01) OPEN MEETING The Municipal Budget Committee Meeting of Thursday November 16, 2017 was called to order at 7:00 p.m. at the Knightly Meeting Room.

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1 Budget Committee November, MINUTES OF THE BUDGET COMMITTEE MEETING OF November, 0) OPEN MEETING The Municipal Budget Committee Meeting of Thursday November, was called to order at :00 p.m. at the Knightly Meeting Room. 0) PLEDGE OF ALLEGIANCE Chairman Huard opened the meeting with the pledge of allegiance and introduction of members. 0) INTRODUCTION OF MEMBERS MEMBERS PRESENT: Paul Huard, Chairman Steven Chartrain Thomas Plante D.J. Bettencourt Dane Hoover Steven Goddu Bob Bryant (arrived at : PM) OTHER MEMBERS PRESENT: Bernard Campbell, School Board Representative Selectman Jim Keller, Board of Selectmen Representative OTHERS PRESENT: Chris Dillon, Town Manager Nicole McGee, Finance Director Melanie Murray, Accounting and Budget Manager Jeremiah Lamson, Recording Secretary 0) RECEIPT OF MINUTES AND CORRESPONDENCE MOTION by Mr. Goddu to receive the following correspondence: Budget Committee Minutes of November,,, and, School Board Minutes of October,, and November, Summary of Preliminary Votes of November th and th. SECOND by Mr. Chartrain VOTE: -0-0 in favor. Motion passed unanimously MOTION by Mr. Goddu to approve the following meeting minutes: Budget Committee Minutes for September, SECOND by Mr. Chartrain Town of Salem NH Page

2 Budget Committee November, VOTE: -0-0 in favor. Motion passed unanimously. Mr. Campbell stated that the Budget Committee needed to receive the Draft Default Budget from the Town since the law required that the Budget Committee have it before the Public Hearing. MOTION by Mr. Goddu to receive the following correspondence: Draft Town Default Budget SECOND by Mr. Campbell VOTE: -0-0 in favor. Motion passed unanimously 0) MUNICIPAL BUDGET PUBLIC HEARING Chairman Huard stated that he would open the Public Hearing at :0 PM. Stephen Campbell, Shepard Avenue, stated that he had a few questions for the budget Committee before he gave his statement. He asked how many new positions were in this budget. Chairman Huard stated that he could not but he could get the answer. Mr. Stephen Campbell asked if anyone on the board could tell him. Chairman Huard stated that he knew there were eight firefighters and two police officers. There were other positions going from part-time to full-time. Mr. Stephen Campbell asked if there were total new full time positions. Mr. Bettencourt stated that was his understanding. Manager Dillon stated that there were new full-time positions including those being changed from part-time to full-time. Mr. Stephen Campbell stated that was probably a six or seven percent increase in personnel. He asked if there were any union contracts being negotiated this year. Chairman Huard stated that there was nothing settled that he was aware of. Manager Dillon stated that the Town was negotiating with ASFME and the Fire unions. Chairman Huard asked if they would have an agreement by January. Manager Dillon stated that they hoped to have contract agreements before then. Mr. Stephen Campbell stated that would add to the $. increase. Chairman Huard answered yes. Mr. Stephen Campbell stated that there were a lot of one time revenues being used for regular expenses. He cited the State road funds grant and using revenue from the sale of town property to Town of Salem NH Page

