Budget Committee Meeting ~ February 4, 2025

2025-02-04 · Budget Committee · 2:54:17 · watch on YouTube →

The Budget Committee spent the evening being walked page by page through the proposed 18-month municipal budget, which covers the town's move from a calendar year to a fiscal year. The select board chair and the town manager, Jerry, presented, with Mark, the town's contracted accountant, answering questions on revenue estimates and fund balance. The committee questioned the 3.5 percent aggregate wage adjustment, the conservatism of several revenue lines, the cost of contracted accounting and human resources services, the fire department increases, the grader contract and the fuel estimate. No motions on the budget were taken; the committee agreed to start at page 18 at its next meeting and then take motions for recommendations. The meeting closed with a request that capital purchases be presented to voters at town meeting and a motion to adjourn. Several figures were spoken inconsistently in the recording and are noted as such below.

No written minutes could be matched to this meeting. The transcript records that the speaker changed but never who was speaking, so any name attached to a statement below is inferred from context and is marked (?).

What was discussed

1. 0:03
   Revaluation and its effect on tax bills

   The committee asked how the town avoids losing state funds in future, and was told the answer is doing revaluations more often. The chair said a revaluation does not change the mill rate but shifts who pays, with roughly a third of valuations going up, a third down and a third unchanged. A member said the shrinking homestead exemption reimbursement percentage still raises individual bills.

2. 0:03
   Categorised expenses and fixed costs

   Fixed costs were given as up 1.6 percent overall, with education budgeted at a 6.8 percent increase carried over from last year's actual, and county tax budgeted at a 9 percent increase but showing as down about 26.7 percent because it is paid only once in the 18-month period. The percentages spoken for wages and benefits were inconsistent in the recording.

3. 5:14
   Share of the budget that can be changed

   The chair said fixed costs plus wages and benefits leave a discretionary budget of about 11.7 percent, so cost savings can only come from those lines. The board's direction to the town manager was a level supply of goods and services with nothing new except added human resources capacity, and a salary adjustment not exceeding 3.5 percent in the aggregate, the Northeast cost of living figure.

4. 10:41
   Why department wage lines exceed 3.5 percent

   Asked why administration showed about 15 percent and the fire department about 16 percent against a 3.5 percent cap, the chair said the cap applies to rates in the aggregate, not to hours. Fire calls were up more than 12 percent, and in the town office a resignation led to two part-time staff moving to full time, which added hours and benefits.

5. 10:41
   Paid family medical leave

   The board chose to cover the full 1 percent premium rather than half, on top of the 3.5 percent. The added cost to the town was given both as about $6,000 and as $12,000 in the recording. The chair said if the state raises the rate the town has not budgeted for it.

6. 16:03
   Employee retention

   Heather and the chair said covering the full premium and paying a cost of living adjustment is about keeping staff rather than a response to any threat to leave, noting the number of town office openings within a 25-minute drive and the cost of training replacements. A committee member questioned the assumption that staff would leave without the increase.

7. 21:26
   Funding sources: excise tax

   The committee questioned the estimate for other excise tax, which had fallen between 2023 and 2024 but was budgeted higher. Mark (?) said the non-property tax revenue estimates are conservative in total and that it is better to slightly underestimate revenue than overestimate it. A member asked what happens if something like COVID cuts excise receipts.

8. 26:41
   Permits and fees

   The board raised the fee schedule part way through last year after the code enforcement officer and the board compared Durham's fees with surrounding towns and found some fees cost more staff time than they recovered. Permits and fees are budgeted up 36 percent because the higher fees will be in place for all 18 months. A member thanked the board for finally increasing the fees.

9. 32:36
   Intergovernmental revenue

   Homestead exemption, business equipment tax exemption, veterans exemptions, tree growth and local road assistance are received once in the 18-month period, producing a 17 percent decrease. State revenue sharing was estimated at about $900,000 from actuals, while a state projection released that Monday would work out to about $925,000. A member argued the homestead estimate of $275,000 against a $262,000 actual is too high.

10. 37:46
    Charges for services and ambulance fees

    Charges for services are down about 10.9 percent. The fire chief said the $135,000 ambulance estimate is conservative against $117,000 collected last year, that annualising would suggest about $176,000, and that about $95,000 is currently outstanding because ambulance collections carry on across years. Committee members said $135,000 for 18 months looked low.

