TOWN OF FARMINGTON
BUDGET COMMITTEE
MEETING MINUTES
Wednesday - January 16, 2008
356 Main Street - Farmington, NH
Members Present: Chairman Joe Pitre, Ann Titus, Brian St. Onge, Steve Henry, Deb Cantwell, Arthur Capello and Gail Ellis (arrived at 8:04 pm).
Members Excused: Mike Morin
Selectmen's Rep: Paula Proulx
School Board Rep: Steve Durrance
Town Staff Present: Town Administrator Tony Mincu, Finance Administrator Pam Merrill, Town Clerk Kathy Seaver, Parks & Rec. Director Don Gagnon and Public Works Director Joel Molton
Public Present: Deb Christie, John Wingate and Selectmen Joan Funk, Marty Gilman and Gerry McCarthy.
Chairman Pitre called the meeting to order at 7:00pm and led the committee in the Pledge of Allegiance.
1. Discussion with Trustees: John Wingate, trustee, presenting.
John reported that on 9/18/2007 the trustees cut a check to the school for $40,000 for the transfer for the school bus. Joe asked if John could put this in writing for the committee and he said he would.
Joe asked John Wingate for a list of the agents for each fund on behalf of Gail Ellis who could not be present and John said he would have to get that.
2. Review Town Clerk/ Tax Collector Budget: Kathy Seaver, town clerk, presenting
A. Kathy explained that line 4130 -130 (moderator), line 4130 -550 (ballots) and line 4130-690 (election meals) are all increased because of the extra presidential election this year.
B. Arthur questioned line 13 (clerk 1/2 TC office) in the election-vital stats. budget as to why it is increased. Kathy explained that they are budgeting for a full year this year.
C. Kathy explained that line 10 (registry) in the financial administrative budget is increased because of the increasing liens due to the economy.
3. Review Library Budget: Deb Christie, librarian, presenting
A. Joe asked why the town payments are up 12.72%. Deb Christie explained the cost of the town payments is the difference between the income generated and the operating budget. This year the budget is increased and therefore the town payments have as well.
B. Joe stated that he is concerned the library received $10,000 for the painting of the windows and trim and they did not get a job well done. Deb Christie invited him to the 1/24/08 meeting to get a complete explanation of the project.
C. Brian asked what the hours of the library are. Deb Christie replied they are open 32 hours over 6 days.
D. Arthur asked if the library employees have any benefits and Deb Christie replied no.
E. Brian asked why they need more than six people. Deb Christie explained that the library does in house cataloging and that she must cover all the hours the library is open for two floors as well as all programming hours.
F. Brian asked how many users they have per year and Deb Christie replied they have 32-35,000 in foot traffic and over 20,000 books were checked out in 2007.
G. Joe asked where the big increases are. Deb Christie explained that the prices of oil, electricity and phones are up, plus this year the trustees have decided to bring the library salaries up to similar towns.
H. Arthur asked if the library is included in the town fuel bids and Deb Christie replied yes. Deb Cantwell asked if the fuel is for heat and Deb Christie replied yes and that it was figured at $3.50 per gallon.
I. Arthur asked what types of fees/inspections the library has and Deb Christie replied they are for the furnace and the elevator.
4. Review Public Works Budget: Joel Moulton, director, presenting
A. It was questioned what line 67 (building repairs) is for. Joel explained the siding is falling off the building plus some minor repairs and painting need to be done. Joel added the repairs will be done in-house if they have time.
B. Joel stated that line 72 (contract sweep) is up because last year they had encumbered money, plus the hourly rate went up.
C. Joel reported that line 77 (repaint trucks) is for the sandblasting and painting of the trucks to make them last longer. Joel also added that line 80 (highway tires) is up because the cost of tires has increased.
D. Joe questioned how much it would be to purchase a vibrated roller, since they are budgeting $20,500 on line 65 (rent highway equipment). Joel replied the cost to purchase is much higher and he is hoping not to need one in the near future.
E. Joe questioned what line 92 (grader repair) is for. Joel explained that the grader has a manufacturing defect it its' drive motor so to replace the motor for $31,000 (worst case scenario) then the life of the grader will be extended to 2021. Steve H. asked how much a new one would be and Joel replied about $315,000.
F. Joe asked what the two reserved lines are for. Pam explained that they are just there and that there is no money there.
G. Ann questioned if any money needs to be budgeted towards the Tiger Trail grant that Cyndi Paulin received. Joel replied no, it will be a warrant because the money will come in and out.
H. Steve D. asked if the salary increase of 4.2% is across the board for the town staff. Tony replied that ther are many different CPI you can use. Steve D. inquired as to what made the town decide to use the CPI instead of the Social Security increase. Tony stated that the Social Security does not include fuel and electricity increases, plus the 4.2% will keep the employees at the same pay level according to inflation. Tony added that the original CPI use was 3.2% but the Board of Selectmen added 1% to help with the inequities in town that have occurred due to lack of a step plan. Steve D asked if there are any step plans in the town and if they are contractual. Tony replied that the police department has a step plan but it is not contractual.
I. Joel explained that line 82 (parts and repairs) is up because the costs of parts is up. He also explained that line 84 (misc) is for Poland spring water and trash removal.
J. Steve D. asked why there is such a large increase in line 89 (highway salt). Joel explained that there is a $2 a ton increase and last year he had an encumbrance so he didn't have to budget as much.
H. Deb questioned line 69 (highway paving) and Joel explained that the cost of paving isup plus he has road and drainage improvements and additions planned.
I. Joel reported that the Ten Rod Road Bridge came in under budget by a little over $51,000.
J. Joel explained that the Bridges/Railings is level funded and that he has plans for the Cocheco Road and Paulson Road Bridges and general maintenance of other bridges.
5. Review of Landfill Budget: Joel Mouton, Director, presenting.
A. Steve H. asked if there is a new hire. Joel explained that in order to maintain two employees at the landfill at all times he has this sub position on an on-call basis and at a maximum of 20 hours per week.
B. Arthur questioned if we are still paying for the playground tires and Joel replied no.
C. Arthur asked if Joel has any warrant articles this year. Joel replied yes, he has one for a GMC 550 truck with a plow and sander. This will allow him to plow the narrow roads more efficiently with size and the fact he won't need a wingman in the truck. Steve H. asked how long he would expect the truck to last and Joel replied 12-15 years, noting this truck is a step down from the 6 wheeler and provides more capabilities. It is proposed to have $50,000 come from taxes and $42,000 come from capital reserve. Steve H. asked what will happen if the truck does not pass. Joel replied he will spend a lot of money on major repairs to the 1995 that is rotting away, but by buying this truck he will not need a new vehicle until 2012 and zero money is being appropriated this year to the
CIP fund.
Joel explained that there is also a warrant article for sidewalks and asked the board to keep in mind that 11 sections of sidewalk (10' X 6') cost $5,000.
D. Arthur questioned why the road improvement line was set up and not expended. Joel stated that he is looking to use this line this year for blasting and road repairs if there are no significant floods.
E. Joe reported that 108 Chestnut Hill Road is experiencing drainage issues and Joel replied it is on his list of FEMA projects to complete.
F. Gail asked what the difference is between the budgets distributed tonight and the others. Paula explained the Selectmen asked town staff to cut all the budgets by an additional 2% and they did.
6. Review of Parks and Recreation Budget: Don Gagnon, Director, presenting.
A. Don explained that he added line 45 (vehicle maintenance) for $1,000 so he can keep the vehicles safe and running. He also explained that he is exploring options with the school department to have after-school programming children bussed to the rec on inclement weather days.
B. Arthur asked how much income comes in to offset the budget. Don explained that all monies generated through the programs is used for the programs, adding that a revolving fund was set up to allow the funds to come in and then be expended out. Steve D. asked what happens when someone cannot afford a program. Don explained that there is a grant line in the budget in which families can apply for financial aid.
C. Steve D. asked if the department offers any new programs for the 12-15 year olds that have been "ignored" in the past. Don explained that the new brochure coming out in February has programming in it for these teens.
D. Don stated that he just received a grant for $22,000 for the summer rec. program explaining that the town has been receiving this grant since before 2000. Arthur inquired if the town does not receive this grant in the future will they be obligated to fund it. Don replied not necessarily but he would certainly ask for it. Arthur asked if it has ever been discussed to ask Middleton for a contribution to this programming since so many of their residents benefit from it. Don replied that it is certainly a discussion worth having and if they did he would not charge non-resident fees.
E. Steve D. asked if the school charges the rec. for using the facilities in the summer and Don replied no.
F. Steve D. asked if there is a revenue report for the Rec. and Don replied that they just implemented a point of sale system beginning January 1st, so he could certainly provide such reports for the future.
7. Other:
A. The committee inquired if the Preservation Guild and/or other hospitals and health agencies will be in to report on their requests and budgets. Paula explained they can, but that the Selectmen receive letters of explanation and request and the committee could review those. The committee was in agreement that they would like to see them.
B. Brian stated that the RSAs say money cannot be spent unless it is appropriated so what happens with a grant. Tony replied that grant monies come in as unexpected revenue to the town and then the Selectmen can expend.
C. Tony stated that the projected tax impact is actually level funded this year but may appear as an increase because the Selectmen applied $250,000 to buy down the taxes this year.
D. Steve D. asked what the unreserved fund balance was for 2007. Tony replied $1.53 million and that NH DRA requires 5-12% of the operating budget be in a fund balance. Arthur asked approximately how much is in the fund balance now and if the fire station burnt down could the town use it rebuild. Tony replied there is about $1.3 million and yes, you would pull the funds from here in the event of such an emergency.
E. Steve D. questioned the committee as to what they are going to do with the raises. Arthur commented that he feels they should be the same. Tony added that 2.3% does not represent a level funding of the salaries and noted that all the town budgets still came in level funded with the 4.2% increase.
Deb commented that one of the reasons the committee targeted the non-contract salaries is because historically they had higher salary increases that were explained to have been using the social security index to establish, so this year the committee held them to it. Arthur commented that if the committee is going to allow the town 4.2% COLA then they need to reconsider the school non-contract personnel wage increase rate. Gail asked what the rate for the town portion of retirement is and Tony replied it is 5.15% and if they went with NH retirement like the schools it would be 8%. Deb asked how much the town contributes to medical insurance and Tony replied the employees pay $20 week for single, $30 week for 2-person and $40 week for family. Tony added that this year the employees also have a
new $250, $500 or $750 deductible depending on what plan they have. Gail questioned if the town has any buybacks and Pam said yes, at a $100 a month.
F. Arthur asked for Joe to make sure Dan McGillicuddy comes to the next school budget meeting prepared to plug in numbers and present a bottom line and asked to have Dan call DRA and ask what calculation number they would use.
G. Steve D. asked where the committee is in regards to legal counsel. Joe replied Attorney Ben Kane will be present at next Wednesday's meeting. Steve D. asked why he is coming and Joe replied the committee needs direction as to the acceptance of the petition warrant article and questions if it should be a warrant because it was not available to the budget committee by the public hearing.
Arthur Capello motioned to adjourn, 2nd Gail Ellis. Motion passed with all in favor.
Chairman Pitre adjourned the meeting at 9:42pm.
Respectfully Submitted,
Brandy Sanger
Recording Secretary
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Ann Titus, Budget Committee Secretary
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