3 Budget Committee November, fund the Road Program. It would keep the increase down now but they would have a built in increase already for future years. The third thing was the grant for the new firefighters. It would be different if the money was used for a one-time expense. The expense would be paid for and go away. Using one time revenues for ongoing expenses was different. The Town needed to be open that tax increase would happen going forward when the revenue was gone. Mr. Campbell stated that he still expected it to be a $. cent increase because he saw little change in the proposal from the Budget Committee. He gave the tax impact of the three items. The new firefighter positions would add. cents to the tax rate when the grant ended. The road money was. cents that would be added to the tax rate in the following year. The sale of Town owned land would add. cents. The new positions were only in for half a year and those positions added more taxes in the following year. That added. cents to the tax rate. It was actually. cents. That was a little over. percent for an increase compared to the.% increase from the cent increase this year. He heard that the Board felt that they had to bring people onboard. They would have the revenue when the Tuscan along with the other developments were finished. The Departments had more needs than just this. They expected to need more people as the Tuscan came on. Anyone who thought that these expenses would be taken care of by increased tax revenue from development was not looking carefully. A lot of the Tuscan development was retail. Retail was not doing as well now because the younger generation shopped online. Even the current budget increase was more than inflation. Social Security was getting % which was less than the.% increase. He got the figures from the Town Manager on the tax increases. Mr. Campbell did not expect to change anyone s minds but he thought people were entitled to know that this budget was built on smoke and mirrors from one-time revenues. It would be hard to take the positions away once they were in the budget even if the revenue did not show. These kind of increases were unconscionable when School Budget increases were included. Individuals should not use their savings to buy a house. It was no way to buy a house using money they had not yet received. They would never lose the Town, taxes would just be raised. It was a shaky way to spend money. His comments were mainly for the people watching at home. People were entitled to know. Thank you for your time. Chairman Huard stated that he would give people ten more minutes to arrive. Chairman Huard called a recess at : PM. Chairman Huard called the meeting back to order at : PM Chairman Huard closed the Public Hearing at : PM. 0) MUNICIPAL BUDGET REVIEW Chairman Huard stated that the Budget Committee would vote on the budget on the green pages in the Budget Book. Selectmen MOTION by Mr. Goddu to approve the Selectmen Budget of $,. Town of Salem NH Page

4 Budget Committee November, District Court MOTION by Mr. Goddu to approve the District Court Budget of $,. Town Manager MOTION by Mr. Goddu to approve the Town Manager Budget of $,. Legal MOTION by Mr. Goddu to approve the Legal Budget of $,. Human Resources MOTION by Mr. Goddu to approve the Human Resources Budget of $,. Employee Benefits - $,0,0 MOTION by Mr. Goddu to approve the Employee Benefits Budget of $,0,0. Planning Board MOTION by Mr. Goddu to approve the Planning Board Budget of $,. Board of Adjustment MOTION by Mr. Goddu to approve the Board of Adjustment Budget of $,0. Budget Committee MOTION by Mr. Goddu to approve the Budget Committee Budget of $,0. Town of Salem NH Page

5 Budget Committee November, Conservation Commission MOTION by Mr. Goddu to approve the Selectmen Budget of $,. Trustee of the Trust Funds MOTION by Mr. Goddu to approve the Selectmen Budget of $,000. Town Hall MOTION by Mr. Goddu to approve the Town Hall Budget of $,. Old Town Hall MOTION by Mr. Bettencourt to approve the Old Town Hall Budget of $,. VOTE: --0 in favor with Mr. Hoover and Mr. Bettencourt opposed. Motion passed. Hose House MOTION by Mr. Goddu to approve the Hose House Budget of $,. Old Library MOTION by Mr. Goddu to approve the Old Library Budget of $0,0. School House # MOTION by Mr. Goddu to approve the School House # Budget of $,. Depot Train Station MOTION by Mr. Goddu to approve the Depot Train Station Budget of $,. Town of Salem NH Page

6 Budget Committee November, Finance MOTION by Mr. Goddu to approve the Finance Budget of $,. Information Technology MOTION by Mr. Goddu to approve the Information Technology Budget of $,0. Assessing MOTION by Mr. Goddu to approve the Assessing Budget of,. Town Clerk MOTION by Mr. Goddu to approve the Town Clerk Budget of $,. Elections MOTION by Mr. Goddu to approve the Elections Budget of $,. Collections MOTION by Mr. Goddu to approve the Collections Budget of $,. Tax Collector MOTION by Mr. Goddu to approve the Tax Collector Budget of $,. Debt Service MOTION by Mr. Goddu to approve the Debt Service Budget of $,. Town of Salem NH Page

