Select Board Budget Workshop ~ January 5, 2017

2017-01-05 · Select Board · 1:01:53 · watch on YouTube →

A Select Board budget workshop, with Jeffrey Wakeman and Sarah Hall recorded as present. The town administrator walked the board through what the town actually spent in the year just ended (no department was overspent at the bottom line, though several individual lines were) and then through the 2017 figures for workers compensation, animal control, cemeteries, conservation, the Eureka Community Center, general assistance and solid waste. Two arguments ran through the evening: whether Durham should move from department-by-department capital accounts to a townwide capital plan, and what to do about health insurance, which rose 11.25 percent for the second double-digit year running. On solid waste the board compared budget versions for Pine Tree and a second bidder and leaned toward putting both to the voters at town meeting while recommending Pine Tree. Nothing was voted; the chair closed the workshop without a motion, saying none was needed.

What was discussed

1. 0:01
   Before the meeting: paid against volunteer firefighters

   In conversation before the workshop opened, members noted that for insurance purposes the code and the rating factor are the same whether firefighters are paid or volunteer. The discussion moved to volunteerism generally, with the observation that the same people volunteer, eventually burn out, and are not replaced.

2. 0:01
   Call to order

   Jeffrey Wakeman called the meeting to order, noting it was a budget workshop. Asked whether the doors should be closed, he said to leave them open because it is a public meeting, and confirmed the session was being recorded but not broadcast live.

3. 0:01
   Last year's actual spending

   The town administrator handed out the year-end spending report and said no department was overspent, though individual line items were. Supplies was one, largely because of copies.

4. 5:12
   Overspent line items

   Electricity and generator repair were over, the generator having had problems during the year, as were Eureka Community Center maintenance and repairs and workers compensation. The abatements and grants lines will come out in the audit.

5. 5:12
   Fire department lines

   The fire chief will explain his overspent lines; equipment maintenance was assumed to be the electrical harness. The chief expected to have his budget finished by the following Tuesday.

6. 5:12
   Lines the auditors picked out

   The auditors select lines that are well over or well under spent and ask for an explanation. This year they picked paving, which was underspent, and surface treatment, explained by Calvin having chosen to resurface some roads rather than pave them within the money he had.

7. 5:12
   Negative numbers in parks and recreation

   A member asked about negative figures shown in black on page 84, line 34, covering electricity, flags and upkeep for War Memorial Park. The answer was that the committee raised more in fundraising than it spent, the receipts were posted against the expense account rather than to income, and the balance was moved to a general ledger account so the group can use it next year.

8. 10:19
   Pownal reimbursements shown as negative expense

   The same pattern appears under public works, where in one month the payment received from Pownal for the road commissioner's salary exceeded what Durham paid out because Pownal was settling several months at once. The administrator said she books the Pownal payments as a direct reimbursement rather than as revenue so the town's budget does not look inflated, and that she had discussed this with the auditors.

9. 10:19
   Truck reimbursement to move to revenue

   Calvin (?) asked, and the auditor Jen agreed, that the reimbursement for truck expense (about $3,300 a year, part of it depreciation) be moved out of the maintenance expense line and treated as revenue, because it distorts his maintenance line.

10. 10:19
    Winter equipment maintenance overspent

    A member raised the winter equipment maintenance line, overspent by almost $11,000, and connected it to difficulty getting the trucks inspected. It was noted the town was still not working from full-year figures and that many other lines are well underspent.

11. 10:19
    Proposal for a townwide capital plan

    A board member said, as in previous years, that the town should move to a townwide capital plan and capital fund rather than separate accounts by department, so that big expenditures can be mapped out across the town. The stated aim was to stop department heads being set against each other on town meeting floor over whose project comes first.

12. 10:19
    The transition problem

    The objection raised was how to get there: the fire department already has $75,000 set aside, and moving it was described as both unfair and illegal. It was also argued that a single pool makes it harder for department heads to build ten-year plans, because they would be working with unknowns.

13. 15:19
    What is and is not known about future costs

    Members said the town now has a picture of road costs over the coming years, described as daunting, and of fire station costs ten to fifteen years out in today's dollars, described as quite high. For the town office there is no comparable picture beyond an estimate obtained on the roof, which is thirty years old, and the heating system.

14. 15:19
    Fire department transport revenue

    The fire department brings in roughly $50,000 a year in revenue from transports, and a member asked whether that should go into a townwide capital fund. The reply was that realistically it would make sense.

15. 20:30
    Intercepts and the trust account

    One member disagreed, arguing that the town pays for transports as a budget line each year and that the insurance reimbursements should offset that expense rather than going into the department's trust account. The figures given in the exchange were around $72,000 brought in this year against about $4,900 spent on intercepts, with the point made that a town vote would be needed to change the arrangement.

16. 20:30
    A capital committee

    Members discussed forming a capital committee that department heads could bring their existing plans to, rather than scrapping the work already done. One member said she had visited other towns' town meetings during the year and found they all have a townwide capital vision, and put Durham three to four years away from that.

