BC20110915

APPROVED

TOWN OF PELHAM

BUDGET COMM= ITTEE - MEETING MINUTES

Thursday, September 15, 2011<= /p>

APPROVED &#= 8211; October 3, 2011

CALL TO ORDER – 7:30pm

PRESENT:

Also Present:

Mr. Larry Hall, Mr. Dan= iel Guimond, Mr. Gregory Farris, Mr. John Lavallee, Mr. Dennis Viger, Mr. Rob= ert Sherman, Mr. Joe Puddister, Mr. Ken Dunne, Selectmen Representative Edmund Gleason

Library Director Bob Ri= ce, Library Trustees Francis Garboski, Jr. and Ms. Diane Chubb, Town Finance Director Cindy Kelley

ABSENT:

Mr. David Cate, School = Board Representative Meghan Larson

PLEDGE OF ALLEGIANCE

2012 BUDGET REVIEW AGENDA

Library, Assessor, Cable, Treasurer, Debt Service Principal, Debt Service Interest

Library – Library Director = Bob Rice along with Library Trustees Francis Garboski and Diane Chubb came forw= ard to present the 2012 budget. The budget showed zero growth; however, $500 was added to Supplies for library cards, and $500 was deleted from New Equipment for furniture, shelving and other equipment. Mr. Garboski stated that the Libra= ry had increased their patronage. He= said programs were up and they were also looking at future prospects in doing renovations within the Library. Renovations include filling a gap above the reading room, increasing book space and hopefully putting together an area for study and computer usage.

There was a brief discussion regarding the purpose for the replacement cards and = the importance of having the cards for identification. The $500 cost will purchase 1000 c= ards which were expected to last approximately two years. The first library card is free; th= e cost for a replacement card is $2.

Mr. Dunne questioned if the grandfather clock needed $300 for maintenance every year. Mr. Rice said the worki= ngs in the clock had been taken from the building for cleaning/servicing. The price has increased to $450. The clock was given to the Library= in 1896 and was valued between $35,000 - $38,000. An appraisal was recently provided= to the Library. Mr. Farris asked= how much the clock was insured for. Mr. Rice believed the Town was looking into insuring the clock. Mr. Gaydos informed that the Town = had the clock insured for approximately $25,000; the recent appraisal can be sh= own to the insurance company.

Mr. Viger asked if there was a system in place to coordinate book inventory with the schools. Mr. Rice replied= they had an integrated library system (ATHENA) that catalogs the books. He said the state library was look= ing to put together one preferred/recommended system they would support for all li= braries in the state. Mr. Viger clari= fied he was speaking about the libraries within the Town/schools. Mr. Rice didn’t know what sy= stem was being used within the schools. Mr. Garboski commented that the Adult Services and Children’s Librarian were in constant contact with the librarians at the schools to ob= tain books lists for the various reading programs throughout the year so the boo= ks could be acquired and have on stand for the children to take out and read.<= span style=3D'mso-spacerun:yes'> Mr. Viger recalled a few years bac= k the Trustees said they wanted to get an inventory of all the books within the Town/Schools so when teachers assigned a book report/project they knew there would be enough books to go around. Ms. Chubb thought it sounded like a great idea. She said they didn’t have any funds for cooperative software; the Library and schools coordinated by spea= king on the telephone.

Mr. Viger questioned if the Library had considered having e-readers. Mr. Rice said they had discussed purchasing them. The issue se= emed to be which models would be best, certain brands only allow downloaded book= s to be purchased from specific websites. Because other readers were more compatible, the Library had discussed purchasing several devices, it was just a matter of technology straightening itself out to be user friendly.

Mr. Sherman wanted to know the total cost of the construction warrant article w= ould be. Mr. Garboski explained th= at they had ADA Funds that were for the old building and when the new Library = was built those funds transferred over to them. The last warrant article written a= bout ADA Funds transferred power of expenditure from the Selectmen to the Library Trustees; but remained ADA money for the purpose of any ADA upgrading. The new building was ADA specific and there was nothing more= for those funds to be used. The Trustees were looking to change the purpose of the ADA Funds so that it was= no longer only for ADA usage; it would be usage as seen fit by the Library Trustees. The present value was $18,097.20.<= /p>

Mr. Guimond questioned if the money in the fund would cover the work the Library wanted to do. Mr. Garboski an= swered no. It was noted they wouldn’t be coming in with a warrant article for the remainder; they would raise funds internally. Mr. Rice the estimate they could raise was $48,000; the amount needed to do all= the work was approximately $100,000.

There was a brief discussion regarding the computer system and its function.

Ms. Chubb noted that the first steps using the fund money was to speak to architects to obtain hard costs. They could then determine fund raising goals.

