BUDGET COMMITTEE MEETING
November 05, 2013
The meeting was called to order at 6:33 p.m.
ROLL CALL
Kristin Lewis-Savage, Chair
Martha Sumner, Vice Chair
Tricia Holt
Ben Sadewicz, Excused
David Gerns
Gayle Hamel
Darrell Britton, Excused
Dennis Heffernan
Barry Weymouth, Arrived 6:35 p.m.
John Sherman, Selectmen Ex-Officio
Also Present: Sean Fitzgerald, Town Manager
The Pledge of Allegiance was led by Martha Sumner.
APPROVAL OF MINUTES
All minute approval was deferred to the next meeting.
PRELIMINARY BUDGET REVIEW:
The Committee reviewed the list of budget requests by department.
B. Weymouth arrived at 6:35 p.m.
S. Fitzgerald noted that there would be adjustments to the personal lines in some of the department budgets. He added that there was a reduction in the Water Distribution line in the amount of $7,500.00, and asked the Budget Committee to vote to take the new budget number under consideration.
M. Sumner moved, second by T. Holt, to accept for consideration the reduced Water Distribution Budget in the amount of $54,005.00 (a $7,500.00 reduction). There was no discussion on the motion. The vote was 8-0-0 U/A.
S. Fitzgerald noted that there could be changes in mileage and utility lines as well as potential wage adjustments and changes based upon settlement of a Collective Bargaining Agreement (CBA) settlement. He noted that the overall budget increase is less and 1% (.73%) without the $50,000.00 adjustment from the 2013 Deliberative Session. With that adjustment the difference is less than a 1.5% (1.39%) increase. S. Fitzgerald added that he was asking the Department Heads to take another look to see if there were any more places where budgets could be cut back. He offered that he was also looking at the educational reimbursement line. S. Fitzgerald offered to have any staff return to answer any questions the Committee may have.
S. Fitzgerald noted to the Committee that the new tax rate had been set at $5.98/$1,000.00, which is level funded.
J. Sherman added that the Town’s portion of the tax rate was level funded. He noted that the County and the State Educational portion were down, but the Schools portion was being increased.
PRELIMINARY REVIEW OF DRAFT WARRANT ARTICLES
Deletions are indicated in BOLD STRIKEOUT
Additions are indicated in BOLD ITALIC
It was noted that Article P-14-01 will be the election slate and Article P-14-02 is the Operating Budget, which will be updated with the final numbers for the warrant.
It was further noted that all the warrant articles would be revised to reflect the results of Budget Committee voting as well as the balances in any indicated accounts before being placed on the warrant.
HIGHWAY DEPARTMENT EQUIPMENT CAPITAL RESERVE FUND DEPOSIT
Article P-14-03: Shall the Town vote to raise and appropriate the sum of $78,000 to be added to the existing Highway Department Equipment Capital Reserve Fund?
(Recommended by the Board of Selectmen (5-0-0) 11/18/11 and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent: ~To continue to set aside money for future purchases of Highway Department vehicles. Putting funds aside each year will allow for the orderly replacement of highway vehicles while leveling the yearly tax impact. ~This money can only be spent by a future vote at Town Meeting. These funds will be invested in an interest bearing account.]
Balance of the Highway Department Equipment Capital Reserve Fund is $_________ as of December 31, 2013.
Discussion:
It was noted that this Article appears on the Warrant annually. There were no changes suggested to this Article.
M. Sumner noted that last year’s number was $81,000.00.
There was a brief discussion about whether or not to just review or vote to recommend these draft Articles.
S. Fitzgerald offered that it would be helpful to get the language down and if the Committee was comfortable to take the vote to recommend.
G. Hamel moved, second by D. Heffernan, to recommend Article P-14-03 in the amount of $78,000.00 to the Highway Department Equipment Capital Reserve Fund. There was no discussion on the motion. The vote was 8-0-0 U/A.
Replace Police Department Mobile Radios
Article P-14-07: Shall the Town vote to raise and appropriate $31,500 for the purpose of replacing six (6) Mobile Radios for the Police Department? (Year 2 of a 2-Year Project)
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent: This is the second and final year of a two-year project to provide for complete the necessary transition/upgrade of current existing mobile radios mounted in police cruisers to a current model. The current These outdated police cruiser radios were purchased in 2001 and are no long being manufactured. This project will allow the Town to take advantage of significant technology enhancements. These funds would be used to replace the last six (6) of the twelve (12) units.]
Discussion:
The Committee offered the noted changes to the verbiage to make the intent clear that the changes are to existing outdated equipment which can no longer be serviced,
M. Sumner asked if Town Counsel would be reviewing all the language of the Warrant Articles. It was confirmed that there would be a review.
M. Sumner moved, second by T. Holt, to recommend Article P-14-07, as amended, in the amount of $31,500.00 to replace Police Department Mobile Radios. There was no discussion on the motion. The vote was 8-0-0 U/A.
Communications Radio Repeater Enhancement
Article P-14-09:~~ Shall the Town vote to withdraw $31,000 from the Unexpended Fund Balance for the purchase of (2) two wireless canopy repeaters to be installed on Route 108 as needed for improved communications in this area by the Police and Fire Departments? This will be a non-lapsing appropriation per RSA 32:7, VI and will not lapse until the project is completed or by June 30, 2016, whichever is sooner. (Raised and Appropriated question…)
Appropriation ~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~ ~~~ ~ ~~~ $62,000
Developer Contribution ~~~~~~~~~~~~~~~~~~~~~ ~~ ~~~ ~~ -$31,000
Withdrawal From Unexpended Fund Balance~~~~ -$31,000
Amount to be Raised by 2014 Taxes $0
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent:~~ In 2011, Warrant Article P-11-08, Communications Radio Repeater Enhancement was presented to the Plaistow residents and it was voted in favor (YES:385/NO:184) to raise and appropriate the sum of $62,000 for the addition of (2) two wireless radio canopy repeaters on Route 108 as needed by the Fire and Police Departments. However, in 2011, these funds were not allocated from the 2011 taxes, nor were the funds carried over into the 2012 budget. Because the 2011 Warrant Article did not designate this as a non-lapsing Fund, the Town is requesting to spend $31,000 from the Unexpended Fund Balance to complete this project.]
Discussion:
The Committee suggested that the use of minus signs be consistent throughout all the warrant articles. It was also suggested that there be a line under the numbers that would indicated “total.”
J. Sherman offered a proposed revised intent for the Warrant Article which reads:
[Intent: In 2011, a warrant article for this exact purpose was approved at Town Meeting. The money was raised, but was NOT spent, and thus, reverted to the Unexpended Fund Balance. The purpose of this Warrant Article is to take those funds, still residing in the Unexpended Fund Balance and expend them for this purpose. Half of the total cost will be funded by the developer, and the appropriate Letter of Credit is in the Town’s possession. The original Warrant Article was P-11-08 and was passed by a 385 to 184 vote. The purpose of this new article is the same as the original – to provide enhanced communication capability for the Fire and Police Departments in this area of Route 108, as both a matter of efficiency and safety.
There was consensus of the Board to go with the revised intent statement.
G. Hamel moved, second by T. Holt, to recommend Article P-14-09, as amended, in the amount of $31,000.00 to for Repeater Radio Enhancements. There was no discussion on the motion. The vote was 8-0-0 U/A.
establish a Communications Radio Dispatching System capital Reserve Account and associated deposit
Article P-14-10: Shall the Town vote to establish a Communications Radio Dispatching System Capital Reserve Account for the Replacement of the Communications Radio Dispatching System and ancillary systems at the Public Safety Complex and to raise and appropriate the sum of $25,000 to be placed in this account? The Board of Selectmen will be the agents authorized to expend these funds.
