Budget Committee

Minutes

January 24, 2007

Official as of November 6, 2007

Chairman Daniel McNally calls the work session to order at 7:10 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Shelley Bobowski, School Board Representative Bill Tappan, Selectmen Representative Scott Bryer, Robert Bailey, Ben Edwards, Kate McNally, Nona Holmes, Herb Johnson, Cindy Jones Bryer, Robert Jean, Mark Edwards, Board Administrator Linda Smith, and Board Secretary Lisa Fellows-Weaver.  Water District Representative John Jacobsmeyer arrives at 7:18 p.m.

ABSENT: Douglas Briggs.

New budget materials are provided.

The board proceeds through the budget and discussions are held regarding the following departments:

Page: 10-12: Dept. 42211~Fire Department:
Fire Chief of the Fire/Rescue Department George Ashford is present along with Deputy Chief of the Fire/Rescue Department Matt Hotchkiss. 

Ms. Bobowski asks about the fire hydrants, line 693. Chief Ashford states that the line should have $2000 as there are 2 hydrants that need to be replaced. He explains that these are dry hydrants and are unworkable; one on Bow Lake Rd. and the other at Mary Waldron Beach. The line has been at $1 over the past few years as nothing needed to be done. Mr. Bryer adds that this was agreed to by the BOS and notes that this will be corrected.

Ms. Bobowski asks about the department request for the retirement as it is different from the selectmen’s amount. Chief Ashford replies that these lines are figured through the selectmen’s office. Mr. Bryer states that this is based on a percentage. Ms. Cady also notes that there is an increase in retirement effective July 1 so there are two different percentages figured.

Ms. McNally notes that the department requests are different for social security. Mr. Bryer states that .062 is multiplied by the proposed salary. 
Ms. Cady states that the BOS figure is accurate.
 
Mr. Jacobsmeyer arrives at 7:18 p.m. 

Ms. McNally asks about what line 331/common management service is for. Chief Ashford replies that this is for mutual aid. Mr. Tappan asks what line 615/foam is. Chief Ashford explains that this is for suffocating fires. He further describes the different types of foam. Ms. Bobowski asks why a decrease in line 636/diesel. Chief Ashford explains that the diesel line includes last year’s costs and actual usage determines this years cost.

Warrant Articles:
1. Fire/Rescue ~ Capital Reserve Fund.
2. Fire/Rescue ~ New Ambulance.

A discussion is held regarding the amounts in each of the funds. Mr. Hadley states that as of 12/31/06 there is $54,000 in the ambulance fund. Chief Ashford disagrees and explains that there are actually two funds that are split and it should be all one fund. Mr. Bryer states that they are split so that one is for the purchase of fire trucks and the other is for ambulances. Chief Ashford states that the fund is set up so that every 5-6 years there would always be enough in the fund to purchase a new ambulance. He adds that the department is now billing through Concord Hospital rather than billing themselves and it is a much more aggressive way for billing. The fire department is much busier now, thus there is more money coming in. The calls are now around 600 a year. Chief Ashford states that rather than raising the money through taxes the money goes into the account and is saved to purchase fire apparatus. He adds that 1/3 of the funds must stay in the account for just ambulance purchases so that at the end of five years there would be enough to purchase a new ambulance. Mr. Bryer states that all together with both funds there is enough money to purchase the ambulance; however, a few years ago there was a warrant article to change the funds so that 1/3 of the money goes towards ambulance purchases and 2/3 goes towards large fire apparatus. The amount left for ambulances is $33,000. Chief Ashford requests that the wording of the two warrant articles be reviewed. Mr. Bryer states that between the two funds there is approximately $153,000. Chief Ashford adds that does not include the $60,000 to be added this year.

