Budget Committee

Minutes

January 16, 2008

Official as of February 9, 2008

Chairman Daniel McNally calls the work session to order at 7:05 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Robert Holden, Selectmen Representative Ken Curley, Water District Representative John Jacobsmeyer, School Board Representative Jim Ryan, Herb Johnson, Ben Edwards, Bob Bailey, Nona Holmes, Lucy Edwards, Colleen Pingree, and
Board Administrator Linda Smith. 

TOWN OFFICIALS PRESENT:
Town Administrator Paul Martel

ABSENT: Shelley Bobowski, Board Secretary Lisa Fellows-Weaver, both excused.

PUBLIC HEARING ~ TOWN (Continued):
Chairman Daniel McNally opens the public hearing portion of the town at 7:05 p.m.

Mr. McNally states that the planning board budget needs to be reviewed again due to the fact that there was an omission relative to grant money. Ms. Smith explains that there were funds placed in the 2007 budget for a water resource grant for the NH Estuaries. The water resource subcommittee spent time this year developing different projects and a grant became available in the fall. A member of the subcommittee, Karen Smith, completed the grant application and in November was notified that Northwood was selected to receive the matching funds of $5,000. Ms. Smith states that the selectmen support the grant; however, the purchase order did not get written. The planning board is requesting that $5,000. be placed into the planning board’s budget for the funds to be used in 2008.

Warrant Articles:
Mr. Curley reviews the warrant articles as follows:
$54,250. Facility Committee Expendable Trust Fund: No discussion is held.

$10,000. Town Hall Improvement Capital Reserve Fund: No discussion is held.

$33,000. Police Department Vehicle Purchase: No discussion is held.

Operating Budget: No discussion is held.

Adding Numeric Tally of Board of Selectmen & Budget Committee to   Warrant Articles: Mr. Curley explains that this article approves what the town has already been doing, adding the votes to the warrant articles. 

$28,000. Cable Expendable Trust Fund: Jim Vaillancourt asks if a warrant article could be created for the planning board’s grant money out of the unreserved fund balance. Mr. Curley replies that there is not an expendable trust fund for the money to be placed into. He states that unexpended funds can be transferred from the previous year and voted on to have the funds put into capital reserve funds. In order to spend money, money must be either in a fund or in the budget. Mr. Martel adds that most of the funds that are being placed into the expendable trust funds are all from revenues that have come in this year.

$50,000. Special Duty Coverage: No discussion is held.

Lease/Purchase Fire/Rescue Department New Fire Engine: Kevin Madison explains that the department will present a warrant article for the next year showing where the funds will be coming from. He explains that revenue is set aside each year to offset the purchase of a new ambulance. Further discussion is held regarding non-appropriation clauses. Mr. Curley states that every year the town will vote on this item and it must be approved. He adds that if the town decides not to keep the truck at one point, then the truck goes back and the town loses any money that was spent.

$32,600. Recreation Department Van: Chris Andrews, Recreation
Committee Chairman, explains that the proposal is for a 15 passenger van to
replace transportation for field trips, events, summer camp. He states that
recreation does not typically fill a school bus for their activities. Mr. Curley
adds that he will double check the figures as there appears to be a discrepancy
in the figures printed in the warrant article. 

$10,000. Highway Equipment Capital Reserve Fund: No discussion is held.

$20,000. Lagoon Maintenance & Repair Expendable Trust Fund: No discussion is held.

$800. Cemetery Improvement Expendable Trust Fund: No discussion is held.

$47,823. Fire Trust Fund: No discussion is held.

$3,000. Milfoil Control Treatment Program Expendable Trust Fund: No discussion is held.
$5,000. Upgrade of Records Retention Area: No discussion is held.

Jim Vaillancourt asks about the fire truck warrant article and states that all funds left over from last year are then put into the trust fund. Mr. Curley explains the process of fees and revenues that come in that are put into the capital reserve funds. He states that this is not money left from the operating budget.

With no further discussion, Mr. McNally closes the town public hearing at 7:30 p.m. and opens the public hearing for the Northwood Ridge Water District.

PUBLIC HEARING ~ WATER DISTRICT
Water District Commissioner John Jacobsmeyer is present and provides the water district proposed budget. Mr. Jacobsmeyer explains that the water district balances their budget based on water revenues from people receiving water. This way the water district does not have to set a tax rate.

He reviews the budget noting that the budget was over expended, which will need to be added into 2008. Mr. Jacobsmeyer reviews the revenues as well as the necessary fund balances. He notes that $2,034.16 will be taken out from the necessary fund balances.

The total proposed budget is $18,518.

