Budget Committee

Minutes

October 1, 2008

Official as of October 29, 2008

Chairman Daniel McNally calls the meeting to order at 7:00 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Robert Holden, Selectmen Representative Ken Curley, School Board Representative Colleen Pingree, Ken Rick, Nona Holmes, Lucy Edwards, Kevin Ash, Babette Morrill Bob Bailey, and Board Administrator Linda Smith. Water District Representative John Jacobsmeyer arrives at 7:45 p.m.

ABSENT: Kate McNally, Herb Johnson, and Board Secretary Lisa Fellows-Weaver, excused. Ken Witham, and Shelley Bobowski.

MINUTES:
August 6, 2008
Nona Holmes makes a motion, second by Lucy Edwards, to approve the minutes as amended as follows:
Page 1: Insert: …about…
Page 3: Change: …to… to …for…
Page 7: Change: …students… to …student’s…

Town
Expense Report
Selectman Curley is present and states that the town is now ¾ through the calendar year and the departments should be around 25%. Anything below the 25% would be an area of concern and he plans to use that as a bench mark for discussion this evening. 

41402-Voter Registration: Mr. Curley states that the overages in the department are lines 330/contracted services and 550/printing & advertising, both due to an increase of elections this year. He adds that he will further research the specifics for line 330.

41502-Audit Services: Mr. Curley states that the department is at 17%, which is an increase due to billing as the amount budgeted was last year’s figures.
 
41503-Assessing: Mr. Curley explains that most of the costs for assessing have been incurred for this year.

41510~Trustees of Trust Funds: Mr. Curley states that there is an increase due to unanticipated audit costs.
 
41552~Personnel Administration: Mr. Curley states that there is an increase of $368. to workers compensation, line 260. Mr. Holden asks if there are any additional expenses anticipated for the last quarter. Mr. Curley replies no as everything has been paid out. 

43111-Highway Administration: Mr. Curley notes various lines throughout the department and explains that the increases are relative to fuel costs, overtime, maintenance repairs, and supplies. 

Mr. Holden asks if the selectmen have addressed where the funds will come from for additional fuel costs, etc. for the end of the year. Mr. Curley replies not yet, however; this will be addressed in November.

43125-Snow & Ice: Mr. Curley states that the department is over expended by 36.95%. This is an area of concern especially with what may occur in November and December.  

43243-Solid Waste Disposal: Mr. Curley explains that the tipping fees have increased.
 
43163-Sanitation Administration: Mr. Holden asks about the removal demo/furniture line 496, and notes that it is pretty well expended. He adds that there is $19,537.77 encumbered. Mr. Curley will check to see if there is a blanket purchase order for this line.

44152-Welfare Vendors: Mr. Curley explains that the department now has only 4.01% available. He adds that there has been an increase with cases. Mr. Bailey asks what will happen when the funding is not available. Mr. Curley replies that the town has actively been pursuing getting funds returned back to the town from previous applicants through liens on their property. Further discussion ensues regarding the process of how welfare payments are repaid back to the town.

45201-Park & Recreation: A discussion is held regarding the fact that the budget is almost to capacity. Mr. McNally states that that the town was down a beach this year and there was a lot of rain. Mr. Curley explains that the beach was still covered as people were still going to Bennett’s Bridge Beach area. He explains that Primex was contacted by the recreation department to see if the beach could be opened and used as long as liabilities were covered. Mr. Curley will further check into the recreation budget. He notes that the sanitation line 413 was a large overage. 

45890-Wage Grant Program: Mr. Curley explains that this is a matching funds program; although funds must be budgeted for. He does not believe that anything is pending for the rest of the year.
41505-Treasurer: Mr. Rick notes some overages in the treasurer department,
lines 820/training and 830/travel. He also references the travel line under the
town administrator’s budget. Mr. Curley explains that the treasurer and town
administrator have attended budget training sessions.  

Ms. Edwards requests a current percentage from the end of the third quarter. Mr. Curley replies that the town is at 29.5%.

Ms. Holmes asks if the town received any funds from FEMA for the tornado damage. Mr. Curley replies that funds will be sought for the hours put in by the fire department and police department. 

Ms. Pingree asks if the town is making any money on the plastic recycling. Mr. Curley replies that the town is breaking even on recycling. He adds that more plastic is being obtained than what was anticipated. Further discussion is held regarding waste management plans for the future. Mr. Curley states that the transfer station is busier than it has ever been. Mr. Holden notes that the plastics were compacted in the past. Mr. Curley states that the recycling committee is currently looking into three options for further waste management plans.

School:
Colleen Pingree is present representing the school. She explains that the provided reports are the end of the school year reports.

