Budget Committee

Minutes

August 6, 2008

Official as of October 1, 2008

Chairman Daniel McNally calls the meeting to order at 6:55 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Robert Holden, Selectmen Representative Ken Curley, School Board Representative Colleen Pingree, Ken Rick, Nona Holmes, Kate McNally, Lucy Edwards, Kevin Ash, Herb Johnson, and Board Secretary Lisa Fellows-Weaver. Water District Representative John Jacobsmeyer, and Babette Morrill arrive at 7:05 p.m.

ABSENT: Ken Witham, and Board Administrator Linda Smith, excused. Shelley Bobowski, and Bob Bailey.

MINUTES:
April 2, 2008
Colleen Pingree makes a motion, second by Herb Johnson, to approve the minutes as amended as follows:
Page 2: Change: …there… to …their…
Page 2: Change: …is… to …has…
Motion passes.

Town
Selectman Curley is present and states that there were two items from the last meeting that members had questions about. He explains that the personnel administration agents is related to the Department of Transportation (DOT). He explains that the line is to cover random drug testing for the highway department. The town pays for the test and the funds are included in this line along with any background checks. He adds that the other question was regarding the donation line, which he explains is for the historical society. 

Expense Report
Selectman Curley states that that the costs of fuels are affecting the budget. He states that there is nothing that can be done; however, a memo was issued requesting that departments limit driving of town vehicles.

Mr. Curley refers to the heating lines and explains that the town is 2/3 through the year with 1/3 left to address the few months of this coming winter. Additional discussion is held regarding the town and school bidding as a whole package for heating fuels. Ms. Pingree states that Bill Tappan has been working to include the other schools within the SAU for heating fuel agreements and bids.

Mr. Curley continues to highlight various departments and discussions are held as follows:

41309-Executive Office: Mr. Curley states that this department is at 50%. He adds that there is an increase in hours within the first quarter of the year due to the budget and the town report. 

41402-Voter Registration: Mr. Curley states that there was an increase of elections this year and there are two more elections to go.

41502-Audit Services: Mr. Curley states that there was an increase due to new state requirements. 

41503-Assessing: Mr. Curley refers to line 330/contracted services and explains that funds have been encumbered and the amount should cover the rest of year.

41504-Tax Collector/Town Clerk: Mr. Curley refers to line 390/contracted services and explains that there has been a lot of research for liens and there is a new copy machine leased for the department.

41505-Treasurer: Mr. Curley explains that the supply line/620 is over due to
the change in name of the bank and the need to purchase 6 accounting
stamps. He adds that there has been an increase in the costs for the
conference as well, line 820.

41510~Trustees of Trust Funds: Mr. Curley states that there is an increase due to the audit line for audit services.

41552~Personnel Administration: Mr. Curley states that there is an increase due to workers compensation and for the insurance. He explains that there may be an adjustment at the end of the year. Additional discussion is held regarding if an audit is included. Mr. Curley replies that audit costs for workers comp are not included in this department’s budget. Mr. Curley explains that the selectmen have met with Primex and Primex is anticipating the costs to decrease based on the town’s history that Primex has reviewed.

41913~Zoning Board of Adjustment: Mr. Curley states that there is an increase due to printing and advertising fees due to a larger case load. 

41911~Planning & Development: Mr. Rick asks about the planner’s salary and asks for clarification of what planning contracted services covers. Mr. Curley explains that the planner is an employee of the town. Ms. Edwards adds that the contracted services, line 330, is for the water resources committee projects and the matching grant programs. 

41941-Town Parade Buildings: Mr. Curley explains that this department reflects increases due to heating oil costs, line 411. 

41961-Insurance: Mr. Curley explains that the balance has been paid for the remainder of the year.

42112-Police Department: Mr. Curley states that the department is a little below 50% due to gas costs. Discussion is held regarding any impacts to town services due to the tornado. Mr. Curley explains that there were no damages to town roads and FEMA will usually cover any overtime costs during disasters. He states that he will check into this further.

Mr. Ash asks about the overage for the contracted services line for the police, line 330. Mr. Curley states that he will check into this as well.

42211-Fire Department: Mr. Curley states that any overages for this department are due to gas; however, the department is on course for this time of year.

Mr. Holden notes that some overtime has been paid out. Mr. Curley states that he will check into the overtime line, 140.

Mr. Rick asks about the volunteer stipends, line 191, and asks how many volunteers there are. Mr. Curley replies that the town has many volunteers. Mr. Jacobsmeyer adds that the stipends are paid out at the end of the year. Mr. McNally adds that there are various trainings required and there are differences in the stipends based on the trainings completed.

42401-Building/Code Enforcement: Mr. Curley notes that the fuel line, line 635, is a bit low; however, the rest of the department is on track. 

42901-Emergency Management: Mr. Curley states that the department utilizes different departments for emergencies and there has been no need for any purchases.

43111-Highway Administration: Mr. Curley states that the department has had impacts due to fuel costs, road issues, increases for sand and salt. These lines will be watched closely. Further discussion is held regarding the excessive winter regarding impacts to overtime lines and contracted services.

43121-Paving & Construction: Mr. Curley states that the department has had an increase for paving materials. He explains that the town is still planning to pave Coe Woods and will hold off on all other roads. 

Mr. Holden asks how much of the $180,000 in line 681/paving will be used. Mr. Curley states that the highway committee has discussed what to do in order to keep the town on the 5 year roads plan. They want to make sure that the other parts of the budget stay on track and will wait until next fall to see if they will proceed with road maintenance. Mr. Curley states that there will be no major projects completed. He explains that the highway department is finishing Old Turnpike and Old Pittsfield with plans to improve Old Canterbury Road, which will be held off at this point.  

Mr. Holden states that at town meeting $180,000 was to be spent and he is  trying to figure out what will be done to the town’s road and how much will be spent. Mr. Curley replies that there are a few issues that must be dealt with due to the spring floods. He states that the town still must rebuild Bennett Bridge and the access to the road is going to cost more than what was anticipated. He adds that the road work has been scheduled then the access will be completed so that next spring the town can begin working on the bridge. Mr. Curley will provide more specific figures expended.  

43122-Highway Cleaning & Maintenance: Mr. Curley states that the costs of gravel and asphalt have increased. Mr. Jacobsmeyer expresses concern with road damages and the fact that the highway department is not keeping up with the day to day maintenance of the roads. He adds that some of the roads that were put in a few years ago and now have 3-4” deep holes, something is wrong and the road was not done correctly to begin with.

43125-Snow & Ice: Mr. Curley states that the department is over expended. 

43163-Street Lighting: Mr. Curley states that high tech bulbs are being used now.

43163-Sanitation Administration: Mr. Curley states that the training has been more than what was anticipated. Mr. Holden asks about the salary, line 111. Mr. Curley replies that the position is full time and that status did not begin until April. Therefore, money will be left in that line.

43242-Solid Waste Trans Costs: Mr. Curley explains that the new compactors are working out well and fewer trips are required. He adds that this should offset the fuel increases.

43243-Solid Waste Disposal: Mr. Curley explains that it has been a busy summer as far as tipping fees. He adds that it should slow down in the fall.

44111-Health: Mr. Curley explains that the health department is on track except for fuel costs. 
44151-Health Agencies/Children: Mr. Curley explains that most of these funds have been expended.

44111-Welfare Administration: Mr. Curley explains that the board just hired a new director.

44151-Welfare Vendors: Mr. Curley explains that the department is over on two lines. Mr. Jacobsmeyer states that the board will need to add more funds to this department as it will only get worse. He adds that the selectmen will need to cover the department in the short fall.

45201-Park & Recreation: Mr. Curley explains that the department contracted out to the YMCA this year for the summer program. He feels that the department is fine, overall. Ms. McNally asks about the salaries for the counselor, line 122. Mr. Curley replies that the counselors attended the camp.

45890-Wage Grant Program: Mr. Curley explains that this is related to matching grant funds. All funds have been expended this year. He does not believe that anything is pending for the rest of the year.

45899-Donations: Mr. Curley explains that the name will be change to the Northwood Historical Society.

46510-Economic Development: Ms. Edwards believes that this is relative to the website. 

