Town of Bristol
Budget Committee Minutes
November 26, 2007
APPROVED ON: 12/06/2007
ATTENDED: Archie Auger (Chairman), Dorcas Gordon (Vice Chairman), Skip
Bowie, Ron Preble, Jon Thouin, Paul Simard, David Carr, Andrew Hemmingway, Tom Winn and Diane Marden (Secretary).
ABSENT: Joe Denning (Selectmen’s Rep.) excused. Richard Walenda,
and Catherine Pitari were unexcused. Darla Jaquith resigned.
OTHERS PRESENT: Elizabeth Corrow (Town Manager), and Jeff Chartier (Public
Works Superintendent).
The Chairman called the meeting to order at 7:01 p.m., the meeting
was video taped for LRPA.
Minutes of November 19, 2007
Chairman Auger asked members to review, and make any changes to the minutes of November, 19, 2007. Andrew Hemmingway asked if the Town Manager’s changes were already included in this copy? Secretary Marden stated “yes."
Mr. Auger asked that “siting” on page one after the Newfound Area School District be corrected to “citing," and that the last sentence and paragraph be deleted from the record. Paul Simard made a change to page four, paragraph five, changing “Halla” to “Hall". Secretary Marden asked for the correct spelling of street names in that paragraph. Jon Thouin asked that his name be spelled correctly on page one and throughout the minutes changing “John” to “Jon”.
Paul Simard made the motion to accept the minutes as amended. Andrew Hemmingway seconded the motion. The MOTION CARRIED.
Correspondence
Chairman Auger stated Darla Jaquith has verbally resigned from the Budget Committee. Mr. Auger stated she had given a lot of insight to the committee over the years explaining she will be truly missed. Mr. Auger stated she does intend on putting the resignation in writing, and that an add should be placed in the paper seeking another position on the committee. Mr. Auger publicly thanked Ms. Jaquith for being a part of the committee.
Public Works - Capital Reserve - Sewer Department
Chairman Auger introduced Jeff Chartier, Public Works Superintendent to the committee asking him to present his budget for 2008 to the committee. Mr. Chartier stated line item 05-4324-900 entitled Surplus Transfer to Capital Reserve is an effort to clearly transfer funds from the checking account.
Town Manager, Elizabeth Corrow stated in the past at the end of the year the Water/Sewer Commissioners would wait to see what kind of surplus they would have between the water and sewer funds. It was an enterprise fund a separate fund that did not come from the general fund. The surplus comes about by two ways, one you do not spend your budget, or two, you raise more than you anticipated in your estimates. The Water/Sewer Department has done well over the past few years having had a little left over to put into their capital reserve fund. Last year, the remaining amount was not transferred into the Capital Reserve fund. This year they are looking to do that in a way that will show the actual in and out within the budget process. Ms. Corrow stated this would be a way to track these funds easier.
Paul Simard asked Ms. Corrow if this was an actual surplus or a catching up of surplus from last year? Ms. Corrow stated it is a combination of both, because it was not done last year, the surplus is showing more than it should for this year. Ms. Corrow stated $230,000 would be the new balance once expenditures have been completed at the end of this year. Dave Carr asked what dollar amount should be in the Capital Reserve Fund? Ms. Corrow stated it runs about $200,000, but should have closer $1,000,000. Ms. Corrow explained that each year it gradually increases, but capital projects also need to be funded. Ms. Corrow stated they are diligently working on funding the enterprise funds so they are not coming out of the general fund.
Chairman Auger asked if there has been any rate changes? Jeff Chartier stated not since 2004. Mr. Auger asked for other questions. Andrew Hemmigway asked where the surplus was actually coming from? Mr. Chartier stated we have a checking account that we pay the bills from and keep an ongoing balance. Town Manager, Corrow stated Bristol collected more money than anticipated, had funds come in from projects, and they did not spend as much as anticipated from their budget. Ms. Corrow continued explaining that the combination of these adds up, and then by not doing a transfer this year it appears to be larger than it is. Mr. Hemmingway stated which means we are averaging about $50,000 per year. Ms. Corrow stated no, because it is a combination of things. Mr. Hemmingway asked if it had anything to do with management? Ms. Corrow stated it certainly does have to do with good fiscal management. Skip Bowie asked if Bristol still had the highest sewer rates in the State of New Hampshire? Chairman Auger asked for additional questions on the Capital Reserve Transfer? No other questions were asked.
Public Works - Capital Outlay - Sewer Department
Superintendent Chartier gave a brief explanation of line items' 05-4325-906 under the Sewer Department’s Capital Outlay for 2008.
Meter Software Upgrade - Mr. Chartier explained that currently the Meter
Software “TouchGuns” does not have a backup due to being a non-up-gradable
program. Therefore, this line item is to upgrade the meter software to something
more reliable. Mr. Chartier stated a portion of this is shared by the Water
Department (2/3).
Backhoe - Mr. Chartier explained the Backhoe is approximately $20,000.
Garage - Mr. Chartier stated currently they have a 2 bay garage and that they
have outgrown. Mr. Chartier stated he would like to add onto the existing garage
making the building larger, and possibly having a section that is heated within the
structure.
Paul Simard asked if the Planning Board along with the CIP had any plans for improvements? Town Manager, Corrow stated they could not review the enterprise fund capital expenditures. They reviewed one water and sewer capital expenditure (one water tank) as a general expense for the entire town. They primarily focused on the general fund expenditures this year.
Town Manager, Corrow stated she met with Mr. Chartier to discuss his budget, but the Water/Sewer Budget has remained pretty stable over the past couple of years. Ms. Corrow stated the only place substantial changes could be done is in the sewer or water capital projects. Ms. Corrow stated she and Mr. Chartier had gone over the Underwood Study together stating Mr. Chartier has done a wonderful job of prioritizing what the study had shown for 2008. Ms. Corrow stated she left the capital items the same, as proposed by Mr. Chartier. Ms. Corrow stated part of it is because it is being funded entirely by the enterprise fund, and it does not impact the general tax rate. Ms. Corrow stated if we can afford to do it, keeping up with the general plan, in order to reinvestment in the plant facilities, then we should do that as recommended by the engineers.
Town Manager, Corrow stated she and Mr. Chartier generally discussed the percentages, and how they work for both departments. Ms. Corrow stated three of the capital outlay items for the sewer department are split with the water department. Clearly the water department is taking the majority of the hit. Ms. Corrow continued to explain that water is more stable in terms of the capital reserve fund having more money. Mr. Chartier also looks at the use in equipment to arrive at estimating these costs when there is really no exact science to accurately determine exact costs. Chairman Auger asked for additional discussion on Capital Outlay items.
Public Works - Sewer Department 2008 Budget
Jeff Chartier, Superintendent of Public Works stated he would skip over the salaries of the Sewer Department as those figures are yet to be determined.
Mr. Chartier stated under line item 05-4326-142 entitled On Call Compensation is allocated for a pager allowing an on-call employee to respond to emergency situations. Mr. Chartier stated this is a flat line budget under both the water and sewer department’s as employee’s are crossed trained.
Town Manager, Elizabeth Corrow stated she would like to discuss line item 05-4326-118 entitled Town Manager Fee explaining that this is a reimbursement to the general fund for her salary. This coming from the enterprise fund, is a reimbursement to the general fund for a portion of her salary, and should not be confused with a stipend.
Ms. Corrow explained that line item 05-4326-131 entitled Clerk of the Works is a stipend paid out to Bert Williams who was a Water/Sewer Commissioner. Mr. Williams has been kind enough to stay on with Bristol for the sewer extension to lake project. Ms. Corrow stated he stays involved in both Concord with the Legislature, and here meeting with the engineers working on that project. Ms. Corrow stated Bristol is fortunate enough to have him still involved, and the $1,200 is his stipend.
Superintendent Chartier stated he had to increase line item 05-4326-240 entitled Training/Certification in order to certify two employee’s. Town Manager, Corrow explained that one employee was promoted from within, but he needs to become certified at a higher level. A second employee was moved from shared labor, and needs certifications.
