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Town of Bristol Budget Committee Minutes December 8, 2008
APPROVED ON: 12/15/08, as amended
ATTENDED: Andrew Hemingway (Chairman), Dan Bouchard (Vice Chairman), Ron Preble , Richard Walenda, David Carr, Jon Thouin, Paul Simard, Ashley Dolloff, Andrew Williamson, Brenda Fritz (enters 7:20 p.m.), Dorcas Gordon, Joe Denning (Selectmen sitting in for Selectman Van Derven), and Diane Marden (Secretary).
ABSENT: Tom Winn .
OTHERS PRESENT: Paul Weston (Town Manager), Police Chief John Clark, Gylene Salmon (PD Administrative Assistant), Other Police Department Personnel, Fire Department Personnel, Murray Campbell (CIP), Dan Parity (CIP & Planning Board), Jerry McGwinn (CIP), Don Milbrand (Selectmen & CIP), and Jennifer Coreia (Accounting).
The Chairman, Andrew Hemingway called the meeting to order at 7:01 p.m., at the Bristol Town Offices, and the meeting was video taped for LRPA.
Minutes of December 1, 2008
Paul Simard made changes to page 2, last paragraph, sentence number one to read as follows: Paul Simard asked about the changes to the NH Retirement System stating that the fund will only pick up 125% of base salary anything over this will be the responsibility of the town to pick up. Mr. Simard asked how that will effect the budget?
Paul Simard made changes to page 4, third paragraph, sentence number one to read as follows: Paul Simard stated the DRA numbers presented by the former budget committee chairman indicated that towns having a population of 5,000 or less is paying $150 per tax payer for police service, and with the proposed increase it jumps to approximately $322 per tax payer.
Paul Weston made changes to page 6, fourth paragraph, line three changing Governor’s Offices to Finance Office’s.
Paul Weston made changes to page 7, first paragraph, fifth line, second word to “on” instead of “of”.
Minutes of December 1, 2008 Continued
Dan Bouchard clarified paragraph three on page five to include various items prior to the word tazer.
Dorcas Gordon asked that “for computer technology” be added to the fourth paragraph, line two on page 5, and that one zero be removed from $2,500 in the same paragraph on page five, line four.
Paul Simard made the motion to accept the minutes of December 1, 2008, as amended. Dan Bouchard seconded the motion. MOTION CARRIED 10/0 - 1 abstention (Brenda Fritz not present for vote at this time)
Capital Improvements Plan (CIP)
Murray Campbell of the CIP Committee addressed the budget committee at this time. Mr. Campbell explained the format and material provided to the committee a week prior. Mr. Campbell explained he would like to bring to the attention of the budget committee that the definition for CIP capital expenses considered has changed from $2,500 in 2008 to $10,000 in 2009. Mr. Campbell stated this defined a capital project as a tangible project or asset having a cost of $10,000 and a useful life of at least three years. Mr. Campbell reminded the budget committee that CIP is an ongoing process, and their goal is to avoid any sharp increases in expenditures down. Mr. Campbell stated in the proposed 2009 budget they have basically level funded the budget based on last years figures.
(7:20 p.m. Brenda Fritz enters the meeting).
Mr. Campbell explained the historical data and other information contained on page's five and six of the CIP proposed 2009 Budget. Mr. Campbell stated Bristol typically has more expenditures every couple of years rather than keeping things steady over the years. Mr. Campbell stated it should be noted that the CIP Committee does have a list of priorities, and has criteria for putting each in a particular category. Mr. Campbell stated there is also a fund coding key as well. Mr. Campbell continued reviewing the CIP report with the Budget Committee referring to page's nine and ten showing an increase subtracting the offsetting revenue, and therefore, level funding CIP (projects). Mr. Campbell stated the CIP is for the betterment of the Town, and it’s citizens.