17. 20:30
    Bonding against saving ahead

    Members noted a nearby town that carries no debt and no bonds, and that the fire chief wants to put more aside each year to get ahead of borrowing and eventually save the interest. The obstacle given was that the town would have to double up for several years and is not ready to do that, and that borrowing rates are currently low.

18. 20:30
    Whether one big article is harder to pass

    It was argued against the single fund that asking the town for $250,000 for all capital needs at once is harder to pass than $50,000 for one department, because voters look at the big number. The counter-argument was that a townwide plan is about transparency and letting residents see the whole picture.

19. 25:36
    Comprehensive plan and long-term capital goals

    Members noted that long-term capital goals are already part of the comprehensive plan work, and left the capital plan discussion there.

20. 25:36
    Workers compensation for 2017

    The 2017 workers compensation figures were presented by department (administration, public works, fire, animal control and telecommunications) with animal control and telecommunications split out under their own budgets for the first time. The total is about $51,000 after deducting what Pownal will pay, against roughly forty-odd thousand spent this year, offset by a dividend.

21. 25:36
    Experience modifier and a truck off the road

    Another accident was added to the town's experience modifier this year. A separate incident members had seen reported on Facebook, a plow truck off the road in a resident's yard needing another truck to pull it out, was said to have nothing to do with workers compensation.

22. 25:36
    Road commissioner's pay split with Pownal

    The public works line of $30,719.62 for winter and summer was explained as Durham's portion of Calvin's base pay, calculated on a 2 percent raise, with $1,603 as Pownal's portion.

23. 25:36
    Animal control budget

    The animal control officer had not got back to the administrator and had not submitted mileage before year end. The salary line was raised to cover mileage, which had been taken out when the job description was redone, with FICA, Medicare and workers compensation counting toward the roughly $6,000 total, and $300 put in for a new cage and other supplies after last year's supply money for rabies shots went unused.

24. 31:27
    Animal control training and the humane society

    The administrator put $100 in for one training class against an expectation of eight hours of training a year, and invited the board to consider more. The Coastal Humane Society line stayed the same as last year.

25. 31:27
    Feedback on the animal control arrangement

    A member asked how the first year of hiring the town's own officer, rather than using Lisbon PD, had gone. The answers were mixed (a couple of recent instances of not getting back to residents, against an account of the officer helping someone build a fence to keep a goat out of a neighbour's yard) and the chair cut the discussion off as belonging in executive session.

26. 31:27
    Why the town made the change

    Members disagreed about the reason for moving away from Lisbon PD. One said it was entirely about the money; another said she had been one of those complaining about availability and responsiveness. The saving was put at two to three thousand dollars.

27. 31:27
    Cemeteries

    The cemeteries request is up $350 for equipment and materials, for minor repairs and tree removal, with the mowing contract done year to year. A member said the mowing seems to be done over Memorial Day weekend when it should be finished before, and raised the retaining wall at the cemetery on Brickyard Hill Road as being in very bad shape.

28. 31:27
    Conservation and Eureka Community Center

    Conservation is unchanged from last time. The Eureka Community Center's propane figure was thought sufficient, and the extra repair money they asked for is offset elsewhere.

29. 36:29
    Eureka decrease and general assistance

    The Eureka line works out as a decrease of $533, with no big projects planned while the centre waits for its capital account to grow. General assistance was left at $3,000, against roughly $400 to $500 actually spent during the year.

30. 36:29
    Solid waste: two budget versions

    The board was given two versions of the solid waste budget, one built on Pine Tree and one on the competing bidder, so the difference could be seen. The difference was described as about $12,000 in the first year of a three-year contract, but only five months of the change would fall in this budget year.

31. 36:29
    Where members were leaning

    One member said she was leaning to staying where the town is, and mentioned meeting one of the competitor's listed references, the head of the Lewiston-Auburn landlords association, who had nothing but good things to say. She said she leaned toward putting both options to the voters while recommending Pine Tree, which has given good service.

32. 36:29
    Bulky waste and automated pickup

    A member said his concern was a step backwards on bulky waste day, and complained about crews parked and napping on Friday mornings; the reply was that breaks are mandated and the town pays a flat contract price rather than by the hour. He also wanted Pine Tree to deliver the automated pickup they had discussed, which as originally proposed would have saved close to what the town takes in from trash tags.

33. 41:32
    Trash tags and single stream recycling

    Members disagreed about what drove recycling rates up, tags or single stream, and recalled that the tag allowance was 52 in the 1990s, that residents were adamant about going to 26, and that an attempt to go back to 52 was resisted. Barrel size, the weight limit and what crews will actually reject were also discussed.

34. 41:32
    Doubt about the competitor's recycling facility

    A member said she did not leave the competitor's presentation with a straight answer about single stream, and that he was to come back with a list of what his facility will take. Casella had stated at their presentation that the facility he referred to is not a single-sort facility.

35. 41:32
    Equipment risk and the annual escalator

    Members were uneasy that the competitor does not yet have the equipment for bulky waste and would fall back on pickups if his packer went down, comparing it to the town's experience taking a cheaper mowing bid. They also wanted Pine Tree to sharpen its pencil on the annual increase, noting that research on the power contract had shown roughly 5 percent a year.