Assessing – Assessing Assistant Susan Snide and Town Administrator Tom Gaydos came forward to discuss the 2012 Assessing budget.=

Assessing

2012 Selectmen approved=

2012 Budget increase/(d= ecrease)

Salaries:

39,218

(797)

Supplies:

Expenses:

2,074

60,992

(253)

(35,555)

Salaries – It was noted that the calculation formula didn’t carry over properly, therefore, some of the budgets contained a salary number that was= altered. The proposed 2011 operating budget numbers were not the actual numbers (sometimes higher, sometimes lower); however, there was no significant impact.&= nbsp; There was a practiced accounting problem. Mr. Viger confirmed that the Town = was satisfied that employees received what they should have received for pay; it was that the numbers showing in the budget were (now) corrected to agree wi= th what was paid. Mr. Gaydos sai= d that was correct.

Supplies – The decrease was due to routine operations. There was a brief discussion regar= ding the evaluation cyclical process.

Mr. Sherman asked about the situation with telephone poles in the Legislature.<= span style=3D'mso-spacerun:yes'> Mr. Gaydos stated that telephone p= oles and conduits were assessed this year and added $2.5 million to the total valuation to the Town. Mr. Fa= rris confirmed that the gas pipeline running through Town was being assessed. Mr. Gaydos answered yes.

Given that 2012 will be the last year in the cyclical revaluation, Mr. Viger questioned if the Town would have to go back out to bid to start the process over. Mr. Gaydos said the Town didn’t have to go back out to bid, they were very happy with Corcoran. But if the Selectmen wanted to go back out to bid they could.&n= bsp; The cost of the revaluation was based on the number of parcels and should vary too much from the previous number.

There was further discussion regarding the revaluation process and how residentia= l, commercial and industrial properties were assessed. A breakdown of increases/decreases of assessed values was provided to the Board for review.

Cable – Cable Television Coordinator Jim Greenwood and Town Administrator Tom Ga= ydos came forward to discuss the 2012 Cable budget.

Cable

2012 Selectmen approved=

2012 Budget increase/(d= ecrease)

Salaries:

81,908

1,658

Supplies:

Repairs:

New Equipment:

Expenses:

2,819

6,000

&nbs= p; 1

125

3,000

2,999

Salaries – Increase due to paying staff for increased number of recordings and programs (Sherburne Hall production support). Mr. Viger understood that there ma= y be broadcasts from the Senio= r Center in the future. He didn’t see f= unding in the budget. Mr. Greenwood = said at this point it would just be the government meetings already budgeted for. Possibly next year this = would be expanded. Mr. Gaydos expla= ined that Mr. Greenwood had committed programming, so when someone comes forward with a recording/broadcast request, it would only be done if it could be afforded within the budget. <= /p>

Supplies - Increase for 9volt batteries for new microphones.

Repairs – Increase for emergency equipment repairs/replacement. Next year the= hard drives used for digital playbacks will need replacing. Mr. Farris questioned why the money wasn’t taken out of the grant. Mr. Greenwood said repair/replacement wouldn’t come from the grant; the grant was for new equipment.&nb= sp; Mr. Gaydos explained there were two “pots” of money; the regular franchise agreement (receives approx. 50%), and grant money (obtain= ed when contract is signed) used for new equipment. Mr. Farris asked if the grant money qualified for replacing an item with a newer piece of equipment. Mr. Greenwood said the grant is ca= lled the capital equipment grant, used for capital improvements over and above i= tems they already had. Mr. Farris = asked if there were any restrictions by the cable company placed on the money for what it could be used for. Mr. Greenwood answered no. Mr. Farris replied it could be use= d to purchase new equipment. Mr. Greenwood said he could, but the money would disappear rapidly making it so= he wouldn’t be able to reach future goals and objectives or have the abi= lity to repair items that broke on a normal basis.

Mr. Guimond asked if the 50% from the franchise fee was contractual and had to = be spent. Mr. Gaydos said the co= ntract spelled out that 50% was intended to go towards the maintenance. Mr. Greenwood noted that the reven= ues for 2011 would be approximately $190,000 based on what they had already received. He said next years revenues would probably be higher. <= /span>

Mr. Lavallee asked if Comcast provided a listing for the number of households t= hat are using their product as well as the number of residents bypassing them.<= span style=3D'mso-spacerun:yes'> Mr. Greenwood said he occasionally requested the number of subscribers, which was normally around 3300-3400. Mr. Lavallee commented that lately Comcast had been losing subscribers, as were some of the other larger providers. Mr. Greenwood beli= eved the subscriber number stayed virtually the same. He noted that he saw the revenues = going up, not down.

Mr. Hall asked if the grant money from the previous year had been spent. Mr. Greenwood said the last of the= grant money was spent on twelve microphones for Sherburne Hall. Mr. Hall confirmed that the reason= why the money was moved out of the new equipment budget to the maintenance budg= et was because there would be $50,000 in grant. Mr. Greenwood answered yes. Mr. Hall questioned what would lea= d the Board to believe that there would be double the maintenance/repair budget.<= span style=3D'mso-spacerun:yes'> Mr. Greenwood discussed the items = that needed to be purchased in 2012.