Dorcas Gordon asked what things within the operational budget would increase based on the change in definition of CIP Projects? Ms. Gordon wondered if there are a lot of items that would have been covered under the $2,500 definition, that were put back into the budget, that no longer qualifies because criteria has changed? Mr. Campbell stated he does not know because they had not had numbers to work from. Town Manager, Paul Weston stated the difference is about $30,000 that is in the FD budget explaining smaller ones were also put into the operating budget. Mr. Campbell stated the CIP hopes to break things down over the next few years to get a track of them. CIP Discussion Continued
Andrew Hemingway asked Mr. Campbell if things would be broken down by item or by department under one purchase order? Mr. Campbell stated it would be broken down further by department and an example would be like axes, oxygen masks, jaws of life, etc., rather than just the Fire Department. Paul Simard thanked Mr. Campbell and the committee for their hard work putting together the report. Mr. Simard stated on the downtown improvements when looking at the master plan, one of the focuses is to create viable retail space in the downtown area, and I hope that this tool will be used as a road map in order to prioritize things within Bristol. Mr. Simard stated in this down economy, and we have gotten ourselves in a situation with the downtown. Mr. Campbell stated it is certainly a priority with the CIP Committee. Dan Parity commented stating that the CIP Committee is a sub-committee of the Planning Board. Mr. Campbell stated the CIP Committee would like to start with a huge fund, but that is not likely at this time we are asking to get some things going, and they are looking for better times.
Jon Thouin stated when looking at the plan for 2009, what has been completed in 2008? Mr. Campbell stated as he understands it, that when funds are appropriated for a cause it goes to the cause. Town Manager, Paul Weston went through last years budget to discuss what had been completed or not completed. The list included the following: radar trailer purchased, police cruiser purchased, dump truck purchased the other half gets paid for this year, $15,000 Sewer to Lake Consulting Fees have not been expended at this time and a new committee has been established, equipment/replacement upgrades within the Fire Department some have been purchased, Central Street Bridge is progressing forward the steel is coming in soon, and we hope to complete it in the spring. The Erosion Control Project is controlled by DES and we are awaiting a permit. Chairman Hemingway asked what happens to the funds if not expended? Mr. Weston stated at years end he will bring a list to the Board of Selectmen to either encumber the funds, or have the funds lapse to fund balance on projects that have not been completed. Mr. Weston stated he thought most not finished would be encumbered. Mr. Weston continued saying the Ballot Machine was purchased, transfer station improvements have not been made at this point, GASBE has not made a lot of progress but we have a new firms coming in to make progress, Library Repairs some repairs have been made from this account, and the roof repairs have not been done.
Paul Simard asked about the Water and Waste Water and Sewer to Lake Project would there be any grants and things of that nature? Mr. Weston stated before his arrival as Town Manager the Board of Selectmen had made some decisions on that relative to the timeliness of billing etc., and he thinks the firm has lost sight of Bristol. Mr. Weston continued to say requests are out looking for a new engineering firm, and he would like to be in the situation where funding could come down from the Federal Government. Mr. Weston stated presently the Town is not it that position, but it takes time for a new engineering firm to jump in and get this done. Mr. Weston stated it does not appear that we have enough time, as we are not yet to final design. Paul Simard asked if the project could be phased? CIP Projects Discussion Continued
Town Manager, Weston stated the project has been put forth in phases, but that it takes time for a new engineering firm to get on board with the project. Richard Walenda commented the Project will need 99% financing in order to get taxpayers to agree to that. Lt. Lewis of the Police Department commented that the life of a cruiser is five (5) years not the three (3) years that are listed in the report. Don Milbrand stated part of the CIP is not only the expenditures, but the revenues as well.
