
Mr. Foley states that the budget committee’s recommended amount for the total operating budget is $10,010,220.07.
Warrant Articles:
Mr. Foley explains that there have been two changes since the original public session; Article 1 and Article 6.
Article 1:
He states that an agreement with the teachers has been reached. For 2006-2007 an additional $58,239.25 will need to be raised. He explains that assuming the current staff does not change, 2007-2008 would be an increase of $81,804.97 and for 2008-2009 the increase would be $130,141.52. The large increase for the third year is that the majority of the teaching staff is now in the upper steps so over the next three years the result is the larger increase for steps in the third year.
Article 6:
Mr. Foley states that the amount has changed to $100,000. for the special education reserve fund from contingency fund as there has been another movement in the out of district placements and the amount needs to be increased from $70,000. to $100,000.
Ginger Dole asks if money is removed from the capital reserve fund then does the school board is anticipating that there will be no surplus this year. Mr. Foley replies yes and explains that they are looking at being in the red due to the additional out of district placement change.
Ms. Dole refers to the differences between the school board’s recommended amounts and the budget committees proposed amounts. She asks why the budget committee approved more money than what was asked for by the school board. Chairman McNally explains that the school board was proposing to remove two special education assistant positions. He states that should these two positions be needed, the money would have to come out of the regular education. Ms. Dole states that the school board has been elected to run the schools and if they came to the conclusion that there are other measures that can be taken for special education services, why did the budget committee feel that they knew better than what the school board proposed as being needed by the school. Ms. Dole states that this is not the job of the budget committee. The committee is to balance the requests and needs of the school and town with the tax payer’s abilities to pay. In effect, the budget committee by their actions has stated that the school board does not know what they are doing. She finds this to be very disturbing. Mr. McNally replies that the budget committee was interpreting information from the department’s administrator who actually requested the two positions. Ms. Dole asks if the school board stayed with the figures as they were originally presented even after the public hearings that have been held. Mr. Foley replies yes and refers to Article 3.
School Work Session:
With no further discussion, Chairman McNally goes into a work session to address the warrant articles at 9:27.
Article 1:
Mr. Foley explains that this year has been another trying year for the negotiating team. An agreement has been reached. He explains that there were three goals that the school board was trying to accomplish through the negotiating process; keep the impact to the taxpayers down as low as possible; redefine the step system; and try to contain the health care costs. Two out of 3 were agreed upon. Mr. Foley states that the salaries were kept at 3% for the first year, 4% for the second year, and the third year will be 6%. The reason for the increase was the step between the steps, which is merit pay, either lateral or vertical, and they it become 3½%. Mr. Foley explains that the increases are total increases for salary lines in the third year and will be 6½%. Further discussion is held regarding the step system. He explains that the school board wants to even out the steps and have the increases be the same. At the end of the three years, the steps will be defined in an equitable fashion and will be 3½% throughout the entire system. Ms. McGann explains additional raises to allow the rest of the salary increases to level out. She adds that the school has had a consistent staff. Mr. Foley adds that there will be negotiations for contracts in three years. Mark Edwards states that the town is not rich and the school board should be compromising. Mr. Foley explains there were huge compromises with teachers and the school board. He adds that health care is not adjusted. Mr. Bryer motions to recommend Article 1 as recommended by the school board. Ms. Bobowski seconds. Mr. Bryer asks if the health insurance is a multiple plan. Ms. McGann explains that last year was a negotiating year. She further explains that there were concessions last year and the school board is continuing with their goal to try to get one rate throughout the board. Mr. Foley explains that warrant article amounts are dealt with outside of the budget. This allows the town to speak to the contracted issues; therefore, this amount must be a warrant article. Ms. Smith explains that money can only be used for the specific purpose as noted in the warrant article. Additional discussion is held regarding if the article should fail. Mr. Foley states that the school board would then need to go back to negotiations. He adds that there has been an extraordinary effort to get to this point. Mr. Bryer calls to move the question and Ms. Bobowski seconds. Vote for Article 1: YES: SBob, BE, SBryer, NH, JJ, SF, DM. NO: ME. Motion passes; 7/1.
