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BUDGET COMMITTEE MINUTES

June 12, 2006

APPROVED:

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AGENDA: 2006 Budget Review

Update with General Government

ATTENDING: Archie Auger (Chairman), Dorcas Gordon (Vice Chairman), Albert (“Skip”) Bowie, David C. Carr, Darla Jaquith, Don Kimball, Catherine Pitari, Ron Preble, Paul Simard, Richard Walenda, Tom Winn

ABSENT: Selectmen’s Representative

OTHER: Bob Veloski (Town Administrator)

The meeting opened at 7:00 pm.

MINUTES OF MAY 8, 2006: Ms. Jaquith noted that, on the last page, 2^nd paragraph, last sentence, the word “again” in the parenthesis should be deleted.

D. Gordon made a motion, second by D. Jaquith, to accept the minutes as amended. The motion carried.

DRAFTED LETTERS:

Mr. Auger explained that Ms. Jaquith and he drafted a letter of thanks for John Bianchi and his time serving on the Committee (a copy was sent around for the Committee to look at. Mr. Auger also stated that Ms. Jaquith drafted a letter to be sent out to the Departments inviting them in to speak with the Committee. This was also sent around.

COMMUNICATIONS:

A letter from the Senior Citizens Council and for the Balloon festival trip was passed around. Mr. Auger read the letter from Jon A. Thouin in which Mr. Thouin volunteers as a candidate to replace Mr. Bianchi. Others suggested as having an interest were Dick Light and Bill Phinney. Mr. Auger will invite them to come to our next meeting. He added that, if anyone can think of anyone else who might be interested, to please let him know so he can add them.

Mr. Auger mentioned that the Committee is under RSA32:15 and members should become familiar with it. Mr. Veloski stated that Joe Denning has been named the Budget Committee Representative now (when he was asked if anyone had been chosen yet).

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TOWN MANAGER REPORT:

Mr. Veloski stated that the Selectmen hope to select a Town Manager by mid-August.

MAY FLOOD REVIEW & FEMA:

On Wednesday, FEMA is to come in and see if $250,000 has been met. Funds are available for small family businesses but they cannot be included for FEMA funds. Also, private property damage and the dam damage are not counted. Mr. Veloski said that he has about $60,000 direct from the town of Bristol. He is trying to get the figures for the mutual aid people. We can count the hours beyond employees’ regular work hours, the food supplied, and the PSNH shutdown.

Mr. Carr asked how they intend to pay these before they get reimbursed. Mr. Veloski stated that they have been paying and pointed out page 10 of the 2006 budget supplied tonight, under Flood Damage. Salaries are in their regular lines, however. All that is listed under Flood Damage will eventually be moved to the appropriate areas.

At the moment, Mr. Veloski is holding back the Kelley Park building, the person who was to be hired to work on the tax cards, and $5,000 for the antenna. They hope to get FEMA aid and/or the owner’s of the dams to get our money back. Mr. Carr asked if FEMA comes through, will they give us 100%. Mr. Veloski was not sure but thought maybe 80%. He cited the last time in which we got 80% from FEMA and was supposed to get the other 20% from the State, which did not happen.

Mr. Veloski went on to say that on the Monday after the floods, DES came to talk with about 100 who were unemployed. On that Thursday, DRED, etc. talked with businesses affected.

Mr. Auger asked about the schools that were shut down. He understands that the 3 days have been excused from the school year. Mr. Veloski stated that the employees not under contract have been told that they will be used 3 days at a later time this year. Mr. Auger questioned if 1/3 of the teacher’s pay can be counted for FEMA. Mr. Veloski took this under advisement.

Mr. Bowie stated that, if we do go after Freudenberg, it could take a long time. Mr. Veloski agreed and noted that Oct. 13 is the next court date on determining who owns the dams. He thought that we might have saved on electricity if we had taken them over when they were offered. Mr. Bowie thought not as he said that two turbines were shot. Each would cost about $100,000 to replace.

Mr. Auger asked if any roads had problems. Mr. Veloski stated that three streets had washouts. Mr. Auger then asked if they might get $250,000 out of the whole County and Mr. Veloski thought that they might.

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GENERAL GOVERNMENT PRESENTATION:

Mr. Veloski apologized for having forgotten about this. He did have several items that he would report on. As he said earlier, they hope to have the Town Manager in August and we have already addressed the flood status. Some projects may be put off to next year. He is still working on decreasing insurance costs and has spoken with the County; we may be able to do something county wide. He is looking at dental insurance and also long and short term disability. The latter would cut down on sick days. He is checking the figures now. They would not take away any sick time that the employees have already accumulated. These would drop off as they used them until all are gone.

Some costs have gone up significantly, such as asphalt. We have locked in the price for it and paving is to start in two weeks. They are also checking into “Earthbound”, which has been approved by DOT and may be cheaper.

We are back to BMSI software and are looking to expand some. At present, we have to input information twice – the new software would make it one input which would lessen possible mistakes being made. Mr. Auger asked if we will get any refund. Mr. Veloski said that he is looking to recover costs. We had a 5 year contract for $8,000 a year and feel that they failed the contract. We have given them $15,000 to date. They were to get us up and running but ended up missing both tax billings last year and weren’t ready for the first one this Spring. Ms. Gordon felt that we could have a claim. Mr. Veloski will check that out. He went on to say that another software that they have looked at puts everything into one file (property records, Planning & Zoning conditions and hearings, etc.). The secretary added that it would eliminate mistakes made and hours of research unnecessary.

Mr. Veloski continued by saying that the Fireworks will be held July 2^nd at dusk at the foot of the Lake. Joe Denning is spearheading it.

He is to call PHD Communications about the telephone changes but we have to put 50% down. Mr. Winn asked if we would talk to real people or only messages. Mr. Veloski answered that, for the most part, it would be real people.

Mr. Veloski has talked with Raymah Simpson, Town Clerk/Tax Collector, and she is about caught up now. She mentioned that she would like to look at the possibility of counting machines as it took to the wee hours of the morning to hand count this last time. Mr. Preble asked if we would buy or lease and was told that they expected to buy. We have about $200,000 coming in with the current tax billing for a total of about $450,000 so we shall not have to borrow. Ms. Gordon said that she understood that the assessor was to do the physical assessing but was not to plug it in until the fall billing. However, hers has changed already. Mr. Veloski stated that he will be talking with the assessor on Thursday and will check on this. Ms. Jaquith stated that hers went up also.

Mr. Veloski stated that the thank-you ads (for all who helped during our flood problems) cost $860 for the Manchester Union, $393 for the Concord Monitor and $270 for the Laconia Citizen. The Board of Selectmen approved the ads.

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GENERAL GOVERNMENT REPORT continued:

Mr. Auger asked about anything under General Government Buildings. Mr. Veloski stated that there is $9,000+ for the phones. We have done the lower doors and some windows in the old Fire Station and want to put on the permanent paint. This building also needs roof repair, to replace upper doors that are rotting, and to put up sheet rock downstairs (the old sheet rock was removed by the Grafton County “Volunteers”). The “Volunteers” are to paint the Highway Garage interior, also.

Mr. Carr asked why they only did the Beach to the rock projection. Mr. Veloski stated that we are to get some community services to do some on the Beach. He added that we don’t own all of the beach that we thought that we did. Part is still owned by the original family (the Pardo family). They shall add it back into the tax roles. Ms. Gordon asked if they might put in a claim of adverse possession. Mr. Veloski stated that they have not paid taxes on it for 20 years. The Selectmen dropped the issue due to the lawsuit and will let the Pardo family and SwissView battle it out. Mr. Walenda stated that NH has squatter’s rights and if we have had permission to use all this time, it is ours. Ms. Gordon stated that it has to be using without permission. Mr. Bowie said that the family has the cottage just beyond along with a trailer and a small dock. He thought we owned up to the culvert. Mr. Veloski agreed and said that research was done and found that this is not true. Mr. Bowie questioned if they pay taxes on the dock. Ms. Jaquith asked if we got the beach from the family and Mr. Veloski said that we got it from the State of NH. Mr. Walenda asked what will happen at the Big Catch if we let people use the beach. Mr. Veloski stated that the beach is there for the public. Mr. Walenda wondered as boats from the entire Lake use the beach.

2006 BUDGET REVIEW:

Mr. Veloski feels that there are no glaring shortfalls. He added that most of the ones we have shall be ironed out as time goes by. He mentioned that #550 under Executive is due to the ad the Selectmen approved. Under the Highway Projects, all have been encumbered and the P.O. has been signed for these. Mr. Carr asked why we encumbered these. Mr. Veloski answered that it is so that no-one else will spend it for something else. He went on to say that there is the extra line for the flood expenses except for salaries. Welfare is okay. Bruce Wheeler has resigned as Beach Commissioner (the other two Commissioners are Mark Chevalier and Joanne Levesque). They have an ad out to replace Mr. Wheeler.

Mr. Carr asked if they ever thought of putting Kelley Park and the Beach together. Mr. Auger stated that this will happen in August.

Mr. Veloski went on to say that the Call Firemen payroll will be up due to the floods. Also, for the extra Police and Highway.

Mr. Preble mentioned that the Fire Dept. has more money than we thought. Mr. Veloski stated that, when they went to the floor at town meeting, the amount asked was added up wrong. The total came to $2,000 more than the lines they had asked for. The Selectmen chose to put it into Protective Equipment. Mr. Carr stated that the voters approved four specific lines. Mr. Veloski agreed and added that the voters also approved the total amount.

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2006 BUDGET REVIEW continued:

Mr. Auger asked about #810 in the Police Dept. (New Equipment) and why it will be so far over-budget. Mr. Veloski explained that this is the projected balance if they continue to spend at the rate that they have been so far. Usually in about August, Mr. Veloski sits down with the Department Heads to go over the figures.

Mr. Carr mentioned that nothing shows for the forest fire that we had as yet. Mr. Veloski said that this is correct. They paid for the helicopter out of Contingency. The accountant just got the figures today for payroll and we shall send them to the State.

Mr. Walenda asked why the Police Department is looking at City Police Stations (Franklin, Laconia). They should look to downsize from those examples. Mr. Veloski stated that the Police have hired the new officer. Mr. Preble asked if he is fully trained and Mr. Veloski was not sure.

Ms. Jaquith asked where the forest fire payroll figures are to be sent. She was told that it is sent to the Division of Forest & Lands; we submit the figures and get back 50%. Ms. Pitari stated that the Call Firemen only get paid twice a year and there is a figure of $2,158 in that line and we had not come up to the first pay period. As for the forest fire, those people should have been paid within two weeks. Mr. Walenda asked why we aren’t being paid by the person responsible for the fire (he felt that this person is known). He was told that the Ranger and the Warden do the investigation. Mr. Winn asked if the people are paid by the Forestry Warden. Ms. Pitari answered that, when she was there, she did this (she resigned in April). It comes under the Forestry Department.

Mr. Auger asked about #433 Radio Equipment, Police. Mr. Veloski thought that this may be in the wrong line, possibly due to the re-entry process. He believes that this is for the pagers.

Mr. Auger asked about the encumbered amount under #662 1980 Engine, Fire. Mr. Veloski will check into this. Mr. Auger asked him to check #810 Tools/Equipment, Fire also.

Mr. Preble asked about the Ladder Truck. Mr. Veloski said that the Fire Chief has spoken with him as it cannot be certified. The Chief gave an estimate of $15,000 to bring it up enough for certification. They are also looking at a truck that is newer for $15,000 and one for $40,000 so as to maintain the status quo for a couple of years. The new fire truck has been in service for 2 months and the ambulance has been ordered. Mr. Carr asked if they have considered the option to just park it. Mr. Veloski answered that they are looking to maintain it as it will keep the ratings and not affect home insurance costs.

Mr. Auger asked if the Water/Sewer Commissioners have met and are fully functioning. Mr. Veloski answered that, as far as he knows, all Commissions are still running.

Mr. Carr asked what happens if we get no money for the flood. Mr. Veloski explained that this is why he is holding the Kelley Park building, the antenna repair and employee for records. This comes to about $50,000. It would leave about $10,000 which we could take from Contingency. Mr. Auger suggested that the Selectmen might consider using surplus. Mr. Veloski has spoken with DRA and the town can write to the Commissioner for spending unreserved surplus. They will use that as a last resort. Ms. Jaquith felt that it might be good to consider $30,000 for Contingency next year.

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TOWN ADMINISTRATOR AND BOARD OF SELECTMEN REPORTS:

Mr. Veloski had covered everything previously.

OTHER ISSUES:

Ms. Pitari asked if the memo has been sent to the Department Heads yet. She was told that Ms. Jaquith has not sent them yet nor has Mr. Veloski. Mr. Auger asked the Committee if they felt the memo is okay. Ms. Pitari said that it would need a new date. Ms. Gordon questioned why it is for 7:30 when we meet at 7:00. It was explained that this gives us time to

do the incidentals first. Mr. Veloski asked if the Committee has a special sequence that they would like. Mr. Auger felt that the Committee must determine if they are to meet in July. He thought that perhaps he could ask Mr. Veloski to send them out and give him a sequence of when they would like to come in. Ms. Jaquith felt that this would work. Mr. Bowie asked if things would change with the Town Manager in August. Mr. Auger stated that the Committee can ask anyone that they wish to come in. Mr. Walenda suggested that the Highway should come in first.

He added that the streets are falling apart. Mr. Auger stated that the Committee must work not to criticize or to use personalities; we are only to look at the financial aspect. No-one, including himself, must bring grievances to the table.

Mr. Preble stated that we need to determine if we shall meet in July and August. Ms. Gordon felt that the invitation to the Departments is not mandatory and she would like July and August off.

R. Preble made a MOTION, second by A. Bowie, to NOT MEET IN JULY. Mr. Carr stated that, if we don’t meet, we won’t have time to meet with the Dept. Heads. Ms. Pitari agreed. She added that the Summer Town Meeting is to be held July 22^nd. She feels that we need to meet in July. Ms. Jaquith felt that we need to be here in August for the new Town Manager. We have not had as much activity in the past years but this year we have had extra expenditures to address. Mr. Winn stated that the Chairman can call a meeting at any time. Ms. Pitari stated that we sent out this letter last year and two would have come in but we did not meet. Ms. Jaquith stated that we can absorb but can’t do much with the information. The motion was brought to a vote: 5 for, 5 against, 0 abstentions. Mr. Auger stated that, with a tie vote, the motion is DEFEATED. We shall meet July 10^th.

Ms. Gordon began a motion to not meet in August. Mr. Auger wanted a positive motion made. Ms. Jaquith made a motion that, following the July meeting, we will meet in Sept. No second was made and Ms. Gordon questioned why she couldn’t make a motion as she wished.

D. Gordon, made a MOTION, second by R. Preble, to NOT MEET AT THE REGULAR AUGUST MEETING. Mr. Carr stated that he anticipates that there will be a lot going on. Mr. Bowie mentioned that, at town meeting, there was a complaint that we do not meet in the summer. A vote was taken: 4 for, 6 against, 0 abstentions. The motion was DEFEATED. The Committee will meet August 14^th.

Mr. Preble asked if we could meet other than July 10^th as he felt that it might interfere with vacations. It was determined that there would probably still be a quorum if a member or two were away. Mr. Winn stated he will be out of the country then.

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OTHER ISSUES continued:

Mr. Auger announced that we will want to interview the Committee candidates to replace Mr. Bianchi at the July 10^th meeting. It was determined that Mr. Auger will call those mentioned and ask them to come in.

With no other business, A. Bowie made a motion, second by D. Jaquith, to adjourn at 9:00 pm.

Respectfully submitted,

Jan Laferriere, secretary