Warrant Articles:
Mr. Jacobsmeyer provides an overview of the water district’s warrant articles.
Articles 1, 2, 3, and 7 have no money involved so no action is required from the budget committee.

4. $18,518. General Operating Expenses. $18,518. No discussion is held.

5. $1,000. Water District Expendable Trust for Repairs. No discussion is held.

6. $9489.02. Water District Capital Reserve Fund for System Enhancements. No discussion is held.

With no further discussion, Mr. McNally closes the public hearing for the water district at 7:42 p.m. and opens the work session.

WORK SESSION ~ TOWN
Warrant Articles
$33,000. Police Department Vehicle Purchase: Mr. Johnson makes a motion, second by Ms. Pingree, to recommend warrant article 3 for $33,000. for police department vehicle purchase, as written. Mr. Holden asks the chief to speak to the article. Chief Mike D’Alessandro explains that the department would like to continue to replace a cruiser every year. He states that the maintenance has become costly and by replacing cruisers yearly keeps the costs down. This year the proposal is to replace the 2004 Explorer and purchase a 2008 Explorer. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$50,000. Special Duty Coverage: Mr. Johnson makes a motion, second by Mr. Bailey, to recommend the warrant article for $50,000. for special duty coverage, as written. Chief D’Alessandro explains that special duty coverage and revenues. He states that there are fees charged by the department to the agency/company, which is then a revenue item. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.
Lease/Purchase Fire/Rescue Department New Fire Engine: Ms. Edwards makes a motion, second by Mr. Holden, to recommend the warrant article for the lease/purchase for a new fire engine, as written. Ms. Edwards asks why this needs to be done now. Mr. Madison explains that the vehicle is 20 years old. There are holes in the body and to do a refurbishment to the truck would cost almost as much as a new truck. He adds that the engine and transmission would need to be gone through.

Mr. Madison asks for an amendment to the line as additional equipment needs to be purchased with the truck. Mr. McNally explains that the budget committee is not able to amend warrant articles. He states that he would need to go back to the selectmen. Mr. Ryan asks about the purchase of the new equipment. Mr. Madison replies that the figures may change as town meeting approaches and more information is made available. He states that the exact figures will be available by town meeting. Mr. Johnson asks what happens to the old truck. Mr. Madison replies that the selectmen will decide what to do. He notes that there may be some value.

Mr. Holden asks if it is the selectmen’s intent to print the votes on the warrant articles. Mr. Curley states that this has been the practice of the board and probably will continue.

Ms. Pingree asks to clarify the amount of the trust fund for town meeting. Mr. McNally explains the process of warrant articles at town meeting and notes that the purpose cannot be changed. Mr. Curley states that the BOS will address this at the next meeting.

Further discussion is held regarding the tax impact over the coming years. Mr. Madison states that he feels the revenues will increase in the coming years, which help to cover the costs. Mr. Holden asks what happens when the ambulance needs to be replaced. Mr. Madison explains that 1/3 of all of the revenues are set aside specifically for the ambulance. He adds that there has been a change in Medicare billing practices, which resulted in a loss of revenues.

Additional discussion ensues regarding refurbishing costs for fire trucks. Mr. Madison explains that there are big ticket items that would need to be included in the refurbishing; the cab, the engine is tired, etc. He adds that if the fire truck is not replaced, the refurbishing will drain the maintenance budget. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, KC, DM. NO: JR. Motion passes; 10/1.

$32,600. Recreation Department Van: Ms. Edwards makes a motion,
second by Ms. Pingree, to recommend the warrant article for the
recreation van for $32,600., as written. Mr. Holden asks how much it cost
for transportation. Mr. Andrews replies that it was approximately $5,000.,
which covered the transportation from the school to the beach. Mr. McNally
states that the federal government has recommended that these types of
vehicles not be used to transport children anymore. Mr. Andrews replies that
he was not aware of this. Discussion ensues regarding the driver requirements
and licensing as a CDL. Mr. Andrews states that the intent is to have the
recreation director to use the vehicle for senior trips, children in the town, etc.,
which will save money. Ms. Pingree asks if this article is recommended by the
BOS. Mr. McNally states that the BOS felt it was like another town vehicle.

Further discussion is held regarding insurance. Mr. Dill felt that it would be a 
minimal insurance plan. Mr. Bailey states that a lot of backup will need to be
available for town meeting.

Additional discussion is held regarding ADA requirements. Mr. Andrews replies
that he is not sure. Mr. Andrews explains the vision of the recreation
department and that they hope to provide more to the residents over the next
few years. VOTE: YES: KC. NO: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, DM.
Motion fails; 1/10.

