Budget Committee

Minutes

October 25, 2006

Official as of February 10, 2007

Chairman Dan McNally calls the work session to order at 7:15 p.m.

PRESENT: Chairman Dan McNally, Vice-Chair Shelley Bobowski, School Board Representative Bill Tappan, Water District Representative John Jacobsmeyer, Robert Bailey, Catherine McNally, Colleen Pingree, Nona Holmes, Mark Edwards, Herb Johnson, Board Administrator Linda Smith, and Board Secretary Lisa Fellows-Weaver. Bob Jean arrives at 7:30. Selectmen Representative Scott Bryer arrives at 8:20.

ABSENT: Cindy Jones-Bryer, Ben Edwards, and Douglas Briggs.

SCHOOL REPRESENTATIVES: Business Administrator Kathleen Sargeant and School Board Chair Bernice Raffaele. 

PUBLIC: Tom Chase

MINUTES: The minutes were not addressed.

SCHOOL:
Audit:
Mr. Tappan, school board representative, explains that the audit has not been presented from the auditors, at this time. 

A discussion is held regarding the audit. Ms. Sargeant explains that the field work was completed in September; figures should be received in December. Mr. McNally states that the board was not able to reconcile figures at the September meeting. Ms. Sargeant replies that the DOE 25 was completed and  figures are not yet available. Mr. Tappan adds that he is surprised that the audit has not been received. He reiterates that the school board will have something from the auditors in December.

Mr. Tappan explains that this is the new software formatting for the budget and the headings are the software’s standard headings. They are looking to see if the headings can be changed. 

Operating Budget:
Areas reviewed are as follows:

Dept. 1100/Regular Education:
1100-5211/Health Insurance: Mr. Tappan explains that the health insurance includes all district employees and is combined for confidentiality. 

1100-5219/Buyouts: Mr. Tappan explains that this line is over (29.20%) as employee(s) have opted for the buyout of the health insurance.
A discussion is held regarding encumbered funds.  Ms. Sargeant explains that encumbered items will be encumbered through to the end of the year; electricity, tuition, fuel oil. She adds that it is easier to manage.

Dept. 1200/Special Education:
1200-5110-020/ Special Education Teacher Salaries:
Mr. Tappan explains that the overage is due to a personnel step change.

1200-5110-050/ Special Education Secretary Wages:
Mr. Tappan states that there could be a data entry error in this line. It will be adjusted to be $0.

1200-5563-000 and 5569-000/Tuitions:
Mr. Tappan explains that there was a difference between the budgeted amount and the encumbered amount. This figure is encumbered to actual enrollment.

Dept. 1300/Vocational Education:
1310-5561-000/Vocational Tuition:
Ms. McNally asks about the vocational tuition line. Ms. Sargeant explains that the vocational tuition will be encumbered and has not been encumbered to date.

Dept. 1420/Athletics:
Mr. Tappan states that there is a substantial difference between the budgeted amount and the amount remaining. He adds that this department is encumbered at two different times of the year.

Dept. 2120/Guidance:
Mr. Tappan explains that the difference in this department is due to a personnel change. Other associated cost changes are noted in the F.I.C.A. and retirement due to the personnel change.
 
Dept. 2130/Nurse’s:
01-2130-5110-203/Nurse’s Assistant Wages:
Mr. Tappan explains that the difference in this department is due to a salary increase due to a step change. Other associated cost changes are noted in the F.I.C.A. line 01-2130-5220-000.

Dept. 2150/Speech:
01-2150-5610-001/Speech Supplies:
Mr. Tappan explains that this overage is due to the need for more supplies.

Dept. 2140/Contracted Services:
01-2140-5310-005/ESL:
Mr. McNally asks about the balance in this line. Ms. Sargeant states that this is for services for certain students and the SAU bills the Town of Northwood, after the fact. She adds that they will probably spend the entire amount.