Chief Ashford explains that the ambulance now has 82,000 road miles on it. It also has idle miles, which needs to be considered. The delivery of the new ambulance would not be until the end of 2007. He explains that it is not a tremendous amount of miles and he adds that he does not feel that it will be breaking down soon; however, he is trying to avoid that occurring and adds that this is the only ambulance that the town has. He states that he will not keep this ambulance as a spare and will be trading this one in.

Mr. Bryer reads the meeting minutes from town meeting from March 16, 2002, relative to warrant article 1 for the ambulance replacement. Further discussion is held regarding maintenance issues and costs, and having the ambulance out of service. 

A discussion is held regarding keeping the current ambulance and purchasing another one. Chief Ashford states that he is not ready to staff two ambulances that is why the town has a mutual aid contract. Mr. Bryer states that the town could sell the ambulance outright at government surplus and would make out better due to the age of the ambulance. Mr. Bailey states that the town must have a good piece of equipment to be involved with mutual aid. Chief Ashford states that he could see having a second ambulance only if the town had 24 hour staff. 
Mr. Bryer states that the record of town meeting states that 30% of the money is for ambulance reimbursement and 70% is for fire apparatus. Mr. Jean notes that the wording was “at a minimum”. Mr. Tappan states that it is then discretionary of how much is designated. Chief Ashford states that under the jurisdiction of the fire department an ambulance is a piece of fire apparatus and is a vehicle of the fire/rescue department, which is one department. Discussion continues. Mr. Bryer suggests a legal opinion be obtained for the warrant articles and how it passed. Ms. McNally makes a motion, second by Mr. Tappan, to postpone the vote and obtain a legal opinion as to whether to recommend or not recommend the article due to questions with dollar figures. VOTE: SBobowski, RB, BE, KM, NH, HJ, CJB, ME, BT, CP, SBryer, JJ, DM. NO: RJ. Motion passes; 14/1.

Ms. Smith notes that in further review of the trustees’ accounts in 2004, it appears that they withdrew the total amount of the ambulance and placed it into the other fund.

Page: 13-14: Dept. 43111~Highway Department:
Jim Wilson is present. Ms. McNally notes that the department’s requests seem to keep changing, referring to salaries. Mr. McNally replies that the committee is not addressing salaries.

Ms. McNally states that $5,000 has been put in for general grounds maintenance under the GGB Department for lawn mowing. Mr. Wilson states that the current full time laborer does the mowing out of the regular budget and this leaves him alone during the summer time. The additional full time laborer would be doing the mowing.

Ms. McNally asks where the purchase of the sander is noted, $10,000. Mr. Wilson states that he met with the selectmen and was approved to spend out of last year’s budget. Ms. Cady states that the funds have been encumbered as the sander has not been purchased. Mr. Bryer explains encumbrances. Ms. Cady states that this is noted in 43125/390.

Page: 14: Dept. 43121~Paving & Reconstruction:
Ms. Bobowski asks if the road recommendations and plans are being followed. Mr. Wilson replies yes. He further explains that he would like to get more work completed with his personnel and with the town’s equipment. Ms. McNally notes that there has been an increase of $32,000 in lines 680 and 681 since January 20. She states that when comparing previous documents the numbers do not match. Ms. Cady replies that the figures have been received from the highway advisory committee and are now added into the appropriate budget lines. 

Mr. Jacobsmeyer states that very little was spent out of the highway call crew line 43111/113. He states that this is a 50% increase over what was budgeted for last year, which only 25% was spent. Mr. Wilson explains that the call crew is hired over the winter. He may hire some additional crew for the summer for additional help.
Ms. Bobowski asks if the BOS are supporting the new highway laborer position presented as a warrant article from the administrative study committee. Mr. Bryer replies that the BOS is opposed. He explains that $5,000 has been added to the GGB department in order to contract out for the landscaping. This will free up the laborer that has been doing the work. This will allow Mr. Wilson to have the additional person and therefore there will be two people doing the work. Mr. Bryer states that there are some positions that the selectmen are in support of; however, this is not one.