11. 43:10
    Whether to adjust revenue estimates

    Asked whether the committee should adjust revenue lines or the use of fund balance, Mark (?) suggested adjusting the revenue amounts the committee thinks are too conservative, naming other excise tax, state revenue sharing, homestead exemption, ambulance fees and interest income. He said to keep an eye on the overall total rather than change the budgeted use of fund balance.

12. 48:16
    Cable franchise fees and interest income

    A member said cable franchise revenue should be falling as households drop cable, and questioned whether the budget assumes more than one payment. The town manager and Mark could not account for an amount in the telecommunications reserve and held the question for the next meeting. Interest income rests on certificates of deposit locked at 5 percent, two of $1.5 million, with about $3 million currently available.

13. 53:34
    Funding requirements by department

    General government is up about 14.1 percent, administration 13.8 percent, assessing down 4.4 percent, information technology up 54 percent after a change of provider, and planning and code enforcement up 3.8 percent. Community services is down about 96 percent because outside organisation requests can be met from the existing recreation reserve.

14. 58:54
    Why taxes rise when requirements fall

    Asked why the tax bill goes up when total requirements are down about half a percent, Mark (?) said he advises clients to keep the tax levy increasing steadily at 3 to 5 percent in good times so the town avoids a sudden large increase later, and cited a client that held flat for two years and then faced a 19 percent increase. The chair added that funding sources are also down because several state payments fall only once in the 18-month period.

15. 1:04:12
    Fund balance and cash flow

    The unassigned fund balance was given as about $3.6 to $3.8 million, above the 15 to 25 percent of expenditures Mark recommends, and the plan is to draw it down slowly rather than zero out a tax increase. In FY 2024 the town budgeted to use $668,000 and used $428,000. Cash on hand falls from about $4.4 million in January to roughly $1 million in June before the tax commitment, so spending the balance down further could force a tax anticipation note.

16. 1:20:35
    Administration line items

    Legal is up 50 percent because the town is moving to a monthly retainer with the town attorney, who is now used for proposed ordinance changes. Part-time staff wages are down 100 percent following the move of two staff to full time. Printing is up because two annual reports fall in the 18-month period.

17. 1:26:28
    Contracted accounting and human resources

    Business services is up 44 percent, made up of $45,000 for the contracted accountant and $20,000 for a human resources consultant over the 18 months. The chair and Heather (?) argued contracting keeps institutional knowledge in place, avoids benefits and office space costs, and that a full-time HR position would cost several times the consultant. Members asked whether existing staff or the payroll company could take the work on and were told no.

18. 1:37:18
    Statement on the town manager form of government

    A committee member said residents were told four years ago that a town manager would bring financial, human resources and grant expertise, and that people are asking why a town manager is needed if the work is being contracted out. The chair replied that in comparable towns the manager holds one job rather than also serving as finance and HR director, and said the town manager is meeting the select board's expectations.

19. 1:43:03
    GPCOG dues and grants

    The GPCOG dues line is $8,000. The chair said the town had received $23,000 in grants through GPCOG as of February 4, including the downtown visioning work, with no town match, and that GPCOG also gives the town group purchasing on salt and fuel.

20. 1:48:06
    Information technology and the move off Trio

    The town changed IT providers after the previous service exposed it to risk, at a cost given as $2,883 a month, with the line adjusted from about $49,400 to $51,000. The town is moving from Trio to Town Cloud, a Brunswick company, on a price locked for ten years; the savings figure was spoken inconsistently. The budget allows overlap between the two systems, with Town Cloud expected online in July. About 960 people are signed up for the town's text notification service.

21. 1:53:18
    Public notice and freedom of access

    A member asked who the town's designated point person is for freedom of access requests and what media are used to post public meetings. The town manager said requests can come to him and that staff handle posting, which depends on the meeting type.

22. 1:53:18
    Fire department budget

    The fire chief explained the increases: three more months of night coverage at about $23,700, a 50 cent minimum wage rise affecting about half the department, call volume up 12 percent, and computer aided dispatch data plans in the vehicles. The department total is up 13.4 percent.

23. 2:03:58
    Mutual aid and stipends

    The chief gave mutual aid figures: 39 EMS calls given and 35 received, 22 fire received and 35 given, consistent year over year, and said the town bills when it transports, including on mutual aid. Two long-standing quarterly stipends, for the deputy of EMS and an assistant chief, have not risen in four years.

24. 2:09:33
    Call volume and safety equipment

    Calls rose from 405 to 455, up 12 percent, with 75 percent medical and car accidents up from 52 to 65. The chief described unfunded state requirements to replace fire helmets every ten years, ten replaced this year at about $400 each, and a possible requirement for two sets of gear at about $4,000 a set for 20 to 22 firefighters, which he is staggering over years.

