Snow is falling; freezing rain is on its way. What better day to discuss this week’s topic – the budget freeze!
As many of you know, the Board of Finance put a freeze on all “spending for discretionary and non-essential” items at their meeting last week. In spite of it having been reported that the town resisted freezing the budget for several months, in actuality, we have been working to keep spending down since we developed last year’s budget. As you know, very few discretionary dollars and no non-essential dollars were included in that budget (this year’s). In fact, a purchase order system was implemented this year which allows the CFO and I to more closely track and approve expenditures. We have, and continue to, closely monitor both revenues and expenditures.
As of yesterday (before today’s storm), the snow budget was approximately $25,000 in the red. This is, in and of itself, not unusual. In looking at past years’ Annual Reports you will see that the snow budget has been consistently over-budget. The difference this year is the economy, which contributes to decreased revenues and increased costs, combined with a budget that was pared to mainly bare bones without cutting services. We’re also looking at vehicle maintenance costs increasing which I’ll talk about in a future column.
While there are no other items that are significantly over-budget, we are also carefully watching the area of legal fees. Again, this line item has consistently gone over budget for the past five years. As of today, we have spent about two-thirds of this year’s budget. After review of those expenses, which found a majority items in the area of human resources and land use, we developed a plan to work towards keeping those costs down as much as possible. Both Mike Caplet, my executive assistant, and I have attended numerous classes in the area of human resources and I have participated in several webinars on the subject.
One area of expense in the legal budget is contract negotiations. Historically, legal counsel has been a part of most of them, including the two which have been in negotiations since January 2007. We have settled one of the contracts and are in the process of having it drawn up and signed. While we are still in arbitration with the other union for their contract and arbitration is expensive, it is a one-time cost with potential long term financial effects for the town. And, we have just opened negotiations on the two contracts expiring in June 2009 with a goal on both sides for an expeditious settlement.
To address land-use legal fees, Adam Turner, our town planner, has undertaken doing the research and writing comprehensive briefs on behalf of the land use boards. Once his work is complete all that is then required is attorney review versus the attorneys doing all of the work.
So, what does a budget freeze mean? It means that … personnel vacancies will not be filled; expenses and revenues will continue to be closely monitored; ways to cut expenses and increase revenues will continue to be explored; discussions with other towns about working together will be continued; and, we will cut items such as office and maintenance supplies, training not related to required certifications, and library books.
We are working hard to be good stewards of your hard earned dollars and of our town. I look forward to your participation during the upcoming budget season. Together we can get through these times. It’s all about community – working together and helping each other.
Previous Selectman Notes can be viewed at
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