Mr. Bryer makes a motion to reconsider the school board’s recommended amount of $9,927,569.41. Ben Edwards seconds. A discussion is held regarding the process of reconsidering a motion. VOTE: YES: SBryer, DM, SF, ME. NO: SBob, BE, NH, JJ. TIE - 4/4. Motion does not prevail.
With no further discussion, Mr. McNally closes the school work session and re-opens the school public hearing.
Ms. Dole asks what the overall increase would be to the tax rate if everything were to pass. Mr. Foley replies that the tax rate increase will be approximately $1.60 - $1.70 per thousand.
With no further discussion, Mr. McNally closes the school public hearing and opens the town public hearing.
TOWN BUDGET:
TOWN REPRESENTATIVES PRESENT:
Selectman Lucy Edwards
Total Operating Budget:
Ms. Smith states that the budget committee’s recommend amount for the operating budget is $2,812,079. Ms. Smith states that the difference between the selectmen’s recommended amount and the budget committee is $30,905. Mr. Bryer states that the selectmen’s recommended budget is $2,781,174.
Ms. Dole asks where the differences are. Ms. Smith replies as follows:
$2575. TC/TX for to COLA increase
$245. Treasurer for to COLA increases
$5765. Planning Board for the department’s recommendation for the part time planner position
$246. Road Agent for COLA increases
$22,074 Library reflecting a difference of the part time to the full time position. Ms. Dole asks the selectmen’s representative to comment regarding the proposed increases. Mr. Bryer replies that the selectmen do not agree with the increases. Ms. Dole states that the budget committee voted for more money than what the selectmen had presented and what they feel necessary. Mr. McNally replies that the budget committee again followed recommendations of the departments. Mr. McNally adds that COLA increases were included for all town employees but not for elected officials. The budget committee added COLA to all positions. A discussion is held regarding employees and yearly merit raises. Mr. Bryer states that the there is an approximate 3% raise for employees however, once the employee reaches step 10, they only receive the COLA percentage. Mr. Bryer adds that approximately 2/3 of employees will receive a 7.1% increase, which includes the COLA and merit. Ms. Dole states that not every employee eligible to receive a step this year is getting that step. Mr. Bryer states that to the best of his knowledge, all employees below a step 10 received a step increase. Ms. Dole disagrees and will provide the information. Mr. Shaffer explains that in his work, there is a formula for merit raises and everyone got something. Mr. Bryer replies that the town does the wage study every 3 years.
Town Work Session:
Warrant Articles:
Mr. Bryer states that he believes that the warrant articles are the same as presented at the first public hearing. He adds that any differences are due to expendable trusts and capital reserve funds to show December interests.
Article 1: Fire/Rescue Capital Reserve Fund. Ms. Smith states that t
0his has increased by $72.48 for a new total of $48,162.21. This change was due to December interest.
Article 16: Lagoon Maintenance and Repair Expendable Trust Fund. Ms. Smith states that this has increased by $22.32 for a new total of $8,193. This change was due to December interest.
Article 9: Highway Department Vehicle Purchase. Ms. Smith states that this article has not changed and is not recommended by the selectmen or the budget committee.
The warrant article recommendations from 1/19/06 are reviewed. A discussion is held regarding Article 9. Ms. Dole asks why the article was not recommended by the budget committee. Mr. McNally states that the committee felt that a ¾ ton truck was too small; a one-tone would be more efficient.
Doug Shaffer asks why the legal line for the planning board has been reduced. Mr. Bryer replies that litigations have slowed down and issues have been resolved. Further discussion is held regarding the departments amounts. Mr. Bryer explains that the department requested $100,000., the selectmen recommended $88,345 and the budget committee recommended $94,110.
Ms. Dole asks if there are any final figures of proposed impact to the tax rate. Mr. Bryer replies $1.05. Ms. Dole states that the total impact could be $2.75 - $3.00 for the town and the school and feels that there are residents in town that cannot afford the increases.
With no further discussion, Mr. McNally closes the town public hearing at 10:26 a.m. and opens the water district public hearing.
Water District:
Mr. Jacobsmeyer states that the water districts operating budget is $30,165.35. and the total for expenditures and revenues is the same with no tax increase. Mr. Jacobsmeyer reviews the warrant articles proposed.