Line items' 05-4326-290 through 343 were reviewed by Mr. Chartier with no discussion of the Budget Committee.
Mr. Chartier stated line items 05-4326-344 Pagers & 346 entitled Cell Phones is for employee’s to use as a way of communicating and during emergencies. Andrew Hemmingway asked why both were needed? Mr. Chartier stated there are areas that a cell phone can not pick up a signal, but the pager always works. Mr. Chartier stated hopefully as service in the area picks up he will be able to get rid of the pagers.
Superintendent Chartier stated line item 05-4326-306 entitled Mowing is no longer a needed line item.
Mr. Chartier explained line item 05-4326-361 entitled Paving is used to re-pave around manhole covers and for other areas that may have been dug up when making repairs. Mr. Chartier stated line item 05-4326-370 entitled Sewer Sludge Disposal is basically the tipping fees to get rid of the sludge.
Public Works-Sewer Department 2008 Budget Continued
Superintendent Chartier reviewed line item 05-4326-390 entitled Lab Services explaining an analysis on the sludge is required for the toxicity of the material stating they are not qualified to perform this test.
Public Works - Sewer Department 2008 Budget Continued
Public Works Superintendent, Jeff Chartier explained line item 05-4326-391 entitled Contracted Service is for service to the generators that are on a scheduled maintenance program. Mr. Chartier explained that line item 05-4326-410 entitled Sewer Electricity derives from the Treatment Facility, and they continue to try to save energy whenever possible.
Mr. Chartier stated line item 05-4326-411 entitled Sewer Heating Fuel he left the same from last year even though the cost of fuel has increased. Town Manager, Corrow stated she has been working with other communities to bring down the cost of fuel. Ms. Corrow stated it can be difficult to do as far as timing, and making sure we are receiving the benefit of doing these types of things.
Superintendent, Chartier explained line item 05-4326-430 entitled Sewer Maintenance and Repairs. Mr. Chartier stated this covers the cost of repairs to the infrastructure, pumps, and collection system. The Sewer Liability Insurance line item 05-4326-480 is the town's portion of the liability insurance. Line item 05-4326-481 is the Sewer Department’s Insurance Deductible for $500. Line item 05-4326-550 is Sewer Department Advertising is for anything that may need to be advertised in the local papers pertaining to any Sewer Projects or work being done in certain areas.
Mr. Chartier stated that line item 05-4326-560 entitled Sewer Meetings/Memberships is of great benefit to the department. Mr. Chartier stated employee’s gain a lot of information and training from these events, that otherwise would cost the department a great deal from an individual training facility.
Mr. Chartier went over line items' 05-4326-610 (Sewer Material & Supplies), 620 (Sewer Office Supplies), and 625 (Sewer Postage) explaining these are for general office items used in the process of mailing out bills.
Mr. Chartier stated UV Disinfection line item 05-4326-637 should be just Disinfection not UV explaining this is for the chemicals used in the chlorinating and de-chlorinating processes.
Superintendent, Chartier stated line items' 05-4326-659 through 663 are used for the maintenance of vehicles which these expenses are also shared with the Water Department. Line item 05-4326-680 is entitled Sewer Chemicals is for the polymer chemical needed in the treatment process.
Public Works-Sewer Department 2008 Budget Continued
Line item 05-4326-810 entitled Sewer New Equipment is for a new generator and switch for the Central Street Station. Mr. Chartier stated he based the $10,000 on the an estimate he had gotten a few years ago, and it may need to be re-looked at to reflect current times.
Chairman Auger asked members if they had any additional questions on the budget for Mr. Chartier? Dave Carr asked Mr. Chartier if the Upgrade Bond included the principal and interest? Mr. Chartier responded stating yes it did. Chairman Auger if this again is something that should be up in the Capital Section? Town Manager, Elizabeth Corrow stated yes.
Chairman Auger asked about line item 05-4326-390 Lab Services stating that historically these funds have not been used up, and suggesting some money can be saved there? Mr. Chartier stated he realizes it appears to be over budgeted, but he is under the impression that they would have to pay all of it eventually. He explained the state has been covering it up to now.