25. 2:15:33
    Grant reporting and the chief's stipend

    A member asked where grant money is recorded, since grants paid directly to a service provider never pass through the town's books, and asked for a grant page in the annual report. The chief and the chair explained a $5,200 a year stipend for the EMS and emergency management director roles, kept separate from wages because the roles could be held by someone else.

26. 2:21:15
    Public works and the hired grader

    Other contracted services is up 166 percent for a contractor to grade gravel roads twice in 2025 and once in 2026; the grader comes with a driver. A member and Mark both suggested the town set money aside to buy its own grader, and said borrowing one from another town leaves Calvin waiting in line. Paving is down 33 percent because only one paving season falls in the period.

27. 2:26:54
    Winter operations and Calvin's (?) added duties

    Calvin (?) explained that plowing is scheduled by the weather, with 15 and 16 hour days and on-call drivers. A member said Calvin has taken on the cemeteries and building supervision and asked whether his pay reflects that; the reply was that an interim town manager had adjusted it earlier and that Calvin had declined a later raise. The chair said the board went flat this year and would consider a change if the committee indicated support.

28. 2:32:12
    Paving miles, fuel and municipal buildings

    The $400,000 paving line covers about two to two and a half miles at about $30 a foot, and a member said the town is falling behind a ten-year plan for its roughly 40 miles. The fuel line was questioned: $70,000 is budgeted for two winters against $45,000 budgeted and about $35,000 spent last year. Municipal buildings is up 56.7 percent, including a new $15,000 grounds maintenance line that assumes town meeting accepts responsibility for the Sawyer Cemetery.

29. 2:37:48
    Solid waste

    Hauling is up 22.7 percent, built on 5 percent increases for 2025 and 2026 against 2024 tonnage, with the contract guaranteeing the greater of 5 percent or CPI. Bulky waste day falls twice, in May 2025 and May 2026. Members discussed the hauler's plan to supply 64 gallon containers, which the town manager said starts in July 2026 and is outside this budget.

30. 2:43:22
    Community services, debt service and transfers

    General assistance is $11,000, reflecting a state increase in the minimum, and the $16,100 outside organisations line was removed because the recreation reserve holds about $23,742. Debt service is down 31 percent and county tax down 26 percent because of single payments in the period. Transfers to reserves were listed for public works, fire, buildings and grants.

31. 2:48:46
    Capital spending and adjournment

    A member said there is no transparency for residents on what capital equipment is being bought, since the town now level funds reserves and the select board votes to spend from them rather than putting warrant articles before town meeting. The chair agreed to present the ten-year schedule again at town meeting. The next meeting was set for the following Monday at 6:30 pm at the fire station, starting at page 18, after which the committee will take motions for recommendations.

What was decided

• 48:16
  Hold the questions on the cable franchise fee and the amount sitting in the telecommunications reserve until the next meetingtabled
• 2:37:48
  Continue the meeting past the committee's usual stopping time to finish the solid waste sectionpassed
• 2:48:46
  Begin the next meeting at page 18 and take motions for budget recommendations afterwardspassed
• 2:48:46
  Motion to adjourn, moved and secondedoutcome 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

• 5:14
  A committee member challenged the 3.5 percent aggregate wage adjustment on behalf of residents on fixed incomes, saying Social Security rose 2.3 percent while the Medicare deduction rose 5.9 percent, leaving about 1.9 percent. The chair said the board considers this but must also maintain services, and that the committee is free to recommend more use of fund balance instead.
• 1:37:18
  A committee member warned the board to expect the question at town meeting of why the town needs a town manager if accounting and human resources are being contracted out, saying residents were told four years ago the manager would cover those duties. The budget carries $45,000 for contracted accounting and $20,000 for an HR consultant over the 18 months.
• 2:09:33
  Fire and ambulance calls rose from 405 to 455, up 12 percent, with 75 percent of them medical. Ambulance billing reached $117,000, which the chief said is the highest it has been, with about $95,000 still outstanding. Three added months of night coverage account for about $23,700 of the department increase.
• 2:48:46
  A committee member objected that residents no longer see capital purchases as warrant articles, because reserves are level funded and the select board votes to spend from them, and said the ten-year plan on the website will not reach the average resident. The chair agreed to present the schedule again at town meeting.

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 4 decisions summarised.

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