7 Budget Committee November, Insurance MOTION by Mr. Goddu to approve the Insurance Budget of $,. Community Development MOTION by Mr. Goddu to approve the Community Development Budget of $,. Planning MOTION by Mr. Goddu to approve the Planning Budget of $,0. Police - Administration MOTION by Mr. Goddu to approve the Police Administration Budget of $,. Mr. Hoover stated that he wanted to explain what he was doing. He wanted to cut the money to offset his proposal for another patrol officer but he did not believe the support was there for the offsetting cuts. Mr. Hoover felt strongly about this so he was just going to make a motion to add another police officer instead. MOTION by Mr. Hoover to amend the Police - Administration Budget by increasing Line Clothing Allowance by $,0 to $, for a new Police Administration Budget total of $,. SECOND by Mr. Bryant. Selectman Keller stated that he understood what they were trying to do. The Board looked long and hard at this and supported the plan. They could not spend ahead of the curve and the Board had tried to balance needs with revenues when setting the budget. They felt that the slow and steady increase was more sustainable. He applauded the effort from a philosophical perspective but from a fiscal perspective he did not support it. Mr. Hoover stated that it would add in less than half of the $0,000 that was cut from the Board of Selectmen s proposal. It was still less than what the Board had proposed. He would see if he had the votes for it or not. Chairman Huard stated that he did not want to not support the Selectmen s Budget proposal but he saw the need for more police officers. Town of Salem NH Page

8 Budget Committee November, VOTE: --0 in favor with Selectman Keller and Mr. Campbell opposed. Motion passed. Vote on the amended motion. Police Support Services MOTION by Mr. Goddu to approve the Police Support Services Budget of $,,. MOTION by Mr. Hoover to amend the Police Support Services Budget by increasing Line Ammunition and Line Radio Maintenance by $, for a new Police Support Services Budget total of $,,. SECOND by Mr. Bryant. Mr. Hoover stated that he needed the new bottom line. Ms. Murray stated that it was $,,. Mr. Bettencourt stated that he supported the motion but had an issue with another item in this section and would abstain on the final vote. VOTE: --0 in favor with Selectman Keller and Mr. Campbell opposed. Motion passed. Vote on motion as amended. VOTE: -- in favor with Selectman Keller and Mr. Campbell opposed and Mr. Bettencourt abstaining. Motion passed. Police Patrol MOTION by Mr. Goddu to approve the Police Patrol Budget of $,,. MOTION by Mr. Hoover to amend the Police - Patrol by increasing Line 00 Regular Pay by $,, Line 0 Retirement by $0,, Line Disability Insurance by $, Line Workers Compensation by $,0, Line FICA by $, Line Health Insurance by $,0, Line Unemployment Compensation by $, Line Life Insurance by $, and Line Dental Insurance by $ for a total increase of $,0 and a new Police Patrol Budget total of $,,0. SECOND by Mr. Bettencourt. Ms. Murray gave the new total of $,,0. VOTE: --0 in favor with Selectman Keller and Mr. Campbell opposed. Motion passed. VOTE: --0 in favor with Selectman Keller and Mr. Campbell opposed. Motion passed. Town of Salem NH Page

9 Budget Committee November, Mr. Campbell stated that he believed that the Police Department staffing needed to be adjusted. He would have supported this proposal had it come from the Board of Selectmen. He was supporting the Board of Selectmen s Budget Proposal with his vote. Mr. Campbell understood Mr. Hoover s desire to add officers. That was why he was voting against the motion. Chairman Huard stated that there was one more vote on the Budget before Town Meeting. Manager Dillon answered yes, at the Deliberative Session. Police Community Services MOTION by Mr. Goddu to approve the Police Community Services Budget of $,. Police Investigative Services MOTION by Mr. Goddu to approve the Police Investigative Services Budget of $,,. Police ACO MOTION by Mr. Goddu to approve the Police Animal Control Officer Budget of $0,. Police Station MOTION by Mr. Goddu to approve the Police Station Budget of $0,. Fire Administration MOTION by Mr. Goddu to approve the Fire Administration Budget of $,,. Mr. Bettencourt asked about the canopy that was in the budget that was going to be received as a donation. He asked if that had happened. Manager Dillon stated that the Board accepted a donation for that item. Town of Salem NH Page

10 Budget Committee November, Mr. Bettencourt stated that they would not have to put it in the budget then. He asked if there was a corresponding cut. Chairman Huard stated that was under the Fire Stations Budget, Manager Dillon stated that it was under North Station. Mr. Bettencourt stated that it could be addressed then. Fire Suppression MOTION by Mr. Goddu to approve the Fire Suppression Budget of $,,. Fire Communications MOTION by Mr. Goddu to approve the Fire Communications Budget of $,. Fire Stations MOTION by Mr. Goddu to approve the Fire Stations Budget of $,. Fire Central MOTION by Mr. Goddu to approve the Fire Central Budget of $,. Fire Old North Station MOTION by Mr. Goddu to approve the Fire Old North Station Budget of $,. Fire South Station MOTION by Mr. Goddu to approve the Fire South Station Budget of $,. Town of Salem NH Page 0

