TOWN OF FARMINGTON
BUDGET COMMITTEE
MEETING MINUTES
Thursday - January 17, 2008
356 Main Street - Farmington, NH
Members Present: Chairman Joe Pitre, Ann Titus, Brian St. Onge, Steve Henry, Arthur Capello, Gail Ellis and Deb Cantwell (arrived at 8:04 pm).
Members Excused: Mike Morin
Selectmen's Rep: Paula Proulx
School Board Rep: Steve Durrance (absent)
Town Staff Present: Town Administrator Tony Mincu, Finance Administrator Pam Merrill, Director of Planning and Community Development Dan Merhalski, and Water/Wastewater Director Dale Sprague.
Public Present: Selectman Joan Funk
Chairman Pitre called the meeting to order at 7:01pm and led the committee in the Pledge of Allegiance.
1. Review of Planning Department Budget: Dan Merhalski, director, presenting.
A. Dan explained that salaries are up because his position is budgeted for a full year this year.
B. Arthur questioned why postage was decreased and Dan replied that he found it was not spent historically so he felt comfortable lowering it.
C. Arthur questioned how much money was generated by building inspections in 2007 and Dan replied he did not know.
D. Gail asked why the salary for the secretary is up 8% and Dan explained it is the 4.2% plus $3000 for meeting minutes.
2. Review of Water/Wastewater Budgets: Dale Sprague, director, presenting.
A. Arthur asked at what point does the town have to look at a bond to replace water lines because there have been a lot of breaks this year. Dale replied that the breaks this year were due to system and pressure issues not really the age of the pipes though the town has contracted an engineer to look at and evaluate the town's entire water system.
B. Joe asked how the water lines are and Dale replied they are full of mineral deposits and turbuculated inside and will only continue to get worse. Dale added that the town will need to think about installing some larger mains and either clean and reline the current pipes or replace them eventually. Arthur questioned how many main lines are not sized correctly and should be larger. Dale stated that the town has 4-5,000 feet of 4" lines that definitely need to be replaced and then some 6" lines like the one coming out of the municipal building.
Joe asked how many leaks there are. Dale replied there is about 22% in total unaccounted for water but that number includes hydrants, fire usage, and faulty meters. Dale said that ideally he would like to be down to 15 % and that there is a guy who comes in yearly to check for leaks.
C. Steve H. asked how much of the budget is covered by user fees and Dale replied that both his budgets are 100% covered. Gail questioned what the price of the water is and Dale replied $3.25/1000 gallons, which is lower than the state average of $4.39/1000 gallons. Arthur asked how many users there are and Dale replied about 1045. Arthur asked if the town took out a bond to replace the system who would pay the taxpayers or users and Dale replied that it would be a question for the Selectmen.
D. Gail questioned how much money is in the reserves. Dale replied he has $257,694 in the water capital reserve, $145,772 in the water money market, $61,000 in water checking, $130,713 in the sewer money market, $239,192 in the sewer capital reserve and $44,107 in the sewer checking. Steve H. asked why there are separate money markets and capital reserves and Dale explained that historically they moved the money back and forth to get the highest yield.
E. Joe asked if the town has large breaks how much money would state grants be; would it be 80/20 like the bridges. Dale replied that it depends on where you are in comparison with the state water rates, if we are at rate or higher than get 30% but if below state rate than get 20%.
F. Gail asked what happens to any funds "left over" after all the bills are paid. Dale replied they are usually put in the money market to get the higher yield but he can go to the selectmen and ask for it to be put in capital reserve if he knows he won't need the cash.
3. Review Wastewater Budget: Dale Sprague, Director, presenting.
A. Dale informed the committee that the town is working towards updating the plant and hoping to get out of the river and that the initial investigations look good to do so.
B. Steve H. asked how the wastewater rates compare to state averages and Dale replied the twon is at $504 per year based on a 90,000 gallon usage and the 2005 state report (though higher now) was at $426 per year. Gail questioned when the last increase was and Dale replied the last wastewater increase was 4/1/04 and the last water increase was in 3/01.
4. Review Health Agencies & Hosptials:
A. The Town supplied the committee with the request letters as asked at last night's meeting.
Arthur Capello motioned for a recess to give the committee time to review the letters, 2nd Gail Ellis. Motion carried with all in favor.
Chairman Pitre recessed the meeting at 8:10pm and reconvened at 8:25pm.
B. Gail questioned if the Homemakers would not provide services if we did not support them, noting that she thinks they do a great job and are important she just wants to know how it works. Tony replied that he is not sure and it would be a question for them, but he believes it is a low dollar amount for such a significant service.
C. Steve H. stated that the community action program asked for a warrant article for $4,000 and wondered if they have one. Tony replied that the request is in the operating budget and that he is not sure the program knows what a warrant article really is.
D. Steve H. questioned if the COAST and Guild should be placed as warrant articles. Tony replied that COAST is public transportation and he is not sure you would want to chance losing it. Steve Henry motioned to make the COAST bus transportation request a warrant article and take it out of the operating budget so the voters can decide, 2nd Brian St. Onge. Roll Call - Brian St. Onge (yes), Gail Ellis (yes), Steve Henry (yes), Joe Pitre (yes), Arthur Capello (no), Ann Titus (no) and Paula Proulx (no). Motion carried.
Steve Henry motioned to make the Preservation Guild request for $20,000 a warrant article and take it out of the operating budget so the voters can decide, 2nd Gail Ellis. Roll Call - Brian St. Onge (yes), Gail Ellis (yes), Steve Henry (yes), Joe Pitre (yes), Arhtur Capello (no), Ann Titus (yes) and Paula Proulx (no). Motion carried.
5. Review of Executive Budgets: Tony Mincu, administrator, presenting.
A. Steve H. questioned why the dues are up and Tony explained there are small increases.
B. Arthur questioned what type of calculator the town is purchasing for $500 in the office/equipment line? Tony explained it is for the tax collector and it is a copier/printer/ calculator.
C. Arthur questioned if the town is considering increasing the mileage and Tony replied not yet, the line is down because he is putting policies in place for mileage and the tax collector now has her own $500 budgeted for mileage.
D. Steve H. asked why advertising is down when it was overspent last year. Tony replied that last year they had several job vacancies they were posting and the town does not expect as many this year.
E. Tony explained that the personnel liabilities line was generally a "catch all" line in the past and to have an accurate line he broke out separate lines for payroll outsourcing and temp. coverage.
F. Arthur questioned what the trustee payback is and Tony explained that a mistake was made in which some of the principal of the Leon Hayes Fund was expended and so the town has a 3-year payment of $3000 per year to pay back. Arthur questioned where the funds went and Tony replied to the 500 Boys and Girls club. Paula explained that it was a mistake in which the funds were split out over the years and got mixed up so the principal needs to be replaced per the DRA. Arthur questioned why the 500 Boys and Girls Club is not paying back the money and Paula stated that the Selectmen decided to fund the payback per an agreement with the attorney general. Gail questioned who expends the trust funds and Paula said the elected board of trustees.
G. Joe asked if the town receives rent at the old courthouse and Tony replied no, the town prosecutor and CAPP office is housed there.
H. Steve H. asked why the fuel oil was not increased and Tony replied that they installed a cover on the thermometer and cleaned the boilers so he feels the number will be okay.
I. Steve H. asked how much the town insurance deductible is and Tony replied $1000. Steve
H. asked if the town would save money if they had a higher deductible and Tony replied he is unsure but will investigate further.
J. Steve H. asked if the town is mandated to have a welfare department and Tony replied yes.
6. Other:
A. Joe informed the committee that Jacquie Capello requested to be on the agenda for the 1/23/08 meeting and that he is unsure exactly why, but he guesses that she want to discuss the petition warrant article. The committee is not sure if this would be appropriate and noted that it would be a question for the attorney because the petition was not presented at the public hearing.
B. Steve H. asked when the deadline is for petition warrant articles to the town and it was noted that 2/5/08 is the last day to petition the Selectmen with a warrant article.
C. Arthur Capello motioned that the Budget Committee not offer an opinion of petition warrant articles, 2nd Steve Henry. Discussion followed in which the committee feels they should ask the attorney if they should do this at all because it should be up to the petitioners to prove their case. Roll Call - AnnTitus (abstained because she wants to wait for legal opinion, Arthur Capello (yes), Brian St. Onge (no), Joe Pitre (no), Gail Ellis (no), Steve Henry (yes) and Paula Proulx (no). Motion failed.
Brian St.Onge motioned to adjourn, 2nd Arthur Capello. Motion carried with all in favor.
Chairman Pitre adjourned the meeting at 10:01pm.
Respectfully Submitted,
Brandy Sanger
Recording Secretary
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Ann Titus, Budget Committee Secretary
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