47231-Interest on T.A.N.: Mr. Curley states that the selectmen do not believe that the town will need to borrow. Mr. Holden asks if the selectmen intend to use the T.A.N. for other issues. Mr. Curley replies that it is a possibility. He adds that the fuel usage could be an option for the BOS to consider. Mr. Holden states that the town has not had to use this line item and he was against funding this line. He states that he was under the impression that it would not to be used. He states that if the funds are moved and used elsewhere he will lobby to zero out the line.

Mr. Curley explains that the tax collections have been coming in but have been coming in slowly. He adds that no decision has been made by the selectmen; however, they are watching lines.

Mr. Rick asks if the treasurer has provided the selectmen with any percentages of short falls. Mr. Curley replies that he will get that information. 

Mr. Jacobsmeyer suggests that the administrative costs for the audit should also be allocated to the trustees of the trust funds.
A discussion is held regarding the recent tornado and the tax assessments as they are based on the property from April 1. Mr. Curley explains the process of  applying for abatements. He adds that any debris from the homes due to the tornado will not be charged at the transfer station. He adds that the town was not able to send out any town trucks to assist with the roads as the damages were on private roads and the town cannot expend funds on private roads. 

Mr. Holden suggests that programmable thermostats be installed in all buildings and the school.

School:
Colleen Pingree is present representing the school. She explains that the provided reports are not end of the year reports. Those will be available in the early fall when the state grants are in.

Regular Education
Salaries/Wages: Ms. Pingree refers to the overages noted at a previous meeting. She explains that the errors are from the beginning of the process where steps were incorrect. These errors are noted on the first 12 lines, page 1. 

Tuition/Other Schools is explained. Ms. Pingree notes that one student has transferred to Dover High School. She adds that there is an excess in Coe Brown tuition. 

Supplies: Ms. Pingree states that there were some overages in general supplies and music supplies. She explains that the budgeted amounts have been $28,000 and they are attempting to bring it down to $25,000. She adds that there was a change in staff in the music department who required a few additional pieces.

Mr. Holden states that he thought that the errors were due to new hires. Ms. Pingree replies that there were new hires. Ms. Pingree explains that there is a part time speech teacher for $22,000 and there are some changes in the guidance department. Most of the errors are due to incorrect calculations of steps. Ms. Pingree will check into the specifics and the total amount. She adds that there were some software changes as well. Mr. Holden notes that if the incorrect calculations were not a factor then there would be funds left over. He adds that with the incorrect calculations, $104,000 was lost to programs as noted in a letter from the school board. He hopes that the school board acknowledges the fiscal times.

Special Education
Ms. Pingree states that there are some increases due to in personnel and other variables.
Special Education/Other Public Schools: Ms. Pingree explains that two children moved out of the district and the school board was able to make a cut in personnel. She refers to the letter sent by the school board. Total amount that the two children cost the town was approximately $150,000. She states that the board discussed funds and decided to have $90,000 as a cushion for another child.
 
A discussion is held regarding the overall special education budget. Ms. Pingree explains that the town has a reputation of providing great special education services. Combining that with the fact that there is a great high school brings people into Northwood for the school system. She further explains that special education is a federal mandated item.

Additional discussion is held regarding disproportionate classes of kindergarten and first grade. Mr. Ash expresses concern with the fact that there are disproportionate classes and the fact that there is an economic situation that is drawing people to the town. Mr. Curley states that this is a positive factor for the town. He adds that extra funding is received for the special ed. so there is a balance. Mr. Ash asks if the town is providing the students with the best education and is there a balance for gifted students as well. Ms. Pingree states that is the question.

Mr. Holden states that it is his understanding that teachers and aides were  hired in September and the salary budget was over expended by $71,000. He notes that there was $90,000 applied back to the budget due to two students moving out of the district. Mr. Holden asks about the duties of the aides. Ms. Pingree explains that there are out of district tuition students meaning that the students were attending special schools and this is under contracted services for special ed. She explains that the school must hire aides as necessary per the child’s needs.

Co-Curriclar: Ms. Pingree explains that the overages are an accumulation of coaching stipends and stipends for extra curricular club activities. She notes that there was a software error and explains that the lines in this department are over; however, are shown correctly in the athletic section. 

Guidance: Ms. Pingree explains that there were changes in the staff and additional materials were ordered per the new hire.

Contracted Services: Ms. Pingree refers to line 5310/002-ESL and explains that the overage is due to covering student’s needs for both the elementary and high school that require tutoring for English as a second language.