Mr. Witham states that the highway call crew would no longer exist if the laborer were hired. He explains that hiring a third laborer at full time, that person would do the landscaping and the highway call crew would no longer exist. Mr. Bryer adds that the position would be around $25,000 per year with full benefits at $16,000, as opposed to $19,000 for the call crew.

Mr. Bryer states that the administrative study committee is asking for three new positions for this year. The BOS decided to have these as petition articles. The BOS is in favor of 2 of the positions and has added the $5,000 for landscaping so that the current laborer could work all day during the summer. He feels that this way would be a reduction in expenditures. Mr. Wilson states that this money is allocated in 43111/113. Mr. Bryer states in his opinion there are certain other positions, at this time, that are more valuable and the BOS decided to give additional money to contract out for landscaping to free up the laborer to work on road projects. He would like to try this for one year before adding another person to the staff. 

Mr. Witham states that he would support a highway laborer and the other two positions are a more want than a need.

5. Highway Department Vehicle Purchase.
Mr. Bryer makes a motion, second by Mr. Johnson, to recommend the warrant article, as written. Mr. Jean notes that it was previously stated that this truck would be more suited for some of the more rural roads in town. VOTE: SBobowski, RB, BE, KM, NH, HJ, CJB, RJ, ME, BT, CP, SBryer, JJ, DM. Motion passes; 15/0. Mr. Bryer states that next year the board will add money to build the fund back up. He adds that the truck will be traded. Mr. Bryer notes that the wording may change.

8:25 - Break.

Mr. Jean states that he still does not have a report that he feels that he can vote on. At this point, there is no excuse why the reports are not being produced for what is needed by the budget committee. Mr. Witham states that Mr. Jean is the only person that has a problem. Mr. Bryer states that Mr. Jean’s comments are noted. Mr. Bryer states that he feels comfortable with the selectmen’s recommended amounts. There maybe some errors on department’s totals; however, the bottom line is the amount the BOS feels that is needed to run the town’s departments. Ms. McNally notes that numerous pages are coming to the committee at the last minute, corrections have been mentioned and not addressed, and the process has been delayed. Mr. Bryer replies that he understands the frustrations.

Mr. Witham left the meeting at 8:30.

Discussion ensues. Mr. Bryer states that he is not able to produce the documents as he works full time. Ms. Smith states that the board has a time restraint to work under. Whether the committee likes the materials provided, the statutory requirement is that the selectmen provide a recommended budget to the budget committee, which has been done. There are no specific requirements that must be provided in any particular format. She adds that the committee is not getting any closer to what needs to be accomplished. Mr. Bryer states that the numbers under the selectmen’s budget line are materially correct. He adds that he will not deny that there may be errors in other lines.

Mark Edwards left at 8:40 p.m. and Mr. Bailey left at 8:45 p.m.

Page: 5: Dept. 41504~Town Clerk/Tax Collector:
Ms. Bobowski reads a memo from the town clerk/tax collector, which provides an explanation of her department.

Mr. Bryer states that last year the town clerk/tax collector was told that the position would be included in the wage study. Once included, the position would receive the COLA based on the placement on the wage study. Based on the preliminary information received in the wage study, the position is the highest paid town clerk for a town this size. She is well compensated as is. Mr. Bryer explains the preliminary wage study information and the range for this position. He feels that when the final information is received, the position will be well above the maximum. He adds that he feels that the person understands that they will be receiving a COLA increase on top of the salary.

Mr. Jean states that this was addressed last year and this is an elected position. He adds that he thought that is was not going to be decided based on the individual as it is a position and would go to the person who is elected. He adds that he thought the COLA increase was to allow the position to keep pace in the market and for others that may want to run for that position. Mr. Bryer states that the average high for the position is $41,745. Currently the position is making $5,000 above the average high position.

Mr. Jean states that he supports selectmen’s recommended line. He suggests that the committee begin voting on the lines.

