Budget Committee

Minutes

December 12, 2011

Official as of january 12, 2012

Chairman Daniel McNally calls the meeting to order at 7:06 p.m.

PRESENT: Chairman Daniel McNally, Vice-Chairman Jim Vaillancourt,
Selectmen Representative Robert Holden, School Board Representative Tim Jandebeur, Water District Representative John Jacobsmeyer, Mark Boucher, Betsy Colburn, Ginger Dole, Kate McNally, Bonnie Sears, John Difeo, Hal Kreider, Muriel Johnson, Herb Johnson, and Board Administrator Linda Smith.

SCHOOL REPRESENTATIVES PRESENT
Superintendent Dr. Michael Ludwell, Principal Richard Hartford, school board member David Ruth.

Public Hearing Schedule
Mr. McNally states that the school has requested to switch the public hearing dates. After discussion, the dates will stay as originally scheduled: January 11, 2012 at 6 p.m. for Town; January 12, 2012 at 6 p.m. for School.

Warrant Articles
Warrant articles are scheduled to be discussed for January 5 at 6:30.

SAU Proposed 2013 Budget
Mr. Jandebeur states that there are a few changes that have been made to the proposed SAU 44 2013 budget. He reviews the increases to a few salaries as well as FICA. He states that there is a reduction in the audit fees. He states that the new total is $989,025.48. Mr. Jandebeur states that the district pays 1/3 of this total, which is approximately $1,600; Northwood’s portion is an increase of $520 to the school’s budget, a new bottom line total of $314,576

Page 16-17: Dept. 2310~School Board Services:
Mr. Johnson makes a motion, second by Ms. McNally, to recommend the school board’s proposed amount of $85,509. 
Ms. Dole asks about the amount proposed in the attorney/negotiator
line. Mr. Jandebeur states that a few years ago the amount was much more and they are not sure as to what will be needed this year. He states that negotiations are ongoing. He states that the school board has reduced the amount from $75,000 to $40,000 and is satisfied with the proposal.

Mr. Ruth states that the school board is working to control the legal costs and using unions rather than lawyers. He adds that the school board may end up in Superior Court.  

VOTE: YES: JV, MB, BH, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. NO: GD. Abstaining: BC. Motion passes; 12/1/1.

Page 17: Dept. 2321~Expenses-SAU #44:
Mr. Vaillancourt makes a motion, second by Mr. Johnson, to recommend the school board’s proposed amount of $314,576. 
Ms. Dole states that the original budget provided totaled $987,000 with $820,000 for salary and benefits. She asks how many employees are working at the SAU. Dr. Ludwell explains that there are 10 full-time employees and two itinerants housed at the SAU building.

Mr. Kreider asks how the costs for Northwood are derived. Dr. Ludwell states that there is a formula based on the number of students per district, approximately one-third. Discussion ensues as to the services of the staff. Mr. Jandebeur states that in theory the staff would provide one-third for services; however, with the special ed. director it has been more.

Ms. Dole asks why there are changes to salary lines as there has already been an increase in salary for the business administrator and the special education director. Mr. Ruth states that these individuals have saved the town’s money; we have seen a big change over the past year, for the better. He states that the joint board meetings are open to the public and the three school boards make these decisions.

VOTE: YES: MB, BH, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. NO: JV, BC, GD. Motion passes; 11/3.

Page 19: Dept. 2410~Office of the Principal:
Mr. Johnson makes a motion, second by Mr. Vaillancourt, to recommend the school board’s proposed amount of $340,116. 
Ms. Dole states that the assistant principal salary has increased and asks about the position. Mr. Hartford explains that prior to this school year the assistant principal’s position was 210 work days. He states that he proposed that the school hire a 261 day asst. principal and be brought up to a full-year position; therefore, the salary increased this year. He adds that both Strafford and Nottingham have full-time assistant principals. Further discussion ensues as to the availability of the principals and their schedules.

A discussion is held regarding longevity. Mr. Jandebeur states that the school board gave the principal and assistant principal a three year contract this year. He states that they are waiting on salaries until negotiations are finalized. Mr. Vaillancourt asks if 80% of his time is with the teachers.

Mr. Hartford explains that he spends 80% of his time with adults-teachers and parents. He states he would prefer more time in the classroom with the students. He adds that there have been a lot of changes within his first two years at the school.

Mr. Jandebeur states that the school board will be working to get Mr. Hartford into the classroom more in the coming year. He adds that they will also be working on the job descriptions for all staff.

Discussion ensues regarding the necessity and salary of the assistant principal. Mr. Ruth states that there are children that need more supervision. He mentions that there have been discussions regarding adding a police officer to the school. He explains duties of staff within the school and SAU. Ms. Dole states that there is a state requirement which bases the need of an assistant principal on the number of students in the school.

Mr. Holden asks how many adults are in the school and Mr. Ruth explains that there are over 100 adults; including volunteers and staff. Mr. Holden asks how  this compares with the rest of the district as it figures out to be 4.3 students per adult. Dr. Ludwell states that it is very comparable with all three districts.

VOTE: YES: MB, BC, BH, KM, TJ, JJ, HK, MJ, HJ, DM. NO: JV, GD, BS.  Abstentions: JD. Motion passes; 10/3/1.

Page 19-20: Dept. 2510~Fiscal Services:
Mr. Johnson makes a motion, second by Ms. Sears, to recommend the school board’s proposed amount of $57,953. 
Ms. Dole asks why there is money added to line 5322/000, staff development. Mr. Jandebeur states that the money will allow more for professional growth in this field. Mr. Hartford adds that this increase is not to cover support services as that is available through the software system used.

Mr. Holden makes an amendment to the motion, second by Mr. Johnson, to recommend $56,204. Mr. Holden states that the amount is a result of changing line 5322/000 from $1,750 to $1. Mr. McNally respectfully requests that another member of the budget committee offer this amendment as it appears to be a personal motion rather than a motion coming from the selectmen and this seat represents the selectmen. Mr. Holden states that he will respect the request and adds that he has not seen a request like this from the chairman in the past. Mr. Holden states that he will abstain from votes if he is unable to participate in the discussions as an active member of the committee. Ms. Smith states that Mr. Holden is dully chosen by the selectmen to represent the board of selectmen; he is a full-voting member and may make any motions. Mr. McNally rescinds his request. Mr. Holden withdraws the amendment. Mr. Vaillancourt states that this applies to the school board representative as well. Ms. Smith states that the chairman has full authority regarding any discussion on a motion. 

Ms. Dole makes an amendment to the motion, second by Mr. Johnson, to recommend $56,204.

Amendment-$56,204: VOTE: YES: JV, MB, BC, BH, GD, BS, JJ, JD, HK, MJ, HJ. NO: KM, TJ, DM. Motion prevails; 11/3.

Original Motion-$56,204: VOTE: YES: JV, MB, BC, BH, GD, BS, JJ, JD, HK, MJ, HJ. NO: KM, TM, DM. Motion prevails; 11/3.

Page 20-22: Dept. 2620~Maintenance and Operations:
Mr. Vaillancourt makes a motion, second by Mr. Johnson, to recommend the school board’s proposed amount of $473,257. 
A lengthy discussion is held regarding the part-time and full-time custodian positions and the insurance figures which will be required as there is another custodial position proposed in the budget. Mr. Jandebeur states that a family health insurance plan is $22,895 and the dental costs $1,858.20.

Mr. Hartford states that currently there is a full-time facilities director, one full-time custodian. He states that for many years there were two custodians; however, one left in the fall and the position was not filled due to budgetary concerns. He adds that there are four part-time custodians. There is a total of six custodians and next year they are requesting another full-time position at 35 hours per week, so there will be seven, which includes the director.

Further discussion is held. Mr. Hartford states that there is a decrease of 35 hours per week and with the current staff it has been covered but there is no budget to cover this. He explains that there is definitely a difference in the building. Mr. Jandebeur agrees and supports the addition of the custodian and Northwood is comparable to the other schools, just a little larger. Mr. Hartford provides a breakdown of the custodial staff and their hours. 

Further discussion ensues regarding the community use of facilities wages, line 5110/903. Ms. Dole states that this line could be reduced if there were going to be less use. Ms. Dole makes a motion, second by Ms. Colburn, to reduce line 5110/903 from $3,000 to $1,000.

Mr. Hartford states that safety and security of the building is one of his responsibilities and he feels that a school employee should be at the building when it is open during off hours. Ms. Colburn agrees that there should be someone on site if the facility is being used; however, she adds that the money should be used for that purpose and has not been. Mr. Ruth states that he believes that some of this expense may have allocated through the accurate lines.

Mr. Kreider asks if there has been any research regarding the cost savings for wood products for heating. Mr. Ruth states that the school board has not addressed this matter. Dr. Ludwell states that Strafford recently had a presentation on the installation of pellet stove and it was approximately $100,000. 
Amendment: VOTE: YES: BC, BH, GD, BS, MJ, HJ. NO: JV, MB, KM, TJ, JJ, JD, HK, DM. Motion does not prevail; 6/8.

Mr. Vaillancourt refers to contracted services-asbestos inspection, line 5330/000, and asks why there is money budgeted when the inspections are due every three years. Mr. Hartford replies that in addition to the inspections, whenever there is a project being done there needs to be an asbestos inspection.

Mr. Vaillancourt asks for an explanation of the fuel oil as it appears that the school has budgeted $3.34 per gallon for 21,000 gallons for $75,000 when broken down this actually is budgeting $3.57 per gallon. Mr. Vaillancourt refers to the school minutes of November 7 noting that the school has entered into a contract with Fred Fuller Oil and asks if the contract includes pricing. Mr. Hartford replies that the current rate for oil per gallon is $3.34 and the $75,000 includes a proposed increase.

Ms. Dole states that there is a three-year contract for 21,000 gallons that the school typically uses. She asks why have a contract if there is not a specified price. Dr. Ludwell replies that he believes there is a cap that it would not exceed a certain price after the first year.

Mr. Ruth states that there has been some savings with the oil this year due to the installation of the new thermostats. He adds that the snow also helps to insulate the building. Mr. Jandebeur states that the school board is anticipating the cost of oil will increase and they have budgeted $5,000.

Further discussion is held regarding the gallons estimated for oil and the contract.

Original Motion: VOTE: YES: JV, MB, BC, GD, KM, BS, TJ, JD, HK, MJ, HJ, DM. NO: BH, JJ, Motion prevails; 12/2.
 
Page 22: Dept. 2630~Contracted Services ~ Rubbish Removal:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $10,550. 
Mr. Holden states that this is an item that can be negotiated for savings.

VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM.  Motion passes unanimously; 14/0.

Page 22-23: Dept. 2660~Contracted Services ~ Fire Alarm Service:
Ms. McNally makes a motion, second by Mr. Johnson, to recommend the school board’s amount of $8,330. 
Ms. Colburn asks if this is the department that is responsible for outages. Mr. Jandebeur states that there has been a proposal to replace the intercom system.
VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 23: Dept. 2690~State Mandated ~ Water Testing:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $2,550.
Mr. Vaillancourt states that two years ago there was no money expended from this line. Mr. Jandebeur states that he believes that the testing was not done that year. Mr. Jacobsmeyer explains that the state has been doing the testing and will now not be covering the costs of the tests.

VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 23: Dept. 2721~School Transportation:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $402,709.
Mr. Kreider asks about the bid process and why there are not more people providing bids. Mr. Jandebeur explains that they sent out letters in NH and only one bid was received. Some companies are not equipped to take on an  additional town at this time. 

Further discussion is held regarding the transportation contract, routes and runs. Mr. Jandebeur explains that the contract has not been signed but is less this year. He states that there is a possibility of reducing the Coe-Brown routes from three to two. He adds that the school is not required to provide transportation to the high school. This has been discussed, however, at this time this is not something they are proposing to do. Discussion continues with cutting bus routes and possible scenarios that could provide some savings.  

Mr. Vaillancourt amends the motion, second by Ms. Colburn, to increase the bottom line of 2721 to $402,710. Mr. Vaillancourt states that this will add $1 to the vocational transportation, line 5519/003.

Amendment: VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Original Motion: VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 24: Dept. 2724~Athletic Transportation:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $5,792. VOTE: YES: JV, MB, BC BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 24: Dept. 2725~Class-Field Trip Transportation:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $3,601. VOTE: YES: JV, MB, BC BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 24-25: Dept. 5100~Payment of Interest:
Mr. Johnson makes a motion, second by Ms. Dole, to recommend the school board’s amount of $338,637.
Mr. Kreider asks if there is a possibility to refinance. Mr. Jandebeur states that there are three years left. Mr. Hartford states that the business administrator did refinance the remaining portion and was able to get a lower rate.

VOTE: YES: JV, MB, BC BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Page 25: Dept. 5251~Transfer to Food Service:
Mr. Johnson makes a motion, second by Mr. Boucher, to recommend the school board’s amount of $148,199.
Mr. Kreider asks if there are any state subsidiaries received. Mr. Hartford states that there are two revenue lines; one state appropriations and the other is federal. He adds that the state’s revenue this year is $5,000, estimated federal is $30,000, and this year’s estimated food service sales will be at $60,000.

VOTE: YES: JV, MB, BC, BH, GD, KM, BS, TJ, JJ, JD, HK, MJ, HJ, DM. Motion passes unanimously; 14/0.

Ms. Dole provides a summary of amended sections as follows:
• Regular Education:    -   $150,000
• Vocational Education:    + $           3
• Co-Curricular:      - $  13,900
• Computer Instruction Services:   - $  10,000
• SAU       + $       520
• Fiscal Services:      - $    1,749 
• Vocational Transportation:    + $           1
New bottom line total, including food service:       $11,863,440

Ms. Dole makes a motion, second by Mr. Johnson, to recommend a budget  of $11,863,440, including food service. 

VOTE: YES: MB, BC, BH, GD, BS, JJ, JD, HK, MJ, HJ. NO: JV, KM, TJ, DM.
Motion prevails; 10/4.

Mr. McNally calls for a recess at 9:00 p.m. Session resumes and Mr. Difeo leaves at 9:12 p.m.

Revenue
A discussion is held regarding revenue and projected revenue. Mr. Jandebeur states that Mr. Markiewicz is still working on the revenue. Ms. Colburn requests that the revenue report be mailed to members. Mr. Jandebeur states that he will check into the revenues.

Default Budget
Mr. Jandebeur states that the default budget will be presented to the school board Monday, December 19. Ms. Colburn requests that the default budget be mailed to all budget committee members.

MS Reports
A discussion is held regarding the process of reviewing the MS reports and completing the reports. Mr. Vaillancourt volunteers to fill in the MS 27 report and send it to Mr. Markiewicz. Mr. Jandebeur makes a motion, second by Ms. Sears, to approve Mr. Vaillancourt completing the MS-27 report. Motion passes unanimously; 13/0. 

Mr. Vaillancourt asks if a presentation will be done this year for the two deliberative sessions or at the public sessions. Mr. Holden states that a presentation should be done at both the deliberative and public sessions. He states that the presentation was very helpful last year and that all information should be provided. Discussion ensues as to the process and the direction of these presentations. Mr. Vaillancourt offers to create the presentations for the committee.

Ms. Dole makes a motion, second by Mr. Johnson, to create a sub-committee authorized to prepare and review presentations for public hearings and deliberative sessions. Motion passes unanimously; 13/0.

Ms. Dole makes a motion, second by Mr. Johnson, to approve the formation of subcommittee to review both MS-7 and MS-27 reports and approve the numbers. Motion passes unanimously; 13/0.

Subcommittee members are as follows:
Both Subcommittees:
• Ginger Dole   
• Betsy Colburn
• Jim Vaillancourt

Reviewing MS Reports Subcommittee:
• Tim Jandebeur
• Dan McNally

Warrant Articles
A lengthy discussion is held regarding the draft warrant articles and when they will be received. Mr. Holden states that the selectmen will be meeting January 4, 2012 to review the warrant articles. Draft copies will be provided to the committee members for their review prior to the committee’s January 5th meeting.

Adjournment
Ms. McNally makes a motion, second by Mr. Johnson, to recess to January 5, 2012, at 6:30 p.m. Motion passes unanimously; 13/0, at 9:42 p.m.

Respectfully submitted,
Lisa Fellows-Weaver
Board Secretary