Budget Committee Minutes 11.17.22

In attendance:

Budget Committee Members – Laurie Colburn (Chair), Justin Dohrn, Jen Richardson, Beth Downs (Select Board Rep), Kimberly Firth

Tim McKenna

Select Board Members – Marlene Freyler, Mel Pfeifle

Karen Hambleton, Town Administrator

Old Business:

Minutes from September 15, 2022 and November 3, 2022 were reviewed

Motion: Jen Richardson motioned to approve the minutes as written

Second: Beth Downs

Decision: 5-0 in favor

Review of Budget and Expenditures:

Police Chief Ed Shaughnessy was in attendance and reviewed the Police Departments 2023 General Budget submission. He provided a supplemental budget support document detailing the demands. Laurie asked that the Committee not focus in detail on employee related expenses as there was still movement in those lines.

The Committee did ask about the overtime line which is showing a decrease for 2023. Chief Shaughnessy outlined how the work schedule is established and the types of coverage needed such as covering holidays, court schedules, personal/sick time coverage and extended callout demands. As a result of the schedule strategy, and the addition of a Full Time officer in 2021, the budget was decreased by 60 hours.

The largest increases noted relate to gas, oil and utilities. Ed reviewed the usage and the anticipated cost per gallon increases. The impact of trying to stay flat would essentially eliminate any road time for a period of approximately 2 months. Ed feels that calls would increase as the visibility of officers would decline. 80% of the Police Department budget is related to officers and any attempt to reduce the budget would impact coverage. There may be future opportunities to reduce overtime as the mix of FT vs PT officers matures.

Chief Shaughnessy also reviewed call volume, in 2021 there were 5,339, YTD calls were approximately 4,900 and is trending to meet that same volume in 2022.

The Chief also shared that the Department received a 50/50 matching grant for body cameras, which is visible in the Police Equipment line. The Department had originally plan to budget $5,000 annually, for 5 years, to procure this equipment but as a result of the grant they were able to procure that equipment in 2022 and reduce the 2023 request. There will be some variability in this line year over year dependent upon demands.

The Department was also able to secure a grant for tablets n 2022 covering 100% of the cost, which was also on the radar as a future expense. Additionally a 100% grant has been submitted for police radios and AED’s have been procured using a 100% grant. In 2024 the Chief does plan to start a replacement plan for jackets, some of which are 6 year old.

A discussion ensued regarding electric vehicles. The lack of charging stations, and longevity versus price does not make that practical at this time.

The Committee asked whether there was any opportunity to increase revenue. Revenue comes in a few forms, providing police details to other towns and tickets related to underage alcohol/tobacco violations and Town Ordinance tickets. All other ticket revenue goes to the state. No notable opportunity was identified.

Kimberly asked how Department heads are incentivized to seek revenue opportunities and grants. The way the Department of Revenue outlines the accounting practices which outlines expenses being recorded as actuals in the General Budget and revenue being accounted for as Unanticipated Revenue so it is difficult to see the relationship on paper. Chief Shaughnessy agreed that he does not like how this data is presented but understand why it is presented in that manner and grants are pursued as they become aware of them to drive future savings opportunities.

Erika Gross, Town Clerk/Tax Collector, reviewed the Election, Registration & Vital Statistics budget which decreases in 2023 due to the amount of election activity.

Erika also reviewed the Financial Administrator budget lines noting an ability to keep postage fees flat year over year as she had been able to reduce costs. The Post Office was incorrectly charging for Absentee Ballot’s which she was able to correct. Software support will be reduced from the original submission of $6,410 to $6,277. A one-time item is budgeted, for $600, for new election booths. Discussion was had regarding the need for a laptop with Microsoft Excel for use in tallying votes during elections. It was determined there are other laptops available and Erika felt this was not an issue.

A brief discussion was held regarding the Deputy Town Clerk/Tax Collector’s budget which was very positive.

The only significant increase noted was related to audit expense which is a mandated process.

Discussion ensued regarding whether there was opportunity to consolidate supply purchases, across the Town Departments, in the future which is not a current practice. All agreed that may be an opportunity.

Steve Hall, Town Road Agent, attended and reviewed the Highway Department budget. He discussed the Part Time wages line and noted this line would decrease from the original submission of $33,600 to $25,200 which allows for Part Time resources 3 days a week for 50 weeks, this in an increase over 2022 which was budgeted at $12,000 and was utilized primarily to support plowing. The Department has 4 FT employees and the PT resource helps support coverage during paid time off and winter weather coverage.

It was noted that the Highway Department used to have 5 FT employees (10+ years ago) and the addition of the PT hours has/will enable the Department to accomplish additional work in a more efficient manner. The overtime budget request is flat at $25,500 and there was a feeling that overtime should decrease as a result of more PT wages. The FT resources average about 200 hours of overtime annually, which is driven primarily by weather events. The wages are anticipated to enable the department to make further progress catching up on deferred projects/maintenance.