11 Budget Committee November, Fire North Station MOTION by Mr. Goddu to approve the Fire North Station Budget of $,. Chairman Huard asked what the value of the canopy was. Manager Dillon answered it was $,00. MOTION by Mr. Bettencourt to amend the Fire North Station Budget by reducing Line Building Maintenance by $,00 to $,00. SECOND by Mr. Hoover. Chairman Huard asked for the new total. Ms. Murray answered $,. Selectman Keller stated that under the Fire Suppression Budget they had an item for replacing breathing apparatus. The bids came in $,000 higher than what was budgeted. They were trying to find the money in the Fire Department Budget instead of increasing the budget for next year. He proposed keeping the money in the budget and using it to offset the overage on the breathing apparatus. Chairman Huard stated that he thought they were working with $,00 for the canopy. Mr. Bryant stated that Selectman Keller was stating that the Town needed to find $,000. He was saying that if this was left in the budget then they would have less to find to offset it. Mr. Bettencourt withdrew his motion. Mr. Hoover withdrew his second. Mr. Plante asked when the issue was discovered. Manager Dillon stated that the bids were received in late last week. He stated that the total cost of the breathing apparatus was $00,000 including the grant that had been received. The entire bid came in $,000 higher than anticipated. Chairman Huard stated that they were paying more than budgeted. Manager Dillon answered yes. Chairman Huard asked if they were getting the canopy too in the budget. Manager Dillon answered no. The money would be put towards the shortfall. Mr. Bryant stated that the Fire Department was getting the canopy through a donation elsewhere. Town of Salem NH Page

12 Budget Committee November, Selectman Keller stated that they were using the money in the budget elsewhere because of the donation. Fire Inspectional Services MOTION by Mr. Goddu to approve the Fire Inspectional Services Budget of $,. Municipal Services Administration MOTION by Mr. Goddu to approve the Municipal Services Administration Budget of $,. Municipal Services Garage MOTION by Mr. Goddu to approve the Municipal Services Garage Budget of $,. Municipal Services Fleet MOTION by Mr. Goddu to approve the Municipal Services Fleet Budget of $,. Municipal Services Streets and Shops MOTION by Mr. Goddu to approve the Municipal Services Streets and Shops Budget of $,0,. Municipal Services Solid Waste MOTION by Mr. Goddu to approve the Municipal Services Solid Waste Budget of $,0. Municipal Services Parks & Property MOTION by Mr. Goddu to approve the Municipal Services Parks & Property Budget of $,0. Town of Salem NH Page

13 Budget Committee November, Municipal Services Engineering MOTION by Mr. Goddu to approve the Municipal Services Engineering Budget of $0,. Municipal Services Lighting/Traffic MOTION by Mr. Goddu to approve the Municipal Services Lighting/Traffic Budget of $,0. Human Services Administration MOTION by Mr. Goddu to approve the Human Services Administration Budget of $,. Human Services Direct Assistance MOTION by Mr. Goddu to approve the Human Services Direct Assistance Budget of $,00. Human Services Outside Services MOTION by Mr. Goddu to approve the Human Services Outside Services Budget of $,000. Community Services Administration MOTION by Mr. Goddu to approve the Community Services Administration Budget of $,. Community Services Ingram Senior Center MOTION by Mr. Goddu to approve the Community Services Ingram Senior Center Budget of $,. Town of Salem NH Page

14 Budget Committee November, Community Services Recreational Facilities MOTION by Mr. Goddu to approve the Community Services Recreational Facilities Budget of $,. Library Administration MOTION by Mr. Goddu to approve the Library - Administration Budget of $,,0. Library Building MOTION by Mr. Goddu to approve the Library Building Budget of $,. Community Contributions MOTION by Mr. Goddu to approve the Community Contributions Budget of $,0. Capital Improvements MOTION by Mr. Goddu to approve the Capital Improvements Budget of $,0,. Sewer Fund Administration MOTION by Mr. Goddu to approve the Sewer Fund Administration Budget of $,,. Sewer Fund Debt Service MOTION by Mr. Goddu to approve the Sewer Fund Debt Service Budget of $,. Sewer Fund Capital Projects MOTION by Mr. Goddu to approve the Sewer Fund Capital Projects Budget of $0,000. Town of Salem NH Page