Dept. 2310/School Board Services:
Mr. Tappan explains that there are a few lines that will be adjusted in this department. The $2200 listed 01-2310-5580-001/School District Officer Expenses is for treasurer’s travel and supplies. These will be changed to add $2200 under line Office of the Principal/01-2410-5580-000 for the travel. Supplies should be listed under line Office of the Principal/01-2410-5610-182. Mr. Tappan adds that 01-2310-5580-002/ Election Day Expenses will be moved to Office of the Principal/01-2410-5610-182 as this is supplies for the ballots.

Mr. Edwards asks what line 01-2310-5500-000/Police is for. Ms. Sargeant replies that this is for police services for safety at games, etc. 

Mr. Tappan explains that 01-5810-000-School Board Dues and Fees (NHSBA) is over due to the increase for the training and dues for NHSBA.

Dept. 2410/Office of the Principal:
01-2140-5110-101/Principal Salary:
Mr. Tappan explains that this line is over due to a personnel change. He adds that the Secretarial Wages/01-2410-5110-501 is also over due to a step change. FICA and retirement will also be over due to these changes. 

Dept. 2510/Fiscal Services:
01-2510-5110-000/Finance Assistant Wages:
Mr. Tappan explains that this line is over due to overtime related to the new finance software system. He notes that FICA and retirement will also be over due to the overtime; 5220-000 and 5232-040.

01-2510-5442-000/Computer Support-AD:
Mr. Tappan explains that ADS is the new software and the overage is for the grant tracker, which is another modular software. It is for support, not licensing fees.

Dept. 2620/Maintenance and Operations:
01-2620-5110-901/Facilities Director Salary:
Mr. Tappan states that this increase is due to a board decision for a salary increase.

01-2620-5110-902/Custodial Wages:
Mr. Tappan states that this is a staff change. He adds that FICA and retirement lines have changed related to this staff change.

A discussion is held regarding contract negotiations for transportation. Mr. Edwards asks about the timing of re-negotiating the contracts. Mr. Tappan replies that the contract was negotiated 5 years ago. Ms. Raffeale states that the school board is in the process of putting the bus transportation out to bid.

01-2620-5500-000/Bldg. and Contents Insurance:
Mr. Tappan states that there is a change due to the need for additional items; personal computers and a tractor.
 
01-2620-5622-000/Electricty:
01-2620-5624-000/Fuel Oil:
Mr. Tappan states that these lines will be fully encumbered amounts.

Dept. 2721/Elementary School Transportation:
Mr. Edwards asks if the town is receiving federal funding. Mr. Tappan states that the school is receiving grant money but not for transportation. Ms. Sargeant explains the billing. She states that the reimbursement amount changes yearly. 
Further discussion is held regarding 2721-5519-003/Vocational Transportation. Mr. Tappan explains that there was nothing budgeted for vocational transportation, which explains why the amount remaining is a negative balance. He adds that the board will be wiser for budgeting purposes next year for this line item. 

Dept. 5100/Payment of Interest:
Mr. Tappan states that there will be an adjustment made in this department and adds that this will be fully encumbered. Ms. Sargeant adds that this is a change in the process.

Food Service Expense Review:
04-3120-5110-001/Food Service Director:
Mr. Tappan explains that the food service director line is over due to a salary increase.

04-3120-5110-002/Food Service Wages:
Mr. Tappan states that this line is over due to a salary increase. He adds that the FICA line is also due to the salary increase.

04-3120-5810-000/Dues and Fees:
Mr. Tappan explains that this overage is due to estimating the dues and fees amounts. 

A discussion is held regarding the health insurance issues. Ms. Sargeant explains that this area needs to be lumped together for confidentiality purposes.

Mr. Edwards asks if the food service area is a concession or is it administered by the school. Ms. Sargeant states that the food service is a different fund; a separate fund. She adds that the food service is also subsidized and the law states that there must be food service available; the school must feed the kids.

A discussion is held regarding the school’s health benefits. Ms. Smith states that previous documents have shown that part time employees receive full time benefits. Ms. Sargeant explains that benefits are not at 100%. It depends on which program the employee is enrolled in. She adds that there are also two different unions. Ms. Smith states that referring to the previous data, it was her understanding that employees were getting a full percent of the benefits when they were only part time, working 18 hours, and getting a single benefit. Ms. Sargeant states that this is not happening now. She explains that a union agreement exists and is followed; it is very specific. Copies of the union agreement are public information and can be reviewed. 