Chairman Hemingway asked what the reasoning was behind the Downtown Improvements and the Water Project seems to be minor projects, why did they get the CIP Committee’s attention this year? Murray Campbell stated the Cherette, work that had gone into the planning phases from last year making it the best time to start the projects. Jon Thouin stated there are some things in for last year that have a priority two (2), and yet are going to be started until next year? Mr. Campbell stated when projects are started or completed and funds remain why not work away at other things that may need to be done. Mr. Campbell stated with the Library roof there are some concerns with expansion, they have not raised any funds, and other issues have not been worked out prior to starting the project. Mr. Campbell stated this being a difficult year with the economy we just left the Library out of the budget. Paul Simard asked about the funds remaining for the Police Department? Mr. Campbell stated not all the projects were completed as a result of not passing the new Town Hall at last Town Meeting. Mr. Campbell stated to budget committee member to not concern themselves with the future years so much, as not a lot of work has been put into those items. Mr. Campbell showed these items so the Budget Committee could get a sense of what was coming down the line, rather than looking at the projected figures for future years as there was not enough time to adequately spend time on these items.
Jon Thouin stated my concern is not just with the Library he is concerned other things may not be completed, that should be this year. Chairman Hemingway stated he was comfortable, and thought we could stop there on the discussions.
Executive Office 01-4130
Town Manager, Paul Weston introduced Jennifer Coreia who has been sitting in as Town Accountant while our accountant is out on leave. Ms. Coreia also came to the Town as a Consultant after the Board of Selectmen received a letter regarding our auditing practices.
Mr. Weston stated there are no new positions proposed in this budget. Mr. Weston stated line item 01-4130-625 entitled EX Postage is up because last year Town Reports were mailed out to all taxpayers This year they will only be sent out to those who call to request the report sent to them. Mr. Weston stated he would be happy to answer any questions.
Executive Office 01-4130 Discussion Continued
Dan Bouchard asked if the Town Report will be available on line electronically? Mr. Weston stated it would be online. Mr. Bouchard suggested referring people to view it online.
Health Insurance
Town Manager Weston stated the Health Insurance and Benefit line items throughout the budget are elevated as he had plugged numbers into them, but had not gotten the actual figures. Mr. Weston stated he does anticipate a decrease in those line items. Dave Carr asked if the Health Insurance Plan’s have changed? Mr. Weston stated they had sought after multiple pricing from a variety of sources and Board of Selectmen decided to stay with Athem instead of facing a 20% increase. Mr. Weston continued stating it was cheaper to pay a larger deductible with Town Funding, and offering the same rate as last year. Dave Carr asked if the funds for the deductible were in the budget, and if so where are they located? Ms. Coreia stated they are within each department. Ms. Coreia stated we budgeted for the worse case scenario, but is hoping not some may not need to use it. Mr. Weston stated the employee pays 17% through a payroll deduction for health insurance. Dave Carr asked if the 17% was something new? Joe Denning commented it is not new, and that he understands that most pay the 17% but not everyone. Mr. Weston stated this is based on the type of plan whether it be a family plan ($1,500), individual plan ($500), two (2) person plan ($1,000) etc..
Paul Simard stated he would like to see this plan in details. Chairman Hemingway stated Mr. Simard could obtain that information on his own from the Town Manager outside of tonight’s meeting. Chairman Hemingway stated line item 01-4130-210 entitled EX Health Insurance should be $16,588.
Salaries and Benefits
Jennifer Coreia handed out updated budget sheets that include the updated insurance information, and the Salary and Benefit line items. Dan Bouchard asked about the $12,000 difference in the line items on page ten (10) of the handout verses the previous budget? Jennifer Coreia stated a bond payment has come out of the budget, and the Health Insurance deductibles have been added to this current budget. Jennifer Coreia stated she has been adding the increases into the Selectmen’s columns in order to show the Budget Committee what it was prior to the changes. Town Manager, Weston stated employee pay went up substantially last year based on pay increases that were passed at Town Meeting. Mr. Weston stated a motion was made to adopt the wage increases from the 2007 Pay Classification Study over a two (2) year period. Mr. Weston continued to explain that forty (40) weeks of this budget reflect the new wages, and twelve (12) weeks reflect last year's wages. Mr. Weston stated some line items are in for a pay increase, while others are only receiving a 3% cost of living pay increase.