Ms. Pingree provides a list of five areas of increase that have occurred from the summer budget committee meeting to now. This will change the bottom line to $13,679.63 more. The areas of increase are as follows:
1100-5442-000 Copier Service – Teacher’s Room $19.99
1200-5569-000 Special Ed Tuition – Non-Public Schools $5,201.69
2150-5323-000 Contracted Speech Services $3,689.00
2220-5640-001 Library Books $553.87
2310-5330-002 Attorney & Negotiator $4,215.08
$13,679.63

Ms. Pingree refers to the summer budget committee meeting regarding a question relative to teacher’s salaries. She explains that the overages were due to errors in the calculations in steps and tracks. There were two teachers hired at steps above what was budgeted for and there were track changes, which are pay increases that are based on education requirements being met. She adds that the school board will be working on teacher negotiations this fall. There is a deadline for the track information to be provided to the state by the teachers, which is in December. The deadline is beyond when the school board has prepared for the budget. The school board is working on changing this deadline.  

Ms. Pingree states that $20,689.10 is left as surplus in the school’s budget; however, due to warrant articles that were voted on there is $17,000 needed for an expenditure that will be used for repairs to the ball fields. The article was amended on school meeting floor to fund the repairs out of any surplus. Ms. Pingree states that before the school goes ahead and does the work the auditor will be asked to review the information to see if this can be spent as it is so close.

Mr. McNally asks about the sequence of warrant articles. Discussion ensues as to how the articles were placed. Mr. McNally states that there is a concern with sequencing due to how the order will affect the outcome of what can get done.

Ms. Pingree states that there is no quarterly report provided. She explains that without getting into personnel issues there is no current financial statement due to the fact that the special education figures have not been entered. She adds that the interim superintendent and the interim business administrator are aware of this and understand her concern regarding the need to have the documents provided to the budget committee for these quarterly meetings. Ms. Pingree explains that there will be changes made as to how the information is provided.

Ms. Pingree states that there are changes being made within the SAU and the Northwood SAU office. She explains that the Northwood bookkeeper is located in the SAU office with supervision coming from the business administrator rather than the principal of the building. In addition, the interim business administrator will also be supervising the bookkeeper in each district. 

Mr. Holden asks how long the new superintendent and the new business administrator have been in their positions. Ms. Pingree replies that the interim superintendent began September 15. She explains that on the following Friday, the interim business administrator was hired because this position had already been advertised as the previous business administrator had resigned in August. The superintendent was involved with the hiring of the new business administrator.

Ms. Pingree states that there is a forensic audit being completed at this time. She states that this process should take 60 days to complete. The cost of the audit is estimated to be $50,000. with attorney fees estimated to be about the same. She adds that the costs of the audit will be shared with the three districts. She further explains that a forensic audit is a more in depth audit that is broader, provides more details, reviews time cards, as well as management issues.

Mr. McNally asks about the costs of the superintendent and business administrator. Ms. Pingree states that these positions are both at premium rates. The superintendent is being paid $450. per day with no benefits or retirement. She adds that when this is compared to the salary of the previous superintendent with benefits, this position is not costing any more. She continues to state that the business administrator position is $350 per day and even if the position were a 5 day work week, there is still a savings as there are no benefits or retirement included.

Mr. Holden asks if the school board feels that it is really necessary to spend $100,000 for a forensic audit to identify a problem. Ms. Pingree replies that the school board is bound to look into the matter. Mr. Bailey comments that he feels that the school board would have to look into it.

Mr. Holden addresses the fact that the budget committee does not have the financial reports. He states that it was previously noted that there is a person in the SAU for Northwood. Ms. Pingree states that the position is the bookkeeper. Mr. Holden asks if this person is still employed and Ms. Pingree replies yes. Mr. Holden states that it would be reasonable to think that this person would have completed the necessary report and Ms. Pingree replies yes. Ms. Pingree adds that within the three towns in the SAU there is a bookkeeper in the SAU office, there is one in the school and another that works in the school and her home. She suggests that the business administrator have these three people all in the SAU buildings. Mr. Curley asked if the bookkeeper could be relocated to the school and Ms. Pingree replies no.

Mr. McNally asks if the report could be generated and mailed out. Mr. Holden states that he feels that the committee would like to see the information as soon as possible. Ms. Pingree will request that this report be done immediately and she is determined to not have any repeats of history.

Mr. McNally states that if the committee members have any questions to send them to Linda Smith who will forward them to Ms. Pingree. Mr. Holden prefers to have another meeting scheduled so that the information can be reviewed prior to January. Further discussion is held regarding the process of printing these reports. Mr. Curley states that the report does not take that much time to generate and feels that Ms. Pingree is being mislead. Ms. Pingree notes that she was informed that the report would be incomplete due to special ed figures. Mr. Curley replies that the report could still be provided noting that there is some information incorrect or omitted. The meeting is scheduled for October 29, at 7 p.m. and the committee requests that the report be mailed out to members.

Ms. Pingree states that administration did do an analysis regarding oil usage. She explains that there have been turnovers in many positions this year and there is a savings in the salary lines due to new hires of approximately $40,000. The fuel increase totals around $50,000. It will still be $10,000. short. Further discussion is held regarding the oil contract. Ms. Pingree explains that the school and town are together in a contract. The other districts are not included. She adds that the amount the oil will be purchased at is $4.21. Mr. Rick asks who makes the decisions and Ms. Pingree replies it was the entire school board. She adds that she is not sure as to how the tradition began but the school board has always taken on the responsibility of being the management person for the entire town relative to the oil. She adds that she feels that this is too much responsibility to be put on one board and it should be addressed in conjunction with the school board and the selectmen. Mr. Curley states that the selectmen did vote on the oil contract and it was hard to predict what was going to happen under the circumstances.

