Budget Committee - Minutes
TOWN OF EPSOM
BUDGET COMMITTEE
JANUARY 5, 2016
Present: Marylou LaFleur-Keane, Chairman; Dave Fiorentino, Vice Chairman; Gary Kitson, Water District Representative; Hugh Curley, Selectman’s Representative; Virginia Drew; Joyce Heck; Mary Frambach; Penny Graham; Tracey Stephens; Ralph Weeks; Bill Yeaton, School Board Representative; Joni Kitson
Not in Attendance:
Other Attendees: Nancy Wheeler
Marylou opened the meeting at 6:30 PM.
Marylou noted that there was only one application for the vacancy. Marylou discussed that she felt that due there only were being two meetings before the public hearing and the person would only be able to serve for the one meeting and the public hearing if not sworn in tonight.
Bill agreed with Marylou. There was discussion as to if the vacancy should have been put forward. Virginia discussed that the notice went out and the person stepped up. Other members agreed with her.
Ralph motioned to appoint Joni Kitson to fill the vacant position, Virginia seconded the motion.
Discussion continued as to if the position should be filled at this time.
The motion passed with 9 yes and 2 nos.
Minutes of December 10, 2015
The minutes of December 10, 2015 were reviewed and amended.
Virginia motioned to accept the minutes of December 10, 2015 as amended, Mary seconded the motion. The motion passed.
Minutes of December 15, 2015
The minutes of December 15, 2015 were reviewed and amended.
Virginia motioned to accept the minutes of December 15, 2015 as amended, Mary seconded the motion. The motion passed.
Library
Virginia noted the Library Trustees met last night for the first time since the presentation to the Budget Committee. Virginia discussed the supplies included arts & crafts items, pens, pencils, etc. At this time supply lines have been overspent. The utility lines have been reduced. Virginia noted the Library handles things in a different way from the other departments.
Ralph discussed that the Budget Committee would like to know how much was spent in 2015 vs. what is included in the 2016 proposed budget. It was discussed that the Budget Committee would like the year to date expenses for the Library.
Town Budget
Hugh noted the Selectmen have made some changes in the proposed budget.
01-4130.3-370 – Moderator’s Training & Conferences – The Moderator’s Budget was increased by $10.00 to cover the cost of the training conference. The cost is $45.00 per attendee for a total cost of $90.00 for the Moderator and Assistant Moderator.
Zoning Compliance – The budget for the Zoning Compliance has been adjusted. Originally the Selectmen reduced the hours to be worked by 120 hours, but they have determined to return 60 hours of that time to the position. This increased the department’s budget by $1,794.00.
01-42120.8-430 – FD Building Repairs & Maintenance – $5,200.00 has been added to the line to repair the upper parking area. This money had been in the 2015 budget, but the work was not completed.
The budget has increased by $6,093.00 with the above revisions.
Increases in town employee salaries were discussed. Ralph noted that under State law elected officials do not receive an increase, but the salaries are what is in the budget when a person is elected. Nancy Wheeler noted the salaries can be changed via the vote of the people each year.
Hugh discussed the revisions in the Health Insurance plans. The Selectmen changed plans being offered to the employees to not increase the health insurance costs. Some of the employees are paying more in deductibles with a lower cost plan.
Gary asked if the Police Department was receiving raises. Hugh indicated no, with the raises given this year they were in line with other towns’ salaries. Gary noted that the Police Chief asked to be included if a COLA was being given to the other employees.
Penny asked when the Budget Committee would be receiving the default budget. Nancy noted the Selectmen would be discussing it on Monday and it would be available at the public hearing on January 14th. Nancy noted the revenues would be available on Thursday.
Gary noted he reviewed the Highway Department budget and felt there were areas the Budget Committee should review.
01-4312.5-630 – Salt & Sand – One item was the materials purchased for the winter road treatments. Gary had asked to obtain a breakdown of materials. He noted the materials are being purchased from Hudson, NH. The cost to have the material delivered to Epsom by a private contractor (the owner of the material does not deliver) is $77.00/hour with a round trip of 3 hours per load. Gary noted that the materials could be purchased locally with an approximate savings of $5,000.00. Hugh noted that the Selectmen had inquired about these charges.
Gary reviewed the costs. It was discussed this question was brought to the Selectmen. The answer received was Hudson would not haul the material. Gary gave documentation of the costs to the Budget Committee (see attached information).
It was discussed if a breakout should be requested. Virginia felt if a breakout was being asked of the Library then it would not be wrong to ask for the information from other departments as well.
Gary motioned to decrease the Salt & Sand line (01-4312.5-630) by $12,000.00 to bring it down to $43,000.00, Penny seconded the motion for discussion purposes.