Salary and Benefits Discussion Continued
Town Manager, Weston stated this is based on where the employee is currently on the Pay Classification Study. Mr. Weston stated the study is two (2) years old now. Mr. Weston continued to say the Board of Selectmen have decided to fund the second portion of pay increases, but have chosen to do it after the Town Meeting.
Ron Preble asked if everyone would receive the 3% plus the pay increase? Town Manager, Weston stated there are two (2) ways to get an increase this year. Mr. Weston stated if a person was not reclassified on the pay scale, then only those employees will receive the 3% pay increase.
Dorcas Gordon asked where the 3% COLA came from this year, as last year had been 2.5%? Mr. Weston stated he had obtained the current figures from the Department of Labor to look at the inflation rate, and at that time it was a 3% COLA. Mr. Weston stated there have been some drastic changes in this rate of inflation lately. Ms. Gordon asked what employee’s received last year? Mr. Weston stated he could research this and get back to Ms. Gordon. Gylene Salmon commented that employee’s received a 2.5% COLA last year.
Dave Carr comment that if you compare the previous budget to the budget handed out this evening there is a difference of $351,000 in wages and benefits. Mr. Carr stated in order to level fund the budget this year, we still need to come up with approximately $100,000. Mr. Carr commented that this is a tough nut to crack as there is only a few ways to do this either by not increasing wages, cutting items from the budget drastically, or reduce the number of positions in order to level fund the budget. Dorcas Gordon stated she is inclined to be supportive of the wage increases at a 2.5% COLA, but only if we can get to a place to level fund the budget otherwise including the capital items. Ms. Gordon stated even if that takes going back to the Department Heads to ask them what we can cut in order to accomplish this.
Town Manager, Weston stated he had asked Jennifer Coreia to combine the multi-positions within the budget. Mr. Weston stated that is the hen scratched numbers in the right column throughout the budget. Mr. Weston passed out an organizational chart along with pay and line item numbers for committee members to review. Mr. Weston stated he recommends the wage increases in order to keep pace with the market. Mr. Weston stated it gets difficult to hire quality personnel when the pay is not where it should be. Jon Thouin asked if we are hurting ourselves if we do not give a cost of living and does it set things out of whack in terms of the pay classification? Mr. Weston stated it does impact the scope these things, and these are very trying times. Mr. Weston commented that the Town of Bristol is already falling behind on the 2007 Pay Classification Study. Dorcas Gordon stated rather than play catch up next year, she would rather see it funded to avoid having to catch up as that makes it more difficult from year to year. Richard Walenda stated the way the economy is if someone does not like the pay, with so many people out of work, someone will take the job. Salary and Benefits Discussion Continued
Joe Denning stated both Ms. Gordon and Mr. Carr are right with their comments. Paul Simard stated the economy has not effected us to the full extent yet. Mr. Simard stated Bristol is usually six (6) months behind, and some towns are cutting back their hours.
Paul Simard was wondering if we have too many people, and wondering if we should have employee’s pick up the weight and spend more on the pay. Chairman Hemingway stated he does not agree as many are going through foreclosures that will result in abatements. Mr. Hemingway stated this takes away from Revenue, and in turn effects us.
Dave Carr asked if there is a requirement to be in the State Retirement System? Town Manager, Weston stated there is no requirement. Mr. Carr stated he thought we could fair well with a 401K. Jennifer Coreia stated it would be a huge problem with our Police and Fire Department personnel, because they need to be employed by a municipality. Ms. Coreia stated it would be a great burden to the Town, and the full effects would not be seen for about two (2) years. Town Manager, Weston stated a change in this would have to come from the Board of Selectmen. Chief Clark stated Jennifer Coreia could not have explained it better, and reviewing another retirement system will not be a better option. Mr. Weston stated getting out of the retirement system would be more costly for the Town simply by getting people where they should be in a new system. Chairman Hemingway asked if there was any additional questions relative to the benefits and salaries. No other questions or comments were made at this time.
Budget Sheets
Town Manager, Weston asked what the Budget Committee would like relative to updated budget sheets? Chairman Hemingway stated if the numbers are changing, then the Budget Committee prefers to have the most updated information at each meeting. Dave Carr asked to have it prior to the next meeting and placed in the folders in the Selectmen’s Office. Mr. Weston stated the explanation sheets are contained within the budget books, but the budget continually changes as we move along week after week.
Welfare Administration 01-4441
Town Manager, Weston stated the Welfare Administration line is down to $17,451 with decreases overall. Dorcas Gordon asked if line item 01-441-120 entitled Welfare Officer is a shared position with the Administrative Assistant why is there only $2,000 in this line item? Mr. Weston stated the salary line item is being raised elsewhere, and the $2,000 is there to show that the position is there. Dave Carr commented that it is better to show it there to show a true account of what dollar amount goes to that department. Mr. Weston stated he would split the salaries up for that position in thirds (1/3) for Fire Administration, Administrative Assistant, and Welfare Officer.
General Government Buildings 01-4194
Paul Weston stated this budget is generally flat line except for line item 01-4194-815 Local Access TV Channel that the franchise fee has been added to this line.
Town Manager Weston stated the channel is not operating at this time as the manager resigned and we are hoping to hire someone this week. Richard Walenda commented if no one is hired by next week why not put a dollar in that line item? Mr. Weston stated the biggest problem has been getting on line because of software issues. Paul Simard asked how the franchise fee is set? Mr. Weston stated the Board of Selectmen set the rate at 5%, which is a 5% franchise fee that comes from Bristol taxpayers who have cable television. Dave Carr stated this appears to be a failed project, and this is a perfect time to abandoned it. The Town can really use the money, tell them not to take out the tax anymore, and put the $45,000 back into the budget to offset costs. Joe Denning stated it is not a failed project, and it is just about ready to be put on line. Mr. Denning stated it will give us the control over when things are played, and you can not just start it up when things are not working properly. Mr. Denning stated to his knowledge the problems have been corrected and we now need to hire someone. Paul Simard asked if there is a road map of how this TV channel is going to work. Mr. Weston stated there is and he would get a copy to the committee.
Jon Thouin stated is this the hiring of a consultant or is this person a town employee? Mr. Thouin continued to say currently there is not a line item that shows this person's wage within the budget? Mr. Weston stated this person would spend a fifteen (15) hours a week preparing tapes for broadcast, setting up the schedules, and working with volunteers within the community. Mr. Weston stated all Town Meetings, Committee Meetings, and a large array of other items could be aired on this channel. Dan Bouchard stated student’s that assist obtains credits for working on the project, and it will provide the Town with a lot of information. Dave Carr commented he does not consider $45,000 a small sum of money.
Chairman Hemingway asked if there would be any encumbrances in this line item before the end of the year? Mr. Weston stated he had not planned on encumbering any funds from this line item. Mr. Hemingway asked what the effects of this line being zeroed out by the Budget Committee? Mr. Weston stated the program just will not happen.
Jon Thouin asked if the GGB Maintenance Custodian line item 01-4194-111 has increased are the hours increasing? Mr. Weston stated the former person is out on workman’s compensation, but the hours are increasing because of the need for greater care to the buildings.
Town Manager, Weston stated line item 01-4194-411 entitled GGB Heating Oil is something he needs to work on further in order to lock in on a price. Chairman Hemingway asked what the Town Manager’s strategy will be regarding fuel prices?
General Government Buildings 01-4194 Discussion Continued
Town Manager, Weston stated he planned on contacting a variety of fuel companies within the market to obtain the best price possible. Dan Bouchard asked if the Town Manager would be making the adjustments on fuel to all departments? Mr. Weston stated he would make all the necessary adjustments once the number is determined?
Paul Simard asked if line item 01-4194-810 entitled GGB New Equip. (AC Town Office) is replacing the unit that was purchased? Town Manager, Weston stated it will be replacing the AC unit that is for the lower level of Town Office’s. Chairman Hemingway asked if this AC unit could come out of the $26,700 left over from the Police Department under the CIP? Mr. Weston stated that could possibly be done with some of those funds. Mr. Weston commented he has a desire to increase the fund balance, and the more he can lapse to fund balance the better our cash position will be.
