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Town of Lyme
Budget Committee
December 6th, 2006
7:00PM
Fire Station Training Room
Approved: December 13, 2006
Present at this meeting: Selectmen: Charles Ragan & Richard Jones. Budget Committee Members: Chairman Barney Brannen, Mike Smith, Jeff Lehmann, Dave Caffry, Josh Kilham, & Gibb Cornwell. School Board Representative: Kathy McGowan. Community Member: Earl Strout. Staff: Administrative Assistant Carole Bont & Bookkeeper/Scribe Dina Cutting.
The meeting was called to order at 7:00pm by Chair Brannen.
Mr. Cornwell moved to approve the minutes of the November 8th, 2006 meeting. Seconded by Mr. Caffry. Mr. Lehmann requested adding the suggestion that the Academy Building be used for storage for the Town Offices to section #4. Voted unanimously in favor with corrections noted. Mr. Jones abstained because he was not present at this meeting.
1) Mr. Brannen reviewed a letter sent to the Selectmen and Budget Committee by Mr. Jack Taylor. Mr. Taylor is concerned about the letter that was sent out explaining how the property assessment up-date may affect community member’s taxes. He felt the letter was misleading to taxpayers. Mr. Brannen will attach this letter to the minutes for all Budget Committee members to read. The letter is addressed to the Selectmen, so they will respond to Mr. Taylor. Followed was a discussion concerning the confusion surrounding how the tax rate is set. The Budget Committee felt it would be helpful if they took the time to help people understand how the process works,
how the state education taxes impact the town taxes, and so on. Mr. Lehmann stated that the tax increase has just been too much over the past few years. Ms. Bont will send the tax rate spread sheet to the Budget Committee members. It was the sense of the meeting to have Budget Committee members look over the tax spread sheet and come back at a later date to discuss options on the best way to inform the community on this issue.
2) Mr. Brannen reviewed the plan for tonight’s meeting. The Selectmen will present their proposed budget. The Budget Committee will be looking at the big picture. The Budget Committee will take the next week to digest these numbers then come to the next Committee meeting with questions for the Selectmen. Mr. Lehmann will not be able to attend the meeting on December 13, 2006 but he would like to be able to vote on the budget. Mr. Brannen stated that the Budget Committee would just have to wait and see how they felt at this meeting concerning a vote. If the Budget Committee feels they are ready, they will vote; if not, it will wait until the next meeting.
This first vote is just a tentative vote on the proposed budget. If Budget Committee members can not come to the next meeting, they can e-mail their questions to Mrs. Cutting or Mr. Branenn for distribution at the next meeting.
Selectmen’s requested budget for 2007:
3) Mr. Jones & Mr. Ragan reviewed the Selectmen’s handout (see attached). This handout highlighted items that the Selectmen cut from department budgets that were more than $1,000.00. The Town attitude survey results are tallied and the # 2 concern was tax increases. The Selectmen’s goal was to level fund. Some department heads are very upset at the cuts and the Budget Committee will be hearing from them at the rebuttal meeting. The following departments were reviewed:
a. Wages & Salaries: The Selectmen are proposing a 4% increase in wages for all the employees. The Library Trustees have set their own wage increases. There are no longevity and or step increases for town employees. Employees contribute to the health & dental insurance cost depending on the number of years they have worked for the town. The Personnel Policies are available on the town web page for review. New Hampshire retirement increase will take place July 2007. The employer increases are mandatory, as is the participation of all full-time employees.
b. Employee training: This line has been decreased $1,200.00. The Selectmen gave each department their own budget line. Total decrease of $1,200.00 over 2006 budget.
c. Computer Consultant: Decreased $1,100.00.
d. Planning & Zoning: The Selectmen have moved the $14,000.00 for the geographical mapping & aquifer study to a separate warrant article. They feel the Town should be able to vote on whether they want this or not. There is a large increase in the postage line due to the lot merger issue. The Town will have to send a certified, signature required letter to all Lyme property owners.
e. Lyme Center Academy Building: The Selectmen have proposed this be a separate warrant article for the parking lot. $11,040.00.
f. Temporary Town Office: If the bond passes we will not need this line. If the bond fails, money will need to be added to this line. The Town needs to get the employees out of the basement. The Town may need to rent office space.
g. Fire Department: Decrease in training by $1,500.00. Station parts & Supplies decreased by $1,000.00. The Clothing Major Equipment line decreased $4,000.00. The Selectmen are recommending the Fire Department use more out of the Bessie Hall Trust Fund to purchase this equipment. This fund has over $9,000.00 in it and can be used for this purpose. Heat has been cut $1,500.00.
h. Highway: New line for off-site storage for $1,200.00 increase over 2006 budget. This is storage of sand and dirt. The owner of the pit has decided to charge the Town for storage costs. Material & Maintenance, $10,000.00 increase over the 2006 budget. Motor fuel, $2,500.00 increase over 2006 budget. Materials winter, $5,000.00 increase over 2006 budget. The state has not sent 2007 Block Grant amounts yet. The Selectmen will adjust as soon as they receive the amounts.
i. Streetlights: Decrease from 2006 by $2,404.00. The additional street lights that were voted in at Town Meeting are this cost difference.
j. Solid Waste Disposal: The recommendation from the department and the Selectmen is the same at $51,050.00. This is a decrease of $13,450 due to the installation of the compactor. Solid Waste Collection: The Selectmen have had a problem staffing the positions at the Transfer Station. They have recommended cutting the payroll line. This leaves 3 positions, 1 at 416 hours, and 2 at 312 hours per year.
k. Parks & Recreation: The Selectmen have cut $2,250.00 from Beach repairs line. This money was for a beaver deceiver and fencing at the recreation area.
