Town of Lyme
Budget Committee
December 15, 2004
7:00PM
Lyme Town Offices
APPROVED January 10, 2005
Present at this meeting: Selectmen: Judith Shelnutt Brotman and Richard Jones. Budget Committee Members: Gibb Cornwell, Jeff Lehmann, Josh Kilham, Chairman Barney Brannen, Earl Strout, David Caffry, Wayne Tullar, Freda Swan, Mike Smith. School Board Representative Laszlo Bardos. Administrative assistant Carole Bont, Planning and Zoning Administrator Victoria Davis, Police Chief Pauline Field, Fire Chief Michael Hinsley. Emergency Management Director Wallace Ragan. Conservation Commission Chairman Lee Larson. Librarian Betsy Eaton. Library Trustees: Ann Justice, Ann Hartmann, Letitia Smith, Myra Klee. Members of the public: Dick Justice, and Bookkeeper/Selectmen’s Secretary & Scribe Dina Cutting.
The meeting was called to order at 7:05pm by Chair Brannen.
1) Review and approval of the minutes for the December 8th, 2004 meeting were deferred until the next meeting. Because the minutes were sent out late a few of the Budget Committee members were not able to read them prior to this meeting.
2) Chair Brannen reviewed the topics the Budget Committee will be addressing at tonight’s meeting.
Library Budget
Parks & Recreation Budget
Review Capital Expenditures
Review Revenues
Any departments that wish to comment on the budget may do so at this meeting.
Chair Brannen would like to take a few moments at the end of this meeting to see where the Town Budget is before the School Budget is presented at the next meeting on January 6th, 2004.
3) OPERATIONAL BUDGET:
A. PARKS AND RECREATION: $53,673.00
Mrs. Shelnutt Brotman moved to approve account numbers 4520-4529 in the amount of $58,829.00. Seconded by Mr. Caffry.
Mrs. Shelnutt Brotman corrected the figures for line 341 at $ 2,871.00 and line 384 at $8,375.00. Based on the corrections made, Mrs. Shelnutt Brotman moved to amend the total for Parks and Recreation to the amount of $53,673.00. Seconded by Mr. Caffry.
Mrs. Shelnutt Brotman reviewed the responsibilities of the Chase Beach Activities Supervisor. This position was introduced this year by the Selectmen in hopes it would alleviate some of the issues and problems that were occurring at Chase Beach. It worked very well. The responsibilities of the lifeguards were well met. The pond program swimming lessons went smoothly. The hourly wage for the Chase Beach Activities Supervisor position will be the same as the Recreation Director’s hourly wage. To perform the tasks of the Chase Beach Activities Supervisor the position will require 180 hours. It is important to have a qualified individual over seeing the beach and the lifeguards. The responsibilities associated with this job originally were included in the Recreation Director’s job
description. Because the Recreation Director’s position will no longer assume these responsibilities, the Recreation Director’s position was decreased by the 180 hours The two positions added together is equal to what the one Recreation Director would have made had it stayed year round with all original responsibilities. Followed was a discussion concerning the responsibilities of the Chase Beach Supervisor and the Recreation Director. It was noted in the past the Aquatic Director was paid $3,000.00 5 years ago for the same job responsibilities.
*The motion was voted 1 opposed (Jeff Lehmann) 9 in favor, the motion passed.
B. LIBRARY: $131,019.00
Mrs. Swan moved account numbers 4550-4559 in the amount of $131,019.00. Seconded by Mrs. Shelnutt Brotman.
Followed was a discussion concerning the Assistant Librarians’ hours and the proposed increase in their hourly wages. Mrs. Eaton explained that last year the Library Trustees did not give their employees the Selectmen’s recommended wage increases in accordance with the Wage and Job Classification Study prepared by the NH Municipal Association. This year they would like to give their employees those raises. In arriving at a recommended wage amount, Mrs. Eaton explained that the Trustees compared the Lyme Library wages to the wages in other area libraries, the LOVE Co-op, the Municipal Association’s Wage and Job Classification Study, the Town Office wages, and School Librarian wages.
The Budget Committee also discussed new changes in the Library’s financial policies. The Library is now gross budgeting with the Town. This is the way the auditors at the NH DRA and the town’s own independent auditors have requested we handle the library finances. In accordance with the auditors’ recommendations, the Lyme Library started using the method of gross budgeting in 2004. Because the gross budgeting method of budgeting suddenly shows up for the 2004 totals it gives the Library a deceptively inflated increase. To draw a truer comparison, reduce the amount of the 2004 budget by the amount of money the library reimburses the town and then compare the funds left over to the totals in 2003. Line 592 on the revenues side of the budget reflects the $11,381.00 the Library will
be paying to the town from the Library Trustees’ account.
Followed was a brief discussion concerning the fact that the Lyme Library also serves as the schools library. Mr. Bardos commented that the school is getting a GREAT deal from the Library. If we had to have our own school library in addition to the Town Library our overall costs would increase to the taxpayer significantly.