Mr. Farris wanted to know if Mr. Greenwood had an equipment replacement schedule and/or new equipment list. Mr. Greenwood said he could revisit his inventory list, which showed equipment = life expectancy and when it needed replacement.= Mr. Farris asked if the department had a list of what they would lik= e to do to expand the system. Mr. = Gaydos noted that he and Selectmen Viger were working on an inventory list of capi= tal equipment. He said when Cable= had a new contract, Mr. Greenwood composed a plan (equipment replacement etc.) for the upcoming years. Mr. Farris asked for the term of the new contract.&nb= sp; Mr. Gaydos said the contract was for 10 years.

Mr. Sherman asked which Town buildings were not wired for cable. Mr. Greenwood said cable televisio= n was in all Town public buildings and the schools. There was a brief discussion regar= ding the adapters that would be necessary beginning in October for cable televis= ion to be digital; the school may have difficulty.

Treasurer – Town Finance Director Cindy Kelley and Town Administrator Tom Gaydos came forward to discuss the 2012 Treasurer budget.

Treasurer

2012 Selectmen approved=

2012 Budget increase/(d= ecrease)

Salaries:

4,500

480

The salary increase was requested by the Treasurer, who had not had a salary increase since 2007. Mr. Gayd= os stated that the Treasurer had become significantly more active due to the n= ew checks/balances process. Ther= e was a brief discussion about how the checks/balances system had been tightened = up; the Treasurer handled everything that came from a bank. Mr. Gleason commented that when Financial Directors were changed, the Town changed some of the procedures to preclude any problems experienced in the past. Part of the analysis indicated the= Town needed better oversight from the Treasurer in handling certain accounts and making sure things got balanced. He said the Treasurer’s role had increased significantly from what was previously done; a lot of the task had previously resided with the Financial Director. Mr. Gleason said th= ere were better controls in place and the Selectmen had more confidence that th= ey knew what was coming in and going out.&nbs= p; Mr. Gaydos stated that there had never been a job description for the Treasurer in the past, but as they’ve grown, the job description had improved. He said when a defi= ciency was found it was tightened up. Mr. Lavallee asked if the RSA’s outlined how the Treasurer should function. Mr. Gaydos said the= statutes were general. Mr. Gleason said procedures were in place because an independent auditor agency didn’t find any problem with them. H= e said there were minor glitches that were corrected internally. He discussed the functions of the Treasurer. Mr. Gaydos comment= ed that the Treasurer was doing more because the Town had more accounts than t= hey previously had. It was noted = that the Town’s new audit firm was Melanson-Heath.

Mr. Hall asked what time the Treasurer spent working. Mr. Gaydos outlined the Treasurer’s work. The Treasurer provides the Selectmen with a report.

Debt Service Principal – Town Finance Director Cindy Kelley = came forward to discuss the 2012 Debt Service Principal budget.

Debt Service Principal<= /p>

2012 Selectmen approved=

2012 Budget increase/(d= ecrease)

Dept Service Principal:=

541,310

4,711

Debt Service Interest – Town Finance Director Cindy Kelley = came forward to discuss the 2012 Debt Service Principal budget.

Debt Service Interest

2012 Selectmen approved=

2012 Budget increase/(d= ecrease)

Dept Service Interest:<= /p>

161,365

(20,605)

Mr. Guimond asked if the TAN note was used.&nb= sp; Mr. Gaydos said it was used a couple years ago. Billing in the spring/early summer= is when the Town has the biggest ‘squeeze’.

DISCUSSION

Mr. Gaydos briefly discussed vacation buy back, which was a new contract item.<= span style=3D'mso-spacerun:yes'> He said if people didn’t use= it they would ensure that the money wouldn’t be used for other purposes. Employees can buy b= ack, at 90% of its value, the earned time pool (uncompensated liability).

A question from a previous meeting was how many flags were being purchased for the cemetery (through Town Celebrations. Mr. Gaydos stated seven hund= red flags would be purchased, as stated in the budget.

ACTION ITEMS

Highway Department to submit a vehicle replacement schedule;
Highway Department to submit a listing of= all roads repaired in the past two years;
Mr. Gaydos to provide a copy of the Treasurer’s report.

ADJOURNMENT

MOTION:

To adjourn the meeting.

VOTE:

(9-0-0) The motion carried.

The meeting was adjourned at approximately 9:10 pm.

= &nb= sp; = &nb= sp; = &nb= sp; = Respectfully submitted,

= &nb= sp; = &nb= sp; = &nb= sp; = Charity A. Landry Willis

= &nb= sp; = &nb= sp; = &nb= sp; = Recording Secretary