4) Library: The Selectmen have recommended cutting one of the part-time library employees, the building repair & maintenance line, and the books line. These recommended cuts were based on the information that was given to the Selectmen at this time. Followed was a discussion concerning the increase to the bottom line, the concerns that there is no revenue coming from the school to the town in the Library’s budget request. This is a 40% increase to the budget with out any increase in services. Mrs. McGowan informed the Budget Committee that the School and Library were still working out details of this new arrangement. Mrs. McGowan believes the
school will be paying $10,000.00 toward Town revenues. The Library budget does not reflect this. The Budget Committee discussed the possibility of having the Library Budget a separate warrant article at Town Meeting. No recommendation was made at this time. After a lengthy discussion, the Budget Committee requested it be noted in the minutes that the sense of the meeting was to let the Library Trustee know that the Budget Committee feels it is inappropriate to have a 40% increase in the Library’s budget. Mr. Caffry requested he not be included in the sense of the meeting. The Budget Committee again discussed the fact that the Town cannot afford this increase. The Budget Committee feels the three boards need to sit down and discuss what is going on. The Committee would like Mr. Brannen to contact Judy Russell and discuss the issues with her.
* Mr. Jones moved to authorize Mr. Brannen to contact the Chair of the Library Trustees Judy Russell and relay the sense of the Budget Committee on this subject. Seconded by Mr. Lehmenn. Voted unanimously in favor.
Capital Budget 2007:
5) Mr. Jones reviewed the Selectmen’s recommendations for the Capital Reserve Funds and Trust Funds for the 2007 budget.
· Public Land Acquisition-$130,000.00 to purchase land for new Town Offices.
· Vehicle CRF-
o Fire Department Rescue Truck-$155,000.00 without a carry over of funds that were not spent from the 2006 budget.
o Fire Department Fire Truck-$12,000.00 The Selectmen recommended not to carry forward or include in this year’s budget.
o Fire Trucks-The Selectmen recommend leaving the fire trucks on a 25 year cycle.
o Police Vehicle-$35,000.00 for the police vehicle. Last year the Police vehicle was delayed and it can not wait another year.
o Highway Dump Truck-$145,000.00 for a 10-wheeler is in the 2007 budget request. Followed was a discussion concerning the pros and cons of having a 10-wheeler versus a 6-wheeler.
· Heavy Equipment CRF-
o Mini Excavator-The Selectmen are not recommending this at this time.
o Lawnmower-$16,500.00 in this year’s budget. The present mower is in bad shape.
o Grader-recommending increasing the replacement schedule to 15 years. The grader has low operating hours and is kept in great shape.
6) Fire Fighter Equipment Trust Fund (Bessie Hall)-recommended an increase from $1,500.00 to $4,000.00 to replace the Fire Department’s operating budget for “clothing major equipment”.
7) Computer System Upgrade CRF-The Selectmen recommended $5,000.00. The department is requesting $7,000.00.
8) Highway Salt Shed-The Selectmen recommended $10,000.00 to install a door on the new salt shed.
9) Town Offices Building-The Selectmen are recommending $25,000.00 to continue the design & planning for the new Town Offices if the bond does not pass. The Selectmen are recommending a bond of up to $1,900.000.00.
10) High Speed Communications-The Selectmen are recommending $3,250.00.
11) Academy Building Parking Lot-The Selectmen are recommending this be an individual warrant article. $11,040.00.
To Capital Reserve Funds: Mr. Jones referred to the hand out for these amounts.
· Bridge CRF-$0
· Vehicle CRF-$175,000.00
· Heavy Equipment CRF-$25,000.00
· Property Reappraisal CRF-$5,000.00 (department request $10,000.00)
· Public Works Facilities CRF-$10,000.00(department request $20,000.00)
· Emergency Highway Repair CRF-$20,000.00 for Shoestrap Road.
· Computer System Upgrade CRF-$7,500.00(department request$12,000.00)
· Fire Fighting Safety Equipment CRF-$5,000.00(department request $7,500.00)
· Public Land Acquisition CRF-$20,000.00 for the cost of proposed purchase of land for Town Offices.
· Town Poor Expendable Trust Fund-$15,000.00(department request $19,000.00)
12) Estimated Revenues were briefly reviewed: building permits have slowed down. Timber Tax revenues are down. The Selectmen will have time to re-examine these amounts in September before the tax rate is set.
13) The Selectmen are requesting warrant articles to designate the Board of Selectmen as agents for the following Capital Reserve Funds & Trust Funds: Bridge CRF, Emergency Highway Repair CRF, & Emergency Major Equipment Rebuilding Trust Fund.
14) Shoestrap Road-The estimates for repairing and/or closing Shoe Strap Road are in tonight’s handout. Option A: two way road, $500,000.00. Option B: one-way road, $700,000.00. Option C: close the road, $20,000.00. The Selectmen are going to recommend option C. The warrant article will allow the Town to vote on which option they would like to fund.
15) Mr. Jones stated that the Town Office Committee is in a tizzy right now. Every time they meet they have an obstacle to deal with. They cannot discuss these issues in public. It was noted at this time that the Town Meeting is not a drop dead date. The Town can vote to recess the meeting and have it at another time if the Committee still needs more time. It is better to do things right rather than try and rush it. Someone should be prepared to make this motion at Town Meeting if necessary.
16) Mr. Strout suggested the Town consider sharing services with neighboring towns. It is difficult to find part-time employees, Transfer Station services & some equipment. Services and equipment can be shared and we may receive better services and save the Town some money.
*At 9:00PM Mr. Smith moved to adjourn. Seconded by Mrs. McGowan. Voted unanimously in favor.
Reminder: Next meeting December 13th, 2006
7:00PM at the Fire Station training room.
Respectfully Submitted,
Dina Cutting
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