Speech: Ms. Pingree states that there is new hire in this department and the position is part time. She adds that this is a shared position with the SAU  preschool.

8:15~Herb Johnson left.

Instructional Staff Training: Ms. Pingree states that this department reflects trainings. She explains the trainings and the fact that the teachers will all be training together at the beginning of the year. She notes that there is a change in the curriculum that will be implemented for grades 5-8 this year. This curriculum change has already been implemented for grades K-4.

Computer Instruction Services: Ms. Pingree notes that there has been some confusion with the technology as there is a tech director who handles the technology throughout the building and there is also a technology teacher. She explains that a few lines are not allocated correctly more specifically the retirement certified and non-certified. She states that there is an overage of $500. in retirement; this is not a contracted position.

School Board Services: Ms. Pingree refers to the auditor line 5330/001. She explains that the audit is completed and the school board received the audit in the beginning of June. She explains that there is an overage in this line as the previous school board did not sign a contract with the audit companies. As a result, more is paid out. She adds that a contract has been signed for this year and the audit will be in the town report this year so things are back on a normal schedule.

Ms. Pingree briefly notes the attorney/negotiator line 5330/002 and explains that this line represents attorney fees. She states that there have been some personnel and legal issues this year. She adds that both issues could be ongoing matters.

Office of the Principal: Ms. Pingree states that there are some overages due to retirement and secretarial wages. 

Ms. Pingree states that there are also overages with postage, line 5534-000 and printing, line 5550-000. She explains that these overages are due to the letter the school board sent out to all parents regarding the budget. She adds that the board felt that it was important to send out.

Fiscal Services: Ms. Pingree states that the position of finance administrator is not a salaried position so overages are due to over time. She explains that the board is talking about changing the position into a salaried position.

Maintenance and Operations: Ms. Pingree states that the facilities director received a longevity pay, which is the reason for this line to be over.

Ms. Pingree states that line 5430/001~Building Maintenance is actually a warrant article. She explains that the school had proposed to repair the court yard area and a motion was made at school district meeting to not support the warrant article; however, if there were funds left over the money would be used for the project. She adds that she is not sure as to how much is left over. There are still some essential bills coming in and the federal grant money is also expected to come in. She estimates between $12,000 - $25,000 will be left over. Ms. McNally adds that the money should have been encumbered funds. Ms. Pingree will check into this. 

Ms. Pingree notes that $16,000 was recently spent for fluorescent fixtures, line 5622/000~Electricity. She states that this is the last phase of a three phase project to change out the lighting fixtures upstairs. She adds that the school board has requested additional information on the project and it will be discussed at the next meeting.

Contracted Services - Rubbish Removal: Ms. Pingree states that there have been some erosion problems and tractor repairs; reflected in line 5430/005. 

Special Education Transportation: Ms. Pingree explains that the school is required to transport the student to another school if necessary.

She notes that the entire special education budget is always on the radar, as far providing information to the public. She states that she feels that the area is an area of mystery to the public. Ms. Pingree explains that the school board is trying to figure out a way to provide more communication to the public regarding the budget and the purpose of the figures.

Food Services: Ms. Pingree states that the $6,920 noted on line 5733/000 is for replacement of equipment; salad cart. She explains that the state came to the school and inspected the cafeteria and said the cart was not up to code and needed to be refrigerated. She explains that the cart was originally cut from the budget; however, now there are funds available and the school board agreed to purchase the cart as advised by the state.

Ms. Pingree adds that out of all of the schools in the district, Northwood makes the least amount of money. She states that they are hoping to increase the amount of revenue in the cafeteria by improving the lunch program. This is only one step. She adds that software will be purchased for tracking funds more efficiently. She notes that a new food service director has been hired. The school board is hoping that these improvements will increase the profits of the  lunch program.

Ms. Pingree states that they are waiting for reimbursements and final grant funds to come in.

Correspondence:
All correspondence is reviewed and registration forms are provided for the upcoming budget workshop, scheduled for September 23.

Reminders:
Next meeting is scheduled for October 1, 2008.

Adjournment:
Nona Holmes makes a motion, second by Ken Curley, to adjourn at 8:22 p.m. Motion passes unanimously; 11/0.

Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary