Dublin Budget Committee
Minutes
February 7, 2006
Present: Nancy Campbell, Charles Champagne, Judy Knapp, Tracey McTague, Rich Scheinblum – Chairman, Michael Walker – Selectmen’s Representative, and Ken Woods
Also Present: Selectmen Anne Anable and Joe Cavanaugh, Curt Merrick, Brian Barden and William Raymond
Meeting was called to order at 7:03 p.m. by Rich Scheinblum.
Motion to accept minutes of January 31, 2006 meeting made, seconded and passed.
B. Barden addressed the Highway budget, specifically re justification of the truck and clarification of overtime and part-time employee requests.
Overtime (4312.1-140): Discussion of overtime due to not having as many part-time employees to work at plowing; also corrected amount; should be $13,000 not $14,000. Not really more overtime since Highway has been a man short in the past and Brian has been working the extra hours. The full-time employee replaced 2 to 3 part-time employees. Why part-time employees when we hired a new full-time employee. The part-time employees would fill in if someone got sick or had to be out for any extended period. This line should go down next year. The Committee felt that the explanation clarified the position.
Rich had a question re Diesel (4312.9-634). We used 9300 gallons this year, based on $2.00 per gallon - $18,000.
Contract services (4312.4-910)/10-Wheel Truck: Truck will not be delivered until October at the earliest so we will only be getting 2 months use. Savings in contract services and other areas will be in next year, not this year. The truck will not have to meet the new diesel standards so will be cheaper than if we buy next year. W. Raymond corrected the Oiling projects and road construction figures in Selectmen’s budget.
What will the total cost of the truck be? The actual cost of truck with multi-purpose body and plow equipment is $162,000. Capital lease costs estimated to be $36,538 per year for 5 years with an interest rate of 5.69% (Mack). These are annual payments, with the first payment due on delivery and every year after on the same date. Does this proposal include lease-gap insurance? Brian will check. Mike W. thinks that the town insurance will cover. Money can be removed each year from capital reserve to pay for the lease. Rich stated that a five-year bond from NH Municipal Bond Bank, was quoted at 4.25%. There is no question of the need for the truck, question is how it will it be financed. Tires for 10-wheeler will cost approximately $1,200 over a 6 wheel
truck in future. A new truck should reduce maintenance/repairs in next year and contract services next year and in future years.
Rich pointed out that he felt there would need to be a public hearing since this proposal constitutes borrowing. Bill will check with DRA re need for hearing. If a public hearing is required is must be held 15 days prior to Town Meeting, and 7 days notice is required (February 20th last date). The Committee wants to make sure that the warrant article is phrased in such a way that the Town can avail itself of the best possible rate and not close out any options by being too specific in the language of the warrant article, (i.e., by specifying a lease).
R. Scheinblum made motion to recommend the purchase of the 10-wheel truck, with warrant article written in such as way to as assure that the funding options are left open and available to the Town by incorporating as much flexibility as possible in the way the warrant article is written. The cost of the truck and fees not to exceed $170,000. Seconded by M. Walker. N. Campbell asked if the warrant article can be worded so that the annual payment can be withdrawn from Capital Reserve. Question raised if that would require two different articles. This motion is based on 5% interest. Motion passed.
Capital Reserve. Discussion re amount to be put in reserve for fire equipment. It was pointed out that we have so under funded this account that we would need to get other financing anyway. R. Scheinblum recommended that we lower the amount in capital reserve and just do more financing at the time of purchase. Rich handed out information from the NH Municipal Bond Bank re financing rates as well as a spreadsheet demonstrating the impact of financing over a 16 year period through 2022. Average rate of 5.1% over life of the bonds. Shows the outlays in new debt with transfers from Capital Reserve. Scenarios presented with smoothing and pooled capital. Assumes that we will earn at least 4% in capital reserve funds.
Based on numbers presented recommendation not to increase the amount being put into Capital Reserve. Motion to recommend capital reserve as follows:
$25,000 – Heavy Highway
$13,000 – Police Cruiser
$25,000 – Fire Equipment
$10,000 – Town Building
$10,000 – Bridge Replacement
$5,000 – Library
Total $88,000 for Capital Reserve: Motion, R. Scheinblum, 2nd C. Champagne, Passed
Rich handed out a memo to the Selectmen re recommendations of Budget Committee for employee health care options, starting with the next enrollment period.
M. Walker moved to revisit planning board, J. Knapp second. Passed.
Planning Board needs their own legal line since they may not want to use the town attorney. Reduce (4153.1-810) Legal by $15,000 – Increase 4191.1-320 by $2,500; Increase Legal-Projects: by $5,000 with offsetting revenue on line 3401.1-104 PB Revenue. Newspaper notifications (4191.1-391) increase to $2,500 with $700 offset. M. Walker moved, seconded by N. Campbell: increase Master Plan/CIP Program, from $5,000 to $10,450 based on increased estimates from Southwest Regional Planning and other consultants. Project must be done this year and will need increased use of consultants. Land use legal cases could be in jeopardy without an updated Master Plan. Plan would be done in-house with review by outside legal and planning consultants. Motion to call the question, passed. Motion failed: 1 yes, 5 no, 1 abstain. 4191.1-610 Supplies, $200. Motion, 2nd, Passed. Legal – ZBA 4191.2-320, Increase to $7,000. Legal Budget $20,000 consistent with Selectmen’s Budget.
Motion to accept $43,608 for Planning and Zoning, 2nd. Passed, 1 Abstain.
Revenues: Add legal projects and legal consultants accounts at $9,000 and $5,000 respectively in revenue. Transfer from Capital Reserve really from expendable trust for the exhaust system at the highway barn. Increase $15,500 to $21,500. Transfer from Capital Reserve ($36,500 for truck) Increase PB revenue from $1,601 to $1,901. Revenue from trees, (Sale of municipal property reduce to $29,000 from $33,000 for trees). Would it be helpful to add the line numbers?
Move revenue net figure at $752,037, seconded. Passed
Review of Differences in Budget Committee’s vs Selectmen’s Budgets:
Budget Comm Selectmen
Planning (4191.1-290) GIS training 580 900
Planning (4191.1-625) Postage 600 1,500
Planning (4191.1-394) Master Plan 5,000 10,450
Other Gen Govt (4199.1-290) 950 1,000
Other Gen Govt (4199.1-291) 950 1,000
Other Gen Govt (4199.1-392) 950 1,000
Other Gen Govt (4199.1-395) 950 1,000
Other Gen Govt (4199.1-620) 1,425 1,500
Police (4210.1-610) Office Supplies 1,500 1,665
Police (4210.1-635) Gasoline 7,500 9,100
Fire (4220.1-291) Fire Training 2,000 3,500
Fire (4220.2-292) Med & Phys Exams 2,000 2,500
Revaluation line back to $18,000. There will be a warrant article to take $12,000 from the fund balance.
Dues for the building inspector: $400 in line, much higher than any other department. Rich and Bill will check with Paul Waterman. Any changes that need to be made can be done the night of the hearing.
Motion, based on information provided by Rich to reduce Building Inspector by 250 hours ($6,250) reduce social security by $388 and Medicare by $91. Moved and seconded. Motion to move the question, passed. Motion passed; 3 no 4 yes.
Summer Playground Director Salary: Question as to whether we need to revote this line since two committee members were not present and thus the passing vote was less than 4 votes. Decided that we don’t need to revote since there was a quorum and the vote was a majority of those present and voting.
Blind exemption warrant article: This article would be like the elderly exemption, whereby a person’s assessment is reduced by a certain dollar amount. The Selectmen are proposing a $15,000 reduction. Motion made, seconded and passed to support this article.
Final budget: Total expenses: Budget Committee $1,768,980
Selectmen $1,829,460
Difference $42,480
Warrant Articles Difference: $68, 480
Difference budget increase: $1.26%, 7.32% (Selectmen)
Meeting adjourned: 10:30 p.m.
Next Meeting: Tuesday, February 14, 2006, 7:00 p.m.
Public Hearing: Tuesday, February 14, 2006, 7:30 p.m.
Respectfully submitted:
Judith A. Knapp
Co-Secretary
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