Mr. Auger asked Mr. Chartier if the department will need help with the bond payment this year? Mr. Chartier stated no. Town Manager, Corrow stated there is a rural development loan that is coming in for approximately $29,000 per year. Ms. Corrow stated that is for the plant upgrade, and a few other little projects. Dave Carr asked why this would not come out of the Capital Reserve? Ms. Corrow explained Bristol had not received the loan prior to last years warrant article.
Ms. Corrow stated she has difficulty making the distinction between what comes out of the general funds and what comes out of the enterprise funds. Ms. Corrow explained that part of it is that there has not been any money in there in the past, and sometimes they have a project that benefits the town as a whole, and not just the users of the system. Ms. Corrow stated mostly everything comes out of the enterprise fund, and only this water tank item is being requested to come out of the general fund. Paul Simard asked how many years was taken out on the loan? Ms. Corrow stated she thought it was for 30 years.
Chairman Auger stated he would like to say that something should be done to give back to those who pay for the system, who do not use or have the system. Chairman Auger asked for additional questions, having no questions, the committee recessed for three minutes.
Superintendent, Chartier stated the Sewer Department received a letter from EPA stating the Town of Bristol is the most improved plant in the State of New Hampshire. Chairman Auger congratulated the department stating a job well done.
Public Works - Capital Reserve - Water Department
Public Works Superintendent, Jeff Chartier reviewed the 2008 Budget for the Water Department with the Budget Committee. Mr. Chartier started with the line item 07-4324-900 entitled Surplus Capital Reserve Fund stating $150,000 will be transferred.
Public Works - Capital Outlay -Water Department
Mr. Chartier stated the budget for the Water Department is very similar to that of the Sewer Department as most of the expenses are shared. Mr. Chartier stated he would review only the accounts that are different from the ones previously reviewed under the Sewer Department.
Superintendent, Chartier explained the line items' 07-4332-906 entitled Water Capital Outlay.
Design Storm Center Upgrade - Mr. Chartier explained the Storm Center was
constructed and installed in 1947, and it can only supply the downtown area with
water. Mr. Chartier stated it has excellent water there, but it is need of some up-
grades. Andrew Hemmingway asked if the $41,000 was just the beginning of
setting the Storm Center Up and studying it? Mr. Chartier stated it is but would
eventually bring the system up to present standards. Mr. Chartier stated the
department knows what they want, what needs to be done, it is just a matter of
finding out the costs. Mr. Chartier stated there should be some grant money
available to offset the costs. Paul Simard asked if a study had been done in the
past? Mr. Chartier responded stating yes, it was put through a series of pump tests.
Design Booster Station - Mr. Chartier stated these funds would be used to supply
water from the Storm Center to the lake which currently can not happen due to the
pressure needed to get the water to the lake.
Flow Meter - Superintendent Chartier explained the system needs an upgrade to
the leak detection portion of the system.
Skip Bowie asked for the status of the second well. Mr. Chartier stated he feels it would be cheaper to put in a new well than to fix it with $800,000, when it is a $300,000 well.
Public Works - Water Department 2008 Budget
Superintendent, Chartier reviewed line item 07-4331-142 entitled Water On Call Compensation explaining this is again cost shared with the Sewer Department. Line item 07-4331-199 entitled Water Wage Pool was explained by Town Manager Corrow. Ms. Corrow stated last year everyone got a 3% cost of living raise, the wage pool is design for the employee who does something above and beyond the call of duty.
Public Works - Water Department 2008 Budget Continued
Ms. Corrow explained it is similar to a Performance System that is based on employee evaluations. So everyone across the board would get a cost of living increase, and some based on employee performance would then receive an additional performance raise on top of the cost of living. Ms. Corrow stated that line item will actually be adjusted after the wage study because it was based on 3%.
