Town of Bristol

Budget Committee Minutes

December 15, 2008

APPROVED ON:      01/26/2009

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).

The Chairman, Andrew Hemingway called the meeting to order at 7:00 p.m., at the Bristol Town Offices, and the meeting was video taped for LRPA.

Minutes of December 8, 2008

Jon Thouin made a change to page 3, last paragraph changing the word site to sight.

Jon Thouin made the motion to accept the minutes of December 8, 2008, as amended. Dan Bouchard seconded the motion.

MOTION CARRIED 9/0 - 2 abstentions (Brenda Fritz not present at time of vote.)

Correspondence - None

Budget Discussions

Chairman Hemingway stated he would like to pick up where the Budget Committee left off last week with Salaries and Benefits. Mr. Hemingway asked David Carr to lead in the discussion with some of his questions.

David Carr stated he was under the impression the goal for the 2009 budget would be pretty close to the 2008 budget. Mr. Carr stated the Town Manager’s total proposed budget for 2009 is $6,830,559, the 2008 is $5,993,000 that is an increase of $836,000.

Budget Discussions Continued

David Carr stated there is also an additional amount under Debt Service relative to the Sewer System the State is not going to cover of $259,000. Mr. Carr continued to say that a solution to this problem would be to pay this off on a five (5) year note or bond principle at $52,000 a year, having an estimated interest rate of 10%, bringing the total to $898,000 rounding it off.

Mr. Carr explained that in the operating budget Wages and Benefits are the largest items. Mr. Carr continued saying that in 2008 it was $2,356,000, in 2009 the proposed is $2,567,000 or a $210,000 increase. Mr. Carr stated if the rates stay the same as they are now leaving wages and benefits alone, no new positions being funded, then the budget could be reduced by $210,000. Mr. Carr there are some other areas in wages and benefits that might be reduced for example if two (2) positions were removed it could reduce the budget by $83,000. Mr. Carr stated there are other areas within the operating budget that could also be reduced, and he came up with a reduction of $210,000 of debated items.

Mr. Carr stated another area of the budget that could be reduced such as Capital Projects and there he came up with a reduction of $224,000 that could be reduced. Mr. Carr commented that the CIP Committee has done an outstanding job, and this is an area that no one likes to touch, but it is the Budget Committee’s job to look at these things. Mr. Carr stated if all these ideas were added together it would reduce the budget by $754,000.

Dorcas Gordon asked Mr. Carr if she and the committee could get a copy of his notes to review? Mr. Carr stated that was fine with him, and the Secretary stated she would copy the notes at the break in the meeting.

Dan Bouchard stated we are not sure right now where the revenues will come in, which will reduce some of the budget. Mr. Bouchard asked Town Manager, Paul Weston when it is anticipated to receive the finalized revenues? Mr. Weston stated he expects a decrease in revenues. Mr. Weston stated he has done some research on a new revenue resource that is a Central Street Bridge Project. Mr. Weston stated he learned Bristol had not sought out the funding of 80% on the engineering piece of the project since 2002, and they are working on submitting $166,000 to the NH DOT for reimbursement of some of these engineering costs.

Dan Bouchard stated it is important to realize that level funding the budget does not necessarily mean having the same exact budget as last year. Mr. Bouchard continued to say when you calculate expenditures and revenues it has the same impact on taxes. Ron Preble commented that DES did not come through on their funding wondering if we should count on this. Town Manager, Weston stated the NH DOT can incumber funds, and the governor can not freeze those funds. Mr. Weston stated we have already received something like $800,000 for the bridge project, and it is 90% done.

Budget Discussions Continued

Chairman Hemingway stated he wanted to look at the budget a bit differently this year by first looking at revenues and then looking at what we can afford. Mr. Hemingway asked Town Manager Weston about a Multi-Use Path Grant of $250,000 that appears to not have been collected through the budget at this point. Mr. Weston stated he needs to do further research on this item, but the Accountant feels that it may be an error and should not be there. Chairman Hemingway stated Rooms and Meals tax  of $130,000 had not been collected to date either? Mr. Weston stated he could not confirm this unless he gets the MS4 from upstairs. Mr. Weston stated the Accountant was not receiving information in a timely manner from the Town Treasurer, and things have not been being recorded in a timely manner in result. Mr. Weston stated he does not believe the Multi-Use Path Grant should have been budgeted in the 2008 budget, and the rooms and meals tax receipts will be down in 2009.