Marya Klee read a statement: see attached. Ann Hartmann commented the Library could not run at its present capacity with only volunteers.
* The motion was voted 1 opposed (Mr. Strout), 1 abstention (Mr. Caffry) 8 in favor.
4) Public Comments:
Mr. Roby commented by letter:
* The Budget Committee could consider passing along a mandate to cut a certain percentage from the budget to the Department Heads and Selectmen. The Budget Committee should not select where the budget cuts should be made, if cuts are needed.
* The Board of Selectmen should consider changing the fee structure for building permits to create more revenues.
* The Budget Committee should go back over the police expenditures and compare the budget increases to the per capita increases to see if the increase in the financial burden to the town has been adequate compared to the population growth in the community.
5) The Budget Committee discussed whether or not they should put the revenues and expenditures associated with the proposed pay-per-bag policy in this proposed budget for 2005. Following a brief discussion the Budget Committee felt that because this will be a warrant article the financial impact of this proposed policy should not be included in the 2005 proposed budget until the town has the opportunity to vote on whether or not to support the policy itself.
6) CAPITAL EXPENDITURES:
A. MACHINERY, VEHICLES AND EQUIPMENT: $97,800.00
Mrs. Shelnutt Brotman moved to approve the account numbers 4902 in the amount of $112,800.00. Seconded by Mr. Kilham. The schedule for the replacement of various vehicles was discussed.
Police Cruiser:
In the past the Select board changed the replacement schedule for the police cruiser from a 6 year to a 5 year replacement plan. Chief Field commented it would be sensible to get one more year out of the SUV. A manufacturer of SUV’s is expected to come out with a vehicle that would meet the needs of a police cruiser. Chief Field felt it would be appropriate to wait another year before purchasing a new cruiser.
*Mrs. Shelnutt Brotman moved to amend the total to take $35,000.00 from line marked police cruiser in the Vehicle Capital Reserve Fund. Seconded by Mr. Kilham. This brings the total for the account numbers 4902 to $77,800.00.
Fire Truck:
Followed was a discussion concerning the following topics:
* Should the replacement schedule be changed back to 30 years?
* The 1984 Middlesex truck has had a lot of money put into it. Should more money be put into it?
* The $20,000.00 the Fire Department is requesting for the co-pay on a new truck is only obligated if the grant is given to the town.
* Comments were made: This is a win-win situation. The town can’t lose. If the town receives the grant the $20,000.00 will be used. If not, the money will stay in the Capital Reserve Fund.
* The equipment truck for the Fast Squad will not need to be replaced with another vehicle of the same type. It can be replaced with a suburban-type vehicle, this will cost less.
Chief Hinsley requested the Budget Committee consider the following items:
1. Adopt a more appropriate replacement cycle for the fire trucks of 24, 25, or 30 years.
2. Prepare to commit a conditional $20,000.00 towards a grant co-pay.
3. Appropriate the replacement cost for the Fast Squad’s equipment truck.
Mrs. Shelnutt Brotman commented the Selectmen felt the $20,000.00 for a replacement fire truck was not an affordable item at this time. The money for the co-pay towards the fire truck would have to come from tax dollars because there is not enough money in the Capital Reserve Fund at this time for this expenditure. This vehicle was not a scheduled vehicle to be replaced this Capital Reserve Fund budget cycle.
Followed was a discussion concerning the pros and cons of funding a co-pay for a new fire truck at the present time. The Vehicle Capital Reserve Fund was discussed. The Selectmen and Budget Committee have to look at the schedule and possibly revise it every couple of years. The $20,000.00 will be ear-marked so if the town does not need the expenditure the money will not be used.
* Mrs. Swan moved to amend the total amount to add $20,000.00 to the fire truck line. Seconded by Mr. Cornwell. The amendment was voted 9 in favor with 1 abstention (Mrs. Shelnutt Brotman).
* The amended amount of $97,800.00 for account number 4902 was voted as follows:
1 abstention (Mrs. Shelnutt Brotman) 9 in favor.
B. BUILDINGS: $35,000.00
Mrs. Shelnutt Brotman moved to approve account number 4903 in the amount of $35,000.00. Seconded by Mrs. Swan.
This $35,000.00 will be used to build the salt shed at the highway garage. The Highway Facilities Committee would like to use the $21,833.00 that was budgeted for the interest payment for 2004, but not spent, toward the salt shed. The town ended up going with a different type of loan and could not pre pay on the interest. Mr. Smith informed the Budget Committee the Highway Facilities Committee had received a legal opinion the money could be used for the salt shed expenditure. Followed was a discussion concerning the needs at the Transfer Station, the salt shed, and coming up with solid prices for all these needs. It was noted at this time there is no money in this proposed Capital Expenses line for the Transfer Station.
*The motion was voted unanimously in favor.