36. 46:36
    Pine Tree's presentation

    Members objected to the tone of Pine Tree's presentation, which they took as implying the competitor was not following the law and as patronising. Others read it as Pine Tree making the point that these are requirements, and noted Pine Tree had been surprised after two contract cycles without real competition.

37. 46:36
    Both bidders to town meeting

    Members agreed the price difference is large enough that residents should debate it on town meeting floor and take ownership of the result, and that both companies should be invited to attend for questions. A member predicted the competitor will grow and be stronger competition at the next contract, once he has his own truck and a record of weekly door-to-door pickup.

38. 51:41
    Health insurance up 11.25 percent

    Health insurance rose 11.25 percent this year, following a rise close to 10 percent the year before. A member said the town cannot keep absorbing 10 percent a year on a family plan that costs it somewhere in the neighbourhood of $17,000 to $20,000, and that the cost-sharing split needs to be discussed rather than deferred again.

39. 51:41
    Options on the table

    The options set out were to keep the same plan and rates, keep the same plan at a different employer-employee split, or move to a cheaper plan at the same split. Against that was the effect on staff, since most other towns offer roughly what Durham does and the town has to compete for hires.

40. 51:41
    Health trust account already looked at

    Members recalled looking hard at a health trust account the previous year and concluding the administrative cost outweighed the potential saving, because the town does not have enough employees to make it worthwhile.

41. 57:01
    Plan design and split

    Further options raised were HMO against PPO, and contributing more toward employee-only coverage and less toward family coverage, which members said some on the budget committee have pushed for years.

42. 57:01
    MMA against private quotes

    A member suggested getting quotes from a private company to show the budget committee. The reply was that this was done two to three years ago and the difference was astronomical, that the town is pooled with 69 other municipalities through MMA, and that repeating the exercise every year is a time sink; members asked that the earlier comparison be found rather than redone.

43. 57:01
    Revenue and excise tax

    The administrator offered to run through this year's revenue after the workshop, noting revenue was up and excise tax up by $80,000. Members discussed whether that trend can hold, and that excise is now based on MSRP rather than the bill of sale.

44. 57:01
    Close of the workshop

    The chair asked whether members were all set and said no motion was needed to close a workshop. The recording ends there.

What was decided

• 10:19
  The reimbursement for truck expense from Pownal, about $3,300 a year, is to be moved out of the public works maintenance expense line and recorded as revenue, at Calvin's request and with the auditor's agreement. Stated as settled in discussion; no vote was taken.outcome unclear
• 20:30
  Members discussed forming a capital committee to draw the departments' existing plans into a single townwide capital plan. Nothing was settled; one member put the town three to four years away from that, and others argued the departmental accounts should be left alone; no vote was taken.outcome unclear
• 36:29
  The administrator is to project the solid waste cost difference out over the full contract term for the meeting with the budget committee, rather than only the five months falling in this budget year. Agreed in discussion; no vote was taken.outcome unclear
• 36:29
  Members leaned toward putting both solid waste options on the town meeting warrant for the voters to choose between, while recommending Pine Tree. This was a statement of where members were leaning at a workshop; no vote was taken.outcome unclear
• 46:36
  Both solid waste bidders are to be invited to town meeting so residents can put questions to them. Agreed in discussion; no vote was taken.outcome unclear
• 51:41
  The board agreed that the health insurance cost-sharing split has to be discussed this budget season rather than deferred again, without settling on any of the options set out. No vote was taken.outcome unclear
• 57:01
  Rather than seeking fresh private health insurance quotes, the earlier comparison done two to three years ago is to be found and used to explain to the budget committee why the town stays with MMA. Agreed in discussion; no vote was taken.outcome unclear
• 57:01
  The workshop was closed without a motion, the chair saying none was needed to close a workshop.outcome unclear

An outcome reads "unclear" where the recording does not state it plainly. The recogniser drops short words, and "the motion does not carry" is one missing word from its opposite.

Worth knowing

• 51:41
  Health insurance rose 11.25 percent, the second double-digit year in a row after a rise close to 10 percent. A family plan costs the town somewhere in the neighbourhood of $17,000 to $20,000, and members said the cost-sharing split can no longer be left undiscussed.
• 36:29
  The board had two solid waste budgets in front of it, one built on Pine Tree and one on a competing hauler, about $12,000 apart in the first year of a three-year contract. Members leaned toward putting both to the voters while recommending Pine Tree, with an unresolved question over whether the competitor's recycling facility takes single-sort.
• 20:30
  The fire department's transport revenue (put at roughly $50,000 a year) goes into its own trust account rather than offsetting the transport and intercept costs the town carries as a budget line each year. One member said this should be changed; changing it would take a town vote.
• 15:19
  The town office roof is thirty years old and an estimate has been obtained. Members noted the town now has a cost picture for roads and for the fire station out ten to fifteen years, but nothing comparable for the town office beyond the roof and the heating system.

Motion language found in the transcript

Located by pattern matching, with no model involved: "I move that", "I'll second", "all those in favour". This is an independent check on the summary above: 1 passage of motion language, against 8 decisions summarised.

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