With no public comments, Mr. McNally closes the town public hearing at 10:29 a.m. and calls for a recess. Session resumes at 10:39 a.m.
Voting Designations has changed as follows:
Mark Edwards left and Doug Briggs arrives.
Work Session:
Steve Foley, Douglas Briggs, and Dan McNally volunteer to meet, review, and sign all necessary forms.
Mr. Briggs apologizes for his lack of attendance at the budget meetings. A very lengthy discussion is held regarding the tax rate. Other increases are discussed throughout the schools budget; spec. ed, general school district, and CBNA. The overall increase is deemed to be approximately 18.4% - 19% and discussion ensues regarding the town and school portions and the affect this will have on the tax rate, which is proposed to be a $2.80 increase.
Bob Jean arrives at 11:00
Discussion is held regarding the responsibilities of the budget committee. Mr. Briggs comments that an 18.4% increase is not sustainable and to continue at this rate will double the tax rate for Northwood in 4 or so years. Ms. Bobowski makes a motion, second by Bob Jean, to reconsider the town’s budget. VOTE: YES: SBob., SBryer, DB. NO: BE, RJ, NH, JJ, SF, DM. Motion does not prevail; 3/6.
Ms. Bobowski asks why the selectmen did not recommend the purchase of a new cruiser this year. Mr. Bryer states that the selectmen felt that this is the year to take a break. Mr. Bryer explains that there are currently 5 cruisers and only 3 officers are on duty at one time. Mr. Bryer explains that the selectmen do not have any control over the police department and operations, as the town has a police commission. He adds that the 5th cruiser is just for details. Further discussion is held regarding maintenance and mileage of the cruisers.
A discussion is held regarding the roads plan. Mr. Bryer explains that the town has contracted Underwood Engineering and a report was issued for maintenance on the town’s roads. The engineering report states that $310,000. must be spent on the roads this year for upkeep and construction. Mr. Bryer explains that there is a list of roads and repairs to be done over the course of the next 5 years. Mr. Bryer states that historically the town has not been putting enough money into the roads, as it should have been. He states that this is an area that the selectmen agree with. In addition, the highway advisory committee was reactivated and much time was spent on this issue at monthly meetings along with the town’s engineers.
A discussion is held regarding the improvements to the General Government Buildings. Mr. Bryer states that if the warrant article passes, the operating budget would be reduced by $35,000. $10,000 would remain for emergencies. Additional discussion is held regarding the community building and the purpose of the building. Mr. Bryer states that the facilities committee met with selectmen and recommended keeping the building for storage for town records. The $7,000 proposed would be used for repairs such as siding to cover the building and other general repair items. Ms. Edwards states that also included in this section is a new roof for a fire station, work to the community center, and additional parking for the library.
Ben Edwards states that he would like to thank Ms. Boboski for her efforts in reviewing the materials.
Mr. Jacobsmeyer reviews the revenues of the town. He states that additional tax revenue was brought in from 04 - 05. The revenues are down and he feels that this is not a year to be adding money into the capital reserve funds.
Mr. Briggs asks if there is any kind of format that could show figures comparing other town’s populations, increase and decrease of populations, amount of money being spent in particular departments for specific items. Mr. Bryer replies that employee’s salaries are based on population of other towns, which is provided in a book. He further explains that as far as roads, there are highway block grants, which is based on state highways throughout town. Mr. Foley states that the school board does review other school districts for actual spending comparison. He adds that if there appears to be an area where amounts are really far off, then the school board does investigate. He adds that they are usually all very similar.
Ms. Bobowski makes a motion, second by Mr. Jean, to recommend $2,812,079. as the operating budget. VOTE: SBob, BE, RJ, NH, JJ, DB, DM. NO: SBryer, SF. Motion passes; 7/2.
Minutes:
Scott Bryer moves to accept the minutes of April 20, 2005, as written. Steve Foley seconds. Motion passes 7/0/2. Nona Holmes and Ms. Bobowski abstain.
At 12:11 p.m. Chairman McNally calls for a recess to Saturday, February 11, 2006.
Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary
Town of Northwood
Budget Committee Minutes
1/28/06
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