$47,823. Fire Trust Fund: Ms. Edwards makes a motion, second by Mr.
Holden, to recommend the warrant article for the fire trust fund for
$47,823., as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Page: 7: Dept. 41911~Planning Board:
Ms. Edwards makes a motion, second by Mr. Curley, to reconsider the
planning board’s budget. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR,
KC, DM. Motion passes unanimously; 11/0. Ms. Smith states that the
request is to increase line 330 from $5,000. to $10,000. Ms. Edwards makes a
motion, second by Mr. Curley, to increase line 330/contracted services to
$10,000. Karen Smith provides an explanation of the NH Estuaries grant. She
states that a condition of the grant is to have funds matched. Further
discussion is held regarding the Shoreland Protection Act on the state and
town level. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM.
Motion passes unanimously; 11/0. Mr. Johnson makes a motion, second
by Mr. Holden, to approve the planning board’s new proposed budget
amount of $58,805.40. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR,
KC, DM. Motion passes unanimously; 11/0.

Page: 9: Dept. 42111~Police Commission:
Mr. Johnson makes a motion, second by Ms. Edwards, to recommend the
selectmen’s total of $8,392.34. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP,
JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Page: 9-10: Dept. 42112~Police Department:
Ms. Edwards makes a motion, second by Mr. Johnson, to recommend the
selectmen’s total of $571,606.37. Mr. Holden asks about the revenue from
Coe-Brown. Mr. D’Alessandro replies the revenue is $3,000. Mr. Cummings,
commission co-chairman, further explains the billing of the SRO car and
revenues. He adds that the commission would like to increase the department’s
budget by $3,000. Mr. Cummings states that the commission submitted a
purchase order for security cameras and it was not signed. The money was in
the budget, the work has been completed; however, the money was not
encumbered. Therefore, the funds need to come from the 2008 budget. Ms.
Edwards makes a motion, second by Mr. Curley, to increase line 335 by
$3,000. Amendment VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC,
DM. Motion passes unanimously; 11/0. New department total is
$574,606.37. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM.
Motion passes unanimously; 11/0.

Page: 2-3: Dept.41402~Voter Registration:
Mr. Holden makes a motion, second by Ms. Edwards, to reconsider voters
registration’s budget. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR,
KC, DM. Motion passes unanimously; 11/0. Mr. Curley notes that the
changes to this department are as follows:
Line 130 to $1,950.
Line 220 to $207.70
Line 225 to $48.58.
New total is $3,806.28.
Ms. Edwards makes a motion, second by Mr. Curley, to amend the total of the voter’s registrations as follows: amend line 130 to $1,950., amend line 220 to $207.70, and amend line 225 to $48.58. New total is $3,806.28. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Page: 19-20: Dept.45201~Parks & Recreation:
Ms. Holmes makes a motion, second by Ms. Edwards, to recommend the
selectmen’s total of $66,345.63. Mr. McNally explains questions raised
regarding the recreation department. He states that the coordinator
position is also a lifeguard. He adds that last year the budget was for three
beaches and this year there are only two beaches. Mr. Andrews explains that
the coordinator is in charge of the beaches, and the lifeguards. Discussion
ensues regarding the increases for the coordinator position, an hourly position.
VOTE: YES: HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. NO: RH, Motion passes; 10/1. 

Page: 21: Dept.45890~PD Wage Grant Programs:
Ms. Edwards makes a motion, second by Mr. Holden, to recommend the
selectmen’s total of $1,017. Mr. Martel explains that the police department
receives grants from the state and federal government. The grants often specify
what the rate of pay the officers will receive. This section makes up the
difference in the regular wages and the amount specified by the grant. VOTE:
YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes
unanimously; 11/0.