15 Budget Committee November, Water Fund Administration MOTION by Mr. Goddu to approve the Water Administration Budget of $,,0. Water Operations MOTION by Mr. Goddu to approve the Water Operations Budget of $0,0. Water Buildings MOTION by Mr. Goddu to approve the Water Buildings Budget of $,. Water Debt Service MOTION by Mr. Goddu to approve the Water Debt Service Budget of $,. Water Capital Projects MOTION by Mr. Goddu to approve the Water Capital Projects Budget of $,0. Revenues MOTION by Mr. Goddu to approve the Revenue estimate of $,,. Mr. Hoover asked if the estimate included revenue from the sale of Town property. Selectman Keller stated that the Budget included a revenue estimate for the sale of Town property. The revenue estimates were $0,000 less than what the assessed values of the properties were. Mr. Bettencourt spoke about closing a budget deficit at the State level that came from a budget built on one-time revenues. He had seen the danger of doing that. That was why he would vote no on the Revenue estimate. Chairman Huard stated that the Revenue estimates have usually been conservative. He would support the Town s estimate VOTE: -- in favor with Mr. Hoover and Mr. Bettencourt opposed and Mr. Campbell abstaining. Motion passed. Town of Salem NH Page

16 Budget Committee November, Chairman Huard stated thank you to everyone who participated in the process. Selectman Keller stated thank you to the Budget Committee for their review and supporting the Town s Budget. Mr. Campbell stated that he a couple of notices for the Budget Committee. The first was that the School Board voted on Tuesday to adopt a budget. He expected that the Central Office would send the proposed School Budget around in a PDF version tomorrow. There were two members who requested Budget Books. He wanted to know how they wanted to pick them up. Chairman Huard stated that he would pick up it up at the School District. He asked when they were available for him to come and pick them up. Mr. Campbell stated that the officer was open until PM or the book could be picked up at the Police Station as had been traditional. The books could be picked up there at any time. Chairman Huard asked for the PDF version as well. Mr. Campbell stated that the with the PDF version would be sent to all the members. Mr. Bettencourt stated that he would come by too. Mr. Campbell stated that he would have the books delivered to the Police Department. That would allow the books to be picked up any time before the weekend. He asked to have the Police Department notified of what was happening. Chairman Huard stated thank you. Mr. Campbell stated that the second item involved some discussion about the High School renovations. The new STEM had opened a week ago and the transition was going well. The other news on the renovations was poor. They have four week delay on entering the A wing. That would not be opening until the end of February vacation. They were expecting a report next week on the status of the project. The School Board was advised of some discoveries in the renovation of the A wing. Those discoveries would result in a change order of some magnitude. It was related to compromised steel that was discovered during the renovation of this wing. It would take a lot of money to fix. They may need to request to expend some of their contingency money. The School Board may be sending a request to the Town to authorize the transfer of money from the contingency funds that the School District had been setting aside for that expenditure. The request would then go to the State Department of Education for approval. Chairman Huard asked for the reason that Salem was paying for the work. Mr. Campbell stated that the issue had to do with the existing steel. He stated that the brick walls in the courtyard were intended to be retained. They may have to be removed in order to get to the steel to address the issues that were found. Town of Salem NH Page

17 Budget Committee November, 0 Chairman Huard stated that some of the steel had been exposed for months and asked if it was the other side that had the issue. Mr. Campbell stated that if you looked at the exposed steel then you could find rust and water damage. The issue was discovered two months ago. The School District had had experts in to give opinions on what the damage was and how best to correct the problems. Mr. Hoover thanked the staff and the Department Heads for working with the Budget Committee during this process. They did a great job. Mr. Chartrain thanked them as well. Chairman Huard stated that the next meeting was on November th. MOTION by Mr. Bryant to adjourn the meeting at :0PM. SECOND by Mr. Hoover. VOTE: -0-0 in favor. Motion passed. Minutes recorded by: Jeremiah Lamson Approved: Budget Committee Date: December, Town of Salem NH Page

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