Mr. Rick asks if the process was done under the direction of the previous administration and Ms. Pingree replies yes. Mr. Curley states that he spoke with Bill Tappen, prior business administrator, back in May regarding the oil bid process and businesses were not providing prices at that time. Ms. Pingree states that she will provide the oil information for the board members in the packets.

Budget Committee’s Budget
Mr. McNally states that the budget committee requested a total of $1340. with only $326. being spent overall. He refers to the equipment line and explains that this line is for coverage in case of breakages of equipment such as the laptop, recorder, tapes, etc. He adds that the cost of equipment and repairs is shared with other boards; nothing has broken so far this year, which is why nothing has been spent. Ms. Smith states that there does need to be funds available in the equipment line in case something should break and need to be replaced.

Ms. Edwards refers to the committee’s postage line and states that it appears that $65 was expended in 2007 with $350. budgeted. She adds that this year only $44. has been expended. Ms. Edwards asks if the line amount can be reduced. Ms. Smith replies that a few years ago the committee voted to have all budget materials mailed to all members prior to the meetings and nothing would be distributed at the meetings, including minutes. She explains that staff now provides some of the materials to the committee ahead of time at meetings so that there is a reduction in postage costs. Ms. Smith adds that the SAU is now mailing out their own packet of materials rather than town hall staff making copies and mailing the packet. Mr. McNally notes that the reports being mailed now are much smaller than they used to be; this format is much more efficient. Ms. Edwards suggests that the postage line be reduced to $150. Mr. Holden wants to confirm that all material will still be mailed if the line is reduced and Ms. Smith replies yes. With no further comment the line is reduced from $350. to $150. Mr. McNally states that the committee’s total budget for 2009 will be proposed at $1,140. Ms. Edwards makes a motion, second by Mr. Holden, to recommend to the selectmen $1,140. as the budget committee’s proposed budget. Motion passes unanimously; 11/0.

2009 Calendar ~ Meeting Scheduled
Ms. Edwards makes a motion, second by Mr. Curley, to approve the proposed calendar for January 2009 and February 7, 2009, as provided. Motion passes unanimously; 11/0. Mr. Holden requests that the calendar be provided to the videographer and Mr. McNally suggests that the calendar be placed on the website as well. Ms. Pingree asks if there is a copy provided to the SAU. Mr. McNally replies that she is the school board representative and is to take materials back with her; however, he states that a copy will be sent to the SAU as well.

List of Materials
Mr. McNally states that there is a general list of materials typically requested by the committee. He requests that this list be sent out to the members and if additional information is requested they should forward their request to Linda Smith.

Attendance
A discussion is held regarding attendance of members on the committee. Mr. Bailey states that some members have not been showing up. Mr. McNally states that he has not heard from Ms. Bobowski, Mr. Witham, or Mr. Johnson. He did note that Ms. McNally was excused. Mr. McNally asks what the number of meetings is that can be missed and Ms. Morrill replies that 4 consecutive meetings can be missed.

Ms. Smith reads the budget committee’s rules of procedures and Ms. Pingree reads RSA 32:15, which states that members are allowed to miss 4 consecutive meetings and the absences can be excused at the chair’s discretion. Mr. Holden states that the board needs to encourage active participation because if these individuals do not want to participate, there may be other residents that would like to.

Mr. Holden requests that the budget committee receive dates of selectmen’s meetings when the budget hearings will be held with specific departments. Mr. Holden also requests that Mr. Curley review the August meeting minutes so that answers to the questions noted can be provided at the next meeting, October 29. Mr. Curley replies that one question the committee had was relevant to the hours of police officers related to the tornado. He adds that he knows that the amount of hours was provided to FEMA and will provide this information to the board. As far as the fire department and the volunteer stipends, he explains that the stipends are distributed by the number of calls and the responders who attend the event.

Procedure of Accepting Minutes
Mr. Holden asks why minutes are now not voted on. Ms. Smith states that all other town boards vote on and approve their minutes. She explains that this idea was mentioned by a previous member, Tom Chase, who had heard that approving minutes was not a requirement anymore or part of the parliamentary procedure. She adds that she has not seen anything relative to this change process. Mr. McNally requests that this be clarified. Mr. Holden makes a motion, second by Mr. Bailey, that the committee will motion and second to accept or deny minutes, present any changes, and will then take a final vote. Motion passes unanimously; 11/0.

Adjournment
Mr. Holden makes a motion to adjourn, second by Lucy Edwards, at 9:47 p.m. Motion passes unanimously; 11/0.

Respectfully submitted,

Lisa Fellows-Weaver
Board Secretary