The Contract Services General line is increasing year over year. This line includes roadside mowing expense and cleaning out catch basins, which is an ever other year event, estimated at $4,000-$5,000, and street sweeping at $10,000-$12,000. It was noted that these items were not being done on a regular basis in previous years. In previous years the mowing had been done by Highway resources with a rental mower, and it was determined that the cost is the same whether using internal resources or hiring out the work.

Drug testing has increased by 133% due to random testing required for CDL drivers, $650 spent in 2022, and annual physical requirements.

Equipment rentals are increasing by $12,000 year over year. This is intended to fund additional work at the Transfer Station to excavate more product to be used to produce gravel, this is $8,000 for a one week rental. This line also includes the roller rental utilized on dirt roads for applying calcium chloride in the spring. If there is a need to rent additional equipment it is funded from this budget line.

Steve outlined how the various lines of his budget are dependent on each other to produce gravel. There are 2 options for gravel either create it in Town or purchase it. Normally the department uses about 3,000 yards annually. Steve is also pursuing procuring milled asphalt as a supply options. Winter sand and gravel have been an ongoing issue for the Town with limited supply locally. Gravel is between $10-$15 per ton. 1 ½ tons equals a yard of material. A 10 wheeler truck can hold about 13 yards of material.

Dust control (Calcium Chloride) will increase in 2023 by $1,000 due to an increase in cost and volume. The roller used in 2023 will be larger than used in 2022 driving increased volume to fill the tanks.

A separate supply line (4312-6000) is being utilized in 2022 to break out the Repairs & Maintenance Equipment line (4312-4303). This new line is being used for supplies to do maintenance such as grease, oil, and the Repairs & Maintenance Equipment line will be used for the cost of repairs & equipment maintenance services. The cost increases are being driven by increases in the cost of goods and services. Overall there is an 18% increase year over year.

Supplies – Chains & Blades have increased by 100% driven by an increase in steel pricing, as an example a blade that cost $500 is now $1,000.

Discussion was held regarding a rumor that the State may need the Town to plow State roads. At this point that is just a rumor.

Winter Salt & Spring Repairs are increasing 42%. The majority of spend in this line is salt. In 2020 the price was $50 a ton, 2021 was $72 a ton and currently prices are $89 a ton with usage of 400 tons annually. Salt is purchased on an as needed basis.

Culverts expenses are increasing as well, almost doubling in product costs.

Gravel is increasing by 20%.

Road Patch is increasing to 56% year over year. This is a general maintenance event that is assumed to be done as part of the Central New Hampshire Road plan presented at Town Meeting and the Capital Improvement Program budget recommendations.

The Inspection line is increasing by 25% due to the cost of services increasing in 2022, based upon 2022 actuals this line should be able to remain flat year over year.

Equipment Fuel is increasing by 144%. This estimate is based upon a usage of 11,000 gallons annually the line was budgeted to assume a rate of $6 a gallon and there is no ability to lock in a rate. This is all on road fuel.

Repairs, Maint-Bldgs is increasing by $500 year over year to address maintenance at the Highway garage and Town sheds.

The New Equipment line is showing a 2023 request for $60,000. Steve expressed that this line item should be $0.

Overall the budget is increasing by approximately $117,000, or 16%, with the reduction of New Equipment line that increase would be $57,000, approximately 7%. If the budget were to stay flat year over year there would be a decrease in the amount of repair and maintenance to the roads. $39,000 of this budget increase is being driven by fuel. The Committee complimented the Highway Department on how much was accomplished in 2022 even considering the increase in goods and services. The increased maintenance and repair work is noticeable. The Board also complimented Steve on seeking creative solutions to manage within the constraints of the budget.

The Committee expressed that it would be helpful to have some additional transparency into the recurring events and projects planned, Laurie and Steve will get together and build a supplemental schedule that shows that activity, options to address the needs and the associated costs. 

$50,000 was outlined for Bridges. Steve would like to see some regular funding in this area but agreed this would be more appropriate to be included as part of the CIP and raised through a specific Warrant Articles.

Karen reviewed insurance expenses. The current plan is increasing 11.7%, $22,000, year over year. An alternate option has been identified which would save money and decrease the employee contribution through a HRA program. The HRA program would save approximately $26,000 if adopted by all employees. Karen recommends that the Town offer 2 plans, the existing plan where the employee would pay the increase and a HRA plan which would be a decrease in cost.

Select Board Motion: Beth Downs motioned to offer the two plans as outlined by Karen Hambleton, including staying flat year over year in costs that would also enable an improvement in the Dental plan.

Second: Marlene Freyler

Decision: 3-0 in favor

The next meeting will be December 8th, 2022.

Mel and Karen will be participating in the Planning Boards CIP Public Hearing review. If there are any questions the Committee should email those to Mel or Karen if they are not able to attend. The proposed CIP is showing a $3.82 impact on the tax rate which is up $0.35 year over year.

Motion: Beth Down motioned to adjourn at 9:20pm

Second: Jen Richardson

Decision: 5-0 in favor