Dan Bouchard stated it is anticipated to receive $6,510,496 in revenue for 2009? Town Manager, Weston stated that includes all the Water and Sewer as well as the property taxes. Jon Thouin stated Water and Sewer revenues can only go to Water and Sewer. Town Manager, Weston stated that is correct they offset one another, but they do need to be appropriated at Town Meeting. Mr. Weston stated in a couple of weeks we should have year end expenditures and revenues. Mr. Weston stated this is a gross budget and revenue equals expenditures.

Dorcas Gordon commented that the numbers currently plugged into the budget are the numbers submitted by the Department Heads and not the actual numbers in order to level fund the budget. Mr. Weston agreed with Ms. Gordon.

Paul Simard stated that he had seen an attorney advertise in the paper that there had been a 20% property tax loss in the State of NH and to hire him to appeal tax assessments. Mr. Simard asked for Mr. Weston’s view on this article? Town Manager, Weston stated every time we do a tax commitment we need to send an MS1 to the State of our total value. Mr. Weston stated we need to do a sales ratio study of all the sales from the last 12 months to establish the ratio by going through all the valid sales.  Mr. Weston commented that if property values falls the sales ratio goes up, if the property values appreciate the ratio goes downward.  Mr. Weston stated there is also a co-efficient of dispersion that measures the market dollars on sales reflecting the market. It is basically a measurement of the quality of our assessments. If after five (5) years our co-efficient of dispersion is not efficient or unacceptable the state can come in a force us to re-evaluate the town property assessments. Mr. Weston continued to say the assessor works hard to keep the equity in our properties, and unless someone can prove their equity is not in alignment with their neighbors there is no action for tax appeal.

Bruce Van Derven stated just because the property values have decreased 20% in the State of New Hampshire it does not necessarily mean that a taxpayer can come in seeking an abatement of taxes.

Budget Discussions Continued

Jon Thouin commented that it is relative value not absolute value as he understands it explaining that his house could be worth $100,000 and John Doe’s could be worth $150,000, but as long as it holds the ratio the absolute value does not matter.

Paul Simard stated the Pay Study did last year had been compared with 9 other communities, and the communities used had so much more appraised value that Bristol. Mr. Simard stated maybe Bristol has too many people on payroll. Richard Walenda stated the former Town Manager chose the communities compared in order to get a $6,000 raise. Chairman Hemingway stated the former Town Manager was under a contract and this had no bearing on the Study whatsoever. Mr. Hemingway stated she had no personal gain in the study whatsoever, and if anything she received more appreciation from the employee’s. Mr. Hemingway stated he understands Mr. Simard’s initial response to the Study, but when you look into how all the factors going into the study were done well considering all the variables. Mr. Hemingway stated they came pretty close to all the cross sections within each community. Mr. Hemingway stated he was a bit disappointed that the LGC did not have anyone that could speak for it or answer our questions. Mr. Hemingway stated overall they did a pretty decent job.

Bruce Van Derven stated the reason we did the pay study in the first place was because they voted to do so at Town Meeting. Mr. Van Derven stated they wanted to reclassify job descriptions within the town upon recommendation of the Board of Selectmen. Mr. Van Derven when reviewing the budgets the departments had variations in discrepancy throughout the pay. Mr. Van Derven stated the former Police Chief was brilliant with numbers, and the Police Department had an under expended budget of like $80,000. Mr. Van Derven had asked if the Department Head was doing a good job, and the answer was depending on where things were going. Mr. Van Derven stated in the instance with the Police Department there had been huge discrepancies in the rates of pay, and the turn over rate of qualified Police Officer’s was huge.

Representative's Van Derven stated Dorcas Gordon last year made a motion at a Budget Committee that was very clear regarding giving the increases last year. Mr. Van Derven stated it is only right to follow through with the intentions of giving that pay increase this year. Should we go to hire someone what should we tell them we have not funded the wages at this time, and we may or may not. It is extremely important to maintain levels of pay that are competitive with the market.

Paul Simard stated a number of issues occurred with the Pay Study such as we were never charged $6,500 for the report because it was so late getting to us. Mr. Simard stated the information  was leaked to employee’s putting the budget committee under the gun. Mr. Simard stated he would like to see $6,500 put back in the budget to have it redone in a transparent atmosphere. Richard Walenda stated everyone should get the same pay raise.