Richard Walenda commented that he had spoken to the Police Chief who has a bigger plan to get a Police Building, and it should be left the way it is for the time being. Chairman Hemingway state under Capital Improvements it is line 01-4901-736 entitled Police Building Study. Mr. Weston stated he would look into it and get some answers.
Debt Services 01-4723
Town Manager, Weston handed out a letter to budget committee members from the Town Manager relative to the delaying and deferral of the 30% grant for the engineering and construction costs incurred on the wastewater treatment plant project. Richard Walenda commented that Bristol needs to slow down at being number one (1) in the country as it costs taxpayers a lot of money. Mr. Weston explained that the governor has put a hold on all funds for projects, and this project has already been started. Mr. Weston stated DES recommended that we borrow it from their construction loan fund. Mr. Weston stated he hopes that they will pay the 30% grant funding in 2010 and 2011, but unfortunately the funds do not get encumbered. Mr. Weston stated nevertheless we need to cover the short fall of the project. Paul Simard commented that Mr. Weston should contact an attorney, and write DES a letter to put them on notice. Mr. Weston stated he had been thinking about a class action suit possibly with other municipalities. Mr. Weston stated this is an nonfunded mandate pushed down to the taxpayer.
Jennifer Coreia stated currently Debt Services consists of payments for the dump truck and the ladder truck. Ms. Coreia stated the offsetting revenue is about $27,000. Dave Carr explained that $100,000 more in these line items than last year that is another factor that needs to be taken into consideration this year. Chairman Hemingway stated with the offsetting revenue that brings the increase to about $73,000. Jennifer Coreia stated because the dump truck and ladder truck were not long term loans the cost is a little more.
Revenue Sheets
Town Manager, Weston handed out to budget committee members the Revenue Sheets. Town Manager, Weston stated if anyone has any questions to email them to the Town Manager for the next meeting.
Other Business
Chairman Hemingway asked if the Board of Selectmen would have any other their recommendations ready for next week? Town Manager, Weston stated they will not have the budget ready by the next meeting, but would encourage budget committee members to meet next week.
Dorcas Gordon stated she needed to know what figure is needed in order to level fund the town portion of the tax rate? Jennifer Coreia stated if that is the conception of the entire Budget Committee then Board of Selectmen could work at doing that as well. Chairman Hemingway stated we would like that or even 10 to 20% lower. Jennifer Coreia stated it is all based on recalculating the revenues, and the formula continues to change relative to what ever is taken in or out of the budget. Chairman Hemingway asked if there would be definite numbers by the Budget Committee’s next meeting? Mr. Weston stated net appropriations should be completed. Paul Simard commented that there are a lot of upset people who want to see their taxes brought down stating he would be working for them.
Town Manager, Weston stated we are having a lot of trouble on both sides of the budget not only with wage increases but with losses in revenue. Jon Thouin asked if the discussion was regardingthe tax rate or tax dollars? Mr. Weston stated tax rate. Dave Carr commented that he is uncertain that the Budget Committee needs to re-vote on the issue of salaries? Mr. Hemingway stated maybe we should discuss this at the next meeting. Dorcas Gordon stated we can discuss it quickly, and she feels we intended to carry out the wage increases in this year's budget, but does not feel it is binding.
Ron Preble asked if the committee needed to meet next week to discuss things. Paul Simard made the motion to hold a meeting on Monday, December 15, 2008. Ron Preble seconds the motion. MOTION CARRIED 12/0
The Budget Committee members decided that the next meeting of the Bristol Budget Committee will be held on Monday, Monday, December 15, 2008, at 7:00 p.m. in the lower level of the Bristol Town Offices.
Adjournment
Paul Simard made the motion to adjourn at 9:55 p.m. Ron Preble seconded the motion. MOTION CARRIED 12/0
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