Discussion ensues regarding the summer hours for the town clerk/tax collector. Mr. McNally asks if there is any flexibility with the hours to allow the department to be open more Saturdays during the summer when the town’s population increases. Mr. Bryer replies the position is an elected official of the town and is not under the discretion of the selectmen. He adds that the salary for this position can be set at town meeting, per RSA.

A discussion is held regarding the preliminary wage study information. Mr. Bryer explains that the Town of Northwood is high in some areas, and some people are low.

Mr. Bryer notes that what the department asked for is what the selectmen put into the budget. He adds that what was put in for the salary depends on what the wage study comes back and that is not finalized. Based on what he is seeing, there is enough as she is above the average. Ms. McNally states that it was her understanding that the selectmen made a decision that every employee, for budgetary purposes, would get a step increase. Mr. Bryer replies that this position did receive a COLA, for budgetary purposes. Mr. Jean asks if Mr. Bryer would feel comfortable if the committee was to act on the department’s requests and Mr. Bryer replies yes. Ms. Pingree asks how the committee can act on the figures without knowing the salary amounts. Mr. McNally states that the information is provided for step and COLA, the wages will fall into the numbers provided. Mr. Bryer explains that when the new wage study come in, the employees will be placed within the study and these figures are enough to cover the difference.

Ms. Bobowski notes that the salaries are not being voted on. Mr. Jean feels that the 3.3% COLA is fairly reasonable and the committee should accept it and go forward recommending the department’s requests. Ms. McNally notes that she has concerns regarding the fact that some positions throughout the many documents are noted differently. Mr. Jean states that the selectmen have provided their recommendations and the committee can use that information as a base line. Mr. Jean makes a motion to accept the selectmen’s recommended amount for the town clerk/tax collector, $99,463.64. Mr. Bryer adds that the bottom line that the selectmen are asking for will meet the needs for of the town; all department totals will meet the needs to provide the services of the town, and give the employees a respectable pay increase.

Mr. Jean states that fundamentally he does not believe that the materials will get any better. It is as accurate as the committee can expect from the current system. Mr. Tappan asks what he means as he has been working on the documents to get the information into the columns, showing a proper increase/decrease amount. He has been working on it so that everyone can have something with the proper information requested. As far as notes, the committee has requested a narrative. Mr. Bryer seconds the motion.

Mr. Bryer states that he is comfortable with the selectmen’s numbers and the budget committee should be comfortable with their numbers. If they are not comfortable, then they should not vote yes on the budget. Ms. Holmes notes that under the finance department on the budget from 1/20 the selectmen’s budget shows a total of $37,146.98 and on today’s budget the total is $34,800.04. She adds that she has added the figures and they add up to the old total. She asks what the correct numbers are. Ms. Smith states that the budget committee is not voting on the selectmen’s budget. Once the budget committee makes a vote, the numbers voted on go into the budget committee’s recommended lines. The budget committee is creating their own set of recommended figures. This is what goes into the MS-7. Mr. Jean states that he is not comfortable with the numbers that are fundamentally intrinsic to what is being calculated.

Ms. Smith suggests that the department heads review the materials that were provided today and sign off so that there will be no questions with department’s totals. The budget committee agrees. 

Mr. Jean rescinds his motion and Mr. Bryer rescinds his second.
A discussion is held regarding Saturday’s public hearing. Mr. McNally provides an overview of the upcoming schedule and explains that the public portion will be postponed from this Saturday until February 3 due to the fact the committee is not ready for the town’s budget. He adds that the work session can be held to discuss the town’s budget. Mr. McNally states that the outstanding school information will be addressed on Saturday and the final public hearing for the water district. 

Ms. McNally makes a motion, second by Mr. Johnson to recess the meeting to Saturday, January 27, 2007. Motion passes unanimously.

Respectfully submitted,

Lisa Fellows-Weaver,
Board Secretary