(Recommended by the Board of Selectmen (4 5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
Appropriation $25,000
Withdrawal from Unexpended Fund Balance -$25,000
Amount to be Raised by 2014 Taxes $0
[Intent: To begin to set aside funds for the replacement of the current technology with a successor system. This would be a third generation change since the creation of the 24/hour dispatching center in the early 1990’s. In order to fund the replacement of this system, the Town would establish a Capital Reserve Account and begin allocating funds into this account commencing in 2014. Putting funds aside each year will allow for the orderly replacement of this system while leveling the yearly tax impact. The total replacement cost is estimated at $250,000. The current plan is to expend these funds coincident with the expansion/replacement of the Public Safety Complex. This money will be invested in an interest bearing account and can only be spent by a future vote at Town
Meeting of the Board of Selectmen.]
Balance of the Communications Radio Dispatching System Capital Reserve Fund is _____________ as of December 31, 2013.
Discussion:
D. Heffernan questioned whether or not this item would be addressed as part of a new Public Safety complex. He also asked if there were grant funds available for this need.
S. Fitzgerald offered that there are sometimes Homeland Security grants available and that option would be explored. He added that if a new Safety Complex was built then there would be monies allocated for fixtures and furniture and such, but this Article was to maintain the existing system.
There was a brief discussion about the technology and the need to keep things updated to be able to communicate with State and Federal agencies when the need arose. There was a question as to whether or not these funds could come from the Unexpended Fund Balance account.
J. Sherman noted that it gives coverage if a new Safety Complex does not get approved.
G. Hamel moved, second by M. Sumner, to recommend Article P-14-10, as amended, in the amount of $25,000.00 to for the establishment of a Communications Radio Dispatching Capital Reserve Account. There was no discussion on the motion. The vote was 8-0-0 U/A.
Replacement of police department Automated External Defibrillators (AED’s) (GET MORE INFO ON NUMBERS)
Article P-14-12: Shall the Town vote to raise and appropriate $13,200, by withdrawing that exact amount from the Unexpended Fund Balance. These funds will purchase for the purpose of purchasing six new AED’s for the Police Department, replacing 6 AEDs that are obsolete. These AEDs are losing manufacturer support within the next year. Four (4) will replace existing AEDs kept in the marked police cruisers and the two (2) others will be placed in unmarked police vehicles.
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
Appropriation $13,200
Amount from Unexpended Fund Balance -$13,200
Amount to be Raised by 2014 Taxes $0
[Intent: An automated external defibrillator (AED) is a portable electronic device that can save your life during a cardiac event. automatically diagnoses the
potentially life threatening cardiac arrhythmias of ventricular fibrillation and ventricular tachycardia in a patient and is able to treat them through defibrillation --- allowing the heart to reestablish an effective rhythm. Four (4) new AED’s are for replacement of existing AED’s currently kept in four (4) of the Police Department Marked Cruisers, and two (2) of the new AED’s will be placed in two (2) of the Police Department Unmarked Vehicles.]
Discussion:
There was discussion about the repetitiveness of the Warrant Article and the Intent Statement, as well as the technical language of the Intent Statement.
There was also discussion on the language for monies that are requested to be withdrawn from the Unexpended Fund Balance account. It was suggested that it be clear in the Article that the exact amount will be withdrawn from the Unexpended Fund Balance account.
J. Sherman noted that the cost was figured on an original presentation of the need for eight (8) units at $1,650.00 per unit.
S. Fitzgerald noted there would be an update coming from the Police Chief for the next Board of Selectmen meeting. He expressed frustration that the units are perfectly good but are no longer being supported for maintenance, which could create an insurance issue.
M. Sumner offered that the units at her place of work are serviced twice a year.
S. Fitzgerald added that these units are critically important to public safety.
There was additional discussion on the use of the phrase “raise and appropriate” when it comes to the Unexpended Fund Balance and the in that account have already been “raised and appropriated” S. Fitzgerald offered that he would have the discussion with DRA (Department of Revenue Administration) about the proper language.
J. Sherman noted that the Budget Committee workshop that he attended was very clear that all monetary Articles should say “raise and appropriate.”
M. Sumner moved, second by T. Holt, to recommend Article P-14-12, as amended, in the amount of $13,200.00 for the replacement of the Police Department AED units. There was no discussion on the motion. The vote was 8-0-0 U/A.
Public Safety Complex preliminary engineering and Cost estimate Study MORE INFORMATION ON IMPACT FEES
Article P-14-13: Shall the Town vote to raise and appropriate $25,000 to complete the preliminary engineering phase for the expansion of the Public Safety Complex including a project cost estimate that could later be used as the amount of a bond to finance this need?
(Recommended by the Board of Selectmen (4-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent: To allow the Town to complete the Preliminary Engineering and Cost Estimate Study for the needed expansion of the Public Safety Complex.]
J. Sherman noted that this Article was being deferred by the Board of Selectmen at this time and could be skipped.
FIRE DEPARTMENT APPARATUS CAPITAL RESERVE FUND DEPOSIT
Article P-14-14: Shall the Town vote to raise and appropriate the sum of $105,000 to be added to the existing Fire Department Apparatus Capital Reserve Fund?
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent: To continue to set aside money for future purchases of Fire Department vehicles. Putting funds aside each year will allow for orderly replacement of fire vehicles while leveling the yearly tax impact. This money can only be spent by a future vote at Town meeting. This money is invested in an interest bearing account.]
Balance of the Fire Department Apparatus Capital Reserve Fund is _______________as of December 31, 2013.
Discussion:
J. Sherman noted that the $105,000.00 was different than in the Town Report as one year a fire vehicle was purchased and there needs to be some catching up.
It was noted that this was a Article that appears annually on the Warrant.
G. Hamel moved, second by D. Gerns, to recommend Article P-14-14, in the amount of $105,000.00 to be deposited in the Fire Department Apparatus Capital Reserve Account. There was no discussion on the motion. The vote was 8-0-0 U/A.
Replacement of THE Fire Department Command Vehicle
Article P-14-15: Shall the Town vote to raise and appropriate $50,000 to replace the 2003 Ford Expedition Command Vehicle for the Fire Department and to withdraw the funds from the Fire Department Apparatus Capital Reserve Fund.
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
Appropriation $50,000
Withdrawal from the Capital Reserve Fund -$50,000
Amount to be Raised by 2014 Taxes $0
[Intent: The existing 2003 Ford Expedition Command Vehicle was the first Command Vehicle for the Fire Department, and was purchased, in part, from an outside source. This vehicle is used on a daily basis by the Fire Chief for both emergency response and routine department business (fire prevention, code enforcement/inspections, etc.). It is also used by the Officers when the Fire Chief is out of Town for an extended period.]
Balance of the Fire Department Apparatus Capital Reserve Fund is ________as of December 31, 2013.
Discussion:
D. Heffernan questioned the benefit of having the last line in the intent statement.
S. Fitzgerald replied that it made it clear that this was a department vehicle, used by more than just the Chief, and used every day.
D. Heffernan asked what other staff used when the Chief is there.
S. Fitzgerald responded that there were other vehicles available for staff use.
M. Sumner moved, second by D. Heffernan, to recommend Article P-14-15, in the amount of $50,000.00 to be withdrawn the Fire Department Apparatus Capital Reserve Account for the purchase of a new command vehicle. There was no discussion on the motion. The vote was 8-0-0 U/A.
Replacement of FIRE DEPARTMENT Cardiac Monitor and Automatic External Defibrillator (AED)
Article P-14-16: Shall the Town vote to raise and appropriate $34,600 for the replacement of one (1) of the Fire Department’s cardiac monitors and one (1) Automatic External Defibrillator (AED), with $17,000 being withdrawn from the Rescue Vehicle and Medical Equipment Revolving Fund? (year 1 of a 2 year plan)
(Recommended by the Board of Selectmen (5-0-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
Appropriation $34,600
Withdrawal from Medical Equipment Revolving Fund Balance $17,000
Amount to be Raised by 2014 Taxes $17,600
[Intent: In 2008, the manufacturer of the Fire Department’s current cardiac monitors advised the industry that parts and service for the current Lifepak-12 cardiac monitor would not be supported beyond 2016. Additionally, support for the LIFEPAK 500 AED will cease in 2015. Both of these products are currently in use by the Fire Department. A staggered replacement process is being recommended to limit the effect on the Town’s annual tax rate. The Fire Department currently has two (2) cardiac monitors and three (3) AEDs that the Fire Chief recommends be replaced before they fall out of serviceability. The replacement cost for each cardiac monitor is estimated to be $32,500 and $2,100 for the AED. It is anticipated that a request will be submitted next year to
replace the other cardiac monitor and the other two AEDs.
Discussion:
J. Sherman noted that the Fire Chief has been asked to provide the balance information for this revolving account and a statement of that amount should appear in the Article.
Balance of the Medical Equipment Revolving Fund is $___________ as of December 31, 2013.
M. Sumner moved, second by G. Hamel, to recommend Article P-14-16, as amended, in the amount of $17,600.00 for the replacement of one (1) cardiac monitor and (1) Automatic Defibrillator. There was no discussion on the motion. The vote was 8-0-0 U/A.
CELL TOWER MAINTENANCE CAPITAL RESERVE FUND DEPOSIT
Article P-14-17: Shall the Town vote to raise and appropriate the sum of $125,000 to be added to the existing Cell Tower Maintenance Capital Reserve Fund established in 2010?
(Recommended by the Board of Selectmen (4-1-0) and Budget Committee (0-0-0); and this funding is included in the 2014-2019 Capital Improvement Program as approved by the Planning Board.)
[Intent: To continue to set aside money for future maintenance of the Cell Tower. Utility Services Inc. estimates that the overall cost associated with the tower abatement, re-painting, and corral retro-fit to be $406,091. By adding $125,000 in the years 2013 through 2015 to the Cell Tower Maintenance Capital Reserve Account, the Town will have $407,000 available for withdrawal in the year 2015 to complete the required work. This fund was established in 2010 and the money in this fund can only be spent with the approval of the Board of Selectmen. The money in this Capital Reserve Fund is invested in an interest bearing account. Note: The annual rental payment received from the various carriers using the Cell Tower is $140,000.]
Balance of the Cell Tower Capital Reserve Fund is $___________ as of December 31, 2013.
J. Sherman offered a proposed update to the Intent statement which reads:
[Intent: To continue to set aside money for the eventual maintenance of the Cell Tower. The 2008 SFC Engineering Partnership, Inc Water Tower Assessment Study indicated that the structure has issues that need to be resolved. With appropriate maintenance, it is estimated that the structure will remain useful for at least 30 years will generate generating over $4,000.000 in revenue for the Town. Over that period Aannual revenue from the Cell Tower is over $140,000, which goes into the General Fund to offset taxes. The multi-year maintenance plan, including abatement, repainting and corral retrofit, is estimated to cost approx $407,000. By allocating $125,000 in both 2014 and
2015, the Town will have enough funds to complete this work in 2015. The money in this Capital Reserve Account is invested in an interest bearing account.
[Note: The proposed intent statement is not italicized as the Committee made additional changes to the proposed language, which does appear in italics.]
Discussion:
J. Sherman noted that the proposed Intent statement is based on the wording of the Article for the last two years.
There was discussion on the 4-1-0 vote of the Board of Selectmen. It was noted that Selectmen Joyce Ingerson voted in the negative, noting that she felt the revenue monies collected should be allocated for the maintenance.
M. Sumner asked if the money was being put into the General Fund shouldn’t it come out of the General Fund to make the repairs.
S. Fitzgerald noted that when the Town needs to seek bonding for a project it is good to have a healthy Unexpended Fund Balance and Capital Reserve Accounts for specific projects as an indication of efforts to keep the tax rate steady.
J. Sherman offered that from a business perspective spending $407,000 to protect $4M in revenue was a no brainer.
There was discussion regarding the advancements in technology and the need for the Town to maintain this revenue stream.
G. Hamel moved, second by D. Gerns, to recommend Article P-14-17, as amended, in the amount of $125,000.00 to be deposited in the Cell Tower Maintenance Capital Reserve Account. There was no discussion on the motion. The vote was 8-0-0 U/A.
Committee Reports
There were no committee reports at this meeting.
Old Business
There was no old business discussed at this meeting.
New Business
There was no new business brought forth at this meeting.
K. Lewis-Savage adjourned the meeting at 8:40 p.m.
Respectfully Submitted:
Dee Voss
Recording Secretary
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