Page: 3: Dept. 41403~Elections:
Ms. Edwards makes a motion, second by Ms. Pingree, to recommend the selectmen’s total of $4,307.38. Mr. Curley notes that there are some corrections as follows: line 120 amend to $2,496., line 220 amend to $154.75, and amend line 225 to $36.19. The new total is $6,186.94. Mr. Curley makes a motion, second by Mr. Holden, to amend the total of election’s bottom line to $6,186.94. Mr. Holden asks why such a large increase. Mr. Curley explains that there are additional elections and there is a wage increase as well. Additional discussions are held regarding the number of elections this year. Amendment VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Warrant Articles (Continued)
$54,250. Facility Committee Expendable Trust Fund: Ms. Edwards makes a motion, second by Mr. Curley, to recommend the warrant article for the facilities committee expendable trust fund, as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$10,000. Town Hall Improvement Capital Reserve Fund: Ms. Edwards makes a motion, second by Mr. Curley, to recommend the warrant article for the town hall improvement capital reserve fund, as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$28,000. Cable Expendable Trust Fund: Mr. Curley makes a motion, second by Mr. Johnson, to recommend the warrant article for the cable expendable trust fund, as written. Ms. Edwards asks how much has come in. Mr. Martel replies that he spoke to the general manager of Metrocast and the amount is $28,000 this year, 2007. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$10,000. Highway Equipment Capital Reserve Fund: Ms. Edwards makes a motion, second by Ms. Pingree, to recommend the warrant article for the highway equipment capital reserve fund, as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$20,000. Lagoon Maintenance & Repair Expendable Trust Fund: Mr. Johnson makes a motion, second by Mr. Curley, to recommend the warrant article for the lagoon maintenance and repair expendable trust  fund, as written. Mr. Holden asks for an explanation of the amount and states that the town should look at the liability of the lagoon. Mr. Curley states that he believes that the amount is what was received in revenue. Further discussion is held regarding maintenance and repairs. Mr. Bailey explains that there is a need to clean or empty the lagoon every two years. VOTE: NO: BE. YES: RH, HJ, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes; 10/1.

$800. Cemetery Improvement Expendable Trust Fund: Mr. Holden makes a motion, second by Mr. Johnson, to recommend the warrant article for the cemetery improvements expendable trust fund, as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$3,000. Milfoil Control Treatment Program Expendable Trust Fund: Mr. Johnson makes a motion, second by Ms. Pingree, to recommend the warrant article for milfoil control expendable trust fund, as written. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

$5,000. Upgrade of Records Retention Area: Ms. Edwards makes a motion, second by Mr. Curley, to recommend the warrant article for the upgrading of the record retention area, as written. Mr. Curley explains that there is an unheated/uninsulated room that is used for record storage and is not appropriate for storing the records. Heating protects from moisture. VOTE: NO: RH, BE. YES: HJ, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes; 9/2.

WORK SESSION ~ SCHOOL
Page 1: Line: 1100-563~Coe Brown Tuition:
Mr. Ryan states that the final figure for tuition for CBNA is $11,872. per student. The final number for the school is $3,419,136. Mr. McNally asks if there were any additional changes made in the special education.

Page 12: Budget Summary
Mr. Ryan refers to the budget summary sheet and states that the school board total operating budget for 2008-2009 was originally presented at $11,718,077.60. He states that the new bottom line total is $11,701,483.23. Mr. Johnson makes a motion, second by Ms. Pingree, to reconsider the school’s proposed budget. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Page 1: Line: 1100-563~Coe Brown Tuition:
Mr. Johnson makes a motion, second by Ms. Pingree, to recommend $3,419,136. as the new CBNA tuition amount. Mr. Holden asks what the amount per student was last year. Mr. Ryan replies that he only has a total figure available at this item. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

WORK SESSION ~ WATER DISTRICT
Warrant Articles
4. $18,518. General Operating Expenses. $18,518. Ms. Edwards makes a motion, second by Mr. Johnson, to recommend the warrant article for $18,518. for general operating expenses. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

5. $1,000. Water District Expendable Trust for Repairs. Ms. Edwards makes a motion, second by Ms. Pingree, to recommend the warrant article for $1,000. for the repairs expendable trust. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

6. $9,489.02. Water District Capital Reserve Fund for System Enhancements. Ms. Edwards makes a motion, second by Mr. Johnson, to recommend the warrant article for $9,489.02 for the system enhancements capital reserve fund. VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Mr. Johnson makes a motion, second by Mr. Ryan, to recommend the selectmen’s total of $173,647.86 for the library. Ms. Smith states that the selectmen amended the amounts. Mr. McNally reads the amended figures as follows: line 111 amend to $22,024.41, line 220 amend to $5,666.90, line 225 amend to $1,325.32. Ms. Edwards amends the motion, second by Mr. Johnson, to amend line 111 to $22,024.41, amend line 220 to $5,666.90, and amend line 225 to $1,325.32 for a new total of $170,508.79. for the library. Amendment VOTE: YES: RH, HJ, BE, RB, NH, LE, CP, JJ, JR, KC, DM. Motion passes unanimously; 11/0.

Town Bottom Line
Mr. Curley states that the new town bottom line is $2,993,318.44.

Ms. Edwards makes a motion, second by Mr. Curley, to recess the meeting until Saturday, January 26 at 9 a.m.

Respectfully submitted,

Lisa Fellows-Weaver
Board Secretary