Joyce agreed with the motion, but she felt it should come off the amount spent this year ($57,806 – $12,000 = $47,806).
Ralph noted that in the past the Road Agent had purchased material in the summer when it was cheaper, asking why this was not done today. Hugh was not aware of the practice and did not know when the change took place.
Gary noted that the tax payers should not have to pay for the delivery expense.
Joyce motioned to amend Gary’s motion to reduce the Salt & Sand line (01-4312.5-630) by $10,000.00 to $45,000.00 Gary seconded the motion. The motion passed with a vote of 7 yes, 4 no, 1 abstention.
Gary motioned to amend the original motion to read: Reduce the Salt & Sand line (01-4312.5-630) by $10,000.00 to $45,000.00, Joyce seconded the motion. The motion passed by a vote of 7 yes, 4 no, 1 abstention.
Gary asked if there would be a warrant article to reserve money for Highway Department equipment. Nancy indicated there would be this warrant article. Gary discussed information as to the mileage and maintenance of the Highway Department equipment is not available. There is not anything regarding the mileage and hours on the equipment if the mileage and hours are not recorded. Gary noted the costs of the maintenance and repair work on Highway Department equipment in 2015. He noted that some of the maintenance and repair work completed on the 550 (truck only 2 years old) was $4,500.00 with some of these costs should have been covered under warranty.
Gary discussed maintenance costs for the other Highway Department equipment. $21,000.00 was spent on the grader, which Gary commented was approximately 48 years old. The money was for repairs and to install a cab on the grader. Joni noted that it is not used to grade the roads with someone else hired to grade the roads.
Dave asked Gary if he had binders for the Police Department and Fire Department. Gary said he has information at home via e-mails, etc. that was received from those departments. Gary said obtaining the information from those departments is much easier.
Hugh noted that the Road Agent may have reported the information to the Selectmen’s liaison.
Gary noted that $12,000.00 was spent on fuel for the Highway Department; it is not recorded as to how the fuel is used. He noted that Nancy indicated how the Police Department and Fire Department record their fuel use.
Hugh wished Gary had requested this information when Gordon was here or so he could have answers. Ralph noted that the information has been requested in the past and never received by the Committee. Gary noted Gordon did a presentation to the Committee, but never discussed his budget at that time.
Joni noted that the request for information was documented. Gary gave the Committee two letters with responses that the information was not available from the Highway Department (see attached information).
Dave motioned to increase the Road Agent’s budget so he could have a secretary to complete his documentation. There was no second to the motion.
Nancy asked how this would be affecting the budget. Gary said he would like to reduce the fuel line by 50%. He asked if there was anyone who disagrees with tracking this. Virginia thinks it should be tracked, the information Gary is presenting is eye opening. She understands the frustration Gary has trying to obtain information.
Penny asked if Gary was discussing the Fuel/Diesel Line (01-4312.6-635). Gary said it was.
Ralph asked if the Budget Committee reduced the line would it be below the amount necessary, and the funds would have to come from other lines.
Hugh noted he would like it noted that he has requested some of the same information Gary has requested and has not been able to receive it either.
Penny wanted to review the Training Line (01-4290.1-370) for the Emergency Management Director. It is her understanding that the training in Maryland is free and the only item he has to pay for is food. She would like more information regarding how the funds are to be used in this line. Hugh noted the line was also for in-town training. It can be used for other trainings as well.
Joyce moved to reduce the Emergency Management Director’s Training Line (01-4290.1-370) to $1,000.00, Penny seconded the motion. The motion failed.
Joyce moved to reduce the Emergency Management Director’s Training Line (01-4290.1-370) to $1,500.00, Ralph seconded the motion. The motion passed by a vote of 8 yes and 4 no.
Ralph asked if the Selectmen’s proposed wage increase for the employeeswas not in the budget, how much the budget would drop by. He noted there are a lot of citizens in this town that have received no increase in their incomes this year and are struggling.
Hugh noted it would be the 25 cents an hour for 2,000 hours for each employee. Joyce asked the percent increase. Nancy noted it was 50 cents an hour for employees.
Ralph and Joyce both felt they did not receive the response they wanted. Nancy said the information for the request was not communicated to her. Ralph said he could not make a motion without a dollar amount.
It was discussed that the increase would help cover the additional cost of the employees’ co-pays for their health insurance. Gary asked if the Selectmen knew the average the employees have to pay for their health insurance. Hugh noted that would be difficult to determine due the cost of plans, deductibles, etc.