C. IMPROVEMENTS OTHER THAN BUILDINGS: $84,000.00
Mrs. Shelnutt Brotman moved to approve account number 4909 at $75,000.00. Seconded by Mr. Strout.
Mrs. Shelnutt Brotman explained that the Department of Revenue will require the town to do a full assessment for property reappraisal. This line needs to be increased to $10,000.00.
The Emergency Highway Capital Reserve amount was changed to $74,000.00. This is the amount presently in the fund.
*Mrs. Shelnutt Brotman moved to amend the total amount for account number 4909 to $84,000.00. Seconded by Mr. Strout. Motion voted unanimously in favor.
D. TO CAPITAL RESERVE FUND: $191,000.00
Mrs. Swan moved to approve account number 4915 in the amount of $184,500.00. Seconded by Mrs. Shelnutt Brotman.
The timing and purchasing of various vehicles within the Capital Reserve Funds was discussed. It was the sense of the Budget Committee that they should change the amount to deposit into the Vehicle CRF from $110,000.00 to $100,000.00. The amount to deposit into the Heavy Equipment CRF should be changed from $15,000.00 to $25,000.00.
Mr. Bardos suggested the Budget Committee organize itself into different committees to address the various parts of the town’s budget. Then these committees could come to the whole Budget Committee with recommendations. The Budget Committee felt this was a good idea.
The following funds were discussed: Public Works Facility, Property Appraisal, Bridges, Town Building Major Maintenance and Repair, and Fire Fighting Safety Equipment CRF. It was noted the Bridge CRF is over funded at $120,000.00. The Budget Committee could move some money from this fund to another if needed. The sense of the Budget Committee was to leave the bridge fund as is. In the future the Budget Committee could transfer monies from this fund if needed with a vote of the town. The Town Building Major Maintenance and Repair CRF needs to be able to cover the repairs for the police station. Remind the Budget Committee in January to re-look at this fund to make sure it will cover these expenses.
Mr. Hinsley requested an additional $6,500.00 be added to the Fire Fighting Safety Equipment CRF. The total requested would be $11,000.00. Right now the cost of replacing the protective gear for all fire fighters is $117,740.00. To meet the needs of a 12 year replacement schedule we would need to add $11,000.00 to the fund each year.
*Mrs. Swan moved to amend the amount for account number 4915 by adding $6,500.00. Seconded by Mrs. Shelnutt Brotman. The motion with the total amount for account number 4915 being $191,000.00 was voted 1 opposed (Mr. Strout) and 9 in favor.
E. TO EXPENDABLE TRUST FUNDS: $15,000.00
*Mr. Smith moved account number 4916 in the amount of $15,000.00. Seconded by Mrs. Shelnutt Brotman. Motion voted unanimously in favor.
F. REVENUES
The Budget Committee does not vote this section of the budget.
The following revenue lines were reviewed and discussed.
*The Transfer Station. The Budget Committee discussed the different changes taking place in the coming year. The Transfer Station Committee will be requesting the town vote on a charge-per-bag policy and a charge for dumping construction and demolition debris. The Budget Committee decided not to put this revenue in the proposed budget. The town needs to vote on whether to adopt this policy first.
*It was suggested that the town consider raising its fees for building permits. The Budget Committee supported this idea. Mrs. Shelnutt Brotman will gather other town’s fees to compare to.
*Mr. Ragan requested the Budget Committee reconsider the request for money to have the town wide risk management plan completed. Mr. Ragan can apply for a $6,000.00 matching grant. He reviewed the work that was done on the Emergency Management Plan. The plan was very time consuming and because he is retired this was possible for him to do. The hazardous medication plan must be completed if the town would like to continue to apply for grants.
Chief Field responded to the questions the Budget Committee had at the last meeting. Chief Field reported the estimated cost to repair the ceiling in her office is $750.00. The estimated cost to repair the wall and remove the air conditioner is $250.00.
Mrs. Swan moved to add $1,000.00 to the Fire Department’s operational budget. This additional money is to be earmarked for the repairs to the Police Departments office. Seconded by Mr. Smith.
Followed was a
discussion concerning the police department’s space in the fire station, shortage of storage space, and the fact that the fire department would need to fix this space even if the police office was not there.
*Motion voted unanimously in favor.
7) General Budget Review.
The Budget Committee reviewed the status of the budget as of this date. The Budget Committee reviewed numbers for the school, the town, capital expenses, additional revenues from adopting a pay-per-bag policy, and new construction. The overall increase in the tax rate will be 1.5% if we adopt both the pay-per-bag policy and the C&D charges. Without including these additional revenue numbers the increase in the tax rate will be 2.3%.
8) Next meeting: School presentation of their proposed budget.
9) Mrs. Shelnutt Brotman moved to adjourn at 9:55 pm. Seconded by Mr. Strout.
Motion voted unanimously in favor.
Respectfully Submitted,
Dina Cutting
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