Mr. Walenda stated we need the guy at the Transfer Station just as much as the Police Chief or Fire Chief, and they all shop at the same store.

Budget Discussions Continued

David Carr explained the $94,244 that does not count benefits, leaving a $210,000 difference. Mr. Carr stated we not only have to fund the second half of wages and benefits this year, we have a poor economic situation, and some other issues within the budget.

Jon Thouin disagreed with the Study based on the inequities within the study, and he feels the LGC did not feel as if they had enough equity as they should have. Mr. Thouin stated we the Budget Committee made a moral commitment to fund both halves of the study.

Bruce Van Derven stated it is the Budget Committee’s job to find the funding for the other half of the study or not. Mr. Van Derven stated Mr. Carr has found many areas of the budget that can be cut, and he himself has found many, many, areas that can be cut. Mr. Van Derven explained if you see items that have not been expended over the past few years and often you can find things that are fifty (50) times inflated to what was expended. Mr. Van Derven commented it is the fat in the budget that needs to be cleaned up. Mr. Van Derven stated the Town Manager was told by the Board of Selectmen to let the Budget Committee do the budget. Mr. Van Derven stated here is the opportunity to create a budget, instead of working with a budget that was prepared for your approval.

Selectmen Van Derven stated if you cut out the fat within the budget and the mini contingency funds, if something comes in over budget they come to the Board of Selectmen to explain themselves and we take it out of the contingency fund. Mr. Van Derven stated propose moving the Board of Selectmen’s stipend back to the numbers in 2004.

Dorcas Gordon stated her intention last year was certainly to fund the second half of wages this year, but with the economy the tax rate just can not take that. Richard Walenda stated we need to cut some these items in the budget at least by 20%. Selectmen Van Derven explained by example if a business owner makes widgets, and widgets are  no longer needed or the market is just not there, people are laid off or let go. Dan Bouchard stated getting a donation of a boat is more realistic, and we should hold departments accountable to increase revenues and to become creative.

Paul Simard stated when you look at the Town of Bristol and now look at the Town of Meredith who has cleaned up their infrastructure. Mr. Simard stated if we want to increase revenues, we need to put the money in the downtown to attract people to Bristol who want to shop. Mr. Simard stated he believes the Master Plan is a step in the right direction. Mr. Van Derven stated he agrees with Mr. Simard yet Dorcas Gordon stood up at Town Meeting last year, and not one other person on  the Budget Committee stood up for anything. Mr. Van Derven stated it is time that the Budget Committee stands up for what it believes.

(Five minute recess at this time)

Budget Discussions Continued

Chairman Hemingway stated he would like to wrap up the meeting by saying everyone needs to take a hard look at the budget before the next meeting. Mr. Hemingway would like everyone to look at cutting some things out of the budget, write down questions, and bring your ideas to the table. Mr. Hemingway stated we have a real opportunity here to make things right, and it is our job to do so. Mr. Hemingway stated Town Manager, Weston would like to request an additional meeting for January 5, 2009, at 7:00 p.m.?

Paul Simard made the motion to hold an additional meeting on January 5, 2009, at 7:00 p.m. in the lower level of the Bristol Town Office’s. Ron Preble seconded the motion.

MOTION CARRIED 11/1

Jon Thouin asked the Budget Committee to think about putting some funds into the budget to help the Library to get the ball rolling for them. Mr. Thouin stated maintenance to the building is badly needed, and there are some grants out there that they may be able to access to fill the library with things and furnishings. Mr. Thouin stated it is just a matter of having the bricks, motor, and roof there first.

Ashley Dolloff asked if she could get the budget sent to her electronically before Christmas? Town Manager, Weston stated he would email the budget to committee members.

Paul Simard asked if the Town Manager could look into getting some grants from whomever the Regional Task Force obtains grants from as he read in the paper they have $100,000? Mr. Simard stated maybe the Town can access some of these grant moneys rather than it go to a separate entity. Town Manager, Weston stated he will look into it by contacting Homeland Security.

Adjournment

Ashley Dolloff made the motion to adjourn at 8:40 p.m. Paul Simard seconded 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, January 5, 2009, at 7:00 p.m. in the lower level of the Bristol Town Offices.