A discussion is held regarding another work session. Suggestions are made for 11/8 and 11/15. No decision was finalized.

A discussion is held regarding materials needed from the town and school. A previous list is provided and reviewed. 

Scott Bryer arrives at 8:20 p.m.

A discussion is held regarding encumbered funds and the dead lines for purchase orders and the closing of books. Mr. Bryer explains that un-audited 
numbers should be able to be provided to the budget committee within a few weeks of the end of the year. Mr. Bryer states that the selectmen will know at the end of year, the funds that will be encumbered, with open purchase orders and open contracts.

A draft public notice is reviewed and discussed for the 2007 calendar. Ms. Bobowski makes a motion, second by Bob Jean, to accept the public notice, as amended. Motion passes unanimously; 12/0.

TOWN:
Mr. Bryer apologizes for being late and states that he will do the best he can. He explains that there is 38% left in the town’s budget. Mr. Bryer states that the selectmen will be setting the tax rate, Friday, October 27, at 1:00 p.m.
He states that highway projects have not been done; however, will hopefully be done next week. He explains that this was a majority decision of the board of selectmen. Lengthy discussion is held regarding the proposed paving schedule of the roads over the next two weeks.

Mr. Bryer explains the process that the board cannot over expend the bottom line from town meeting. However, he adds that the selectmen have the authority to move line items within the budget. 

Town Operating Budget:
Areas reviewed are as follows:

Ms. McNally asks if the errors in allocating the salary for the municipal receptionist Dept. 41309-112/Municipal Receptionist coming out of the building department have been corrected. Mr. Bryer replies that he is not sure. He adds that the ADS software should be coming out of the executive office as well as the finance office. 

Mr. Bryer states that the salary for the previous administrator did indeed come out of the warrant article. He adds that the salary for the current administrator is coming out of Dept. 41302/Town Administrator. 

Mr. Bryer states that he feels that the budget is on track, with only a few months left.

Dept. 41503/Assessing:
Ms. McNally asks why the total amount in the last packet of budget materials provided showed 78% remaining in the budget and this document shows 80.05%. Mr. Bryer states that he will check into this. 

Dept. 42112/Police:
A discussion is held regarding 42112-820/Training and Travel. Ms. McNally asks why only $211 has been spent. Mr. Bryer replies that may be they have not taken the training classes. He states that he will check into this.

Dept. 42401/Building-Code Enforcement:
Ms. McNally refers to 42401/330 and asks why only $117.23 has been spent from $4,000 being budgeted. Ms. Smith replies that this could be a cost share for GIS mapping with a link on the town’s website. She adds that there is a similar line in the assessing department and planning department. At this time, nothing has been implemented with GIS. 

Dept. 45831/Patriotic Purposes:
Ms. McNally asks about 45831-610/Memorial Day Supplies being over expended. Mr. Bryer will check into this.

Dept. 45890/Wage Grant Program:
Mr. McNally asks for an explanation of $1,155.52 in the teen center program. Mr. Bryer will check into this item.

Mark Edwards left at 9:00 p.m.

Dept. 45501/Library:
Ms. Pingree asks about 45501-690/Office Equipment being over expended $8,466.66. Mr. Bryer replies that he will check into this.

Dept. 41309/Executive Office:
Ms. Bobowski asks about 41309-625/Postage being over expended $2,833.94. Mr. Bryer replies that the finance department has probably not billed this out to the appropriate departments.  This is usually done quarterly.

Mr. Bryer provides an overview of additional items that the new software system is capable of doing. He adds that the town wanted to be on the same system with the school. He feels that this is good software. Mr. Tappan replies that there are many types of items that can be used from this system and asks if anyone will be trained for crystal reports. Mr. Bryer replies no, not at this time.  

Shelley Bobowski makes a motion to adjourn. Second by Scott Bryer. Motion passes unanimously at 9:05 p.m. 

Respectfully submitted,

Lisa Fellows-Weaver
Budget Committee Secretary