Marylou asked Hugh if he had the information for the NED on the Wage schedule. Hugh noted the following:
Heavy Equipment Operator – $14.00/$15.00/hour to $27.00/hour – Epsom is paying $20.00/hour
Road Agent – $61,000.00 to $89,000.00/yearly or $25.00/hour to $35.00/hour
Zoning Compliance Officer – $16.00/hour to $32.00/hour – Epsom is paying $27.00/hour
Fire Chief – (full time) $28.00/hour to $39.00/hour or $31.000.00/year to $58,000/year
Gary felt the Police Department should be included in the wage increases as he felt they would be falling behind if no increase was given this year.
Gary indicated his motion would be to give the Police Department 25 cents an hour, Virginia agreed.
Gary did not feel the Police Department should not be omitted with raises. He also felt that everyone who they were planning to give 50 cents/hour should receive 25 cents/hour.
Nancy noted with the revisions made by the Selectmen, etc. the budget is reduced by $5,000.00.
Ralph noted that everyone is worried about the employees. He said the Budget Committee was to protect the taxpayers. Virginia disagreed in part as she indicated they were to be fair to everyone. Dave felt the Selectmen spent a lot of time reviewing the budget.
Marylou confirmed with Hugh that there is a 25 cent/hour increase with an additional 25 cent/hour increase upon a review of their job performance for the employees.
Hugh noted that one new Police Officer just started the Academy this week.
Gary agreed with what Ralph had discussed. He agreed with the study, asking if the Town could take baby steps in implementing it. Virginia noted that the Committee has not looked at the School Budget and are putting too much emphasis on the Town budget. She felt it was not right to subject the Town employees to this discussion when they had not received information as to the teachers’ contract.
Virginia motioned to give the Police Department employees a 25 cent an hour increase, Tracy seconded the motion.
Joyce clarified the motion was to give the Police Department employees the 25 cent an hour increase and not the other town employees.
The motion passed by a vote of 7 yes and 5 nos.
The Committee took a 5 minute break.
Nancy noted that due to the Police Department salary increases the budget would increase by approximately $4,325.00.
Gary motioned to give all other town employees a 25 cent an hour increase with no further increase, Virginia seconded the motion.
Virginia did not agree with the motion. Hugh discussed it was limiting what the Selectmen were trying to accomplish.
Joni asked if the Town had an evaluation form to use. Hugh noted that they are developing a form. Nancy noted that the office staff has had an evaluation for the first time since she was hired.
Gary asked if the Town would be giving a raise and then giving another raise. Hugh noted they were heading toward a 15 step grid. The issue was discussed. Gary asked if the increases would be every year.
Penny asked if the Library employees were included in the previous motion. It was noted they were.
Nancy noted some positions were below other towns and more money was put into the budget to bring those positions to a fair wage, her position being one.
Joyce discussed that in theory she liked the step system, however, a 15 step matrix was mind boggling. She thinks the Selectmen need to have the evaluation forms and a system written out to put the merit system into effect this year. Hugh noted if Joyce would like to assist the Selectmen in this endeavor it would be appreciated. Joyce is willing to assist.
Ralph discussed that he has worked in both government and private industry. He noted that the merit system is used primarily in private industry.
Penny thought that what Gary was trying to say is that the Selectmen are not ready to implement the merit matrix. Hugh felt the Selectmen are trying to have something so they have the ability to try to implement a system. He said they do not have to do anything, they do not have to advance anyone. He asked they be given the latitude to implement a system.
Ralph noted that in the past the Selectmen have given raises even though the Town and Budget Committee have voted them down.
Joni asked when the first anniversary for a Town employee would be coming up, Hugh said after the March vote. Joni verified there are a lot of variables. Nancy said anyone with an anniversary date before the March election would not receive anything until after the election.
Marylou called for a vote with the motion failing.
Virginia motioned to support the proposed increases for the Library personnel, Police Department personnel and the Financial Administrator, and to give all other town employees a 25 cent an hour increase only, Gary seconded the motion.
Mary opposes the motion as she would like to support the Selectmen. Ralph and Marylou agreed with Mary. Virginia felt they are setting a precedent, there are too many steps in the matrix. Marylou felt the Selectmen knew more of what the Town Employees did daily than she does.
The motion failed by a vote of 5 yes, 7 no.
Ralph discussed with elected positions, they ran knowing what the salaries were. He did not feel the elected officials should receive an increase.
Gary asked if the elected officials would continue to receive a raise each year. It was discussed they were under the current system. Gary asked that the Selectmen look at this in the future.
Joni asked if there were many warrant articles for the school. Bill discussed the proposed articles.
Nancy noted that bond petition warrant articles are due in January 8 with petition warrant articles with no bonds due January 12.
Marylou noted at the next meeting the school budget would be first, then town warrant articles.
Dave motioned to adjourn, Tracey seconded the motion. The motion passed. Marylou adjourned the meeting at 9:37 PM.
Respectfully submitted,
Betsy Bosiak
Recording Secretary