Budget & Advisory Committee Minutes of January 11, 2012
Present: Charlie Pyle, Abby Dawson, Henry Kunhardt, and Nick Wilder
Meeting opened at 5:30 pm.
Board reviewed the 2012 Budget as proposed by the Board of Selectmen at their January 4, 2012 public meeting. Pyle points out that their proposed budget is up almost 5% over last year’s budget. He would like the operating budget increase to be between 2% and 3%. Selectmen’s plan is for an overall 3% increase to the tax rate, but to get to that point there are too many variables. He suggests that too much needs to take place that we cannot control. We don’t know what the CIP plan will be and wants to address what we can control now. All agree the consensus, as stated in prior meetings, is to hold the operating budget to a 2-3% increase.
Pyle hands out a three month calendar for budget meetings and hearings with the CIP hearings starting next week. The Selectmen have asked for the Budget Committee’s recommendations by January 23 with a meeting to discuss the budget on January 25. Pyle cautions that he believes the 25th may be too early to vote. Petition warrant articles are not due until February 7th and the public hearing for the budget must be held by February 17th. Discussion follows on future Budget Committee meetings. Agreement that BAC should meet at 6:00 p.m. on Wednesday, January 18 at 6:00 p.m. (prior to the CIP hearing) to discuss recommendations.
Pyle hands out salary information for Executive, Police and Highway. Spreadsheets include hours and payroll for current and prior years. He cautions that data should be used for analysis only – hours and numbers may be balance.
Pyle also hands out budget sheets with 2010 appropriated and expended, 2011 appropriated and expended, 2012 budget proposed by Selectmen and a 2012 adjusted budgeted as suggested by Mr. Pyle for discussion purposes.
Executive
Pyle notes that the Selectmen’s budget reduced the Executive salary line by $3,900 and added it to a payroll line for Reval. He suggests that all the $3,900 be added back to Executive salary. He believes that the move hides the true amount of Executive salary and distorts the current and historical analysis of executive payroll. Dawson and Kunhardt agree. Kunhardt states that with all the concerns and discussions last year over the executive payroll line, such a move appears to be hiding the true amount of executive payroll. Dawson understands the move from an accounting perspective, but also agrees that for the budget all executive pay should be in the one account. Wilder believes that the Selectmen should be allowed to make the
change as proposed. All agree that there is no difference for the budget.
A majority of the BAC votes to strongly suggest that the Selectmen adjust the Executive salary line by +$3,900 and reduce the Reval. payroll by -$3,900.
Pyle suggests that the executive salary be further reduced by -$3,210. He explains that the proposed budget includes a clerical position for 1040 hrs at $15 per hr. This represents 4 hrs per day for 52 week. He suggests 832 hrs at $15 per hr, which would staff the office the 4 hours a week it’s open to be public, answering phones, meeting and dealing with the public, filing and providing assistance where required. General agreement that budget for clerical hours and pay is too high. Based on discussions during the November 28th meeting, the BAC also suggests that the Selectmen consider offering clerical assistance to the Police Department. Dawson suggests that $15/hr is too high and pay rate should be $12/hours. Pyle
wonders whether it should be left at $15 with a suggestion that the Selectmen look to fill position at the lower rate. Other Board members do not agree.
The Board unanimously agrees that Executive payroll should be reduced by - $5,600. The difference is between 1040 hrs @ $15/hr and 832 hrs @ $12/hr.
Pyle suggests that professional development be reduced by $500. A majority of the BAC does not agree.
Personnel Administration
Pyle reports that he asked the Selectmen’s Office about the status of any investigation into alternative health plans. The Selectmen have not pursued other plans. It appears that rates have increased about 8% over last year. The health insurance budget has increased over last year due to increased rates and a fifth employee now covered for a full year. Coverage is now for four family and one single health plan. The Committee assumes that adjustments have been made for the stipends. Committee feels that the Selectmen should be looking for options to reduce health costs now. Costs might be reduced by changes to deductibles, options, coverage, etc. Discussion follows on lack of pay raises versus health insurance
increases and stipend. Consensus that “stipend” is confusing and a messy way to reduce health costs. Pyle notes that several years ago Healthsource came to Town to discuss options – three: low, mid and high cost. Idea was to accept mid-cost plan for employees and let them pay for higher cost or receive an adjustment for lower cost. All employees took mid-range plan, which was supposed to be the standard for future health insurance increases. But costs have increased significantly over the past few years. Members expressed concern that issue would not be immediately addressed by the Selectmen, just like the 80/20 split was not discussed for many years, until this past year. Members expressed concern over rising health costs and delay in reviewing current insurance. Consensus was that this issue cannot wait.
The BAC unanimously proposes that the Selectmen be strongly encouraged to review options for health insurance as soon as possible.
Police
The Selectmen are proposing a budget increase of $12,766 over last year’s appropriations and Pyle suggests some reductions to that proposal. He suggests holding the salary to the 2011 budget, reducing heating fuel by $500, professional development by $475 and other unidentified expenses by $1,000. Total reduction would be $6,792. Committee agrees that the Chief did not make a compelling case for additional patrol or clerical hours. Some believe that budget should be held to 2011 amount. Budget increase does include stipend of $3,964, which should offset by a reduction to the health insurance line in Personnel Administration. Several members believe that the Committee is micro-managing the Police Budget by calling for specific
reductions. All agree that budget should be reduced. Consensus is that Selectmen’s proposed budget should be reduced by -$6,500. Also clerical could be shared with Selectmen as previously discussed.
The BAC agrees that the Selectmen’s proposal should be reduced by -$6,500 and suggests that budgets for salary, fuel, professional development and other line items could be reduced. The Selectmen are encouraged to share their clerical help with the Police Dept.
Fire
Pyle suggests that the heating oil line for Fire be reduced by $500. Actual cost for 2011 was $1,928 versus budget of $2,250. Heating fuel costs for 2012 are estimated to be the same as 2012. The Selectmen’s proposed budget is $3,325. Pyle’s suggestion would be $2,750 or 2011 budget plus 20% should be sufficient with of latitude for any use fluctuations as the price is fixed. All agree.
The BAC proposes a reduction of -$500 for the Fire Dept.’s budget.
Highways & Streets
Pyle suggests that the payroll line be reduced by $2,300. The Selectmen’s proposed budget includes increases in overtime hours for full-timers and regular hours for part-timers. All agree with the increase to part-time hours, but are concerned over additional overtime hours for full-timers. Pyle, Kunhardt and Wilder note that full-time overtime has been an important issue for many years. The 2011 budgeted O.T. hours for the three full time employees were 275 hrs each and seemed to be a very valid calculation by Gary Paige. Pyle notes that only once in the past four years has one of the three employees exceeded 243 hrs of overtime and this includes some recent years with many storm events. The Selectmen’s budget recommends 300 hrs of
overtime for each full timer or 900 hours total. Board discusses concern over overtime and whether part-timers could be asked to do more. Storms require all hands on deck so that is not always possible. All agree that budgeted overtime should be reduced to 275 hours.
The BAC recommends a reduction in Highways and Streets of -$2,300.
Moul joins the Board.
General Expense Highway
Pyle suggests that the line for diesel for reduced by -$4,300. Selectmen are proposing $44,300 for diesel n 2012. Last year’s budget was $33,000 and actual expenditures were $39,987. Pyle accepts some of the blame for the overage as actual fuel prices for diesel increased more that was forecast for 2011 when budget was created. Pyle notes that actual usage was 8,445 gallons in 2009, 9,501 in 2009 and 10,618 in 2010. Information provided by the Selectmen’s Office. Agreement that the Selectmen noted at the January 4th meeting they expect less use in 2012. Pyle suggests a diesel budget of $40,000 or 10,000 gals @ $4.00/gal. He adds that this would be $4.44 retail, which is far above the current 2012 forecast of
$3.84/gal. retail price and should allow room for use or price increases. All agree
Pyle adds that while he believes that all gas budgets for all departments are probably higher than they need to be, he suggests difference is not significant and no further adjustments should be made to gas.
The BAC recommends a reduction in General Highway of -$4,300.
Health Dept
Pyle suggests reducing the allocation for the Grapevine by $1,000 – back to the 2011 level. This had been discussed previously at the November 28th meeting. A majority of the Committee again did not agree with this reduction.
General Assistance
Pyle suggests a decrease in public assistance from $29,000 to $25,000. The 2011 budget was $35,000, but only $15,493 was actually spent. Pyle points out that last year was supposedly one of the worst and expectations are for improvement. Wilder points out that the Town will be obligated to pay no matter what. All agree, but a majority believes $25,000 to be sufficient.
The BAC recommends a reduction in General Assistance of -$4,000.
Wilder leaves the meeting
The Committee reviews with Moul the budget discussion held before she arrived. She agrees with the reductions to Executive, Reval. Police, Fire and Highway. She suggests that the Police budget be held at the 2011 amount.
Meeting adjourned at 7:35 p.m.
Respectfully submitted,
Charlie Pyle, Chairman
January 16, 2012
| 