Mr. Chartier stated line item 07-4331-393 entitled Parco Value Service is also something that is in the sewer department budget, and is for standard maintenance of the control valve at the top of hillside. Mr. Chartier stated everything else within the Water Department 2008 Budget coincides with the Sewer Departments 2008 Budget as discussed earlier. Chairman Auger asked for any additional questions or comments on the Water Departments 2008 Budget? Paul Simard stated to Superintendent Chartier that he had done a good job with his budget. Chairman Auger thanks Mr. Chartier for his explanations of the budgets. Mr. Chartier exited the meeting.
Current Budget Review
Chairman Auger asked Town Manager, Elizabeth Corrow if there were any things she would like to discuss with committee members relative to the current budget? Ms. Corrow stated she is in discussions relative to Unemployment Compensation costs that will effect all department budgets. Ms. Corrow explained she is looking to make a change in the carrier. Ms. Corrow stated currently the town has Primex and she is looking at a better price through the Local Government Center, a deal that could save approximately $12,000. The town was in a 3 year contract with Primex that they had automatically renewed, and now she is debating the legality of that.
Dave Carr asked Ms. Corrow if anything has come out of the contingency fund? Ms. Corrow responded we have not and do not expect to use the contingency fund. Paul Simard asked where the tax base stood currently? Ms. Corrow stated the breakdown is approximately 3%, is broken down in the budget book. Secretary, Diane Marden stated it was also explained in the November 19, 2007 meeting minutes. Ms. Corrow stated overall the tax rate increase for the towns portion will be conservative, and the tax rate should be set by Wednesday of this week.
Skip Bowie asked if each department has chosen their own cell phone and pager services, or if the town has a plan for all of them? Town Manager, Corrow stated they have all been switched over to Verizon and the town receives a government discount on the plans. Ms. Corrow stated she has been working with Verizon and other communication companies trying to bring a cell tower to town. Paul Simard asked if by having a cell tower in town, will that elevate or illuminate expenses? The Fire and Police Department have been working on a plan as to how to utilize the current antenna site until a new site is found.
Current Budget Review Continued
Chairman Auger asked if they had looked at the TV antenna site? Ms. Corrow stated yes, as well as many other sites. Although, our antenna site is preferable for generating revenue as the other site is not owned by the town therefore it would not produce revenue for the town.
Chairman Auger asked about the status of State Revenues? Town Manager, Corrow stated that the town will receive revenues from the State in December. Paul Simard ask if the town had a grant writer? Ms. Corrow stated no, but that the Police Department have been writing grants, and a few have come in for the Fire Department as well. Paul Simard asked if there would be a warrant article for the PD this year? Chairman Auger stated that may come under the CIP.
Budget Committee 2008 Schedule Change Request
Town Manager, Elizabeth Corrow stated she has a request to juggle the Budget Committee Schedule, and handed out the revised schedule. Ms. Corrow stated she wanted to move things around a bit, because it makes more sense to review the budgets of each department, and then meet with the CIP. Ms. Corrow stated this will also allow her to get all the wages into the budget, and make all the adjustments. Ms. Corrow stated she would provide the committee with the backup information gathered for the purpose of wages. Dorcus Gordon stated it does make sense to meet with the CIP last in order to get a clearer picture of everything.
REVISED BUDGET SCHEDULE - 2008
Date Presenter
December 3, 2007 Kelley Park
Minot Sleeper Library
Tapply-Thompson Community Center (8:00pm)
December 10, 2007 Police Department
Pay Classification Study will be submitted to the Budget Committee
December 17, 2007 Fire Department
January 7, 2008 Executive/ Salaries and benefits
CIP Projects
February 11, 2008 Public Hearing
Budget Committee 2008 Schedule Change Request Continued
Paul Simard made the motion to accept the above proposed 2008 Schedule changes. Andrew Hemmingway seconded the motion. The MOTION CARRIED.
Adjournment
Paul Simard made the motion to adjourn at 8:55 p.m. Tom Winn seconded the motion. The MOTION CARRIED.
The next meeting of the Bristol Budget Committee will be held on Monday, December 3, 2007 at 7:00 p.m. in the lower level of the Bristol Town Offices. The Budget Committee will hear requests from Kelley Park, Minot Sleeper Library and Tapply Thompson CC.