Budget Committee

Minutes

December 23, 2008

Official as of January 5, 2009

Chairman Daniel McNally calls the meeting to order at 6:32 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Robert Holden, Selectmen Representative Ken Curley, School Board Representative Colleen Pingree, Water District Representative John Jacobsmeyer, Robert Bailey, Nona Holmes, Kate McNally, Babette Morrill, Ken Rick, Herb Johnson, Kevin Ash and Board Administrator Linda Smith. Nona Holmes arrives at 6:37 p.m.

ABSENT: Lucy Edwards, Board Secretary Lisa Fellows-Weaver, and Shelley Bobowski excused. Ken Witham.

Town
Ken Curley states the current ice storm was costly and has put the town in a need to expend emergency funds. He explains that the process to expend funds from the town’s emergency fund balance requires approval from the Department of Revenue and Administration (DRA) through an application that DRA will vote on. He states that the cost is $78,500. He notes that since the ice storm was declared an emergency the town anticipates being reimbursed 87%. He states that there will be some impact to the town; however, the major portion of the funds will be reimbursed by FEMA and the state.

Mr. Jacobsmeyer, speaking from his experience as the water district commissioner, states he has had to follow this process, and states that they only concerned themselves with the funds that would need to be paid out in the current year, not for any bills that may not even be received until after the first of the year. Mr. Jacobsmeyer asks why the selectmen decided to encumber all of the funds from 2008. Mr. Curley replies that the town has hired contractors and there are contracts in place; thus allowing the town to encumber funds. He explains that funds cannot be expended if they were not budgeted and the town wants to make sure that funds can be spent, prior to paying for anything. He adds that either way this is the process that the town must follow.   

Mr. Holden requests a spreadsheet itemizing the funds to delineate how the $78,500 was determined. Mr. Curley replies that the emergency management department would have that information. He adds that this meeting is regarding obtaining approval to expend funds due to an emergency. Mr. Holden states that it would helpful to have a worksheet to understand where the money will be issued. Mr. McNally states that he was under the impression that a spreadsheet was to be provided to the committee from the town administrator.

Ms. Smith explains that she was told that the information is a request for authorization to spend. She is not sure as to the specific amount and how it was determined. She states that because the governor and the president did declare a “State of Emergency” in NH, according to the state statute the selectmen could send the application to DRA without meeting with the budget committee; however, they are including the budget committee as a courtesy. She adds that there may have been a time issue relative to getting the meeting scheduled, having the figures and paperwork together. Mr. Holden states that in order for the figures to be determined at $78,500 there must have been a worksheet created. He adds that he would have preferred to have the specific amounts noted and provided so there is some backup allocating the amounts. Mr. Curley states that he has only viewed the worksheet briefly and specifically recalls $20,000 for repairs to generators and another large amount is for personnel hours. He adds that tree service was another large portion. He has not seen the actual breakdown of funds and adds that the town administrator said that the bottom line figure is all that is required to submit the application. 

Herb Johnson states that it was his understanding that the budget committee was only voting on an approval to submit the application. Mr. Curley states that on the initial form there is no breakdown required. Mr. Johnson states that before the funds are distributed to the town a breakdown would need to be provided to DRA. Mr. Johnson makes a motion, second by Mr. Bailey, to recommend submitting an application requesting reimbursement to the Department of Revenue Administration due to recent damages as a result of the ice storm.     

Roll Call Vote:
Robert Holden – yes
Robert Bailey – yes
Ken Curley – yes
Babette Morrill – yes
Colleen Pingree – yes
Nona Holmes – yes
Kate McNally – yes
Kevin Ash – yes
Ken Rick – yes
John Jacobsmeyer – no
Herb Johnson – yes
Daniel McNally – yes
Motion passes; 10/1.

Mr. Jacobsmeyer states that he was approached by the emergency management director regarding the storm. He was asked some questions and feels that the number provided also includes funds for the water district, and is not all town funds. He adds that the water district does not need any emergency funds as the water district is covered. 

Mr. Holden refers to RSA 32:11, section I, which states that approval must be obtained by the majority of the budget committee. He states that Ms. Smith had previously indicated that this was not the case. Ms. Smith states that she was informed by the town administrator that in a situation where it has been declared an emergency, the selectmen can go directly to DRA for the funds. Mr. Holden states that with that being the case then the selectmen should have bypassed the budget committee. Ms. Smith refers to section II, which states that in an emergency then section I would not apply; however, the desire of the board of selectmen and town administrator was to include the budget committee in the process as a means of communication and respect for the volunteers that serve on this committee. 

School:
Mr. McNally notes that there is still some old information that needs to be addressed with the school prior to any new business being discussed. Colleen Pingree states that the school just gained access into the software relative to the student activity fund and to begin to audit this fund.
Ms. Pingree states that the research on the forensic audit is complete and the report will be presented to the board at the SAU’s next meeting at the end of January and a public meeting will be held to present to the public as well.
She adds that the school will be submitting a new budget format.

Other:
Mr. Rick asks who will be handling the funds from the loan. Mr. Curley explains that this is not a loan to the town; it is from the town’s fund balance.

Mr. Curley states that the selectmen have completed the budget work session process and will be presenting a budget with an overall increase of 2.4% from last year.

Adjournment
Mr. Johnson makes a motion to adjourn, second by Mr. Curley, at 6:55 p.m. Motion passes unanimously.

Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary