Town of Lyme
Budget Committee
September 29, 2004
7:30PM
Lyme town Offices
APPROVED: November 17, 2004
Present at this meeting: Selectmen: Judith Shelnutt Brotman. Budget Committee Members: Gibb Cornwell, Mike Smith, Jeff Lehmann, Josh Kilham, Chairman Barney Brannen, Earl Strout, David Caffry, Freda Swan. School Board Chairman Laszlo Bardos. Staff: Scribe Dina Cutting.
The meeting was called to order at 7:35pm by Chair Brannen.
1) The minutes of the September 15, 2004 meeting were discussed. Chair Brannen expressed concern that the Highway Garage section of these minutes did not accurately reflect what took place at the meeting. Mrs. Shelnutt Brotman suggested the Committee wait and address these minutes at the next Budget Committee meeting. Mrs. Cutting requested Mr. Brannen send her the changes he wished to be made to these minutes if they were substantial.
2) The Budget Committee reviewed the information to be used for the 2005 town operating budget projection worksheet. It was noted at this time to use the corrected amount for the property tax revenue due to new construction. The correct amount is
6.2 million. Followed was a discussion concerning the fact that it is still early to get information needed for this worksheet. The budget committee does know that every $50,000.00 increase in the budget will cause about a 1% increase to the tax rate.
Mr. Lehmann passed out a worksheet for discussion. Mr.Lehmann noted he is very concerned that the greatest increase in assessments is on the modest homes. Assuming the modest homes has modest incomes. This means an increase in the tax rate will be particularly significant for the people in town with the least ability to pay. Followed was a discussion concerning getting some sort of schedule to show the $150,000.00-$200,000.00 homes are really the most affected by the up date. The fact that land values went up significantly, being very mindful of the fact that we need to keep budget down as much as possible. The Budget Committee needs to keep in mind that when voting the money added to the up coming budget they really need to be careful because it could vote some one out of town because of affordability. The tax rate will
be set and the change in assessments will both happen in the same year. This will happen before town meeting. The budget committee discussed the possibility of sending out a letter to all community members concerning the new assessments. The Budget committee felt is was very important to communicate with the community on this issue. This letter should go out before the tax bills are received by the Community. As soon as the tax rate is set by the DRA a letter will need to be generated.
3) The worksheet and tentative numbers were discussed:
# 1 $115,878.00
# 2 $0
# 3 $115,878.00
# 4 $0 this number needs to be clarified by Chief Hinsley.
# 5 $115,878.00
# 6 $175,000.00 increases in tax funding for school. See attached draft 2006 school budget. Mr. Bardos reviewed the draft of the school budget request. The expense budget bottom line is a -1.9% increase, a saving of 7.1%. The amount to be raised by taxes is a 12% increase. The school will not be drawing any money from the high school tuition fund this coming year. The school will receive $100,000.00 from the adequacy fund this year. Revenues will be down from last year. The actual amount to be raised by taxes will be 8.6%. Followed was a discussion concerning, high school tuition, the number of high school students and how this could change dramatically before the end of the school year. The high school tuition numbers peaked, and the trust fund account is healthy enough to take some money out. The special education fund
has $125,000.00 in it and the school board plans to take out $25,000.00 this year. The two tools the budget committee and school board could used to minimize the increase are the high school tuition fund and the special education fund. Mr. Bardos reviewed various graphs with the Budget Committee. It was pleasantly noted that the early intervention in special education issues has paid off. The numbers are dropping, and we are one of very few town whose special education numbers are going down. Followed was a discussion concerning projection of student population and the fact that those numbers are going down, but the budget is still going up. It was the feeling of Mr. Bardos that if the school board chooses to draw down some of the funds they could get the total percentage increase from 8.6% to 5.5%. It was noted at this time that this increase is without even looking at the town budget requests. The school budget is difficult because there are not many places to take money from.
The Budget Committee can not ask the town to have a 0 budget increase in order to give the school more. This will be a very tough year, and all will be asked to make cuts.
# 7 The following numbers are just estimates almost of this information is not yet available.
# 8 $30,000.00 Salary review, for longevity of employees with 10 years or more.
# 9 $18,000.00 Benefits increase-estimated, new amounts not in yet.
# 10 $12,000.00 COLA this is an estimate figure not in yet.
# 11 $30,000.00 Highway facility debt service/other costs.
# 12 $0 Transfer Station Cost-the Transfer Station Committee is busy collecting information on costs and ways to better our recycling center. It was felt this committee would not be far enough along in the investigation to request money this year.
# 13 $15,000.00 Fuel & Utilities increases-estimate only
# 14 -$10,000.00 will not need this amount because of grant received.
# 15 $0
# 16 other capital reserve funds. These funds were reviewed individually.
4) Capital Reserve Fund: The spreadsheet for the projections of the vehicle and heavy equipment reserve funds needs to be 20 years. Mr. Smith will do these calculations for the Budget Committee. Mr. Brannen reported he had made the changes for the possible purchase of the Fire Department’s supply truck in 2005 (instead of 2007) if, but only if the Fire Department receives a grant for 90% of the cost. If the supply truck is purchased, the Fast Squad could purchase an SUV instead of the original truck planned. The following Capital Reserve and Trust Funds were reviewed:
Bessie Hall Trust Fund-$1,500.00
Bridge Capital Reserve Fund-$0
Cemetery General Maintenance Trust Fund- Mr. Smith will ask the Cemetery Commission about the possibilities of closing this account.
Cemetery Maintenance Gifts and Donation Fund-
Cemetery Trust (income and expense account)-$0
Computer System Upgrades Capital Reserve Fund-$0
Emergency Highway Repair Reserve Fund-$0, this trust had $73,000.00 voted to come out at last town meeting. The Budget Committee request Mrs. Cutting find out what this money was used for.
Emergency Major Equipment Rebuilding Trust Fund-$0
Fire Fighting Safety Equipment Capital Fund-$0
Heavy Equipment Capital Reserve Fund-
Lyme Center Academy Building Restoration Capital Reserve Fund- This account should be closed. The Selectmen have been working on making some changes surrounding the use of the Academy building. They may be getting fees for the use of the building to go towards the building’s general needs. A new fund will be started for the maintenance and upkeep of the Academy building
New Cemetery Capital Reserve Fund-$0
Property Reappraisal Capital Reserve Fund- ?
Public Land Acquisition Capital Reserve Fund-$0
Public Works Facility Capital Reserve Fund-$10,000.00 towards the Transfer Station.
Trout Pond Management Area Trust-?
Trout Pond Capital Reserve Fund-?
Vehicle Capital Reserve Fund-?
5) The previous amounts discussed are all tentative. More information needs to be gathered in order to finalize these amounts. Best guess at this point is 3% increase even before the Department heads ask for anything extra in the 2005 budget. The Selectmen will be meeting with the Department heads over the following weeks. The Budget Committee has a tough job ahead of them this year. We may be looking at level funding for all Departments in the Town.
6) REMINDER: Next meeting November 3rd, 2004 @ 7:00pm.
7) At 9:20 Mr. Bardos moved to adjourn. Seconded by Mrs. Judith Shelnutt Brotman. Voted unanimously in favor.
Respectfully Submitted,
Dina Cutting
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